Divi's Laboratories Limited (DIVISLAB)
₹9,144.50 +1.27% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Divi's Laboratories' revenue was ₹3,080 Cr (+27.8% year on year, +8.8% on the previous quarter), and net profit ₹902 Cr (+65.5% year on year); the operating margin was 40.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹3,080 | +27.8% | +8.8% |
| Operating profit | ₹1,255 | +72.2% | +34.4% |
| Net profit | ₹902 | +65.5% | +20.1% |
| EPS (₹) | 33.95 | +65.4% | +20.0% |
| Operating margin | 40.7% | — | — |
DIVISLAB delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 61.79% of the DIVISLAB shares traded on NSE were taken to delivery, against the stock's own 20-session average of 63.59%. That is close to its usual level. In DIVISLAB futures, open interest fell 0.02% while the futures price rose 1.11%: short covering (shorts closing out).
Delivery in the last 5 sessions: 62.4% · 58.8% · 68.1% · 65.5% · 61.8%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Divi's Laboratories has submitted its compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate from Registrar and Share Transfer Agent KFin Technologies Limited confirms that securities received for dematerialization were processed and confirmed to depositories. It further confirms that security certificates were mutilated and cancelled within 15 days of verification. This is a recurring statutory filing with no impact on the company's financial or operational performance.
- Compliance certificate submitted under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
- Pertains to the quarter ended September 30, 2026
- Confirmation provided by Registrar & Share Transfer Agent KFin Technologies Limited on October 05, 2026
- Certificates confirmed mutilated and cancelled within 15 days of receipt
Divi's Laboratories concluded its 36th Annual General Meeting on August 10, 2026, where shareholders approved all proposed resolutions with significant majorities. A final dividend of ₹30 per equity share (1,500% of face value) for FY26 was ratified, representing a payout of approximately ₹796 crore based on the share capital. Key leadership re-appointments, including Dr. Kiran S. Divi (CEO) and Mr. N.V. Ramana (Executive Director), were confirmed with over 99.6% approval. The management provided updates on FY26 operations and the outlook for the first quarter of FY27.
- Approved a final dividend of ₹30 per equity share of face value ₹2 each for the financial year 2025-26
- Re-appointment of Dr. Kiran S. Divi as Director confirmed with 99.79% of total votes cast in favor
- Re-appointment of Mr. N.V. Ramana as Director approved with 99.69% of total votes cast in favor
- AGM attended by 150 members representing 12,42,61,211 shares via video conferencing
- Statutory and Secretarial Auditor reports for FY26 contained no qualifications or adverse comments
Divi's Laboratories reported stable volumes in its generic business for Q1 FY27, though pricing remains competitive due to market conditions. A significant ₹500 crore inventory increase was recorded this quarter, far exceeding the usual ₹50-100 crore run rate, driven by validation projects and higher solvent costs. Three major capex programs are nearing completion and entering the validation phase, which is critical for future commercial supply. The company is also scaling its peptide synthesis capabilities and its nutraceutical portfolio, which now exceeds 100 offerings.
- Inventory change surged to ₹500 crore in Q1 FY27, compared to a typical quarterly run rate of ₹50-100 crore.
- Three major capex programs are nearing completion with validation activities currently underway for new products.
- The nutraceutical segment has expanded to over 100 offerings across human and animal health over a 20-year period.
- CSR initiatives reached more than 1.8 million beneficiaries across Andhra Pradesh and Telangana during 2026.
- Unit 3 (Kakinada) is now supporting backward integration and the phased transfer of manufacturing activities.
Divi's Laboratories has released the audio recording of its Q1 FY27 earnings conference call held on August 01, 2026. This follows a fiscal year (FY26) where the company reported a total revenue of Rs 10,560 crore and a net profit of Rs 2,568 crore. The recording provides management's detailed commentary on the performance for the quarter ended June 30, 2026. Investors can access the link to understand the company's progress on its 10-15% growth target and the operationalization of the Kakinada plant.
- Earnings conference call for Q1 FY27 held on August 01, 2026, at 14:00 Hrs IST
- Company reported TTM revenue of Rs 10,560 crore as of the latest annual cycle
- Maintained a strong operating profit margin (OPM) of 32.6% in the preceding periods
- Net profit for the trailing twelve months stands at Rs 2,568 crore
- Company remains debt-free with a net worth of Rs 16,711 crore
Divi's Laboratories reported a strong start to FY27 with consolidated revenue growing 27.8% YoY to Rs 3,080 Cr. Net profit surged 65.5% YoY to Rs 902 Cr, significantly outpacing revenue growth despite a forex loss of Rs 7 Cr. The Board also elevated two veterans, Mr. B. Vara Prasad and Mr. J. Srinivasa Rao (both with 30+ years at the firm), to Senior Management roles to oversee Engineering and Raw Material procurement. The results reflect robust operational performance with Profit Before Tax (PBT) rising 61% YoY to Rs 1,180 Cr.
- Consolidated Revenue from operations increased 27.8% YoY to Rs 3,080 Cr for Q1 FY27
- Consolidated Net Profit (PAT) grew 65.5% YoY to Rs 902 Cr from Rs 545 Cr in the year-ago period
- Profit Before Tax (PBT) reached Rs 1,180 Cr, representing a 61% increase over Q1 FY26
- Appointment of two Senior Management Personnel with over 30 and 31 years of internal experience respectively
- Forex impact shifted to a loss of Rs 7 Cr compared to a gain of Rs 39 Cr in the previous year's quarter
Divi's Laboratories delivered a robust performance for Q1 FY27, with consolidated revenue growing 27.8% YoY to 3,080 Cr. Profit After Tax (PAT) surged 65.5% YoY to 902 Cr, significantly outpacing revenue growth and reflecting strong margin expansion. The company also promoted two internal veterans with over 30 years of experience each to Senior Management roles in procurement and supply chain. Despite a minor forex loss of 7 Cr, the overall operational performance remains highly efficient with PBT margins reaching 37.5%.
- Consolidated Revenue from operations grew 27.8% YoY to 3,080 Cr from 2,410 Cr.
- Net Profit (PAT) increased by 65.5% YoY to 902 Cr compared to 545 Cr in the previous year.
- Profit Before Tax (PBT) margin expanded significantly to 37.5% from 29.0% in Q1 FY26.
- Appointed Mr. B. Vara Prasad and Mr. J. Srinivasa Rao, both with 30+ years at Divi's, to Senior Management.
- Reported a forex loss of 7 Cr for the quarter, reversing a 39 Cr gain in the year-ago period.
Divi's Laboratories has announced the retirement of two Senior Management Personnel, Mr. L. Ramesh Babu (VP Procurement) and Mr. D. Madhu Babu (VP Projects), effective July 31, 2026. These roles are operationally significant for a company with TTM revenues of ₹10,560 Cr and a high operating margin of 32.6%. As these are scheduled retirements, the transition is likely planned within the company's institutional framework. Investors should monitor for successor appointments to ensure no disruption in project execution or supply chain management.
- 2 Senior Management Personnel (SMP) retiring simultaneously on July 31, 2026
- Mr. L. Ramesh Babu held the critical role of Vice President (Procurement)
- Mr. D. Madhu Babu held the role of Vice President (Projects), vital for capacity expansions
- Retirements are effective from the close of business hours on July 31, 2026
Divi's Laboratories has scheduled its Q1 FY27 earnings conference call for August 01, 2026, at 2:00 PM IST. The call will follow the release of unaudited financial results for the quarter ended June 30, 2026. Investors will likely focus on the operational status of the Kakinada plant and the performance of the Custom Synthesis segment, which reported strong growth in previous quarters. The company enters this period with a TTM revenue of Rs 10,560 Cr and a high P/E ratio of 75.5.
- Earnings conference call scheduled for August 01, 2026, at 14:00 hrs IST
- Results to be discussed for the quarter ended June 30, 2026 (Q1 FY27)
- Company reported TTM revenue of Rs 10,560 Cr and TTM PAT of Rs 2,568 Cr
- Operating Profit Margin (OPM) stands at 32.6% as per latest TTM data
- Market capitalization is approximately Rs 1,93,934 Cr
Divi's Laboratories has issued the notice for its 36th Annual General Meeting (AGM) scheduled for August 10, 2026. The company has recommended a final dividend of ₹30 per equity share (1,500% of face value) for FY26, which is subject to shareholder approval at the meeting. The record date for determining dividend eligibility is July 24, 2026, with payments expected to begin on August 14, 2026. This follows a year where the company reported a TTM PAT of ₹2,568 Cr.
- Final dividend of ₹30 per equity share of face value ₹2 (1,500%) recommended for FY26
- Record date for dividend eligibility fixed as Friday, July 24, 2026
- 36th Annual General Meeting scheduled for August 10, 2026, at 10:00 a.m. IST
- Dividend payment to commence from August 14, 2026, post-shareholder approval
- Remote e-voting period set from August 06 to August 09, 2026
Divi's Laboratories has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations for the period ending June 30, 2026. The certificate, issued by KFin Technologies Limited, confirms that securities received for dematerialization were processed and listed on BSE and NSE. It also verifies that physical certificates were mutilated and cancelled within the mandated 15-day period. This is a standard administrative filing required by SEBI to ensure proper record-keeping of shareholder data.
- Quarterly compliance report for the period ending June 30, 2026
- Confirmation of dematerialization processing within 15 days of receipt
- Verification of physical certificate cancellation under SEBI Regulation 74(5)
The promoter group of Divi's Laboratories, led by Dr. Murali K. Divi, has submitted its annual declaration under SEBI Takeover Regulations for the financial year ended March 31, 2026. The promoters confirmed that no encumbrances (pledges), direct or indirect, were made on their shareholding during the period. The total promoter group holding stands at 13,75,67,000 equity shares, representing 51.82% of the company's total capital. This routine filing provides transparency regarding the stability of the promoter's equity stake.
- Total promoter and PAC holding confirmed at 13,75,67,000 equity shares
- Promoter group controls 51.82% of the total diluted equity/voting capital
- Zero encumbrances reported for the entire financial year ended March 31, 2026
- Dr. Kiran Satchandra Divi and Nilima Prasad Divi are the largest holders within the group at 20.34% each
- Divi's Biotech Private Limited holds a 3.01% stake (80,00,000 shares)
Divi's Laboratories has announced the closure of its trading window for designated persons starting July 01, 2026. This is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of financial results for the quarter ended June 30, 2026. The window will remain closed until 48 hours after the results are made public. The specific date for the board meeting to approve these results will be announced separately.
- Trading window closure begins on July 01, 2026.
- Closure is related to the unaudited financial results for the quarter ended June 30, 2026.
- The window will reopen 48 hours after the official declaration of results.
- The board meeting date for result approval is yet to be intimated.
Divi's Laboratories has recommended a final dividend of ₹30 per equity share (1,500% of face value) for the financial year ended March 31, 2026. The company has established July 24, 2026, as the record date to identify eligible shareholders, with the dividend payment scheduled to begin on August 14, 2026. This communication specifically outlines the Tax Deducted at Source (TDS) procedures, requiring a 10% deduction for residents with a valid PAN and 20% for those without. Shareholders seeking tax exemptions or lower withholding must submit necessary documentation by the July 24 cut-off.
- Recommended a dividend of ₹30 per share (1,500% of ₹2 face value) for the financial year 2025-26.
- The record date for determining dividend eligibility is fixed as July 24, 2026.
- Dividend payment will be processed on or after August 14, 2026, following shareholder approval at the AGM.
- Standard TDS rate of 10% applies for resident shareholders with valid PAN; 20% for invalid or unlinked PAN.
- Resident individuals are exempt from TDS if the total dividend amount does not exceed ₹10,000.
Divi's Laboratories reported a robust performance for FY26, with total income reaching ₹11,067 crores, a 14% increase over the previous year. The company maintained a strong product mix with Custom Synthesis (CS) contributing 55% and Generics 45% of revenue. Despite geopolitical tensions affecting logistics in Q4, Divi's capitalized assets worth ₹1,544 crores during the year, including ₹800 crores in the final quarter, signaling significant capacity expansion. The company also reported an improved material consumption rate of 38.8% and a healthy cash position of ₹3,414 crores.
- FY26 Consolidated Total Income grew to ₹11,067 crores from ₹9,712 crores in FY25.
- Custom Synthesis segment contributed 55% of total revenue, reflecting a high-value product mix.
- Capitalized assets worth ₹1,544 crores in FY26, with significant focus on Unit 3 and backward integration.
- One-time exceptional item of ₹74 crores provided for the implementation of new Labour Codes.
- Nutraceuticals business showed strong growth, reaching ₹946 crores compared to ₹781 crores YoY.
Divi's Laboratories reported a strong performance for FY26, with annual revenue growing 13% to ₹10,388 crore and PAT increasing 18% to ₹2,607 crore. The company recommended a final dividend of ₹30 per share, reflecting a payout of 1,500% on face value. Despite a one-time exceptional charge of ₹74 crore related to new labour codes, margins remained resilient. Significant capital expenditure is evident with Capital Work-in-Progress doubling to ₹2,113 crore, indicating aggressive future capacity expansion.
- Annual Revenue from operations grew by 13% YoY to ₹10,388 crore in FY26.
- Net Profit (PAT) for the full year rose 18% to ₹2,607 crore compared to ₹2,209 crore in FY25.
- Board recommended a final dividend of ₹30 per equity share (1,500% of face value) with a record date of July 24, 2026.
- Capital Work-in-Progress (CWIP) surged to ₹2,113 crore from ₹1,022 crore, signaling massive capacity expansion.
- Net cash inflow from operating activities improved significantly to ₹2,711 crore from ₹1,650 crore in the previous year.
Financial Performance
Revenue Growth by Segment
Consolidated total income for H1 FY26 rose to INR 5,389 Cr, a 16% increase from INR 4,640 Cr in H1 FY25. In Q2 FY26, the revenue mix shifted significantly toward Custom Synthesis, which now accounts for 56% of revenue (up from ~40% in previous years), while Generics contribute 44%. The Nutraceutical business contributed INR 242 Cr during Q2 FY26. On a constant currency basis, overall revenue growth for Q2 FY26 was 10.79%.
Geographic Revenue Split
Exports account for 90% of total sales revenue as of Q2 FY26. The combined contribution from Europe and the United States stands at 74%. Historically (FY24), Europe accounted for 52.3% of gross sales (up from 40.3% in FY23), while North America decreased to 17.1% (from 28.9% in FY23) due to varying client requirements.
Profitability Margins
Profit After Tax (PAT) for Q2 FY26 was INR 689 Cr, representing a 35% increase compared to INR 510 Cr in Q2 FY25. Profit Before Tax (PBT) stood at INR 912 Cr compared to INR 722 Cr in the previous year's quarter. Net profit margins are driven by a material consumption rate of 39.5% of sales revenue, which has remained consistent with recent trends.
EBITDA Margin
EBITDA margins have historically moved around 40% but have recently stabilized in the 32% to 33% range. Despite the favorable shift in revenue mix toward high-value Custom Synthesis (56% of revenue), margins have not seen a proportional appreciation due to the underlying product mix and the continued 44% contribution from the more competitive Generics segment.
Capital Expenditure
The company is investing in capacity expansion, specifically the operationalization of the Kakinada plant scheduled for the second half of FY25. While specific total INR Cr for future capex is not fully detailed, the company maintains a strong liquidity position with cash and investments of INR 4,229 Cr as of June 30, 2024, to fund these requirements.
Credit Rating & Borrowing
Divi's maintains a CARE AA+; Stable rating for long-term bank facilities (INR 30 Cr and INR 485 Cr) and CARE A1+ for short-term facilities. The company operates with minimal debt, primarily utilizing un-utilized cash credit limits. There are no debt repayment obligations for FY25, indicating a robust capital structure.
Operational Drivers
Raw Materials
Key raw materials are used for the production of Active Pharmaceutical Ingredients (APIs) like Naproxen, Dextromethorphan, and Gabapentin. Material consumption accounts for 39.5% of total sales revenue. Specific chemical names are not disclosed, but they are categorized under API intermediates and nutraceutical ingredients.
Import Sources
Approximately 45% of raw material consumption is met through imports, providing a partial natural hedge against foreign exchange fluctuations. Specific sourcing countries are not named, but the company maintains a global supply chain to support its 90% export-oriented revenue model.
Capacity Expansion
Divi's is increasing overall capacity with the operationalization of the Kakinada plant in H2 FY25. The company utilizes multi-purpose manufacturing facilities to allow flexibility between generic API production and custom synthesis projects.
Raw Material Costs
Raw material costs (material consumption) represent 39.5% of sales revenue. The company manages these costs through a natural hedge, as 45% of materials are imported while 90% of revenue is exported, mitigating the impact of currency volatility on the cost structure.
Manufacturing Efficiency
Efficiency is driven by running plants at 'full stream' for large-volume products and then stocking them. This strategy optimizes the use of multi-purpose plants for complex custom synthesis projects, which now comprise 56% of the revenue mix.
Strategic Growth
Expected Growth Rate
10-15%
Growth Strategy
Growth is targeted through a 10-15% consistent revenue increase by diversifying revenue concentration (aiming to reduce top 5 product concentration to <30%), operationalizing the Kakinada plant in H2 FY25, and leveraging strong R&D capabilities to increase the share of the Custom Synthesis segment, which has already grown to 56% of the mix.
Products & Services
Active Pharmaceutical Ingredients (APIs) including Naproxen, Dextromethorphan, and Gabapentin; Intermediates; and Nutraceutical ingredients. Services include Contract Research and Manufacturing Services (CRAMS) and Custom Synthesis for global innovator pharma companies.
Brand Portfolio
Divi's Laboratories (USA) Inc. and Divi's Laboratories Europe AG (subsidiaries).
New Products/Services
The company is continuously adding to its Custom Synthesis portfolio, which saw its 'best ever' revenue performance in Q2 FY26. Specific new product names are often protected by confidentiality agreements with innovators.
Market Expansion
Expansion is focused on increasing the utilization of the Kakinada plant and deepening relationships with top global pharmaceutical companies in regulated markets (US and Europe).
Market Share & Ranking
Divi's is a leading global player in specific APIs like Naproxen and Gabapentin, maintaining an established market position in the CRAMS segment.
Strategic Alliances
The company maintains long-term contracts and confidentiality agreements with major global innovator pharmaceutical companies for custom synthesis and CRAMS.
External Factors
Industry Trends
The pharmaceutical industry is evolving with a high focus on product quality, safety, and regulatory compliance. There is an increasing trend toward outsourcing to CRAMS providers like Divi's, which is positioning itself by expanding capacity and focusing on complex chemistry.
Competitive Landscape
The company competes with global and domestic API manufacturers. It stays competitive by optimizing processes and upgrading multi-purpose plant capacities to maintain a cost-competitive and fast delivery structure.
Competitive Moat
The moat is built on extensive promoter experience (30+ years), proven R&D capabilities, and long-standing relationships with global innovators. This is sustained by the high switching costs for customers in the Custom Synthesis segment due to regulatory filings and technical complexity.
Macro Economic Sensitivity
The company is sensitive to global trade patterns and geopolitical shifts. However, its 10.79% constant currency growth suggests resilience against minor macro fluctuations.
Consumer Behavior
Not applicable as the company is a B2B API and CRAMS provider.
Geopolitical Risks
Geopolitical developments are noted as factors affecting supply chains. The company's high exposure to US and Europe (74% of revenue) makes it vulnerable to trade policy changes in these regions.
Regulatory & Governance
Industry Regulations
The industry is highly regulated by authorities like the USFDA. Non-compliance can lead to import alerts, product recalls, and regulatory bans, which would severely impact the 90% export revenue base.
Environmental Compliance
Divi's invested in sustainability, reducing ~19,000 tCO2e GHG emissions and conserving ~130,300 KL of water in FY24. It also installed RO plants in 133 schools as part of its social progress initiatives.
Legal Contingencies
The company faces potential litigation risks common in the pharma industry related to product withdrawals or regulatory actions, though no specific high-value pending court cases were detailed in the provided text.
Risk Analysis
Key Uncertainties
Key risks include regulatory non-compliance (potential for import alerts), revenue concentration in top 5 products (risk if >60%), and significant forex volatility affecting the INR 2,006 Cr net asset exposure.
Geographic Concentration Risk
High geographic concentration with 74% of revenue derived from the US and Europe. Any regional regulatory shift or trade barrier in these markets would have a high impact on total income.
Third Party Dependencies
Dependency on global suppliers for 45% of raw material requirements, making the company vulnerable to international supply chain disruptions.
Technology Obsolescence Risk
The company mitigates technology risk through continuous R&D and upgrading multi-purpose manufacturing facilities to handle evolving complex chemistry requirements.
Credit & Counterparty Risk
The company maintains a high collection period to support client relationships, but liquidity remains comfortable with INR 4,229 Cr in cash and investments, mitigating counterparty credit risk.
