DIVISLAB
Large CapDivi's Laboratories Limited
Pharma
Divi's Laboratories is an Indian API and Custom Synthesis manufacturer. The company focuses on execution discipline, supply reliability, and long-term capacity and capability requirements. It operates in generics, custom synthesis, and peptides, with a significant portion of its revenue derived from exports.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 42/100margin compression · Rev +10% YoY · PAT +13% YoY · +9% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,831 Cr | +9.5% | +8.7% |
| EBITDA | ₹934 Cr | +5.4% | +4.9% |
| Operating margin | 33.0% | -100 bps | -100 bps |
| PAT | ₹751 Cr | +13.4% | +28.8% |
| PAT margin | 26.5% | +92 bps | +414 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Divi's Labs reported Q4 FY26 consolidated total income of 2,986 crores, with PBT at 963 crores, up from 864 crores YoY. Full year FY26 consolidated total income grew to 11,067 crores from 9,712 crores YoY, with PBT at 3,388 crores (vs 2,916 crores YoY).
The company maintained stable operations and strengthened capabilities despite a complex global backdrop. Strong customer engagement in Custom Synthesis and stable generic volumes, supported by long-term contracts, underpin performance. Investments in capacity and technology continue, positioning for future growth, though margin expansion faces external cost pressures.
Revenue by Product Mix (FY26)
Latest issuer-disclosed distribution across 2 reported categories.
Custom Synthesis Pipeline
Project pipeline remains active with molecules progressing through development to near commercialization.
Peptide Business Expansion
Deepening capabilities and strategic investment in synthesis, with validated fragments and strong customer engagement across therapeutic categories.
Existing Generic Portfolio
Volumes across key generic products have maintained and remained stable through the quarter and full year, with steady demand.
New Generic Product Launches
New products are expected to add to volume growth from FY27 as they come off patent.
Unit 3 Operations
Operations at Unit 3 have been steadily progressing, supporting backward integration and freeing up GMP space at Unit 1 and Unit 2.
Capitalized Assets (FY26)
The company capitalized assets worth 1,544 crores during FY26, with approximately 800 crores capitalized in Q4.
Capital Work in Progress
Capital work in progress as of March 31, 2026, stood at 2,113 crores.
Kakinada Expansion
A 1,500 crores expansion plan at Kakinada was mentioned, of which 600 crores has been capitalized.
Strengthened Sourcing Ecosystem
Broadened supplier base and increased depth of domestic procurement network are helping navigate volatility more effectively.
Long-Term Generic Contracts
Most generic APIs are backed by long-term contracts with variability clauses, protecting against raw material price increases.
INR Depreciation Benefit
As a heavily export-oriented company, INR depreciation against major currencies like USD and Euro is expected to benefit.
Geopolitical Tensions
Escalation of geopolitical tensions in West Asia created disruptions across global trade routes and logistics corridors.
Increased Freight Rates
Freight rates across both ocean and air transportation started increasing considerably towards the end of Q4.
Raw Material Price Increases
The company is not immune to rising raw material prices, which are factored into planning.
Competitive Pricing Environment
The pricing environment for generic products remains competitive, leading to some pricing pressure.
Geopolitical Volatility
External environment remains dynamic, with continued monitoring of geopolitical developments, logistics, and supply chain dynamics.
Customer Regulatory Approvals
Commercialization timelines for dedicated CS projects are dependent on customers obtaining regulatory approvals, which can take 6 months to 3 years.
Market Competition for CS Projects
Unforeseen challenges include new molecules being developed by competitors, impacting the timeline and success of CS projects.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both full year (FY26 vs FY25) and Q4 (FY26 vs FY25) results are provided, offering a comprehensive view of the company's annual performance and recent sequential trends, including the impact of geopolitical events towards the quarter end.
Exports Contribution
Exports contributed nearly 89% of the total sales revenue for FY26.
Europe & US Export Share
Europe and United States together accounted for approximately 74% of the export revenue.
Material Consumption % of Sales
Material consumption during FY26 stood at approximately 38.8% of sales revenue compared to 39.8% in the previous year.
Constant Currency Growth
Constant currency growth for the year was 6.82%.
Revenue Growth Outlook
Management historically looks for a double-digit growth in revenues and maintains this outlook.
Margin Outlook
Margins are difficult to project given changing scenarios, but management expects them to remain stable.
Supply Chain Preparedness
Proactively securing material on a quarter-on-quarter basis to ensure continuous production and meet customer commitments.
Long-Term Investment Focus
Underlying focus remains on being reliable, responsive, and investing ahead of future demand, with long-term investments kept on track.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Dedicated CS Project Commercialization | Validation phases complete, supplied to customers. | Customer regulatory approvals and commencement of commercial production, expected by 2027 or earlier/later. |
| Inventory Levels | 3,954 crores as of March 31, 2026. | Potential increase in Q1 FY27 due to proactive securing of materials to ensure production continuity. |
| Capex Utilization and Revenue Accrual | 2,113 crores in Capital Work in Progress. | Conversion of CWIP to capitalized assets and subsequent revenue generation from new capacities, typically within a 2-year range. |
| Peptide Business Scale | Several 3,000-liter SPPS facilities. | Progress towards becoming one of the largest global players in the peptide segment. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
55NeutralSMA20 +5.9% / mo · near 52W high
Technical chart
DIVISLABweekly · 6M+5.1%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 57.
- RSI(14) at 57 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 3% off 52W high · 20% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 10/15 to the score.
- Quality contributes 13/20 to the score.
Main drags
- Fair-value margin of safety is negative at -334.9%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Growth is weaker at 9/25; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
High Trust: Claim history is still being built. It ranks around the 98th percentile of the scored universe and 98th percentile within Pharma. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Management behaviour ranks as unusually reliable. Still verify valuation and cycle risk.
overall median 67 · Pharma: 98th pctile, median 70 · Large: 95th pctile, median 74
62 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
High Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.4%.
- ▸8 years of positive FCF.
- ▸Debt/equity is 0.00.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 66.00
- P/B
- 10.33
- EV/EBITDA
- 44.34
- Market Cap
- 173099.00Cr
Profitability
- ROE
- 16.50%
- ROCE
- 22.00%
- ROA
- 12.82%
- Dividend Y
- 0.46%
Growth (CAGR)
- Revenue 5Y
- 9.00%
- EPS 5Y
- 6.00%
- Revenue 3Y
- 11.00%
- EPS 3Y
- 13.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- 149.61×
- Altman Z
- 8.56
- Book Value
- 631.00
Cash Flow
- FCF Yield
- 1.43%
- FCF Positive Y
- 8/5
- OCF
- 2738.00 Cr
- EPS TTM
- 96.73
Shareholding
- Promoter Hold
- 51.88%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 61%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.