Divis Laboratories , a leading pharmaceutical company, has reported a robust financial performance for the second quarter of fiscal year 2026, with custom synthesis business driving growth amid ongoing pricing pressures in the generics segment.

Financial Highlights

For Q2 FY2026, Divis Labs achieved:

• Consolidated total income of ₹2,860.00 crores, up 17% year-over-year
• Profit before tax of ₹912.00 crores, compared to ₹722.00 crores in Q2 FY2025
• Profit after tax of ₹689.00 crores, versus ₹510.00 crores in the previous year

Business Segment Performance

The company's product mix for the quarter showed:

• 44% generics
• 56% custom synthesis

This marks a significant shift towards custom synthesis, which has become a key growth driver for Divis Labs.

Custom Synthesis Business

The custom synthesis segment continues to see high engagement levels with:

• Steady flow of RFPs (Request for Proposals)
• Site visits from global innovators
• Multiple projects advancing through development and validation stages

Dr. Kiran S. Divi, Whole-Time Director and Chief Executive Officer, commented, "We have a strong pipeline, and we are looking at ongoing investments as our projects come to life. We see quite a positive outcome in the next 1 to 2 years."

Generics Business

Despite ongoing pricing pressures, the generic business has maintained consistent volumes. The company's backward integration model, particularly through its Unit 3 facility in Kakinada, has supported supply security and cost management.

Export Performance

Exports accounted for 90% of total sales revenue, with Europe and the United States contributing a combined 74%.

Financial Position

As of September 30, 2025, Divis Labs reported:

• Cash on books of ₹3,451.00 crores
• Receivables of ₹2,614.00 crores
• Inventories of ₹3,433.00 crores

Future Outlook

Divis Labs is executing three major capex programs backed by long-term supply commitments. The company has also inaugurated its peptide center of excellence, where multiple customer projects are undergoing development.

Ms. Nilima Prasad Divi, Whole-Time Director (Commercial), stated, "We are looking at several new projects, and we did mention earlier in the SEBI disclosure release that we are getting into three new projects and the capex is also being included for that."

Conclusion

Divis Laboratories' strong performance in Q2 FY2026, particularly in its custom synthesis business, demonstrates the company's resilience and strategic positioning in the pharmaceutical industry. While facing challenges in the generics segment, Divis Labs continues to invest in future growth opportunities, particularly in custom synthesis and peptide development.

Investors and stakeholders will be watching closely to see how these investments and ongoing projects translate into revenue growth and profitability in the coming years.

Divis Laboratories , a prominent player in the Indian pharmaceutical industry, has reported a substantial decline in its export performance, raising concerns about the company's near-term outlook in international markets.

Export Performance Breakdown

The company's latest figures reveal a sharp downturn in its export metrics:

This significant drop in dollar-denominated export values highlights the challenges Divis Laboratories is currently facing in its international business operations.

Implications for Investors

The substantial decline in exports could have several implications for Divis Laboratories:

1. Revenue Impact: The sharp drop in export performance may affect the company's overall revenue, potentially impacting its financial health in the short term.

2. Market Position: This decline might influence Divis Laboratories' competitive position in the global pharmaceutical market.

3. Investor Sentiment: The news may lead to cautious sentiment among investors, who will be closely watching for any signs of recovery or further decline.

While the specific reasons for this export decline have not been detailed in the available information, it's crucial for investors and market watchers to keep an eye on future announcements from Divis Laboratories. These could provide insights into whether this is a temporary setback or indicative of broader challenges facing the company or the industry.

As the global pharmaceutical landscape continues to evolve, Divis Laboratories' ability to navigate these challenges will be key to its future performance in international markets.