Divis Laboratories Ltd (DIVISLAB) — concall transcript | 30 June 2026

Divi's Laboratories reported standalone revenue of ₹3,037 crores for Q1 FY27 (ended June 30, 2026), up 10% in constant currency, with profit after tax at ₹891 crores. Nutraceuticals contributed ₹298 crores, and exports accounted for 90% of standalone revenue, primarily to Europe and North America. Custom synthesis made up 60% of revenue, growing steadily despite regulatory lumpiness. Capex progress reached 70% of ₹2,000 crores across three projects, with inventory increased by ₹500 crores to ₹4,413 crores due to raw material cost pressures and supply chain resilience efforts. Margins improved slightly YoY, supported by product mix, though gross margins (~68% quarterly) are not sustainable. Management highlighted ongoing FDA inspections, DMF filings, and pipeline progress on 18-20 projects, including contrast media. Volatile solvent pricing from Middle East disruptions and geopolitical risks remain key concerns.