Divi's Laboratories — Q1 FY25
Divis Labs reported a steady Q1 FY25 with consolidated revenue of INR 2,197 crore, up 18% YoY, and PAT of INR 430 crore, up 21% YoY.
bullish
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
38%Questions answered5Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
API pricing trend and outlook for Q1 and beyond.
Asked by Amit, JM Financial
Acknowledged pricing pressure but gave no quantitative trend or specific outlook.
no specific timelinequalitative only
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Question
I wanted to know how has been the API pricing environment. We have been seeing a price deflation in the API side for last one year. So how has been the trend in the recent quarters for us, and if any outlook you can give on the API pricing side?
Kiran Divi, CEO
We are experiencing pricing pressure across our large volume products like naproxen, gabapentin, dextromethorphan. But we are able to maintain sustainable market share, and in fact, growing in those products. We feel it should settle down in the near future.
Partial answer
Medium priority
Name emerging API generic products gaining market share.
Asked by Amit, JM Financial
Named one product but did not quantify market share improvement.
only one product namedno market share data
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Question
On the emerging product side, we mentioned that we are gaining market share in emerging API generic products. So if it is possible for the management to name some of these products, and how has been our market share improvement in these products over the last few years?
Kiran Divi, CEO
We have several products in the pipeline, like ticagrelor, a few others, just to name, which are coming off patent, which we have filed our DMFs. Our customers are filing their regulatory approvals and their submissions.
Evasive
High priority
Impact of valsartan patent expiry on custom synthesis momentum.
Asked by Surya Patra, PhillipCapital
Declined to comment on the specific product impact due to confidentiality.
refused to discuss productno direct answer
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Question
One of the key contributor to this is obviously the valsartan API material in the recent period. Given the patent expiry what we have witnessed there and the generic entry, so whether it will have a temporary impact to the momentum, what we are currently seeing, sir?
Kiran Divi, CEO
I would request that we don't speak about products because we are bound by confidentiality. What I would say is we have several molecules in CS, which are in phase II and phase III. Our sales have been very positive, and we see a lot of growth.
Partial answer
Medium priority
Progress and volume growth in contrast media business.
Asked by Surya Patra, PhillipCapital
Described segments and general progress but gave no numbers or targets.
no quantitative progress or target
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Question
In the contrast media side, what is the progress that we would have achieved so far, and from the target, whatever that we are trying to achieve, so over a period of time, to what extent that we have progressed on the contrast media side in terms of the volume progression and growth?
Kiran Divi, CEO
On the contrast media, we work on two specific segments: iodine-based and gadolinium compounds. In some iodine-based products, we have been successful and shipping commercial quantities. We are seeing considerable growth in those volumes.
Partial answer
Medium priority
Impact of Red Sea trade challenges on exports.
Asked by Surya Patra, PhillipCapital
Admitted challenges but gave no specifics on financial impact.
no quantification of impact
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Question
Whether we have faced anything of that sort, and if that is the case, whether the continuing quarter is likely to be impacted to some extent, how should one think about this trade challenge?
Nilima Prasad Divi, Whole-Time Director, Commercial
I don't think we are immune to something that the industry is currently facing. We did face some challenges, and we are continuing to face those challenges, but we are making sure that we are planning well in advance.
Answered
High priority
Clarification on peptide block investment and progress.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Provided clear update on peptide progress and investment.
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Question
I missed your comment on the peptide block. You referred to something additional with respect to the investment. If you could clarify and elaborate on that first.
Kiran Divi, CEO
We have started working on tetramer and decamer, basically 4-chain amino acids, 10-chain amino acids. Our pilot plant is almost ready. We have already ordered a few 500 L reactors to take this forward.
Answered
Medium priority
Volume opportunity in contrast media given lower concentration trends.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Affirmed large volume opportunity and explained market dynamics.
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Question
Does this still stand as a good volume opportunity, or it is going to be a relatively small volume opportunity for us?
Kiran Divi, CEO
The gadolinium compounds, everyone requires an MRI. The volumes are huge. The innovators are now specializing on these type of compounds. So we are a part with them in the journey, and of course, they will have opportunities.
Evasive
High priority
Duration of API pricing pressure given channel inventory.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Did not confirm or deny the 12-15 month timeline; deferred to uncertain stabilization.
no timeline givenvague reference to past cycle
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Question
Does it mean that we still face another 12-15 months where prices continue to slide and we continue to deliver more volume to at least grow the revenue? Is that also the case for Divi's?
Kiran Divi, CEO
On the generic side, we have long-term contracts. Our customers have not lost any market share, but only there is a price erosion. Once the prices stabilize, we still cannot give a date on it, but I'm sure it has to stabilize at some point.
Declined
Medium priority
Breakup of API generics into legacy and new molecules.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Explicitly declined to provide the requested segmentation.
refused to provide breakdown
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Question
If you could help us break down the sales of API Generics into these two buckets.
Nilima Prasad Divi, Whole-Time Director, Commercial
We normally wouldn't want to break that up. Breaking it up molecule by molecule is not something we would normally like to do, because we need to look at the entire basket.
Evasive
High priority
Sales potential from Kakinada expansion at optimum capacity.
Asked by Sanjay Kular, ACME Private Limited
Did not provide any sales potential figures; discussed timeline instead.
no sales estimate givenfocused on timeline
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Question
What kind of sales we can generate from expansion, but at optimum capacity utilization, since our Kakinada unit is beginning this year.
Kiran Divi, CEO
The expansion in Kakinada will start phase-wise, and then it has to go through regulatory approvals. Regulatory approvals take 1-2 years. I would say you have to look at any product coming into market. We will require about at least 1-2 years with all the regulatory approvals.
Evasive
High priority
Volume growth percentage in API business.
Asked by Dheeresh Pathak, WhiteOak Capital
Repeated 'double-digit growth' without giving a specific percentage.
no specific numberrepeated generic guidance
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Question
If you can share the volume growth in the API business?
Nilima Prasad Divi, Whole-Time Director, Commercial
It is in line with our double-digit growth, which we always say that we are very optimistic about our double-digit growth, both volume-based and price-based, which is reflected in our revenue.
Partial answer
Medium priority
Aspiration to make final GLP-1 API.
Asked by Dheeresh Pathak, WhiteOak Capital
Indicated interest but no concrete plan; dependent on innovator demand.
no commitmentdependent on customer
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Question
Do we have the capability and the aspiration to go into further downstream into making the final API?
Kiran Divi, CEO
Right now, the final API everything depends on the innovators. Right now, they're interested in looking at opportunities working with us on fragments. When the opportunity comes, of course, definitely we would be interested in it.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Nutraceutical revenue INR 178 crore in Q1 FY25 | ₹178 cr | ₹2,118 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.