Q1 2027 Divi's Laboratories Ltd Earnings Call Transcript
Key Points
- Strong financial performance with consolidated total income up 29.4% YoY to INR3,144 crore and profit after tax up 65.5% to INR902 crore.
- Custom synthesis business contributed 60% of revenue, driven by progress on multiple projects including validation batches for three major CapEx programs.
- Backward integration strategy, including in-house production of key starting materials and intermediates, enhances supply assurance and operational efficiency.
- Peptides remain a strategic focus with capacity expansion in solid-phase and liquid-phase synthesis, positioning the company for future growth.
- Nutraceutical segment grew 19.2% YoY to INR298 crore, reflecting a strong portfolio of over 100 products.
- Persistent pricing pressure in the generic business due to competitive market conditions across products and geographies.
- Elevated solvent costs and raw material price volatility, exacerbated by geopolitical tensions in West Asia, impacting input costs.
- Global logistics challenges, including high freight rates, port congestion, and extended transit times, increased operational complexity.
- Net Forex loss of INR7 crore in Q1 FY27 compared to a gain of INR39 crore in the prior year, negatively impacting profitability.
- Uncertainty regarding the timeline for regulatory approvals and commercial ramp-up of validated projects, with management unable to provide specific guidance.
Ladies and gentlemen, good day, and welcome to the earnings conference call of Divi's Laboratories Limited for Q1 FY27. (Operator Instructions) Please note that this conference has been 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 to the earnings call of the Divi's Laboratories Limited for the first quarter of FY27.
From Divi's Labs, we have with us today, Dr. Kiran Divi, Whole-Time Director and CEO; Ms. Nilima Prasad Divi, Whole-Time Director, Commercial; and Mr. Venkatesa Pasumarthy, Chief Financial Officer.
During the day, our Board has approved unaudited financial results for the quarter ended June 30, 2026, and we have released the same to the stock exchanges as well as updated in our
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