Submission of transcript of Earnings Conference Call held on May 23, 2026
DIVISLAB · price
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Divi's Laboratories reported Q4 FY26 total income of ₹2,986 crores with PAT of ₹751 crores, and full year total income of ₹11,067 crores with PAT of ₹2,568 crores, representing 14% YoY revenue growth. The company faced supply chain disruptions due to geopolitical tensions in West Asia affecting raw material availability (particularly methanol and solvents) and freight costs, though no production stoppages occurred. Management guided for double-digit revenue growth while stating margins would 'remain stable' rather than return to historical 38% levels, citing ongoing generic pricing pressure and raw material cost increases. Unit 3 at Kakinada is increasingly contributing to operations with ₹600 crores of a ₹1,500 crores expansion capitalized. The peptide business has validated several fragments with more in pipeline, and the company aims to be among the largest global peptide players. Custom synthesis contributed 55% of revenue with strong project pipeline across various development stages.
Investors should note management's cautious outlook: while the company maintains strong cash position (₹3,414 crores) and sees double-digit growth opportunities, margin expansion beyond current ~32% levels remains uncertain due to cost pressures and competitive generic pricing. The timeline for revenue from new dedicated capacity projects remains tied to customer regulatory approvals.