Divi's Laboratories — Q2 FY25
Divis Labs reported a strong Q2 FY25 with PAT surging 46.6% YoY to INR 510 Cr, driven by robust custom synthesis demand and operational efficiencies.
bullish
high
✓ 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.
33%Questions answered6Evaded / deflected12Questions audited
Partial answer
High priority
Status of peptide project and types of peptides being worked on.
Asked by Damayanti Kerai, HSBC
Management described activities but gave no specific timeline for commercialization.
no timeline givendeferred to regulatory approvals
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Question
Dr. Kiran, you mentioned there are multiple 500-liter reactors right now in operation for your peptide project, etc. So can you elaborate a bit more? Are you close to supplies, or it's still some time before you will start supplying to your customers? And also, if you can mention whether you are just working on the solid-state peptides or you are also working on the liquid-state peptides also.
Kiran S. Divi, Whole-Time Director and CEO
We have been in the peptide business for the last 14 years... Now we have got into solid-phase peptide synthesis and also liquid-phase peptide synthesis, both to produce fragments... They are undergoing qualifications. Then they have to go into filing. So it will take some time before they totally commercialize.
Evasive
High priority
Timeline for peptide supply and generic business outlook.
Asked by Damayanti Kerai, HSBC
Management did not confirm or deny the 12-15 month timeline, deflecting to regulatory uncertainty.
no commitmentdeferred to regulatory approvals
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Question
Approximately, say, in another 12-15 months, do you think supply can start for these products also?
Kiran S. Divi, Whole-Time Director and CEO
We are hoping it would be sooner because the sooner we can get approvals, we can sell. But all this depends on the regulatory bodies... So it completely depends on when we would get regulatory approvals.
Partial answer
High priority
Number of new generic products from 2026 and pricing challenges.
Asked by Damayanti Kerai, HSBC
Management confirmed pricing pressure across the board but did not quantify the number of new products.
no number given for new products
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Question
So you mentioned the future generic opportunities will start from 2026 onwards. So can you provide some color like how many new products you can launch under that bucket? And in terms of performance of the existing business, are you seeing a pricing challenge across the board, or it's particular to certain products only?
Kiran S. Divi, Whole-Time Director and CEO
To answer on the steady generic business we have... we are seeing pricing pressure across the board... Coming to your second question, the future generics, these are mostly products which are coming off patent from 2026 onwards... Some of them have filed their ANDAs... Once they get their approval, we will start supplying them quantities.
Answered
High priority
End-to-end peptide capability and value capture.
Asked by Surya Narayan Patra, PhillipCapital India Pvt
Management clearly stated they have end-to-end capability but are currently supplying fragments per customer request.
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Question
With this, is it possible to share with you that, okay, with this, are you ready for the peptide block with the end-to-end capability, or it will still be kind of fragments and hence focus would be around that?
Kiran S. Divi, Whole-Time Director and CEO
Right now we are going by what the customer has requested us to do. Right now, our customers have shown interest in procuring fragments for us. So if our customer wants end-to-end, we do have the capability to provide end-to-end, the final API.
Evasive
Medium priority
Value potential of peptide API vs fragments.
Asked by Surya Narayan Patra, PhillipCapital India Pvt
Management did not address the 60-70% value capture question, instead gave a generic optimistic statement.
no quantificationvague optimism
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Question
If the API opportunity is X, then our current capability, what we are offering, that would be capturing around 60%-70% of the total API opportunity in the peptide block that I'm trying to understand.
Kiran S. Divi, Whole-Time Director and CEO
In the peptide segment, we are very optimistic that we will be a major player in the long term. Right now, we have just entered into the fragment manufacturing. And as time goes and as the custom business on the fragment side keeps increasing, we will get a lot of opportunities.
Evasive
Medium priority
Conversion likelihood and timeline for RFQs.
Asked by Surya Narayan Patra, PhillipCapital India Pvt
Management gave a lengthy explanation but provided no specific metrics or timelines for RFQ conversion.
no conversion rate givenno timeline given
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Question
What could be the sense that is the trend for everybody, so what is the likelihood of those RFQs getting converted into business and what timeline it generally takes for converting the RFQ into a business?
Kiran S. Divi, Whole-Time Director and CEO
See, generally, we get RFQs from several customers... It depends on what stage they're getting any RFQ at and also based on regulatory approvals... It is hard to see on RFQs. It depends completely on what stage the molecule is at the innovator's end...
Declined
High priority
Details on INR 650-700 crore dedicated project.
Asked by Surya Narayan Patra, PhillipCapital India Pvt
Management explicitly refused to provide additional details citing confidentiality.
confidentiality
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Question
Could you update, sir, what is the status of that project? And just one clarification about whether the project is about an existing product that we would be supplying... or if you can give some color on that.
M. Satish Choudhury, Company Secretary and Compliance Officer
The information we already shared is what we could actually share even now because we are bound by confidentiality not to share more information regarding that particular venture.
Answered
Medium priority
Market share gains in smaller APIs despite pricing pressure.
Asked by Neha Manpuria, Bank of America
Management confirmed volume growth across both large and small molecules, directly answering the question.
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Question
Given the pricing pressure, have we still been able to see success in sort of growing share in the smaller APIs to make it larger in size, or has that process been slower because of the pricing environment?
Nilima Prasad Divi, Whole-Time Director of Commercial
I would say not just the larger molecules, but also the smaller molecules all put together. I would say that this half year for the generic business, we have seen a good volume-based growth...
Partial answer
High priority
Timeline for pricing normalization in generics.
Asked by Neha Manpuria, Bank of America
Management gave a range (6-12 months) but used 'hope' and 'at least some stability', lacking conviction.
hedging language
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Question
When you say pricing should normalize in the near future, would this be in the next six months, one year? What, according to you, would be a good time frame where we see pricing stabilizing for generic?
Nilima Prasad Divi, Whole-Time Director of Commercial
It is very hard to answer that particular question, but that is the hope that in the next six months to a year, we should see at least some stability with respect to the pricing pressure.
Partial answer
Medium priority
Contrast media: which products and commercialization timeline.
Asked by Neha Manpuria, Bank of America
Management gave a timeline for gadolinium (1-2 years) but did not specify which products or quantify the opportunity.
no product namesvague timeline
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Question
If you could give some color on for which products are these, not the names, but because I remember you talked about some gadolinium-based products also that we are working with innovators, and when can we see commercial supplies for these?
Kiran S. Divi, Whole-Time Director and CEO
On the contrast media and the iodine-based products, a few of the molecules we are in qualification stages, and a few of them we have already commercialized... Coming to gadolinium compounds, we are still in qualification stages... we hope in the next one to two years, we will be commercializing on them.
Declined
Medium priority
Quantification of investments in GLP-1 products.
Asked by Abdulkader Puranwala, ICICI Securities
Management explicitly declined to quantify investments, citing ongoing nature.
no number given
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Question
If you could the quantification, I mean, what would be the kind of investments you would have done so far? I mean, would that be possible for you to quantify?
Kiran S. Divi, Whole-Time Director and CEO
At this point, it would be difficult to quantify because our investments are still ongoing, with the increase in demand, we are investing. But yeah, we are expanding our capacity in this product, so it would be difficult for me to quantify it.
Declined
High priority
Capacity for solid phase peptide synthesis and future plans.
Asked by Vivek Agarwal, Citigroup
Management refused to quantify capacity due to confidentiality, only mentioned a few 500-liter reactors for qualifications.
confidentiality
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Question
Is it possible for you to quantify what is the current capacity that you have for solid phase peptide synthesis? And over the next couple of years, how much capacity do you plan to add?
Kiran S. Divi, Whole-Time Director and CEO
In terms of capacity, because we have confidentiality agreements where we have procured reactors based on product-specific for a customer, I'm not at liberty to talk about capacity. I can just talk about my general plant. I have a few 500-liter reactors which I'm using for qualifications.