SPARC’s latest filing announced a ₹27.51‑crore CENVAT credit refund, a win that trims the company’s loss for Q1 to ₹20.78 cr from ₹51.87 cr a year earlier—yet the shares fell 1.17% to ₹194.90 on the BSE.
The Customs, Excise & Service Tax Appellate Tribunal in Mumbai upheld an earlier April 2018 order, dismissing the Revenue’s appeal and confirming SPARC’s entitlement to the refund along with any applicable interest. The 27‑April decision reaffirmed the company’s claim, ending a protracted dispute that had been disclosed in an August 2023 intimation.
Revenue jumped 317% to ₹40 cr, up from ₹9.6 cr a year earlier, while EBITDA loss narrowed to ₹27 cr from ₹48.2 cr YoY. The improvement in top‑line growth is offset by lingering R&D expenses that keep earnings in the red.
In the broader pharma R&D space, peers like Sun Pharma and Dr. Reddy’s have posted mixed fortunes; SPARC’s focus on niche therapeutics keeps it in a high‑cost, low‑margin segment, which explains the persistent loss profile.
SPARC has not yet issued forward guidance for the next quarter, but the refund is likely to bolster liquidity for upcoming pipeline projects. Investors will watch the upcoming earnings call on October 30 for any shift in expectations.