Divis Laboratories Limited has announced a significant change in its senior management. Y.S. Koteswara Rao, the company's General Manager of Personnel and Administration (P&A), is set to retire from his position effective September 5, 2025.

Retirement Details

According to the official communication sent to the National Stock Exchange of India Limited (NSE) and BSE Limited, Mr. Rao will cease to be a Senior Management Personnel of Divi's Laboratories at the close of business hours on September 5, 2025. This information was disclosed in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company Disclosure

The company has provided the following details as part of its regulatory disclosure:

Impact and Succession

While the announcement marks the end of Mr. Rao's tenure with Divi's Laboratories, the company has not yet disclosed any information regarding his successor or the transition plan for the General Manager (P&A) role.

Divi's Laboratories, a prominent player in the Indian pharmaceutical sector, is known for its focus on the manufacture of Active Pharmaceutical Ingredients (APIs) and intermediates. The retirement of a senior management figure like Mr. Rao may bring about changes in the company's personnel management strategies going forward.

As this development is still some time away, stakeholders and investors will likely keep an eye on any further announcements from Divi's Laboratories regarding their senior management structure and any potential appointments to fill the upcoming vacancy.

The company's timely disclosure of this information aligns with its commitment to transparency and adherence to regulatory requirements, keeping shareholders and the market informed of significant changes within its management team.

Divi's Laboratories Limited , a leading Indian pharmaceutical company, has reported a strong start to the fiscal year, with a 15% year-over-year increase in consolidated revenue for the first quarter ended June 30.

Financial Highlights

The company achieved consolidated revenue of ₹2,529.00 crores in Q1, up from ₹2,197.00 crores in the corresponding quarter of the previous year. Profit after tax (PAT) also saw a significant increase, rising to ₹545.00 crores from ₹430.00 crores year-over-year, marking a 27% growth.

Business Segment Performance

Divi's Laboratories maintained a balanced product mix, with generics accounting for 47% of revenue and custom synthesis contributing 53%. The company's export-driven model remained strong, with exports accounting for 88% of total revenue. Europe emerged as the largest market, contributing 58% of revenue, while the United States accounted for 14%.

Operational Updates

A key development in the company's operations was the commencement of production at its Unit 3 facility in Kakinada in January. This new facility is focused on manufacturing key starting materials and intermediates, strengthening Divi's backward integration capabilities.

Custom Synthesis and R&D Pipeline

The company reported increased traction in its custom synthesis business, with several projects progressing through various stages of development. Management indicated that multiple custom synthesis projects are currently in R&D, pilot, and validation stages, with expectations of commercial scale production within the next 12-24 months.

Capacity Expansion and Capital Expenditure

Divi's Laboratories is executing three major capex programs backed by long-term supply commitments. The company expects total capital expenditure of ₹2,000.00 crores for the current financial year, demonstrating its commitment to growth and capacity expansion.

Innovative Product Development

The company has commissioned Solid Phase Peptide Synthesis capacity, which has garnered significant interest from pharmaceutical companies developing GLP-1 treatments. This positions Divi's to capitalize on the growing demand for peptide-based therapeutics.

Market Challenges and Opportunities

While the generic business continues to face pricing pressures due to geopolitical situations and cost-cutting measures by insurance companies, Divi's Laboratories' diversified portfolio and strong custom synthesis pipeline provide resilience.

Nutraceutical Business Growth

The company's nutraceutical segment showed impressive growth, with revenue increasing to ₹250.00 crores from ₹178.00 crores in the previous year's quarter, representing a 40% year-over-year growth.

Dr. Murali K. Divi, Managing Director of Divi's Laboratories, commented on the results, stating, "Our strong performance in Q1 reflects the success of our strategic initiatives and our ability to adapt to evolving market dynamics. The growth in our custom synthesis business and the successful commissioning of our new Kakinada facility position us well for sustained growth in the coming quarters."

As Divi's Laboratories continues to expand its capabilities and navigate the complex pharmaceutical landscape, the company remains focused on leveraging its strengths in custom synthesis, backward integration, and innovative product development to drive long-term growth and shareholder value.