Divi's Laboratories Limited Earnings Summary — Q4 FY2026
Divi's Labs Reports Record Quarterly Revenue and Strong Net Profit Growth in Q4 FY2026
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹3,080 Cr is 27.8% higher year-on-year.
- Revenue has compounded at 13.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹902 Cr is 65.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 25.8% annualised across the period.
- Operating margin stands at 40.8% in Q1 FY2027.
- Operating margin expanded by 1050 bps year-on-year.
- Over the last two years operating margin has expanded by 1138 bps.
- PBT margin is 38.3%.
- Expense growth of 8.6% remained below revenue growth of 27.8%.
- Operating profit of ₹1,255 Cr is 72.2% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 91/100 (Excellent) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 3,080 | 2,831 | 2,604 | 2,715 | 2,410 | 2,585 | 2,319 | 2,338 | 2,118 | 2,303 |
| Expenses | Stable | 1,825 | 1,897 | 1,714 | 1,827 | 1,681 | 1,699 | 1,576 | 1,622 | 1,496 | 1,572 |
| Operating Profit | Improving | 1,255 | 934 | 890 | 888 | 729 | 886 | 743 | 716 | 622 | 731 |
| Operating Margin | Improving | 40.8% | 33.0% | 34.2% | 32.7% | 30.3% | 34.3% | 32.0% | 30.6% | 29.4% | 31.7% |
| Other Income | Volatile | 64 | 155 | 14 | 145 | 119 | 86 | 82 | 106 | 79 | 79 |
| Interest | Volatile | 6 | 6 | 6 | 8 | 3 | 1 | — | 1 | — | 2 |
| Depreciation | Improving | 133 | 120 | 118 | 113 | 112 | 107 | 99 | 99 | 97 | 95 |
| Profit Before Tax | Improving | 1,180 | 963 | 780 | 912 | 733 | 864 | 726 | 722 | 604 | 713 |
| Tax | Improving | 278 | 212 | 197 | 223 | 188 | 202 | 137 | 212 | 174 | 175 |
| Net Profit | Improving | 902 | 751 | 583 | 689 | 545 | 662 | 589 | 510 | 430 | 538 |
| Net Margin | Improving | 29.3% | 26.5% | 22.4% | 25.4% | 22.6% | 25.6% | 25.4% | 21.8% | 20.3% | 23.4% |
Key Takeaways
- Revenue hit a quarterly record of ₹2,831 Cr, reflecting strong demand in core API and custom synthesis segments.
- Net Profit surged nearly 29% sequentially to ₹751 Cr, supported by higher other income and effective tax management.
- Capital Work-in-Progress (CWIP) skyrocketed to ₹2,113 Cr, signaling a massive upcoming capacity expansion phase.
- The balance sheet remains exceptionally strong with negligible debt and total reserves exceeding ₹16,700 Cr.
- Operating margins (OPM) stabilized at 33%, showcasing the company's resilient cost leadership despite global pricing pressures.
- Annual revenue surpassed the ₹10,000 Cr milestone for the first time in the company's history.
Management Guidance
Management focus remains on long-term capacity building through internal accruals and maintaining high compliance standards with global regulators.
Sentiment Shift
Improving
A strong sequential recovery in net profit and record-breaking topline performance indicates the company is entering a new growth leg.
Outlook
The outlook is highly positive driven by the commissioning of massive new capacities currently in CWIP and a sustained dominant position in high-volume generic APIs.
From the Annual Report (Key Quotes)
“The company maintains a near-debt-free status while funding massive capital expenditures from internal accruals.”
“Divi's is characterized by industry-leading margins and a robust balance sheet.”
“Leadership has successfully navigated USFDA inspections with minimal disruptions compared to peers.”
Official Quarterly Documents
This summary is AI-generated from Divi's Laboratories Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.