Divi’s Laboratories (DIVISLAB) Q4 24/25 earnings summary

Executive summary

• FY 2025 saw strong operational execution amid global volatility, supply chain disruptions, and competitive pressures, especially in generics.

• Maintained leadership in generics through process innovation and efficiency; custom synthesis segment showed robust momentum with new long-term contracts.

• Peptides and contrast media businesses gained traction, supported by strategic investments in advanced manufacturing technologies.

• Kakinada Unit III greenfield project commenced commercial operations in Q4 FY2024-25, supporting backward integration and supply security.

• Corporate social responsibility initiatives impacted over 1.3 million lives in FY 2025.

Financial highlights

• FY 2025 consolidated total income: INR 9,712 crore (up from INR 8,184 crore YoY); PAT: INR 2,191 crore (up from INR 1,600 crore YoY).

• Q4 FY 2025 consolidated total income: INR 2,671 crore (up from INR 2,382 crore YoY); PAT: INR 662 crore (up from INR 538 crore YoY).

• Forex gain for FY 2025: INR 48 crore.

• Assets capitalized in FY2024-25: INR 1,118 crore, including INR 755 crore for Unit III.

• Cash on books: INR 3,696 crore; receivables: INR 2,855 crore; inventory: INR 3,033 crore as of March 31, 2025.

Outlook and guidance

• Management targets consistent double-digit revenue growth for FY 2026 and beyond.

• Procurement and logistics expected to remain stable, with proactive measures to mitigate ongoing global shipping disruptions.

• Kakinada backward integration benefits to be realized progressively; further expansion based on market opportunities.

• Commercial impact from new long-term custom synthesis contracts expected by late 2026 or early 2027, subject to regulatory approvals.

• Board recommended a final dividend of ₹30 per share for FY2024-25, to be paid after AGM approval.