Dr Lal PathLabs Limited disclosed on Thursday that the Income Tax Department has filed an appeal before the Income Tax Appellate Tribunal (ITAT), New Delhi, challenging an earlier ruling in the company’s favour. The company received intimation of the appeal on October 7, 2026.
The appeal targets an order passed by the Commissioner of Income Tax (Appeals) under Section 250 of the Income Tax Act, 1961, which had granted the company relief on disallowances of Employee Stock Option Plan (ESOP) expenses worth ₹32.66 crore for assessment year 2022-23.
This disclosure is the latest development in a tax dispute dating back to an assessment order the company received in April 2024, followed by an appellate order in its favour in July 2026.
The company said it does not expect the ITAT appeal to affect its operations materially.
Dr Lal PathLabs shares closed at ₹1,898.90 on the NSE on Thursday, down 2.38 per cent from the previous close of ₹1,945.10, though the broader market also weakened. The stock trades at a trailing P/E of 59.76 and has a market capitalisation of approximately ₹31,873 crore. Year-to-date, the stock has returned 25.70 per cent, significantly outperforming the Nifty 500.