This article first appeared on GuruFocus .
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Consolidated Total Income (Q3 FY 2026):INR 2,692 crores, up from INR 2,401 crores in Q3 FY 2025.
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Profit Before Exceptional Item and Tax (Q3 FY 2026):INR 854 crores, compared to INR 726 crores in Q3 FY 2025.
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Profit Before Tax (After Exceptional Item) (Q3 FY 2026):INR 780 crores.
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Profit After Tax (Q3 FY 2026):INR 583 crores, compared to INR 589 crores in Q3 FY 2025.
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Material Consumption (Q3 FY 2026):36.3% of sales revenue, down from 39.8% in Q3 FY 2025.
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Exports (Q3 FY 2026):89% of total sales revenue, with Europe and U.S. contributing 73% of export sales.
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Product Mix (Q3 FY 2026):43% generics and 57% custom synthesis.
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Foreign Exchange Gain (Q3 FY 2026):INR 19 crores.
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Nutraceutical Revenue (Q3 FY 2026):INR 214 crores.
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Consolidated Total Income (9 months ended Dec 31, 2025):INR 8,081 crores, up from INR 7,041 crores in the previous year.
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Material Consumption (9 months ended Dec 31, 2025):38.5% of sales revenue, down from 40.9% in the previous year.
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Exports (9 months ended Dec 31, 2025):89% of total sales revenue, with Europe and U.S. contributing 72% combined.
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Product Mix (9 months ended Dec 31, 2025):44% generics and 56% custom synthesis.
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Foreign Exchange Gain (9 months ended Dec 31, 2025):INR 121 crores.
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Nutraceutical Revenue (9 months ended Dec 31, 2025):INR 706 crores, up from INR 576 crores in the previous year.
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Profit Before Exceptional Items and Tax (9 months ended Dec 31, 2025):INR 2,499 crores, up from INR 2,052 crores in the previous year.
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Profit Before Tax (After Exceptional Item) (9 months ended Dec 31, 2025):INR 2,425 crores.
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Profit After Tax (9 months ended Dec 31, 2025):INR 1,817 crores, up from INR 1,529 crores in the previous year.
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Capitalized Assets (Q3 FY 2026):INR 313 crores.
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Capitalized Assets (9 months ended Dec 31, 2025):INR 776 crores.
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Capital Work in Progress (as of Dec 31, 2025):INR 2,394 crores.
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Cash and Cash Equivalents (as of Dec 31, 2025):INR 3,686 crores.
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Receivables (as of Dec 31, 2025):INR 2,637 crores.
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Inventories (as of Dec 31, 2025):INR 3,667 crores.
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Warning! GuruFocus has detected 3 Warning Signs with BOM:532488.
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Is BOM:532488 fairly valued? Test your thesis with our free DCF calculator.
Release Date: February 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Divi's Laboratories Ltd ( BOM:532488 ) reported a consolidated total income of INR2,692 crores for Q3 FY 2026, up from INR2,401 crores in the same quarter last year, indicating improved operating performance.
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The company maintained a strong export performance, with exports constituting approximately 89% of total sales revenue, and Europe and the United States contributing 73% of export sales.
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The Nutraceutical segment delivered a healthy performance, contributing INR214 crores to the revenue, and marking 20 years of Divi's Nutraceuticals.
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Divi's Laboratories Ltd successfully concluded a US FDA general CGMP inspection at its Unit 1 Choutuppal facility, reaffirming its commitment to quality and regulatory compliance.
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The company has been actively engaged in several RFPs and customer visits in the Custom Synthesis segment, with multiple projects progressing well and moving closer to commercial volumes over the next year.
Negative Points
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The pricing environment in the Generics segment remains competitive, impacting value growth despite healthy volume traction.
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The company faced a one-time incremental impact of INR74 crores relating to employee benefit obligations due to changes in labor codes, which was disclosed as an exceptional item.
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Raw material prices and availability, while broadly stable, are subject to potential pressures due to external developments such as China's withdrawal of export tax rebates.
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The company is operating at 70% to 80% capacity utilization, indicating potential constraints in meeting future demand without further capacity expansion.
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There is uncertainty regarding the impact of geopolitical developments and evolving policy frameworks on the company's operations and input costs.
Q & A Highlights
Q: Can you provide an update on the GLP-1 capacity buildup and the progress of the pilot plant? A: Kiran Divi, CEO: We have completed the construction of a pilot plant and a commercial building with large-scale SPPSs designed for a customer's requirements. Validations are ongoing, and we are moving towards commercialization.
Q: Regarding the three dedicated custom synthesis facilities, are any related to peptides? A: Kiran Divi, CEO: I cannot comment specifically, but it involves a mixture of projects, including chemistry.
Q: What is the current capacity utilization, and how are you progressing with new opportunities? A: Kiran Divi, CEO: We are operating at 70% to 80% capacity utilization. Validations for several products are ongoing, and we are preparing for commercialization once regulatory approvals are obtained.
Q: How does the India-EU FTA impact your business, and do you see any opportunities? A: Kiran Divi, CEO: It's too early to comment on the impact of the India-EU FTA as it has just been implemented.
Q: Can you explain the hedging policy for your business exposure? A: Nilima Prasad Divi, Whole-Time Director: We are not currently hedging but are evaluating the market scenario.
Q: What is driving the improvement in gross margins this quarter? A: Nilima Prasad Divi, Whole-Time Director: The improvement is mainly due to the product mix, with an increase in custom synthesis.
Q: Can you provide details on the dedicated CapEx announced in 2024 and its expected commissioning? A: Kiran Divi, CEO: Investments are ongoing, and we expect commercialization by 2027, post customer approvals.
Q: How are you addressing the impact of China's withdrawal of export tax rebates on procurement? A: Nilima Prasad Divi, Whole-Time Director: We are diversifying our procurement portfolio and increasing our domestic supplier base to mitigate the impact.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
