Divi’s Laboratories (DIVISLAB) Q3 24/25 earnings summary

Executive summary

• Achieved steady growth in revenue and operations, driven by generic and CDMO segments, with increased customer engagement and RFPs in custom synthesis.

• Unaudited financial results for Q3 and nine months ended December 31, 2024, were approved, showing strong year-over-year growth in revenue and profit.

• Commissioned part of Phase I of Unit Three (Kakinada), enhancing backbone integration and manufacturing capabilities.

• Maintained stability in generics despite industry price pressures; expect easing as new products are added.

• Nutraceuticals division continues to gain market share, with future growth expected as capacity expands.

Financial highlights

• Consolidated total income for Q3 FY25: INR 2,401 crores (up from INR 1,950 crores YoY); nine-month total income: INR 7,041 crores (up from INR 5,804 crores YoY).

• Profit before tax for Q3 FY25: INR 726 crores (up from INR 489 crores YoY); PAT: INR 589 crores (up from INR 358 crores YoY).

• Nine-month PBT: INR 2,052 crores (up from INR 1,450 crores YoY); PAT: INR 1,529 crores (up from INR 1,062 crores YoY).

• Forex gain of INR 38 crores for the nine months (vs. INR 32 crores YoY).

• Standalone Q3 total income was INR 2,379 crores; PAT was INR 594 crores.

Outlook and guidance

• Double-digit growth targeted on a yearly basis, with some quarters expected to outperform.

• Margins and growth will depend on product mix and expansion plans; operational costs for new units expected to be in line with existing units.

• Kakinada Phase I to be fully operational in six months, with further expansion and regulatory approvals to drive future growth.