Whalesbook
Prataap Snacks Limited announced on March 27, 2026, that it received an Income Tax Assessment Order for Assessment Year 2024-25. This order imposes a total tax and interest demand amounting to ₹15,36,16,600, or ₹15.36 crore. The company confirmed it will appeal this order before higher tax authorities.
Prataap Snacks stated it believes it has strong grounds for the appeal and anticipates no negative impact on its financial or operational activities.
This is not the first instance of tax scrutiny for the company. In July 2023, Prataap Snacks underwent search and seizure operations by the Income Tax Department, which subsequently led to a separate tax demand of ₹12.5 crore.
For the second quarter of FY24 (ended December 31, 2023), Prataap Snacks reported revenues of ₹939 crore and a net profit of ₹41.2 crore. In FY23, the company recorded total revenues of ₹1,786.58 crore and a net profit of ₹51.79 crore.
The company operates in India's competitive snack market, alongside peers such as ITC (with its Bingo! brand), Britannia Industries, and Haldiram's. While competitors often have significantly larger revenues and more diversified product portfolios, Prataap Snacks maintains a focus on specific snack categories. Tax disputes are common across the fast-moving consumer goods (FMCG) sector, and how Prataap Snacks navigates this appeal will be closely watched by investors in the sector.
The company's immediate task is to prepare and file its appeal against the ₹15.36 crore demand. The primary risk involves an unfavorable outcome of the appeal, potentially requiring payment of the full demand. Prolonged legal battles could also divert management's attention and company resources.