Divis Laboratories Ltd (DIVISLAB)

Healthcare · Pharmaceuticals · NSE · Updated 1 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹9,269 ↑ 51.5% (1Y)

🎯 Key Takeaways

Divi's Laboratories is in a high-growth phase driven by strategic capex and expanding global demand for custom synthesis, with strong margins and no debt. Management is executing a multi-year investment plan to scale API production, supported by robust cash flows and consistent profitability growth.
Revenue grew 8.8% QoQ to ₹3,080 in Q1FY27.
⚠️ 1) Margin pressure from raw material inflation remains a near-term concern, though partially offset by pricing. 2) Execution risk around three major c

Market Cap

₹2.46 L Cr

P/E Ratio

84.1

P/B Ratio

14.68

ROE

17.4%

ROCE

23.0%

Debt/Equity

0.00

Div Yield

0.32%

Promoter

51.9%

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📖 The Story

Divi's Laboratories is in a high-growth phase driven by strategic capex and expanding global demand for custom synthesis, with strong margins and no debt. Management is executing a multi-year investment plan to scale API production, supported by robust cash flows and consistent profitability growth.

📰 What's Happening

In Q1 FY27, the company achieved 10% YoY revenue growth to ₹3,144 crores and ₹902 crores PAT, fueled by export demand and 60% contribution from custom synthesis. Capex on three major projects reached 70% completion with an estimated ₹2,000 crores investment, while unit utilization stands at 80-85%. Management expects double-digit full-year growth despite quarterly volatility, citing pricing as a key tool to manage raw material inflation. The Board approved senior management appointments and reaffirmed capital allocation discipline during the AGM on August 10, 2026.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	2,715	2,604	2,831	3,080
Operating Profit	775	772	814	1,122
OPM %	28.6%	29.6%	28.8%	36.4%
Net Profit	689	583	751	902
EPS	₹25.97	₹21.98	₹28.31	₹33.95

Profitability and revenue have accelerated over the past four quarters, with PAT rising from ₹545 crores in Q3 FY25 to ₹902 crores in Q1 FY27 (consolidated), and revenue growing from ₹2,529 crores to ₹3,144 crores. Operating margins remain stable above 28%, supported by scale and pricing power. Capex intensity is rising, with ₹2,000 crores planned over the next few years to expand capacity in anticipation of sustained export demand.

🔮 Management Outlook & What's Next

Management projects double-digit revenue growth for the full fiscal year despite quarterly lumpiness, attributing this to strong order books and validation batch contributions. Margin pressure from inflation is being mitigated through targeted price increases, with no guidance on capex beyond the ₹2,000 crore estimate. The Chairman emphasized financial resilience and operational discipline during the AGM, reinforcing confidence in execution.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2025	Mar 2026	Mar 2026
Equity Capital	53	53	53	53
Reserves	13,664	14,916	15,360	16,708
Borrowings	8	4	90	0
Total Liabilities	15,586	16,932	18,151	20,033
Fixed Assets	4,654	5,438	5,674	6,528
Investments	85	65	67	69
Total Assets	15,586	16,932	18,151	20,033

The balance sheet remains exceptionally strong, with zero net debt and equity of ₹53 crores offset by ₹16,708 crores in reserves as of March 2026. Total assets grew to ₹20,033 crores, reflecting investments in capex projects. Borrowings remain negligible (₹90 crores as of March 2026), indicating self-funded growth. Reserves have nearly tripled since March 2025, underscoring retained earnings and financial independence.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2026
Operating	+2,738
Investing	-2,219
Financing	-804
Net Cash Flow	-285

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	51.9%	51.9%	51.9%	51.9%
FII	19.4%	20.1%	20.3%	20.2%
DII	19.8%	19.3%	19.2%	19.4%
Public	6.8%	6.6%	6.5%	6.4%
# Shareholders	2,49,634	2,33,844	2,28,006	2,26,324

Institutional interest is rising, with FII holding increasing from 19.39% in Q2 FY26 to 20.29% in Q4 FY26, while DII declined slightly from 19.76% to 19.22%. Promoter holding remains stable at 51.88%. The growing number of retail shareholders (2.26 lakh+) and consistent institutional accumulation suggest broadening confidence. No pledging or significant dilution observed.

⚖️ Peer Comparison — Pharmaceuticals

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
SUNPHARMA	4.61 L Cr	38.1	18.7%	14.6%	0.05
DIVISLAB	2.46 L Cr	84.1	23.0%	17.4%	0.00
TORNTPHARM	1.92 L Cr	80.3	15.1%	25.7%	1.76
ZYDUSLIFE	1.18 L Cr	26.4	16.8%	16.6%	0.43
CIPLA	1.15 L Cr	34.0	13.2%	9.8%	0.01
LAURUSLABS	1.05 L Cr	95.5	20.8%	20.6%	0.45
LUPIN	99,448	17.6	27.9%	24.7%	0.26
MANKIND	98,599	48.2	13.9%	12.7%	0.38
DRREDDY	98,308	30.4	10.1%	8.4%	0.17
AUROPHARMA	94,937	25.8	12.8%	9.8%	0.20

🔗 Peer Stock Analyses

SUNPHARMA TORNTPHARM ZYDUSLIFE CIPLA LAURUSLABS

⚠️ Risk Factors

1) Margin pressure from raw material inflation remains a near-term concern, though partially offset by pricing. 2) Execution risk around three major capex projects — delays or cost overruns could impact timelines. 3) Geopolitical and supply chain volatility may affect export demand and inventory planning. 4) High valuation (P/E 84.1) leaves limited room for earnings misses despite strong growth.

📋 Recent Filings

🧠 Analyst's Read

Divi's Laboratories is executing a disciplined expansion strategy with strong fundamentals and improving profitability, but the elevated valuation demands near-perfect execution. Investors should monitor capex progress, margin trends, and order visibility in the coming quarters.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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