Divi’s Laboratories Ltd reported consolidated revenue of ₹26.04 billion for Q3 FY26, slightly above IBES estimates of ₹25.96 billion. Net profit, however, came in at ₹5.83 billion, missing the forecast of ₹6.18 billion. The results highlight strong topline growth but margin pressures impacting profitability.
Revenue Performance
Divi’s Laboratories posted ₹26.04 billion in consolidated revenue, surpassing analyst expectations of ₹25.96 billion. This reflects resilient demand for active pharmaceutical ingredients (APIs) and custom synthesis services.
Profit Miss
Net profit stood at ₹5.83 billion, below the IBES estimate of ₹6.18 billion. Analysts attribute the shortfall to higher input costs and pricing pressures in export markets.
Sector Drivers
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Strong demand for APIs in global generics markets.
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Custom synthesis contracts continue to support revenue growth.
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Rising raw material costs and currency fluctuations weighed on margins.
Market Sentiment
Investors welcomed the revenue beat but expressed caution over the profit miss. The stock is expected to remain sensitive to margin recovery in upcoming quarters.
Strategic Outlook
Divi’s Laboratories remains focused on expanding its API portfolio, strengthening custom synthesis partnerships, and investing in capacity enhancements to drive long-term growth.
Outlook
Divi’s Laboratories delivered a solid revenue performance in Q3 FY26, but profitability pressures highlight challenges in cost management. With strong demand fundamentals, the company’s strategic investments in APIs and synthesis services are expected to support growth, though margin recovery will be closely watched.
Sources: Reuters, Economic Times, Business Standard, Moneycontrol