Divi’s Laboratories reported a 13% year-on-year rise in consolidated net profit to Rs 751 crore for the quarter ended March 31, 2026, supported by higher sales and steady performance in its custom synthesis business. Revenue from operations increased 10% to Rs 2,831 crore from Rs 2,585 crore a year earlier, while EBITDA grew 5% to Rs 934 crore.
For FY26, the company posted revenue of Rs 10,560 crore, up 12.8% from Rs 9,360 crore in FY25, while recurring PAT rose 17.2% to Rs 2,642 crore. EBITDA for the full year climbed 16% to Rs 3,441 crore, with EBITDA margin at 32.6%.
The company said its custom synthesis business remained a key growth driver, with revenue at Rs 15.6 billion in the quarter, up 18% year-on-year. Growth in the segment was aided by traction in existing products and the benefit of a weaker rupee, even as management noted that some commercialisation timelines remain dependent on customer regulatory approvals.
The generics business, however, continued to face pricing pressure. Revenue in the segment declined 3% year-on-year to Rs 10.3 billion, even as volumes stayed healthy across the portfolio. The report attributed margin pressure to competitive pricing and higher raw material costs.
Gross margin for the quarter stood at 60.5%, while EBITDA margin was 33%, in line with estimates. The company also reported an exceptional item of Rs 740 crore in the corresponding quarter last year, while FY26 included a one-time impact of Rs 74 crore linked to the labour code notification.
Management said it expects double-digit revenue growth in FY27 and hopes to maintain margins at stable levels, though it refrained from giving a precise target due to uncertainty around raw material and freight costs. It also said the current capex cycle, including the Kakinada expansion, could start contributing revenue in about two years, depending on customer approvals.
