Earnings Review
Divi's Lab Q1 PAT up 60% YoY, much higher than estimates
This story was originally published at 13:38 IST on 1 August 2026
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By Narayana Krishna
HYDERABAD – Divi's Laboratories Ltd. Saturday reported a net profit of INR 8.9 billion for the June quarter, up nearly 60% on year and much above analysts' estimates. The net profit growth for the quarter is the best in the past six quarters.
The company's revenue from operations also exceeded the Street's estimates with over a 26% on-year jump to INR 29.7 billion. Analysts had estimated Divi's Laboratories' June quarter net profit at INR 6.37 billion on a revenue of INR 27.62 billion.
Sequentially, the company's net profit was up by nearly 18% while revenue increased by 6.5%.
Most analysts had projected Divi's Laboratories to report healthy numbers for the June quarter led by significant traction in its custom synthesis business. Divi's Laboratories makes specialty and high-value chemicals and active pharmaceutical ingredients for its global customers.
For June quarter, the company booked a foreign exchange loss of INR 70 million against a gain of INR 390 million in the year-ago quarter.
Despite healthy growth in revenues, the company managed to curtail its costs, limiting the rise in total expenses to 8.3% on year to INR 18.7 billion. However, cost of materials consumed for the quarter rose by 51% on year to INR 14.95 billion. Other expenses for the quarter rose by 11.4% to INR 4.1 billion.
Divi's Laboratories tax expenses for the quarter rose by 44% on year to INR 2.7 billion. On Friday, Divi's Laboratories shares closed 2.82% higher at INR 8,056 apiece on the National Stock exchange. End
Edited by Deepshikha Bhardwaj
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