Income Tax Adds Rs 93.58 Crore to FirstCry’s Income; Rs. 31.36 Crore Tax Demand Raised

Brainbees Solutions Limited, the listed parent company of FirstCry, received an assessment order and consequential notice of demand dated 30 January 2026 from the Assistant Commissioner of Income Tax, for Assessment Year 2022-23. The order was served electronically on the same day. In the assessment, the tax authority made additions aggregating to Rs. 93.57 crore to the company’s returned income, comprising disallowance of ESOP expenses and a transfer pricing adjustment. Based on these additions, a tax demand of Rs. 31.36 crore has been raised.

The company disclosed the development to the stock exchanges under Regulation 30 of the SEBI LODR Regulations and stated that it intends to challenge the assessment.

The assessment order dated 30 January 2026 resulted in additions of Rs. 82.73 crore on account of disallowance of ESOP expenses and Rs. 10.85 crore towards transfer pricing adjustments, leading to a total tax demand of Rs. 31.36 crore. The company has taken the position that both issues are contestable: the ESOP expenditure claim is supported by settled judicial precedents and has been allowed in its own case in earlier years, while the transfer pricing adjustment involves interpretational and comparability disputes.

Assessee has stated that it will file an appeal before the Income Tax Appellate Tribunal in due course and that, apart from the tax demand raised, the order does not have any material impact on its financial or operational activities.

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