Morepen Laboratories wins ₹118 crore GST case

Morepen Laboratories Limited has won relief from the Himachal Pradesh High Court, which quashed a GST recovery notice of ₹117.94 crore, plus applicable interest and penalties. The notice alleged an excess GST refund claim under Rule 89(4) of the CGST Rules, 2017. The court ruled in the company's favour on October 12, 2026. The stock gained 5% on October 14, closing at ₹128.33 on the NSE. My view: The ruling removes a significant legal overhang, but it is not a direct earnings trigger. Morepen has stated that the order will not affect its financials or operations. The next key signals are quarterly results, margin trends and sustained price strength. Stance: Legally positive, but not a standalone buy signal.

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