Divi’s Laboratories (DIVISLAB) Q2 25/26 earnings summary

Executive summary

• Delivered strong Q2 FY2026 results with 17% YoY revenue growth and robust profit expansion, driven by custom synthesis and stable generics volumes despite pricing pressure.

• Maintained operational stability amid global trade shifts, leveraging backward integration and diversified supply chain.

• Continued investments in capacity, technology, and R&D, with three major CapEx programs underway.

• Peptide business gained momentum with a new Center of Excellence and multiple projects in development.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY26, with strong year-over-year growth in revenue and profit.

Financial highlights

• Q2 FY2026 consolidated income: INR 2,860 crore, up 17% YoY; profit after tax: INR 689 crore (vs. INR 510 crore YoY); forex gain of INR 63 crore in Q2.

• H1 FY2026 consolidated income: INR 5,389 crore, up 16% YoY; profit after tax: INR 1,234 crore (vs. INR 940 crore YoY).

• Standalone Q2 FY26 total income: INR 2,806 crore; PAT: INR 696 crore.

• Material consumption at 39.5% of sales revenue for the quarter; exports accounted for 90% of sales, with Europe and US contributing 74%.

• Product mix: 44% generics, 56% custom synthesis in Q2; nutraceuticals revenue at INR 242 crore for the quarter.

Outlook and guidance

• Expectation of continued pricing pressure in generics for the next few quarters, with potential stabilization thereafter.

• Custom synthesis pipeline robust, with several projects expected to move to commercial manufacturing in 1–2 years, subject to regulatory approvals.

• CapEx for FY2026 to exceed previous INR 2,000 crore guidance, driven by new projects and capacity expansion across all units.

• Management commentary highlights continued focus on operational efficiency and growth in the nutraceutical segment.