Q2 2026 Divi's Laboratories Ltd Earnings Call Transcript
Key Points
- Divi's Laboratories Ltd (BOM:532488) reported a 17% increase in consolidated total income for Q2 FY26, reaching INR2,860 crore compared to INR2,444 crore in the same quarter of the previous year.
- The company achieved a profit before tax of INR912 crore, up from INR722 crore in Q2 FY25, and a profit after tax of INR689 crore, compared to INR510 crore in the previous year.
- Exports accounted for 90% of total sales revenue, with Europe and the United States contributing a combined 74%, showcasing strong international demand.
- The custom synthesis segment showed significant growth, with a product mix of 56% custom synthesis and 44% generics, indicating a strategic shift towards higher-margin offerings.
- Divi's Laboratories Ltd (BOM:532488) is actively investing in new technologies and expanding capacities, with three major CapEx programs backed by long-term supply commitments, positioning the company for future growth.
- The generic segment continues to face pricing pressures, resulting in a low single-digit decline in performance despite stable volumes.
- There is uncertainty regarding the duration of pricing pressures in the generic business, with no clear timeline for stabilization.
- The company is experiencing ongoing shifts in trade patterns and geopolitical developments, which could affect supply chain stability.
- Despite significant investments, the timeline for revenue realization from new projects remains uncertain, with expectations set for the next one to two years.
- The company faces challenges in maintaining margins due to the mix of generics and custom synthesis, with generics experiencing significant pricing pressures.
Ladies and gentlemen, good day and welcome to the earnings conference call of Divi's Laboratories Limited for Q2 FY26. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. M. Satish Choudhury. Thank you, and over to you, sir.
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Good afternoon to all of you. My name is Satish Choudhury, Company Secretary and Chief Investor Relations Officer of Divi's Laboratories Limited. I welcome you all to the earnings call of the company for the quarter and half year ended September 30, 2025.
From Divi's Labs, we have with us today Dr. Kiran S. Divi, Whole-Time Director and Chief Executive Officer; Ms. Nilima Prasad Divi, Whole-Time Director, Commercial; and Mr. Venkatesa Perumallu Pasumarthy, Chief Financial Officer.
During the day, our Board has approved unaudited financial results for the quarter and half year ended September 30, 2025, and we have released the same to
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