Divi's Laboratories — Q2 FY26
Divis Laboratories reported a strong Q2 FY26 with consolidated revenue of INR 2,860 crore (+17% YoY) and PAT of INR 689 crore (+35% YoY), driven by robust custom synthesis (56%...
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.
33%Questions answered7Evaded / deflected12Questions auditedContradictedNumbers vs filing
Declined
High priority
Volume linked to patent expiry in custom synthesis project?
Asked by Amey Chalke, JM Financial
Management explicitly refused to answer due to confidentiality.
confidentiality citedno number given
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Question
Is it possible for the management to guide us how much volume which we are currently supplying would be linked to these patent expiry in two regions?
Kiran S. Divi, Whole-Time Director and CEO
I'm sorry, I cannot comment on any specific product customer impact or volumes because I am bound by confidentiality.
Partial answer
High priority
When will generic API revival happen and is pricing pressure persisting?
Asked by Amey Chalke, JM Financial
Acknowledged pricing pressure but gave no specific timeline for revival.
no timeline givenvague hope
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Question
When can we see the revival happening in the generic side of the business, and is the pricing pressure still persist in the business at present?
Kiran S. Divi, Whole-Time Director and CEO
We are facing pricing pressure on generic molecules, although we have not lost a single customer or even any loss in volume. ... we're hopeful in the next few quarters it may stabilize.
Evasive
Medium priority
Does available capacity give edge in pricing for custom synthesis RFPs?
Asked by Amey Chalke, JM Financial
Did not answer pricing edge question; shifted to relationship and track record.
reframed to relationshipdeclined pricing details
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Question
Considering we have large capacities available with us, does it give us edge to compete in terms of pricing?
Kiran S. Divi, Whole-Time Director and CEO
Divi's has an edge because we have a long-term customer relation... I cannot comment on what others are seeing, what price factors are there.
Answered
High priority
Will CapEx be higher than INR 2,000 crore for FY26?
Asked by Kunal Dhamesha, Macquarie
Confirmed CapEx will exceed previous guidance.
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Question
Is there more room for us to do more CapEx in the second half? Would the CapEx be higher than INR 2,000 crore for FY 2026?
Nilima Prasad Divi, Whole-Time Commercial Director
Yes, it would be higher in FY 2026.
Evasive
High priority
What is the new CapEx guidance for FY26?
Asked by Kunal Dhamesha, Macquarie
Did not provide a revised numerical guidance.
no specific number givendeferred to ongoing projects
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Question
What would be the new CapEx guidance?
Nilima Prasad Divi, Whole-Time Commercial Director
See, right now we are looking at several new projects... the CapEx is also being included for that.
Answered
Medium priority
Is 60% gross margin sustainable or can it improve?
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Clearly stated gross margin will continue at similar levels.
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Question
So 60% is something as a base case to assume, or there could be an upside risk to the gross margin?
Nilima Prasad Divi, Whole-Time Commercial Director
I would say it would be continuing the same similar manner.
Answered
Medium priority
What is constant currency growth for H1?
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Provided specific constant currency growth figure.
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Question
If you could also share the constant currency growth for us on a year-on-year basis.
Nilima Prasad Divi, Whole-Time Commercial Director
Currently, the half year is about 10.79%, and we are assuming that for the rest of the year also, it would be around the similar number.
Partial answer
Medium priority
Is margin upside limited despite favorable mix shift?
Asked by Surya Narayan Patra, PhilipCapital India Private Limited
Explained why margins are stable but did not quantify upside potential.
attributed to product mixno quantification
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Question
Is it fair to believe that the margin upside risk is nothing or limited?
Nilima Prasad Divi, Whole-Time Commercial Director
I would say it's mainly to do with the product mix. ... When you combine both, the margins do look similar.
Evasive
High priority
What drives near-term custom synthesis growth besides three projects?
Asked by Surya Narayan Patra, PhilipCapital India Private Limited
Did not identify any near-term driver beyond the three projects.
no specific growth driverdeferred to 1-2 years
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Question
In the interim, what can drive growth for the custom synthesis business?
Kiran S. Divi, Whole-Time Director and CEO
All I can say is we have three active projects. ... All I can say is things will happen in the next one to two years.
Evasive
Medium priority
Is increased custom synthesis interest due to China shift?
Asked by Harshit Dhoot, Dymon Asia
Did not confirm or deny China shift as a driver.
no attributiondeclined to speculate
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Question
Is it more a function of the shift of business from China, sir? Are innovators diversifying from China?
Kiran S. Divi, Whole-Time Director and CEO
For me, it is very difficult to say, is this something they brought from China, or is this an old molecule they brought in?
Evasive
High priority
How much of generic growth is volume vs pricing offset?
Asked by Neha Manpuria, Bank of America
Did not quantify volume growth or pricing offset.
no volume growth numberdeferred to revenue data
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Question
How much of the growth that we have seen would be driven by volume, and how much of that has been offset by pricing?
Nilima Prasad Divi, Whole-Time Commercial Director
I would say as a volume, we have been stable. As a value, you would know how much it is based on the percentage and the revenue number that's there.
Declined
Medium priority
Does Divi's have non-peptide GLP-1 projects?
Asked by Shyam Srinivasan, Goldman Sachs
Refused to disclose any project details due to confidentiality.
confidentiality citedno confirmation
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Question
Do you also have non-peptide GLP-1s in any of your projects?
Kiran S. Divi, Whole-Time Director and CEO
We have several projects in the pipeline, but I'm not at the liberty to talk about what category, therapeutic category, and segment.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Constant currency growth for H1 FY26 is 10.79% | 10.79% | 17% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.