Divi's Laboratories — Q3 FY25
Divis Laboratories reported a strong Q3 FY25 with PAT of INR 589 crore, up 64.5% YoY, driven by robust custom synthesis growth and stable generics volumes.
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.
29%Questions answered6Evaded / deflected12Questions audited
Partial answer
High priority
Update on contrast media segment, positioning vs competition, client adoption.
Asked by Meet Katrodiya, Niveshaay
Management gave qualitative update but no quantitative traction or market share details.
no specific numbersno timeline
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Question
Could you provide an update on any latest developments in the contrast media segment? Specifically, how are you positioning Divi's against the competition?
Kiran S. Divi, CEO
On the contrast media, there are two segments... iodine-based compounds and gadolinium compounds... we are working with most of the innovators... we believe that we will be very strong in iodine-based contrast media products.
Answered
Medium priority
Risk from US tariff policy changes on cost structure and exports.
Asked by Meet Katrodiya, Niveshaay
Management directly stated no current tariff impact, though future risks not addressed.
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Question
Considering potential changes in U.S. trade policies, particularly around tariffs, what risk do we foresee for Divi's in terms of cost structure, supply dynamics, and overall export?
Nilima Prasad Divi, Whole-Time Director of Commercial
As of now, we haven't seen any tariffs for India. So I don't think we are having anything to worry about at this point in time.
Partial answer
High priority
Kakinada ramp-up timeline, cost impact, and revenue contribution.
Asked by Neha Manpuria, Bank of America
Management gave timeline for commissioning but not for revenue ramp-up or cost neutralization.
no specific revenue contribution timelinedeferred to regulatory approvals
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Question
When should we start expecting this facility to contribute or start the cost impact to sort of get neutralized because of the revenue ramp-up?
Kiran S. Divi, CEO
Kakinada, we are implementing it on a phase-wise... in the next six months, Phase I should be commercialized... we will then see regulatory products being made there.
Evasive
High priority
Next stage of scale-up in custom synthesis and milestones.
Asked by Neha Manpuria, Bank of America
Management gave generic optimism but no concrete milestones or scale-up targets.
no specific milestonesdeferred to regulatory approvals
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Question
How should we think about the next stage of scale-up in this business? Are there any milestones that we need to watch out for?
Kiran S. Divi, CEO
We have several opportunities either in Phase III, some are being commercialized... we are very active on the CS side of the business.
Partial answer
Medium priority
Nutraceuticals growth outlook and Kakinada's role.
Asked by Surya Narayan Patra, PhillipCapital
Management gave qualitative direction but no quantitative growth outlook.
no specific growth numbersdeferred to later
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Question
What is the kind of way forward that we would see for nutraceuticals and what growth hence one should think about this business segment?
Nilima Prasad Divi, Whole-Time Director of Commercial
The Kakinada site mainly is looking at a lot of backward integration... nutraceuticals is also a part of it... this is the growth that we are trying to make sure that it is being done on a phase-wise basis.
Partial answer
Medium priority
Utilization rates at Unit 1 and 2 after Kakinada frees capacity.
Asked by Surya Narayan Patra, PhillipCapital
Management gave current utilization but not the freed capacity or future impact.
no future utilization estimatedeferred to next quarter
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Question
Could you give some sense of what is the kind of utilization of the Unit One and Two that we will be operating at?
Kiran S. Divi, CEO
Right now, we are at 80% capacity at both the units. With Kakinada Phase I coming into place, we should be manufacturing, moving some of our starting materials over there... we would know better in the next quarter.
Declined
Medium priority
Split of contrast media business between custom synthesis and generic.
Asked by Surya Narayan Patra, PhillipCapital
Management explicitly declined to provide the requested breakdown.
refused to disclose
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Question
Is it possible to share in the nine-month period so far, what would be the kind of in the contrast media, what is the portion of the business would be in the custom synthesis, and what portion would be in the generic business?
Nilima Prasad Divi, Whole-Time Director of Commercial
We cannot disclose that information, unfortunately.
Evasive
High priority
Scope of GLP-1 fragments opportunity and Divi's positioning.
Asked by Vivek Agarwal, Citigroup
Management gave generic update but did not clarify scope or scale of fragments.
no specific scope detailsno customer names
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Question
Are these two fragments of a particular product that you are doing, or there are multiple or all the fragments of a particular product? I'm trying to understand the scope of this opportunity.
Kiran S. Divi, CEO
We are working closely in the last six months... we are working closely with most of the MNCs on their interests... we believe we are in a very good position.
Evasive
High priority
Divi's positioning vs Chinese players like WuXi in GLP-1.
Asked by Vivek Agarwal, Citigroup
Management highlighted differentiation but avoided direct comparison or scale targets.
no competitive comparisonno market share targets
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Question
How we see Divi's positioning, let's say, over the next three to five years down the line, and especially against the players in China like WuXi?
Kiran S. Divi, CEO
The difference, why is Divi's different from others? We make our own resins... we have a much more edge over working over others. So I would say in this GLP-1s, right now, the way things are looking, sky is the limit.
Partial answer
High priority
Generic segment growth split between volume and price, and outlook.
Asked by Shyam Srinivasan, Goldman Sachs
Management gave qualitative split but no quantitative volume or price change figures.
no specific volume or price numbers
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Question
Can you help us split and understand from a volume and a price basis? Because I thought in the opening remarks, you still talked about pricing pressure.
Nilima Prasad Divi, Whole-Time Director of Commercial
If I'm looking at my volume, yes, there's a huge growth, but also with the pricing pressure, that growth is not as much as we would have wanted to see it.
Evasive
High priority
Sustainable EBITDA margin level and YoY growth outlook.
Asked by Shyam Srinivasan, Goldman Sachs
Management declined to give sustainable margin level or growth outlook.
no margin guidancedeferred to product mix
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Question
What's a sustainable level of margins? Do you think there's something in this quarter which leads to a one-off? And how should we look at the next couple of quarters?
Nilima Prasad Divi, Whole-Time Director of Commercial
The margins are mostly; it's a result of the product mix... it's quite difficult to tell at this point in time with all the expansion plans coming into play.
Declined
Medium priority
Extent of backward integration in GLP-1 and timeline for supplies.
Asked by Girish Bakhru, OrbiMed
Management explicitly declined to provide the requested detail.
refused to disclose
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Question
Can I ask what is the extent of backward integration in GLP-1 if you can give that number?
Nilima Prasad Divi, Whole-Time Director of Commercial
At this point, we wouldn't want to disclose so much detailed information in that particular segment.