Divi’s Laboratories (DIVISLAB) Q2 24/25 earnings summary

Executive summary

• Achieved significant revenue growth in Q2 FY25, with consolidated total income reaching INR 2,444 crores, up from INR 1,995 crores YoY, and profit after tax at INR 510 crores versus INR 348 crores YoY.

• H1 FY25 consolidated income was INR 4,640 crores, up from INR 3,854 crores YoY; H1 profit after tax was INR 940 crores (vs. INR 704 crores YoY).

• Custom synthesis division saw increased demand and customer engagement, focusing on long-term partnerships and supply chain resilience.

• Generic business experienced pricing pressure but maintained volume growth and a robust pipeline of products advancing toward regulatory approvals.

• Standalone total income for Q2 FY25 was INR 2,407 crores, with PAT at INR 518 crores, both showing significant year-over-year growth.

Financial highlights

• Consolidated total income for Q2 FY25 was INR 2,444 crores; profit after tax was INR 510 crores.

• H1 FY25 consolidated income reached INR 4,640 crores; H1 profit after tax was INR 940 crores.

• Standalone Q2 FY25 revenue from operations: INR 2,302 crores; total income: INR 2,407 crores; PAT: INR 518 crores.

• Forex gain for H1 FY25 was INR 28 crores (vs. INR 14 crores YoY); Q2 FY25 forex gain: INR 27 crores standalone, INR 29 crores consolidated.

• Material consumption held steady at about 41% of sales revenue for H1 FY25.

Outlook and guidance

• Future generic product launches expected to contribute to revenue from 2026 onwards, with several products in qualification and regulatory stages.

• Contrast media segment shows strong growth potential, with projects moving from qualification to commercial supply.

• Peptide business expected to scale as regulatory approvals are obtained; commercial supplies may begin within 12-15 months, subject to approvals.

• Unit 3 greenfield facility to start production in December 2024, with full phase I utilization expected in 6-7 months.

• The company continues to focus on its core business of APIs, intermediates, and nutraceutical ingredients, with no discontinued operations reported.