Mumbai, Feb 23 : Shares of Sudarshan Pharma Industries slipped over 3 per cent on Monday after the Goods and Services Tax (GST) department initiated an inspection and search operation at the companyâ??s registered office.

The stock fell 3.06 per cent on the BSE to hit an intra-day low of Rs 25.62 per share. At 1:10 PM, the shares were trading at the same level, down 3.06 per cent.

Over the past one year, Sudarshan Pharmaâ??s stock has declined around 19 per cent, according to the official data.

The decline in the companyâ??s share price came after it informed exchanges that the GST department had initiated an inspection, search and seizure operation at its registered office on February 21, 2026.

In its regulatory filing, the company said it is in the process of collating information and responding to the authorities.

It added that the final report related to the search and seizure will be concluded as per the prescribed procedures.

Despite the recent development, the company had reported improved financial performance for the December quarter.

For Q3FY26, Sudarshan Pharma posted a net profit of Rs 4.15 crore, slightly higher than Rs 3.9 crore reported in the same quarter last year.

Revenue from operations rose sharply to Rs 168 crore, compared to Rs 115.65 crore a year ago.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 23.4 crore, up from Rs 16.6 crore in the year-ago period.

However, the EBITDA margin declined to 22.8 per cent from 39.9 per cent year-on-year.

In its filing, the company said it is focusing on increasing exports and expanding manufacturing sales.

It also highlighted efforts to improve profit margins from the resale of active pharmaceutical ingredients (API) in domestic markets.

According to the company, these initiatives helped it achieve substantial growth in profit after tax during FY25.

/IANS