Divis Laboratories Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Divis Laboratories Ltd filed with BSE on 29 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Divi's Laboratories reported consolidated total income of Rs 2,986 crore for Q4 FY26 and Rs 11,067 crore for the full year, with profit after tax of Rs 751 crore for the quarter and Rs 2,568 crore for the year. Management described disruption to raw material and logistics supply chains from geopolitical tensions in West Asia, including force majeure invocations by suppliers and rising freight rates, though it said this had not caused production stoppages or revenue loss. Management said generic volumes remained steady while pricing stayed under pressure, and that capital work in progress stood at Rs 2,113 crore at year end.
Numbers mentioned
Consolidated total income: ₹2,986 crores (Q4 FY26)
p. 5
“For the quarter, the company recorded a consolidated total income of ₹2,986 crores.”
Nilima Prasad Divi, page 5 of the filed PDF · View the filing
Profit before tax: ₹963 crores (Q4 FY26)
p. 5
“Profit before tax for the quarter stood at ₹963 crores as against ₹864 crores for the corresponding quarter of previous financial year.”
Nilima Prasad Divi, page 5 of the filed PDF · View the filing
Profit after tax: ₹751 crores (Q4 FY26)
p. 5
“Profit after tax for the current quarter stands at ₹751 crores.”
Nilima Prasad Divi, page 5 of the filed PDF · View the filing
Forex gain: ₹90 crores (Q4 FY26)
p. 5
“The company also reported a forex gain of ₹90 crores for the Q4.”
Nilima Prasad Divi, page 5 of the filed PDF · View the filing
Consolidated total income: ₹11,067 crores (FY26)
p. 5
“For the financial year 2025-'26, the company recorded a consolidated total income of ₹11,067 crores compared to ₹9,712 crores in the previous financial year.”
Nilima Prasad Divi, page 5 of the filed PDF · View the filing
Profit before tax: ₹3,388 crores (FY26)
p. 5
“Profit before tax for the year stood at ₹3,388 crores after accounting for the impact of Labour Codes amounting to ₹74 crores as against ₹2,916 crores in the previous financial year.”
Nilima Prasad Divi, page 5 of the filed PDF · View the filing
Profit after tax: ₹2,568 crores (FY26)
p. 6
“Profit after tax for the current financial year was ₹2,568 crores compared to ₹2,191 crores in the previous year.”
Nilima Prasad Divi, page 6 of the filed PDF · View the filing
Forex gain: ₹211 crores (FY26)
p. 6
“The company also reported a forex gain of ₹211 crores during the year against a gain of ₹48 crores in the previous financial year.”
Nilima Prasad Divi, page 6 of the filed PDF · View the filing
Labour Codes one-time impact: ₹74 crores (FY26)
p. 6
“the company assessed a onetime incremental impact of ₹74 crores towards employee benefits during and post-employment.”
Nilima Prasad Divi, page 6 of the filed PDF · View the filing
Material consumption as % of sales: approximately 38.8% (FY26)
p. 6
“Material consumption during the current financial year stood at approximately 38.8% of sales revenue compared to 39.8% in the previous year.”
Nilima Prasad Divi, page 6 of the filed PDF · View the filing
Exports as % of total sales revenue: nearly 89% (FY26)
p. 6
“Exports contributed nearly 89% of the total sales revenue with Europe and United States together accounting for approximately 74% of the export revenue.”
Nilima Prasad Divi, page 6 of the filed PDF · View the filing
Generics to Custom Synthesis product mix: 45% and 55% (FY26)
p. 6
“The product mix between generics and custom synthesis for the year was at 45% and 55%, respectively.”
Nilima Prasad Divi, page 6 of the filed PDF · View the filing
Constant currency growth: 6.82% (FY26)
p. 6
“Constant currency growth for the year was 6.82%.”
Nilima Prasad Divi, page 6 of the filed PDF · View the filing
Nutraceuticals revenue: ₹946 crores (FY26)
p. 6
“Revenue from nutraceuticals business for the current financial year amounted to ₹946 crores compared to ₹781 crores in the previous financial year.”
Nilima Prasad Divi, page 6 of the filed PDF · View the filing
Capitalized assets: ₹1,544 crores (FY26)
p. 6
“During the year, the company capitalized assets worth ₹1,544 crores, out of which approximately ₹800 crores is capitalized in the last quarter.”
Nilima Prasad Divi, page 6 of the filed PDF · View the filing
Capital work in progress: ₹2,113 crores (as of March 31, 2026)
p. 6
“Capital work in progress as of March 31, 2026 stood at ₹2,113 crores.”
Nilima Prasad Divi, page 6 of the filed PDF · View the filing
Cash and cash equivalents: ₹3,414 crores (as of March 31, 2026)
p. 6
“As on March 31, 2026, the Company's Cash and Cash equivalents stood at ₹3,414 crores, Receivables at ₹2,984 crores and Inventories at ₹3,954 crores.”
Nilima Prasad Divi, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — double-digit growth
stated as an aspiration by Nilima Prasad Divi
p. 7
“we would say that as historically that we always look for a double-digit growth in our revenues, and that's what we would also say today.”
Nilima Prasad Divi, page 7 of the filed PDF · View the filing
EBITDA margin — FY27
stated conditionally by Nilima Prasad Divi
p. 7
“I mean with the change in scenarios, I would say it's difficult to project, but we would say it would remain stable.”
Nilima Prasad Divi, page 7 of the filed PDF · View the filing
Freight-related cost pressure — near term
stated firmly by Nilima Prasad Divi
p. 5
“Freight-related cost pressures are expected to continue in the near term, and we have incorporated these factors into our planning for the coming quarters.”
Nilima Prasad Divi, page 5 of the filed PDF · View the filing
Capex for next fiscal year — FY27
stated conditionally by Nilima Prasad Divi
p. 17
“I would say the capex for the following year, unless we see any major custom synthesis project or any new project that's in our way, it would be a constant capex.”
Nilima Prasad Divi, page 17 of the filed PDF · View the filing
Dedicated capacity commercialization — commercialization by 2027 · 2027
stated conditionally by Dr. Kiran S. Divi
p. 14
“We are hopeful by 2027 it will be commercialized or earlier or maybe later.”
Dr. Kiran S. Divi, page 14 of the filed PDF · View the filing
Revenue accrual from recent capex — 2-year range · 2 years
stated as an aspiration by Dr. Kiran S. Divi
p. 15
“So to be optimistic, we believe we would like to be in the 2-year range, which is comfortable.”
Dr. Kiran S. Divi, page 15 of the filed PDF · View the filing
Peptide business scale — one of the largest global players
stated as an aspiration by Dr. Kiran S. Divi
p. 17
“We are quite strong and committed towards this segment, and we are targeting to be one of the largest global players in the world.”
Dr. Kiran S. Divi, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said sourcing remains difficult but there have been no production stoppages, and it is being reviewed on a quarter-to-quarter basis.
Answered by Nilima Prasad Divi
Asked by Surya Patra: Whether the worst of the raw material supply chain issue is behind the company or Q1 will see incremental challenges, particularly around methanol.
p. 7
“If you're asking me what we are currently going through, yes, we are having difficulty in sourcing material, but we are not having any production stoppages at our end.”
Nilima Prasad Divi, page 7 of the filed PDF · View the filing
Management attributed most of the capex to late-quarter capitalization and said constant currency figures are less meaningful given currency volatility.
Answered by Nilima Prasad Divi
Asked by Amey Chalke: Why constant currency growth was only around 6% despite heavy capex and capacity additions.
p. 8
“It's something that we foresee that we would look at a regular revenue growth rather than a constant currency growth rate at this point in time because the currency is fluctuating quite strongly.”
Nilima Prasad Divi, page 8 of the filed PDF · View the filing
Management cited generic pricing pressure and rising material costs as the reasons margins settled around 32%, and said returning to 38% depends on market conditions.
Answered by Nilima Prasad Divi
Asked by Amey Chalke: What has changed in margins compared to the historic 37-38% levels and whether the company can return to them.
p. 9
“to answer your question about when would we go back to 38%, that's something we dearly wish for that we also go back to 38%, which also depends on the market conditions.”
Nilima Prasad Divi, page 9 of the filed PDF · View the filing
Management said most generic APIs are backed by long-term contracts with variability clauses that allow cost pass-through to customers.
Answered by Dr. Kiran S. Divi
Asked by Neha Manpuria: Whether raw material availability is coming at higher prices and whether the company can pass on cost inflation in the generic segment.
p. 9
“we have -- most of our APIs on the generic segment are backed by long-term contracts, which have variability clauses, which protects us from such situations.”
Dr. Kiran S. Divi, page 9 of the filed PDF · View the filing
Management said there was no revenue loss from the logistics disruptions in the quarter.
Answered by Nilima Prasad Divi
Asked by Abhigyan Srivastav: Whether Q4 saw any revenue loss due to logistics issues.
p. 12
“No, we haven't had any loss of revenue because of the logistics issues in the last quarter.”
Nilima Prasad Divi, page 12 of the filed PDF · View the filing
Management said it has completed validation and supplied customers, and remains hopeful of 2027 commercialization though timing depends on customer regulatory approvals.
Answered by Dr. Kiran S. Divi
Asked by Ritika: Whether the first dedicated contract's original Jan 2027 operational timeline remains on track.
p. 14
“Everything is subjected to regulatory approvals for our customer who in turn would tell us as and when we need to supply commercial quantities.”
Dr. Kiran S. Divi, page 14 of the filed PDF · View the filing
Management said it could not comment on volume, pricing or costing since the technology is owned by customers, and that it is trying to keep margins close to current levels amid rising costs.
Answered by Dr. Kiran S. Divi
Asked by Shyam Srinivasan: Whether new long-term supply agreements for custom synthesis, being larger scale, would drive margins higher.
p. 16
“what I can say is with the ongoing costs, increase in cost on raw materials, okay, there is a -- there is -- we are trying to minimize the impact by discussing with several of our customers and trying to stabilize it to keep the numbers almost close to what we are achieving right now.”
Dr. Kiran S. Divi, page 16 of the filed PDF · View the filing
Management said currency depreciation would benefit the export-oriented business but a rupee appreciation would also have a negative impact given heavy export exposure.
Answered by Nilima Prasad Divi
Asked by Kunal Dhamesha: Whether INR depreciation against major currencies would more than offset rising raw material and freight costs.
p. 16
“Would the fluctuations benefit? Yes, it would. But when tomorrow the rupee drops, would it also impact? Yes, it would, because we are heavily on exports and we are not in the domestic that much.”
Nilima Prasad Divi, page 16 of the filed PDF · View the filing
Risks flagged
Geopolitical tensions in West Asia disrupted global trade routes, causing port congestion and extended transit timelines.
p. 5
“the escalation of geopolitical tensions in West Asia created disruptions across several global trade routes and logistics corridors.”
Nilima Prasad Divi, page 5 of the filed PDF · View the filing
Suppliers invoked force majeure clauses and freight rates rose across ocean and air transportation.
p. 5
“a number of suppliers invoked force majeure clauses, while freight rates across both ocean and air transportation started increasing considerably.”
Nilima Prasad Divi, page 5 of the filed PDF · View the filing
Container and tank availability was constrained toward the end of the quarter.
p. 5
“container and tank availability was somewhat constrained during the end of the quarter, adding further complexity to the movement of materials.”
Nilima Prasad Divi, page 5 of the filed PDF · View the filing
Freight-related cost pressures are expected to continue in the near term.
p. 5
“Freight-related cost pressures are expected to continue in the near term, and we have incorporated these factors into our planning for the coming quarters.”
Nilima Prasad Divi, page 5 of the filed PDF · View the filing
Generic segment continues to face pricing pressure.
p. 8
“Generics has slight pricing pressure, but our customers also understand what's happening in the market and they have been very understanding”
Dr. Kiran S. Divi, page 8 of the filed PDF · View the filing
Rising raw material prices affecting the business, exacerbated by the ongoing conflict.
p. 9
“But again, with the war, we are seeing rise in prices.”
Nilima Prasad Divi, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.