Divi’s Laboratories (DIVISLAB) Q4 24/25 earnings summary

Executive summary

• FY2025 was marked by external volatility, geopolitical uncertainties, and supply chain constraints, especially in generics due to competition.

• Maintained leadership in generics through pricing strategies, process optimization, and capacity building.

• Custom synthesis segment saw strong momentum, with major long-term supply agreements signed for advanced intermediates.

• Peptides business gained traction, supported by investments in solid and liquid phase synthesis.

• Unit III greenfield project at Kakinada commenced commercial operations in Q4 FY2024-25.

Financial highlights

• FY25 consolidated income: INR 9,712 crore (up from INR 8,184 crore YoY); PAT: INR 2,191 crore (up from INR 1,600 crore YoY).

• Q4 FY25 consolidated income: INR 2,671 crore (up from INR 2,382 crore YoY); PAT: INR 662 crore (up from INR 538 crore YoY).

• Forex gain of INR 48 crore in FY25 (vs. INR 30 crore in FY24).

• Assets capitalized in FY2024-25: INR 1,118 crore, including INR 755 crore for Unit III.

• Material consumption steady at 40% of sales revenue.

Outlook and guidance

• Double-digit revenue growth targeted for FY26 and beyond.

• Procurement and logistics expected to remain stable, with proactive measures to mitigate global shipping disruptions.

• Commercial impact from new long-term contracts expected by late 2026 or early 2027, subject to regulatory approvals.

• Board recommended a final dividend of INR 30 per share for FY2024-25, to be paid after AGM approval.

• 35th AGM scheduled for August 11, 2025; record date for dividend is July 25, 2025.