A pharmaceutical firm renowned for its custom synthesis expertise and global manufacturing solutions has secured a landmark international partnership. This article delves into a strategic, customer-funded expansion worth Rs. 650–750 crore, poised to boost revenue and scale production capabilities. This deal signals a major leap in the company’s competitive positioning and long-term growth prospects.
Divis Laboratories Limited’s stock, with a market capitalisation of Rs. 1,78,102 crores, rose to Rs. 6,748, hitting a high of up to 4.09 percent from its previous closing price of Rs. 6,483. Furthermore, the stock over the past year has given a return of 58 percent.
Order Details
Divis Laboratories has signed a long-term international manufacturing and supply agreement with a global pharma firm. It expects significant revenue, with a Rs. 650–750 crore capacity expansion funded by the customer through advance payments. The deal enhances custom synthesis capabilities while customer details remain confidential due to a signed confidentiality agreement.
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Financial highlight
In Q4FY25, the company reported revenue of Rs. 2,585 crore, up 12.2 percent YoY from Rs. 2,303 crore in Q4FY24 and 11.5 percent QoQ from Rs. 2,319 crore in Q3FY25. This growth aligns well with its 5-year sales CAGR of 12 percent, reflecting consistent topline momentum.
Net profit stood at Rs. 662 crore in Q4FY25, marking a 23 percent YoY increase from Rs. 538 crore and a 12.4 percent QoQ rise from Rs. 589 crore. The company’s 5-year profit CAGR stands at 10 percent, while ROE has compounded at 18 percent over the same period, indicating strong operational efficiency and sustained value creation for shareholders.
Capex Plans
The company targets double-digit revenue growth for FY26 and beyond, offering guidance only at the overall level. FY26 CAPEX is projected at Rs. 1,400 crores, covering both announced projects and maintenance. Two major chemical synthesis projects, one API and one advanced intermediate, are in the pipeline, with commercial impact anticipated by late 2026 or early 2027, pending regulatory approvals. These initiatives show the company’s long-term growth strategy.
Written By Fazal Ul Vahab C H
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