Divi's Laboratories

Changes reporter's name; no changes to text

May 25 (Reuters) - ** Divi's Laboratories DIVI.NS posted 13.4% Y/Y rise in Q4 consol profit, on strong performance in the custom synthesis and nutraceuticals segments

** Shares of pharmaceuticals co down 1.6%

SUB-HEAD

** Jefferies ("buy," PT: 7,950 rupees) management was

uncertain regarding margin outlook as dedicated capacities are being built up using technology owned by innovator and it is yet to receive commercial quantities

** BOB Capital Markets ("hold," PT: 7,500 rupees) says margin headwinds to persist in near term

** Ambit Capital ("sell," PT: 6,230 rupees) cuts EBITDA estimates by ~4% citing near-term gross margin pressure and change in revenue mix

** Dolat Capital ("reduce," PT: 6,942 rupees) says co faced difficulty in sourcing raw materials during March quarter due to the West Asia war but managed through domestic suppliers

** Systematix ("hold," PT: 6,539 rupees) says drop

in gross margin in Q4 was despite a favorable currency movement and favorable business mix

(Reporting by Vijay Malkar in Bengaluru)

(([email protected]; Mobile: +91 8097833031;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, May 8 (Reuters Breakingviews) - India Inc's global M&A push is coming at an inopportune time for its government. Sun Pharmaceutical Industries SUN.NS last week agreed to buy U.S.-based Organon OGN.N for $11.8 billion, months after Tata Motors' TATM.NS $4.4 billion deal to acquire Iveco's IVG.MI trucks unit. A quest for new markets and technology promises more outbound approaches. That may eventually hand New Delhi reasons to feel displeased.

Cross-border acquisitions by Indian groups are on the rise. In 2025, large-ticket transactions like Tata Motors' Iveco purchase and IT firm Coforge's COFO.NS $2.4 billion acquisition of U.S.-based Encora contributed to a $26 billion splurge on overseas assets, the most active year by volume since 2010, per Dialogic.

It's sensible for Indian companies sitting on a large cash balance to deploy it in markets where valuation multiples are lower, rather than to acquire richly valued local peers. Sun Pharma trades at 33 times forward earnings and is paying just 4 times that metric for similarly sized Organon; smaller Indian rivals like Torrent Pharma TORP.NS and Divi's Laboratories DIVI.NS trade at much higher multiples.

Access to richer markets in Asia, Europe and the U.S. is also a big draw, as is technological know-how. Tata Motors' TAMO.NS 2008 buyout of Jaguar Land Rover helped build its local range of electric cars. The incentive to buy tech firms is especially high as India's own investment in R&D, at 0.7% of GDP, lags the global average of 2%.

Interest in external assets will intensify as advances in artificial intelligence force groups from outsourcers to drugmakers to level up. Manufacturers investing in areas like defence, vehicle components and consumer electronics will look to bridge India's capability gap with the rest of the world.

New Delhi has so far been sanguine about the trend, seeing it as a sign of India Inc's growing clout on the global stage. That could change as outbound fund flows add to rising pressures on external balances. With a surging energy import bill and fund outflows, India could be staring at a third straight financial year of a negative balance of payments in the 12 months to the end of March 2027.

Part of the cash being splurged overseas stems from a 2019 decision to sharply cut the corporate tax rate; officials hoped that would encourage firms to invest more locally to stimulate growth and employment. While private spending is showing signs of life, its contribution to GDP is below historical levels.

In time, New Delhi may find those dimensions of India Inc's overseas shopping spree unpalatable and act against them. Until then, there's little reason for companies to stop gazing outwards.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Sun Pharmaceutical Industries on April 27 said it will buy ​U.S. drugmaker Organon in an all-cash deal valuing the target at about $11.75 billion including debt, making it ‌the largest overseas acquisition by an Indian pharmaceutical company.

Indian IT services provider Coforge said on December 26 it would acquire artificial intelligence firm Encora at an enterprise value of $2.35 billion to boost its in-house artificial intelligence capabilities and expand its presence in the U.S. and Latin America.

(Editing by Antony Currie; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

Feb 11 (Reuters) - Indian contract drug manufacturer Divi's Laboratories DIVI.NS reported third-quarter profit below estimates on Wednesday, as high raw material costs and a one-off charge due to changes in India's labour codes weighed on its bottomline.

The Hyderabad-based company's consolidated net profit marginally fell to 5.83 billion rupees ($64.31 million) in the quarter ended December 31, from 5.89 billion rupees a year earlier.

Analysts, on average, had expected 6.18 billion rupees, according to data compiled by LSEG.

Global pharmaceutical firms have been increasingly looking to Indian contract drug manufacturers such as Divi's, Sai Life Sciences SAIE.NS and Piramal Pharma PIRM.NS as part of their plans to diversify supply chain beyond China.

Demand for customised production of chemical compounds from large pharmaceutical companies stayed strong in the quarter.

However, the cost of materials consumed jumped 19%, pushing up its total expenses 9.7% to 18.38 billion rupees.

Additionally, Divi's Laboratories chalked up a one-time charge of 740 million rupees as it complied with India's new labour laws.

Revenue from operations rose 12.2% to 26.04 billion rupees, beating analysts' average estimate of 25.96 billion rupees.

($1 = 90.6600 Indian rupees)

(Reporting by Rishika Sadam; Editing by Mrigank Dhaniwala and Janane Venkatraman)

(([email protected];))

** Shares of Divi's Laboratories DIVI.NS rise 3% to 6,561 rupees, its biggest jump in three months

** Brokerage Citi says 2026 can be an inflection year for DIVI, calls it their 'top' pharma pick in India

** Adds co has strong pipeline catalysts over the next 12 months; generic segment expected to witness a recovery

** Expcts co's revenue to expand by 3 times and EBITDA to rise 4 times over FY25-FY30e

** Citi has a "buy" rating on co with PT at 9,140 rupees

** DIVI rated "hold" on avg by 27 analysts covering it; median PT at 6780 rupees - data compiled by LSEG

** In 2025, DIVI gained ~5%

(Reporting by Komal Salecha)

(([email protected];))

Nov 7 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• SEPT-QUARTER CONSOL NET PROFIT 6.89 BILLION RUPEES

• SEPT-QUARTER CONSOL REVENUE FROM OPERATIONS 27.15 BILLION RUPEES

Source text: ID:nBSE1tbLVZ

Further company coverage: DIVI.NS

(([email protected];;))

Aug 6 (Reuters) - India's Divi's Laboratories DIVI.NS reported first-quarter profit below estimates on Wednesday, as manufacturers producing generic drugs continued to be negatively impacted by pricing pressures in the key U.S. market, sending shares down 3.3%.

The Hyderabad-based company's consolidated net profit rose 26.7% to 5.45 billion rupees ($62 million) for the quarter ended June 30.

Analysts, on average, had expected 5.75 billion rupees, as per data compiled by LSEG.

Indian generic drugmakers, which get a significant chunk of their revenue from the U.S., have been grappling with weak pricing amid stiff competition in the region.

Divi's, one of India's largest manufacturers of active pharmaceutical ingredients (API), has flagged pricing pressure and high competition in its generics business in global markets, adding that it aims to increase its market share by launching molecules as they get off patent.

APIs are key chemical components in a drug that produce the intended therapeutic effects. Divi's exports to more than 100 countries, with the U.S. and Europe being its core markets

The company's shares were down 2.5% before the news, in tandem with the rest of the pharma stocks on U.S. President Donald Trump's potential tariff threat.

The drugmaker's peers Cipla CIPL.NS and Dr Reddy's REDY.NS also reported subdued June-quarter sales in the U.S.

Revenue from operations for Divi's rose 14% to 24.10 billion rupees, also missing analysts' estimates of 24.56 billion rupees.

The company is banking on demand from diabetes and weight-loss drugs manufacturers such as Eli Lilly LLY.N, who cater to skyrocketing customer demand for the drug in global markets.

($1 = 87.7050 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman)

(([email protected]; 8800437922;))

HYDERABAD, Feb 3 (Reuters) - India's Divi's Laboratories DIVI.NS reported a better-than-expected quarterly profit on Monday, aided by strong performance of its business that focuses on customised production of chemical compounds used in drugs, sending its shares higher.

The company's consolidated net profit jumped 64.5% to 5.89 billion rupees ($67.6 million) in the third quarter, slightly above analysts' estimates of 5.13 billion rupees, as per LSEG data.

The Hyderabad-based drugmaker's shares reversed course from a 0.2% dip to trade 3.3% higher after the results.

Divi's is one of India's largest manufacturers of active pharmaceutical ingredients (API), key components of a drug that produce the intended therapeutic effects. Its client list spans more than 100 countries and includes major drugmakers such as Novartis NOVN.S.

Its revenue from operations climbed 25% to 23.19 billion rupees during the quarter, roughly in line with analysts' estimate of 23.43 billion rupees.

The company also provides contract development and manufacturing (CDMO) services. Divi's and its local peers stand to gain as major drugmakers are diversifying their supply chain to limit their reliance on China.

Divi's, in particular, has said it is also banking on demand from obesity drug manufacturers as they scramble to meet skyrocketing customer demand.

However, its generics business, much like those of its peers, is facing pricing pressure, a situation it hopes will stabilise this year.

($1 = 87.1190 Indian rupees)

(Reporting by Rishika Sadam and Kashish Tandon; Editing by Rashmi Aich and Savio D'Souza)

(([email protected];))

Jan 2 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• DIVI'S LABORATORIES - STARTS COMMERCIAL OPERATIONS AT UNIT III IN ANDHRA PRADESH

Source text: ID:nBSE2pGbB7

Further company coverage: DIVI.NS

(([email protected];))

Adds details paragraph 2 onwards

Dec 31 (Reuters) - Indian contract drugmaker Anthem Biosciences filed for a 33.95-billion-rupee ($397 million) initial public offering, draft papers showed on Tuesday, at the fag end of what has been a red-hot year for companies listing on the stock market.

Anthem, whose services include early-stage drug discovery and drug efficacy testing, said private equity firm True North and drugmaker DavosPharma are among investors who will sell shares in the IPO.

The company will not sell any shares and it did not give any other details on the offering.

The Indian IPO market has been bustling this year, with over 300 companies having raised $17.5 billion as of mid-December, more than double the amount raised last year, LSEG data showed.

That gives it the top spot globally in terms of proceeds and volumes, according to consultancy firm KPMG.

Anthem, which began operations in 2007 and has two manufacturing facilities, is also going public at a time when global drugmakers are turning to India and other markets to limit their reliance on Chinese contractors.

Begaluru-based Anthem also makes active pharmaceutical ingredients (API), which are the main component of a drug, as well as dietary supplements and probiotics.

It competes with the likes of Syngene International SYNN.NS, Divi's Laboratories DIVI.NS and newly-listed Sai Life Sciences SAIE.NS among Indian API makers.

($1 = 85.5720 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru; Editing by Savio D'Souza)

(([email protected]; 8800437922;))

Dec 5 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• SAYS CAN NOT COMMENT ON PATENT LAWSUITS OF BIG PHARMA COMPANIES AND ITS IMPACT

Source text: ID:nBSEYg5RT

Further company coverage: DIVI.NS

(([email protected];;))

** Shares of Divi's Laboratories Ltd DIVI.NS up 4.8% at 5,811.70 rupees

** DIVI rose as much as 6% to record 5,878 rupees earlier in session

** Citi begins coverage of drugmaker with "buy" and Street-high PT of 6,400 rupees as it sees DIVI benefiting from supply-chain diversification of active pharmaceutical ingredients for GLP-1s or weight loss drugs

** DIVI has potential to become prominent supplier to Eli Lilly LLY.N as it diversifies suppliers with U.S. Biosecure Act looming and given DIVI's own capabilities in scaling up at industrial scale - Citi

** Analysts tracking DIVI rate it "hold" on avg, same as 10 other stocks on 20-member Nifty Pharma .NIPHARM index - LSEG data

** DIVI top pct gainer on NIPHARM

** Stock's ~48% YTD rise outperforms index's 40% rise

(Reporting by Nandan Mandayam in Bengaluru)

(([email protected]; Mobile: +91 9591011727;))

July 19 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• DIVI'S LABS - US-FDA INSPECTION OF COMPANY'S UNIT-II MANUFACTURING FACILITY AT ANDHRA PRADESH

• DIVI'S LABS - US-FDA INSPECTION IS SUCCESSFULLY COMPLETED WITH ONE PROCEDURAL OBSERVATION

Source text for Eikon: [ID:]

Further company coverage: DIVI.NS

(([email protected];))

June 21 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• NSE CIRCULAR: DIVI'S LABORATORIES AND TRENT LTD NOT AVAILABLE FOR TRADING IN T+0 ROLLING SETTLEMENT CYCLE ON JUNE 24

Source text for Eikon: [ID:]

Further company coverage: DIVI.NS

(([email protected];;))

April 25 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• IN PROCESS OF ENTERING INTO A LONG-TERM SUPPLY AGREEMENT WITH A CUSTOMER

• PLANNING FOR CAPACITY ADDITION AT ITS MANUFACTURING FACILITY

• ESTIMATED INVESTMENT BETWEEN 6.50 BLN RUPEES TO 7 BLN RUPEES

• PROPOSED FACILITY IS ADDED EXPECTED TO BE OPERATIONAL AROUND JAN, 2027

• PLANNING FOR CAPACITY ADDITION AT ITS MANUFACTURING FACILITY WITH ESTIMATED INVESTMENT BETWEEN 6.5-7 BLN RUPEES

Further company coverage: DIVI.NS

(([email protected];))

** Shares of Divi's Laboratories DIVI.NS up 3.7% to 3,788.75 rupees, steepest rise since December

** Pharma co reported ~17% rise in Q3 net profit, rev from ops up ~9%

** Jefferies says it is bullish on the co, but expects factors like improvement in pricing pressures for generics to start unfolding only post FY26; cuts FY25E EPS by 3%

** Retains "hold" with unchanged PT of 3,610 rupees

** Brokerage PhillipCapital also flags ongoing margin pressure in generics due to pricing pressures; cuts FY25 EPS by 14%, keeps rating at "neutral" with unchanged PT of 3,300 rupees

** Adds, co has potential to deliver surprise earnings in upcoming quarters

** On avg, analysts' rating equivalent to "sell", their median PT is 3,150 rupees - ~14% discount to its last close - LSEG

** Co top gainer on Nifty Pharma index .NIPHARM, up 0.9%

** Trading volume is 1.3x 30-day avg

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

Nov 16 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• RECEIVED ORDER PERTAINING TO RECOVERY OF REFUND OF IGST GRANTED, ALLEGED TO BE CLAIMED ERRONEOUSLY

• CO TO FILE APPEAL AGAINST GST ORDER FOR DEMAND OF 820.4 MILLION RUPEES ALONG WITH APPLICABLE INTEREST AND PENALTY

Source text for Eikon: ID:nBSEjdYdj

Further company coverage: DIVI.NS

(([email protected];))

HYDERABAD, Nov 6 (Reuters) - India's Divi's Laboratories DIVI.NS reported a bigger-than-expected fall in quarterly profit on Monday, dragged down by higher expenses at a time when generic drug makers have flagged easing price pressures in key markets such as the United States.

Consolidated profit fell 29.4% to 3.48 billion rupees ($41.83 million) in the second quarter ended Sept. 30, compared with 4.93 billion rupees a year earlier. Analysts had expected a profit of 4.41 billion rupees, according to LSEG data.

Hyderabad-based Divi's Labs is one of the country's largest manufactures of active pharmaceutical ingredients (API), which are crucial chemical compounds in a drug that help produce desired health effects. It also provides contract manufacturing services to global players.

The pharmaceutical company, whose core markets are Europe and the United States, said revenue from operations rose 2.9% to 19.09 billion rupees. Exports to the United States and Europe account for more than 60% of its total revenue.

Total expenses rose 15.6% to 15.26 billion rupees. However, raw material costs fell 13% to 7.11 billion rupees.

Shares of Divi's Labs were trading 1.46% higher after the results, compared with a 0.74% rise in the Nifty pharma index .NIPHARM.

Last week, larger rival Sun Pharmaceuticals SUN.NS reported a bigger-than-expected rise in second-quarter profit, driven by strong sales in its domestic and U.S. formulation businesses.

($1 = 83.2000 Indian rupees)

(Reporting by Rishika Sadam; Editing by Subhranshu Sahu)

(([email protected];))

Sept 26 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• USFDA DELEGATION VISITS COMPANY'S UNIT I AT CHOUTUPPAL, TELANGANA

Further company coverage: DIVI.NS

(([email protected];))

Divi's Laboratories Ltd DIVI.NS:

• DIVI'S LABORATORIES LTD- MADHUSUDANA RAO DIVI TO RETIRE AS WHOLE-TIME DIRECTOR

Source text for Eikon: ID:nBSE7PDgsX

Further company coverage: DIVI.NS

Aug 14 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• Q1 CONSOL NET PROFIT 3.56 BILLION RUPEES; REFINITIV IBES EST. 4.17 BILLION RUPEES

• Q1 CONSOL REVENUE FROM OPERATIONS 17.78 BILLION RUPEES

• Q1 NET PROFIT 7.02 BILLION RUPEES, REVENUE 22.55 BILLION RUPEES

Source text for Eikon: ID:nBSEzM9HQ

Further company coverage: DIVI.NS

(([email protected];;))