Divi’s Laboratories Ltd – Q1 FY26 Financial & Business Highlights

• Revenue from operations: ₹2,410 crore, up ~14% YoY; down ~6.8% QoQ. • Profit After Tax (PAT): ₹545 crore, up ~26.7% YoY; slightly up QoQ. • Profit Before Tax (PBT): ₹733 crore, up ~21.4% YoY; down QoQ. • Total expenses: ₹1,796 crore, up ~12.7% YoY; up ~7.6% QoQ. • Earnings Per Share (EPS): ~₹20.50, up ~26.5% YoY; marginal QoQ rise. • EBITDA margin expanded YoY; operating margin improved ~70 basis points YoY. Strengths • Strong YoY growth in profits and revenues signals good demand and operational execution. • Margin improvement indicates ability to manage costs and improve operating leverage. • The contract development & custom synthesis business is showing good traction. Challenges & Risks • Revenue and profit both slipped QoQ, suggesting some short-term weakness. • Generics/API segment growth is moderate; pressure from pricing and rising operational expenses. • Elevated expenses and investment related to capacity expansion could weigh on margins. Conclusion Divi’s Laboratories delivered a strong Q1 FY26, with solid YoY growth in revenue, profit, and margins. While QoQ decline in revenue and PBT shows some softening, the company appears to be well-positioned in its custom synthesis and API businesses. Key things to watch ahead include how well generics/API segments hold up, cost control, and execution of expansion plans.