Nephrocare Health Services gets Uzbek tax demand of ₹15 crore declared invalid

Nephrocare Health Services (NSE: NEPHROPLUS) said in a filing on 02 Nov 2026 that the Tashkent Inter-District Administrative Court has declared invalid a tax demand of about ₹14.79 crore raised on its overseas subsidiary Nephrocare Health Services Central Asia LLC. The court decision is dated 27 Oct 2026.

Key highlights

• Aggregate demand declared invalid: ₹14.79 crore excluding late-payment interest
• Net additional tax: ₹11.50 crore; penalty: ₹3.29 crore
• Court decision dated 27 Oct 2026, received by NCA on 2 Nov 2026
• Reconsideration by Tax Department due within 30 days of decision entering into force

The tax demand in numbers

The court's grounds and the decision

The court allowed NCA's application and declared invalid Decision No. 721.1 dated 24 Aug 2026, under which the demand was raised. The company says the assessment and penalty are no longer operative.

The court found procedural irregularities: no prior notice of the audit, an extension of the audit period after its expiry, and review of the audit materials without NCA's participation. It also held that the underlying tax calculations required verification.

What happens next

The Court has directed the Tax Department to reconsider the audit materials, taking into account the documents submitted by NCA. The company says, citing the decision, that the outcome cannot worsen NCA's position compared with the invalidated decision.

The reconsideration is pending and is to be completed within 30 days of the decision entering into force. The decision can be appealed to the Tashkent City Administrative Court within one month of its issuance. The company says it will continue to monitor the matter.

What the court decision means for Nephrocare Health Services' shareholders

The demand of about ₹14.79 crore was raised on the Uzbek subsidiary, which is wholly owned by the company. The company is an healthcare services provider with a market value of ₹6,264 crore at the 02 Nov 2026 close, and its latest quarter reported total income of ₹289.21 crore and net profit of ₹31.97 crore.

The filing does not say whether the Tax Department has begun the reconsideration, what outcome it will reach, or whether either side will appeal. It does not state any financial impact on the company's results. The next dated step is the reconsideration, due within 30 days of the decision entering into force.