Sudarshan Pharma Shares Drop Over 3% Following GST Raid
Synopsis
Sudarshan Pharma Industries faced a significant stock drop after a GST department raid. Despite this setback, the company reports improved quarterly profits, highlighting resilience amid challenges.
Key Takeaways
Stock Decline: Sudarshan Pharma's shares fell by over 3% due to GST inspection.
Recent Financial Performance: The company reported a net profit increase in Q3FY26.
Revenue Growth: Revenue surged to Rs 168 crore from Rs 115.65 crore year-on-year.
Focus on Exports: The company is expanding its export initiatives.
Profit Margin Strategies: Efforts underway to improve margins on API resale.
Mumbai, Feb 23 (NationPress) The stock price of Sudarshan Pharma Industries experienced a decline of more than 3 percent on Monday following a search and seizure operation conducted by the Goods and Services Tax (GST) department at the company’s registered office. The shares dropped by 3.06 percent on the BSE, reaching an intra-day low of Rs 25.62 per share. As of 1:10 PM, the stock remained at this level, reflecting the same percentage decrease.
Over the last year, Sudarshan Pharma’s stock has fallen by approximately 19 percent, according to official statistics.
This drop in share price followed the company’s notification to exchanges regarding the GST department's inspection, which commenced on February 21, 2026.
In their regulatory filing, the company mentioned that it is currently gathering information and preparing a response for the authorities involved.
The conclusion of the search and seizure report will be conducted according to the established procedures, as stated by the company.
Despite these recent developments, Sudarshan Pharma reported a positive financial performance for the December quarter.
In Q3FY26, the company recorded a net profit of Rs 4.15 crore, a slight increase from Rs 3.9 crore in the same quarter of the previous year.
Revenue from operations surged to Rs 168 crore, compared to Rs 115.65 crore a year prior.
The earnings before interest, tax, depreciation, and amortization (EBITDA) rose to Rs 23.4 crore, up from Rs 16.6 crore year-on-year.
However, the EBITDA margin saw a decrease, falling to 22.8 percent from 39.9 percent year-on-year.
In its filing, the company emphasized its focus on increasing exports and expanding manufacturing sales.
Additionally, it highlighted efforts to enhance profit margins from the resale of active pharmaceutical ingredients (API) in domestic markets.
These initiatives contributed significantly to achieving substantial growth in profit after tax during FY25.
Point of View
The decline in Sudarshan Pharma's stock amid GST scrutiny raises concerns about regulatory impacts on businesses. Nevertheless, their improved financial outcomes suggest a strong underlying performance, warranting attention from investors.
NationPress
1 May 2026
Frequently Asked Questions
Why did Sudarshan Pharma's stock drop?
The stock dropped due to a search and seizure operation initiated by the GST department at the company's registered office.
How much did Sudarshan Pharma's stock decline?
The stock declined by over 3 percent, specifically 3.06 percent, reaching an intra-day low of Rs 25.62.
What was Sudarshan Pharma's net profit for Q3FY26?
Sudarshan Pharma reported a net profit of Rs 4.15 crore for Q3FY26, an increase compared to the previous year's Rs 3.9 crore.
What initiatives is Sudarshan Pharma taking to improve margins?
The company is focusing on increasing exports and enhancing profit margins from the resale of active pharmaceutical ingredients (API).
How has the stock performed over the past year?
Over the past year, Sudarshan Pharma’s stock has declined by around 19 percent.
