Divi's Laboratories (DIVISLAB)

₹4,235.50
+135.50 (+3.30%)
Updated 13 Jan 2026
Previous Close
₹4,100.00
Day Range
₹4,110.00 - ₹4,250.00
52 Week Range
₹3,200.00 - ₹4,500.00
Market Cap
₹112,000 Cr
Volume
580,000
Avg. Volume
450,000
P/E Ratio
52.80
Dividend Yield
0.50%

Why the stock moved

Record quarterly performance with EBITDA margin of 38%, driven by high-margin API exports and new custom synthesis contracts.

In-depth analysis

Divi's Lab reported exceptional quarterly results with revenue of ₹2,350 crores (up 18% YoY) and EBITDA margin of 38%, highest in recent times. The company's focus on complex chemistry and custom synthesis is yielding superior profitability. Secured three new long-term contracts with innovator companies for specialized APIs.

Key highlights

  • Margin Expansion: EBITDA margin at 38%, up 250 bps YoY
  • New Contracts: 3 long-term custom synthesis deals worth $150 million
  • Capacity Addition: Unit III expansion completed, adding 30% capacity
  • R&D Pipeline: 15 new molecules under development
  • Cash Generation: Free cash flow of ₹1,800 crores in 9 months

Outlook

Company guides for 15-18% revenue CAGR over next 3 years driven by custom synthesis and complex APIs. Unit III ramp-up expected to contribute significantly from H2 FY25. Focus on high-barrier, niche molecules to maintain premium margins. Minimal capex planned for next 2 years.

Risk factors

Customer concentration risk with top 5 clients contributing 65% of revenue. Potential disruption from Chinese competition in certain APIs. Regulatory compliance costs increasing. Currency fluctuations impact USD revenues.