Part II..
The Consolidated Revenue for the company stood at Rs10560 crores, which is 13% higher than previous years revenue. The Operating profit rose by 16% from FY25 to FY26, supported by favourable raw-material costs, inventory levels, product mix suggesting improvement in operating marings. In the same period EBITDA grew by 19%, and PAT grew by 17%
The company has been debt free, with finance costs randing between 1 to 3 crores between 2021-2025. The finance cost for FY26 grew to Rs. 23 Crore.
On the recent front, the Q1FY27 continued to show the same strength, with the Revenue rising 9 % on a QoQ basis, and a 28% growth on a Y0Y basis. The EBITDA on a QoQbasis rose by 21% even after an increase in the total cost of raw materials consumed. The company has stocked up investories or raw materials, this has majorly been a course to a greater relative rise in the EBITDA. The company has maintained elevated inventory levels as part of its strategy to secure raw materials and ensure uninterrupted production and customer supplies. This inventory build-up, along with favourable raw-material consumption and product mix, supported operating margins during the period.
Divi’s labs is Partner to 12 of the top 20 pharmaceutical companies worldwide. With the market outlook for the coming years, Revenue of the company is expected to grow going forward. The management in its commentary for the recent Q1FY27 concall exhibited confidence and resilience.
Divi’s has delivered a CAGR of 9% revenue from 2021-2026, an EBITDA CAGR of 6%, and PAT of 5%.
It is worthy to note that 2022-2023, the company had faced severe pressure on revenue and margins due to Covid after effects. Sales for Molnupiravir and related COVID-19 treatments dropped significantly compared to the massive pandemic-era spikes seen in FY2022 The company in its 2022-23 annual reports acknowledged that the past year was marked with global inflation, geopolitical uncertainty, energy crisis, and supply chain disruptions in various parts of the world. Further, some High-value fast-track contract manufacturing and custom synthesis projects slowed down significantly as emergency clinical trials and rapid-demand requirements tapered off.
The Return on Net worth for FY2025-26 is 16.5% and Return on Capital Employed for the same period is 21.23%, rising from 15.57% and 19.88 % respectively in the previous years.
Operating cash flow stood at ₹2,711 crore in FY26, exceeding PAT of ₹2,568 crore, indicating healthy cash conversion of earnings despite elevated working-capital requirements.