Divis Laboratories Ltd, incorporated in 1990, is one of the leading pharmaceutical companies in the world manufacturing Active Pharmaceutical Ingredients (APIs), Intermediates and Nutraceuticals. The company operates as one of the world's largest API companies with two manufacturing units and maintains a market presence across 100 countries. Headquartered in Hyderabad, India, the company employs 17,524 total employees and has established itself as a prominent player in the global pharmaceutical industry.
The company operates through three main business segments that drive its growth and market position. The Generic APIs segment manufactures 30 Large Volume Generic APIs in 10's to 100's/1000's of Tons each year, exporting them to 100+ countries, with an additional 10 APIs in various stages of R&D and pilot scale development. The Custom Synthesis segment provides APIs and Intermediates for global companies with a portfolio of products across diverse therapeutic areas. Notably, 12 out of top 20 Big Pharma Companies across US, EU and Japan have been associated with Divi's for 10+ years. The Nutraceutical segment operates from the company's Vishakhapatnam unit, producing active ingredients and finished forms of Carotenoids.
Divis Laboratories Ltd has a market capitalisation of Rs 1,83,200 crore as of March 2025. The company has demonstrated strong financial performance across recent quarters, showcasing its operational efficiency and market strength.
For Q4 2024-25, Divis Laboratories reported revenue of ₹2,671.00 crore, representing a 12.13% jump since the same period last year. The company's net profit jumped 23.05% year-over-year to ₹662.00 crore in Q4 2024-25. The net profit margin also improved significantly, jumping 9.73% year-over-year to 24.78% in Q4 2024-25.
For the previous quarter, Q1 2024-25 results showed revenue of ₹2,197 crore with an 18.18% year-over-year increase, while net profit reached ₹430 crore, marking a 20.79% year-over-year growth. In Q3 FY25, the company recorded exceptional performance with net profit increasing significantly by 64.5% year-over-year to Rs.589 crore, revenue growing by 25% to Rs.2,319 crore, and EBITDA increasing by 52% to Rs.743 crore.
The company has recommended a dividend of ₹30 per share for FY 2024-25, with proper TDS details and documentation instructions provided to shareholders. The company has been maintaining a healthy dividend payout of 43.2%, demonstrating its commitment to returning value to shareholders while maintaining adequate cash flow for business operations and growth investments.
Divis Laboratories is forecast to grow earnings and revenue by 20% and 14.9% per annum respectively, with EPS expected to grow by 19.8% per annum. Return on equity is forecast to be 18.2% in 3 years. The company's earnings growth of 20% per year is forecast to grow faster than the Indian market at 15.6% per year, while its revenue growth of 14.9% per year is also expected to outpace the Indian market's 9.5% per year.
The company recently signed a long-term supply deal with a global pharmaceutical company, involving a capex investment of Rs.650-750 crore that will be funded by customer advances. Divi's Laboratories has revealed expansion plans to invest between Rs.650 crore and Rs.700 crore to expand its manufacturing capacity, with the expansion expected to be operational by January 2027.
The company has commenced commercial operations at Phase I of its new manufacturing facility in Kakinada, Andhra Pradesh, covering 200 acres of the 500-acre land, with an investment proposal between Rs.1,200 crore and Rs.1,500 crore for its construction. Divi's advanced manufacturing facilities in Hyderabad and Vizag undergo frequent inspections by various health authorities, including USFDA, EU GMP, HEALTH CANADA, TGA, ANVISA, COFEPRIS, PMDA, and MFDS.
Divi's, established over 30 years ago in Hyderabad, India, with two manufacturing units, ranks among the top pharmaceutical companies in India. Renowned as a reliable supplier of generic APIs and a trusted custom manufacturer for Big Pharma, Divi's holds a prominent position among global API manufacturers, serving over 100 countries. The company has achieved a milestone as one of the top 3 global API manufacturers and employs approximately 16,500 highly trained professionals, including 400 scientists.
The company maintains a strong balance sheet with almost debt-free operations and promoter holding at 51.89% as of March 2025. Divi's Laboratories Limited is covered by 49 analysts, with 30 of those analysts providing estimates used in financial projections. The company's diversified product portfolio, strong relationships with global pharmaceutical companies, and ongoing capacity expansion position it well for sustained growth in the competitive pharmaceutical industry.
