Divi's Laboratories Limited Q4 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Positive
Executive Summary
Divi's Labs Q4 FY2026: Revenue ₹2,986 Cr (vs ₹2,671 Cr YoY), PAT ₹751 Cr (vs ₹662 Cr YoY)
In Q4 FY2026 Divi's Laboratories reported consolidated Total Income of ₹2,986 Cr and Revenue from operations of ₹2,831 Cr, up from ₹2,671 Cr and ₹2,585 Cr respectively in Q4 FY2025. Profit after tax for the quarter was ₹751 Cr versus ₹662 Cr in Q4 FY2025, supported by a forex gain of ₹90 Cr in the quarter. Cost of materials consumed rose to ₹1,214 Cr in Q4 FY2026, increasing total expenses to ₹2,023 Cr, while the board recommended a final dividend of ₹30 per share for FY2025-26. Management flagged the statutory impact of the new Labour Codes (recognised as an exceptional item of ₹74 Cr in the...Total Income (Consolidated) Q4 FY2026
₹2,986 Crvs ₹2,671 Cr in Q4 FY2025
Revenue from operations (Consolidated) Q4 FY2026
₹2,831 Crvs ₹2,585 Cr in Q4 FY2025
Profit before Tax (PBT) Q4 FY2026
₹963 Crvs ₹864 Cr in Q4 FY2025
Profit after Tax (PAT) Q4 FY2026
₹751 Crvs ₹662 Cr in Q4 FY2025
Total expenses (Consolidated) Q4 FY2026
₹2,023 Crvs ₹1,807 Cr in Q4 FY2025
Forex gain included in Other Income Q4 FY2026
₹90 Crvs ₹10 Cr in Q4 FY2025
Earnings per Share (Basic) Q4 FY2026
₹28.31vs ₹24.93 in Q4 FY2025
Cost of materials consumed Q4 FY2026
₹1,214 Crvs ₹931 Cr in Q4 FY2025
Key Highlights
10
Consolidated Total Income for Q4 FY2026 was ₹2,986 Cr, up from ₹2,671 Cr in Q4 FY2025, driven by higher revenue and other income.
Consolidated PAT for Q4 FY2026 rose to ₹751 Cr from ₹662 Cr in Q4 FY2025, supported materially by a forex gain of ₹90 Cr recorded in the quarter.
Total expenses increased to ₹2,023 Cr in Q4 FY2026 from ₹1,807 Cr in Q4 FY2025, reflecting higher input costs and operating spend.
Cost of materials consumed rose to ₹1,214 Cr in Q4 FY2026 from ₹931 Cr in Q4 FY2025, which compressed operating leverage despite revenue growth.
Change in inventories swung to (₹95) Cr in Q4 FY2026 from ₹50 Cr in Q4 FY2025, indicating a quarter inventory movement that affected cost of goods sold and working capital.
Other Income in Q4 FY2026 was ₹155 Cr versus ₹86 Cr in Q4 FY2025, driven largely by a forex gain of ₹90 Cr in the quarter.
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Key Highlights
10
Consolidated Total Income for Q4 FY2026 was ₹2,986 Cr, up from ₹2,671 Cr in Q4 FY2025, driven by higher revenue and other income.
Consolidated PAT for Q4 FY2026 rose to ₹751 Cr from ₹662 Cr in Q4 FY2025, supported materially by a forex gain of ₹90 Cr recorded in the quarter.
Total expenses increased to ₹2,023 Cr in Q4 FY2026 from ₹1,807 Cr in Q4 FY2025, reflecting higher input costs and operating spend.
Cost of materials consumed rose to ₹1,214 Cr in Q4 FY2026 from ₹931 Cr in Q4 FY2025, which compressed operating leverage despite revenue growth.
Group cash and cash equivalents declined to ₹128 Cr at 31-Mar-2026 from ₹415 Cr at 31-Mar-2025, after capex and dividend outflows for the year.
The parent recognised an exceptional incremental employee benefit expense of ₹74 Cr for the year related to the new Labour Codes; this was presented as an exceptional item in FY2026 consolidated results.
Change in inventories swung to (₹95) Cr in Q4 FY2026 from ₹50 Cr in Q4 FY2025, indicating a quarter inventory movement that affected cost of goods sold and working capital.
Other Income in Q4 FY2026 was ₹155 Cr versus ₹86 Cr in Q4 FY2025, driven largely by a forex gain of ₹90 Cr in the quarter.
Board has recommended a final dividend of ₹30 per equity share (face value ₹2) for FY2025-26, subject to shareholder approval at the AGM.
Consolidated depreciation and amortisation expense was ₹120 Cr in Q4 FY2026 (consistent with prior quarters), reflecting ongoing asset base amortisation.
Guidance & Outlook
5
Management will continue to monitor implementation and financial impact of the new Labour Codes that resulted in a ₹74 Cr exceptional charge in FY2026 and will provide additional impact disclosures if material.
Company reiterated ongoing capex and organic investment as reflected by capital work-in-progress increasing to ₹2,113 Cr as at 31-Mar-2026, signalling continued capacity build-out.
Management highlighted forex as a material contributor to quarterly Other Income (₹90 Cr in Q4 FY2026) and will monitor currency volatility as it can materially affect near-term profitability.
Cash generation remains a focus given net cash and cash equivalents fell to ₹128 Cr at 31-Mar-2026; expect working capital and capex management to be priorities in the near term.
Board recommended final dividend of ₹30 per share for FY2025-26, subject to member approval at the AGM scheduled for August 10, 2026.
Risks & Concerns
5
Regulatory/legislative risk from new Labour Codes led to an exceptional employee benefit expense of ₹74 Cr in FY2026 and may create further non-recurring charges.
Rising input costs
Forex volatility risk
Liquidity and cash risk
Working capital and inventory swing
AI-generated analysis. May contain inaccuracies — verify against original sources.