Divi’s Laboratories (DIVISLAB) Q2 24/25 earnings summary

Executive summary

• Achieved significant revenue growth in Q2 FY25, with consolidated total income reaching INR 2,444 crores, up from INR 1,995 crores YoY, and profit after tax at INR 510 crores versus INR 348 crores YoY, driven by expanding market opportunities and successful diversification across portfolios.

• For H1 FY25, consolidated total income was INR 4,640 crores, up from INR 3,854 crores YoY, and profit after tax was INR 940 crores compared to INR 704 crores YoY.

• Custom synthesis division saw increased demand and customer engagement, focusing on long-term partnerships and supply chain resilience.

• Generic business faced pricing pressure but maintained volume growth and a robust pipeline of products advancing toward regulatory approvals in the US and Europe.

• Standalone total income for Q2 FY25 was INR 2,407 crores, with profit after tax at INR 518 crores, both showing significant year-over-year growth.

Financial highlights

• Consolidated Q2 FY25 revenue from operations: INR 2,338 crores; total income: INR 2,444 crores; profit after tax: INR 510 crores.

• Standalone Q2 FY25 revenue from operations: INR 2,302 crores; total income: INR 2,407 crores; profit after tax: INR 518 crores.

• H1 FY25 consolidated total income reached INR 4,640 crores, up from INR 3,854 crores YoY; profit after tax for H1 was INR 940 crores (vs. INR 704 crores YoY).

• Exports accounted for 87% of total sales revenue in H1, with Europe and US contributing 71%.

• Forex gain for Q2 FY25: INR 27 crores standalone, INR 29 crores consolidated; nutraceutical business contributed INR 406 crores.

Outlook and guidance

• Future generic product launches expected to contribute to revenues from 2026 onwards, with several products in qualification and regulatory stages.

• Contrast media volumes expected to grow 20%-30% year-on-year, with ongoing customer qualifications and long-term contracts.

• Unit 3 (Kakinada) greenfield expansion to begin phase-wise production in December 2024, supporting further growth and capacity.

• CapEx for FY25 projected at INR 1,600 crores, with future CapEx expected to normalize as expansion shifts from greenfield to brownfield.

• The company continues to focus on its core business of APIs, intermediates, and nutraceutical ingredients, with no discontinued operations reported.