Divi's Laboratories Limited has recommended a dividend of ₹30 per fully paid-up equity share of face value ₹2 each for the financial year ended March 31, 2026. The declaration, amounting to 1,500%, is subject to approval by shareholders at the 36th Annual General Meeting scheduled for August 10, 2026. The record date to determine eligibility is July 24, 2026, with payment expected on or after August 14, 2026.

The company has outlined the tax deduction at source (TDS) implications under the Income-tax Act, 2025. For resident shareholders with a valid Permanent Account Number (PAN), TDS will be deducted at 10%. If PAN is invalid, inoperative, or not registered, the deduction rate increases to 20%. Resident individuals are exempt from TDS if the total dividend does not exceed ₹10,000 or if Form 121 is submitted.

Resident non-individual entities such as insurance companies, mutual funds, and Alternative Investment Funds (AIF) can claim exemption by submitting specific self-declarations and registration documents. Non-resident shareholders face a withholding tax rate of 20%, plus applicable surcharge and cess, unless they provide a certificate for lower or nil withholding or opt for benefits under the Double Tax Avoidance Agreement (DTAA).

To avail lower withholding rates under Section 395, shareholders must ensure the certificate is issued against the company's TAN: HYDD00401C. Certificates issued against any other TAN will not be accepted. Non-resident shareholders seeking DTAA benefits must provide a Tax Residency Certificate, e-filed Form 41, and a self-declaration meeting treaty eligibility requirements by the cut-off date.

Shareholders must submit all relevant tax documents, including Form 121 and residency declarations, on or before July 24, 2026. Documents can be uploaded via the KFintech portal or emailed to the designated addresses. Submissions received after this date may not be considered, potentially resulting in a higher TDS deduction. The company clarified that it is not obligated to apply beneficial DTAA rates if documentation is incomplete or unsatisfactory.

The company also advised shareholders to update bank details, particularly those holding shares in physical form, to ensure electronic dividend payments as per SEBI regulations.

Divi's Laboratories Limited has reported a 17% rise in consolidated net profit to ₹2,568 crore for the financial year ended March 31, 2026, compared to ₹2,191 crore in the previous year. The company’s consolidated total income for FY26 reached ₹11,067 crore, up from ₹9,712 crore in FY25, driven by operational growth and a forex gain of ₹211 crore. The Board has recommended a final dividend of ₹30 per share, subject to shareholder approval.

Financial Performance

Profit before tax (PBT) for the year stood at ₹3,388 crore. The financial results include an exceptional item of ₹74 crore related to the impact of new Labour Codes. On a standalone basis, the company reported a net profit of ₹2,607 crore for FY26, with a total income of ₹10,894 crore.

Operational Highlights

Exports contributed nearly 89% of the total sales revenue, with Europe and the United States together accounting for approximately 74% of the export revenue. The product mix between generics and custom synthesis for the year was 45% and 55%, respectively. Constant currency growth for the year was 6.82%. Revenue from the nutraceuticals business for the current financial year amounted to ₹946 crore compared to ₹781 crore in the previous financial year.

Material consumption during the current financial year stood at approximately 38.8% of sales revenue compared to 39.8% in the previous year. During the year, the company capitalized assets worth ₹1,544 crore. Capital work in progress as of March 31, 2026, stood at ₹2,113 crore. As on March 31, 2026, the company's cash and cash equivalents stood at ₹3,414 crore, receivables at ₹2,984 crore, and inventories at ₹3,954 crore.

Dividend Declaration

The Board of Directors recommended a final dividend of ₹30 per equity share of face value ₹2 each, translating to 1,500% for FY26. The record date for determining dividend eligibility is fixed as July 24, 2026. The dividend requires approval at the ensuing 36th Annual General Meeting.