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Divi's Labs Q3FY26: Total Income Up 12% to ₹2,692 Cr; PAT Stable at ₹583 Cr Post-Exceptional Item
Divi's Laboratories reported a 12% year-on-year increase in total income to ₹2,692 crores for Q3FY26, driven by strong performance in Custom Synthesis and Nutraceuticals. While Profit Before Tax (pre-exceptional) grew to ₹854 crores, the bottom line was impacted by a one-time ₹74 crore exceptional charge related to new government labor codes. The company continues to shift its mix toward Custom Synthesis, which now accounts for 57% of revenue. Management confirmed that GLP-1 pilot and commercial blocks are completed and currently undergoing validation.
Key Highlights
Total income for Q3FY26 rose to ₹2,692 crores from ₹2,401 crores in the previous year.
Custom Synthesis segment contributed 57% of revenue, while Generics accounted for 43%.
Material consumption costs improved to 36.3% of sales, down from 39.8% in Q3FY25.
Exceptional item of ₹74 crores recognized due to revised employee benefit obligations under new labor codes.
Capital work in progress (CWIP) remains high at ₹2,394 crores, focusing on GLP-1 capacity and Unit 3 expansions.
💼 Action for Investors
Investors should focus on the improving gross margins and the progress in the high-growth GLP-1/Peptide segment which is nearing commercialization. The one-time exceptional hit is non-recurring, and the underlying operational strength remains robust with a successful US FDA inspection at Unit 1.
Divi's Labs Q3 FY26 Consolidated Revenue up 12% YoY to ₹2,604 Cr; PAT Flat at ₹583 Cr
Divi's Laboratories reported a 12.3% YoY growth in consolidated revenue at ₹2,604 crore for Q3 FY26. However, consolidated net profit remained nearly flat at ₹583 crore, compared to ₹589 crore in the previous year, primarily due to a one-time exceptional charge of ₹74 crore related to new Labour Codes. On a sequential basis, revenue and PAT declined by 4.1% and 15.4% respectively. Despite the flat PAT, the 9-month consolidated profit shows a healthy 18.8% growth YoY reaching ₹1,817 crore.
Key Highlights
Consolidated Revenue from operations grew 12.3% YoY to ₹2,604 crore.
Consolidated Net Profit stood at ₹583 crore, down 1% YoY, impacted by a ₹74 crore exceptional item.
Profit Before Tax (before exceptional items) increased 17.6% YoY to ₹854 crore.
Nine-month (9M FY26) consolidated PAT grew 18.8% YoY to ₹1,817 crore.
Forex gain for the quarter was significantly lower at ₹18 crore compared to ₹64 crore in the previous quarter.
💼 Action for Investors
Investors should look past the one-time exceptional labour code impact and focus on the steady 12% top-line growth. While sequential performance was soft, the 9-month growth trajectory remains positive for long-term holders.