Divi's Laboratories Q2 profit rises 64% to Rs 1,127 crore

Divi's Laboratories Limited reported consolidated profit of Rs 1,127 crore for the quarter ended September 30, 2026, up 64% from Rs 689 crore a year earlier, as total income rose 32% to Rs 3,770 crore. The increase occurred despite forex gain falling to Rs 24 crore from Rs 63 crore in the comparable quarter.

How did Divi's Laboratories perform in Q2 2026?

Divi's Laboratories recorded profit of Rs 1,127 crore in the September 2026 quarter, compared with Rs 689 crore in the September 2025 quarter and Rs 902 crore in the June 2026 quarter. Basic and diluted earnings per share were Rs 42.49, against Rs 25.97 a year earlier and Rs 33.95 in the immediately preceding quarter.

Revenue from operations increased by Rs 961 crore year-on-year to Rs 3,676 crore from Rs 2,715 crore. Other income fell by Rs 51 crore to Rs 94 crore, but total income still increased by Rs 910 crore to Rs 3,770 crore from Rs 2,860 crore; it was also above Rs 3,144 crore in the June 2026 quarter.

What changed in Divi's Laboratories' quarterly costs?

Divi's Laboratories' total expenses rose to Rs 2,265 crore in Q2 2026 from Rs 1,948 crore in Q2 2025, an increase of Rs 317 crore. That increase was lower than the Rs 910 crore increase in total income, resulting in profit before tax of Rs 1,505 crore, compared with Rs 912 crore a year earlier.

Cost of materials consumed increased to Rs 1,812 crore from Rs 937 crore, while employee benefits expense rose to Rs 444 crore from Rs 354 crore. Depreciation and amortisation increased to Rs 142 crore from Rs 113 crore, other expenses rose to Rs 485 crore from Rs 400 crore, and finance costs increased to Rs 13 crore from Rs 8 crore.

Inventory changes were a Rs 631 crore credit in the September 2026 quarter, compared with a Rs 136 crore expense in the year-earlier quarter. Current tax rose to Rs 371 crore from Rs 220 crore and deferred tax was Rs 7 crore versus Rs 3 crore, taking total tax expense to Rs 378 crore from Rs 223 crore.

Why did lower forex gains not prevent profit growth?

Divi's Laboratories reported a Rs 24 crore forex gain in Q2 2026, down Rs 39 crore from Rs 63 crore in Q2 2025. The group states that forex gains are included in other income and forex losses are included in other expenses, while total other income declined to Rs 94 crore from Rs 145 crore.

The disclosed figures show that revenue growth, rather than a higher forex contribution, accompanied the profit increase. Revenue rose by Rs 961 crore, total expenses increased by Rs 317 crore and other income declined by Rs 51 crore, while profit before tax increased by Rs 593 crore to Rs 1,505 crore.

For the half year ended September 30, 2026, forex gain was Rs 17 crore, compared with Rs 102 crore in the corresponding 2025 period. First-half profit nevertheless increased by Rs 795 crore to Rs 2,029 crore from Rs 1,234 crore, alongside a Rs 1,631 crore increase in revenue from operations.

How did Divi's Laboratories perform in the first half?

Divi's Laboratories reported first-half profit of Rs 2,029 crore for the half year ended September 30, 2026, compared with Rs 1,234 crore for the same period of 2025. Revenue from operations increased to Rs 6,756 crore from Rs 5,125 crore, while total income rose to Rs 6,907 crore from Rs 5,389 crore.

First-half profit before tax was Rs 2,685 crore, up from Rs 1,645 crore, as total expenses rose to Rs 4,222 crore from Rs 3,744 crore. Materials consumed increased to Rs 3,315 crore from Rs 1,947 crore, while inventory changes shifted to a Rs 1,148 crore credit from an Rs 82 crore expense.

Divi's Laboratories generated net operating cash inflow of Rs 384 crore in the first half, against Rs 1,645 crore a year earlier. The cash-flow statement records a Rs 1,585 crore increase in inventories and a Rs 604 crore increase in trade receivables, partly offset by a Rs 561 crore increase in trade payables; capital expenditure on property, plant and equipment was Rs 872 crore versus Rs 1,544 crore.

What do Divi's Laboratories' balance sheet and scope show?

Divi's Laboratories had consolidated total assets of Rs 21,964 crore as of September 30, 2026, compared with Rs 20,033 crore as of March 31, 2026. Property, plant and equipment rose to Rs 7,452 crore from Rs 6,515 crore, inventories increased to Rs 5,540 crore from Rs 3,954 crore, and trade receivables increased to Rs 3,487 crore from Rs 2,984 crore.

Total equity was Rs 17,997 crore at September 30, 2026, up from Rs 16,761 crore at March 31, 2026, while total liabilities were Rs 3,967 crore versus Rs 3,272 crore. Cash and cash equivalents rose to Rs 303 crore from Rs 128 crore, and the group reported no current borrowings at either reporting date.

Divi's Laboratories' consolidated results include the company and two subsidiaries, Divis Laboratories (USA) Inc. and Divi's Laboratories Europe AG. The group reports one business segment, manufacturing active pharmaceutical ingredients, intermediates and nutraceutical ingredients, and its consolidated statements received an unmodified limited-review report after board approval on November 7, 2026.

Conclusion

Divi's Laboratories' September-quarter result combined a Rs 438 crore year-on-year increase in profit with a Rs 910 crore increase in total income. The first-half figures similarly show profit up Rs 795 crore to Rs 2,029 crore, even as forex gain declined by Rs 85 crore to Rs 17 crore and operating cash inflow fell by Rs 1,261 crore.

The next disclosures will show whether the increase in inventories to Rs 5,540 crore and trade receivables to Rs 3,487 crore continues to affect operating cash generation. Forex gains also remain an unresolved reported variable after falling from Rs 102 crore in the first half of 2025 to Rs 17 crore in the first half of 2026.