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Informist, Wednesday, Aug. 6, 2025

By Akash Mandal

MUMBAI – Divi's Laboratories Ltd.'s June quarter bottom line grew at a higher pace than the trailing quarter but missed analysts' estimates. Its revenue growth was higher than the trailing quarter, but came in below the Street's view.

The Chennai-based pharmaceutical major reported a net profit of INR 5.57 billion in the June quarter, up nearly 30% on year but lower than analysts' estimates of INR 6 billion. Sequentially, the net profit fell over 16%. The company's revenue came in at INR 23.57 billion, up 14% on year but down 7% sequentially. Analysts had estimated the company's top line at INR 24.79 billion. The pharma company's other income rose to INR 1.19 billion in the June quarter from INR 790 million a year ago. It reported a foreign exchange gain of INR 390 million during the quarter against a loss of INR 10 million in the year-ago quarter.

The robust on-year growth in the June quarter was likely on the back of an increase in volumes in its two major segments--generic active pharmaceutical ingredients and nutraceuticals, and custom synthesis of active pharmaceutical ingredients and specialty ingredients. New launches in the contrast media segment and higher capacity utilisation were also seen driving growth.

The company's total expenses rose 12% on year but fell 2% sequentially to INR 17.29 billion. Its raw material cost, which is its biggest expense, rose 12% on year to INR 9.89 billion. Other expenses came in at INR 3.67 billion, up nearly 11% on year. Employee benefits expense also rose nearly 16% to INR 3.30 billion. Its depreciation and amortisation expenses rose 15% on year to INR 1.12 billion. 

In the March quarter, the company had reported a net profit of INR 6.67 billion on revenues of INR 25.36 billion. At 1220 IST, the stock was 2.6% lower at INR 6,242.50 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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