Divis Laboratories Ltd

Divis Laboratories Ltd — Trading Window closed from October 01, 2026 till 48 hours after the declaration of unaudited financial results of the Company for the quarter and half year ending September 30, 2026.

AGM details

• AGM held on 10 August 2026 at 10:00 AM via VC/OAVM.
• Record date: 03 August 2026; meeting concluded at 11:26 AM.
• Attendance: 150 members representing 12,42,61,211 shares via VC.

Key resolutions

• Ordinary: Adopt audited standalone and consolidated financial statements for FY 2025-26.
• Ordinary: Declare dividend of ₹30 per equity share (1,500%).
• Ordinary: Re-appoint N.V. Ramana as director; retires by rotation.
• Ordinary: Re-appoint Dr. Kiran S. Divi as director; retires by rotation.

Dividend

• Dividend of ₹30 per equity share approved; total payout ₹796.41 crore.

Director changes

• N.V. Ramana re-appointed; retires by rotation.
• Dr. Kiran S. Divi re-appointed; retires by rotation.

Voting results

• Res. 1 passed; ~99.95% in favour.
• Res. 2 passed; ~99% in favour.
• Res. 3 passed; ~99% in favour.
• Res. 4 passed; ~99% in favour.

Auditor

• Statutory auditors attended; no change announced.

Financial Performance

• Consolidated total income of ₹3,144 crores in Q1 FY27.
• PBT ₹1,180 crores; PAT ₹902 crores.
• Standalone income ₹3,037 crores; PBT ₹1,165 crores; PAT ₹891 crores.
• Standalone revenue grew 10% on a constant currency basis.
• Exports continued to account for approximately 90% of standalone revenue.
• Europe and North America accounted for 75% of our exports.
• Custom Synthesis revenue share 60%; Generics 40%.
• Nutraceutical revenue ₹298 crores in the quarter; prior year ₹250 crores.
• Capital work in progress ₹2,034 crores.
• Capitalized assets ₹451 crores.
• Cash and cash equivalents ₹3,611 crores.
• Trade receivables ₹3,056 crores; Inventory ₹4,413 crores.

Operations and Environment

• External environment remained challenging; West Asia uncertainty affected procurement strategies.
• Material availability largely stable; solvent costs remained elevated.
• Rolling 3-month inventory policy to secure supply; production stoppages avoided.
• Backward integration via Unit-3 enhances supply of critical intermediates.
• Peptide capacity expansion with multiple 3,000 L SPPS lines planned.
• CSR programs reached more than 1.8 million beneficiaries in 2026.
• Three major capex programs nearing completion; validations ongoing.

Balance Sheet and Cash Flow

• Cash and cash equivalents at ₹3,611 crores.
• Trade receivables ₹3,056 crores; inventory ₹4,413 crores.
• Capital work in progress ₹2,034 crores.
• Assets capitalized ₹451 crores in the quarter.

Capex and Projects

• Three major capex projects totaling about ₹2,000 crores; ~70% capitalized.
• Validations completed; commercial quantities will commence after regulatory approvals; CDAs restrict sharing.
• Unit-3 supports backward integration; Kakinada enables pre-chemistry work.
• Peptide capacity expansion with several 3,000 L SPPS lines.
• Three capex programs nearing completion; transfer of activities in line with planning.

Outlook and Guidance

• Double-digit growth for FY27; updates to follow as validations progress.

Q&A Highlights

• Validation-to-commercial ramp depends on approvals; quantities undisclosed due to confidentiality.
• Generic pricing affected by raw material costs; prices raised where viable.
• Gadolinium remains in Phase II/III qualification; no full validations confirmed.
• Iodine contrast media: long-term contracts; one commercialization started; second due soon.
• Approximately 18–20 Custom Synthesis projects are commercialized or in commercialization.
• Peptide expansion and integrated model give competitive supply advantages.
• Utilization across all three units is around 85%.

Risks and Watchpoints

• Geopolitical risk in West Asia could affect supply chain and costs.
• Regulatory approvals timing can impact project ramp and margins.

Retirements of Senior Management Personnel

• Mr. L. Ramesh Babu, Vice President (Procurement), retires effective July 31, 2026.
• Mr. D. Madhu Babu, Vice President (Projects), retires effective July 31, 2026.
• Cessation as Senior Management Personnel due to retirement.

Meeting Details

• Board meeting scheduled for August 1, 2026; time and venue not disclosed.

Key Agenda Items

• Approval of unaudited standalone and consolidated financial results for quarter ended June 30, 2026.

Other Notes

• Trading window closed from July 1, 2026 to 48 hours post-results (Aug 3, 2026).

AGM details

• AGM date/time/mode: Aug 10, 2026 at 10:00 a.m. IST via VC/OAVM.
• Deemed venue: registered office.
• Proxy facility not available due to VC/OAVM; attendance via VC/OAVM only.

Dividend & record date

• Dividend proposed: ₹30 per equity share.
• Record date: 24 July 2026.
• Payment date (if approved): 14 August 2026.

Resolutions proposed

• Adopt audited standalone and consolidated financial statements and reports.
• Declare dividend for FY2025-26.
• Re-appoint N.V. Ramana as Director; retires by rotation.
• Re-appoint Dr. Kiran S. Divi as Director; retires by rotation.

Voting & results

• Remote e-voting window: 9:00 a.m. on Aug 6, 2026 to 5:00 p.m. on Aug 9, 2026.
• Results to be declared within two working days; posted on company and Kfintech websites and stock exchanges.

Director changes

• Ramana to be re-appointed as Director; retires by rotation; five-year tenure from Dec 2024; last remuneration ₹51.20 Cr.
• Dr. Kiran S. Divi to be re-appointed as Director; five-year tenure from Apr 2025; last remuneration ₹34.84 Cr.

VC/OAVM format note

• VC/OAVM format in effect; proxy not available.

Overview

• Manufactures Active Pharmaceuticals Ingredients, Intermediates and Nutraceuticals, accounting for 100% turnover.
• BRSR disclosed on a standalone basis for FY2025-26.
• Exports comprise about 89% of turnover; serves 23 states and 80 countries.
• Domestic facilities: 4 manufacturing plants and 1 office; Unit 3 started January 2025.
• International presence includes 2 offices; no international plants.

Key ESG Risks & Opportunities

• OH&S risks mitigated by ISO 45001; incidents may incur costs.
• Water management risks mitigated with RO reuse and desalination; scarcity raises costs.
• Climate risks addressed via renewable energy and SBTi-approved near-term/net-zero targets.
• Waste management risks mitigated via recycling, reuse, and green chemistry.
• ISO 14001/45001 certifications underpin governance and risk mitigation.
• SBTi targets approved; near-term and net-zero; CFP verified.

Governance & Policy Highlights

• Risk Management and Sustainability Committee oversees ESG topics.
• Policies approved by Board; extend to value chain.
• Anti-corruption policy covers company and stakeholders.
• Whistle Blower Policy with web link.
• Code of Ethics and related policies approved by the Board.
• Bureau Veritas provides reasonable assurance on BRSR Core indicators.
• Compliant with all applicable laws; no penalties reported.

Social Responsibility & Workforce

• Total workforce: 12,119; permanent employees 11,514; female employees 1,719.
• LTIFR: employees 0.29; workers 0.34; no fatalities.
• Average Health & Safety training ~21 hours 50 minutes per person.
• Board gender diversity: 2 of 10 female directors.
• Return-to-work after parental leave: female permanent 88.70%; retention 75.37%.
• Differently abled: 17 employees; 10 workers.
• Grievance mechanisms: Whistle Blower policy and safety committees.
• CSR focus areas include health, education, drinking water, rural development and women empowerment.

Environmental Performance

• Total energy: 54,97,329 GJ; renewables contributed 85,133 GJ.
• GHG emissions: Scope 1 371,697 tCO2e; Scope 2 378,516 tCO2e.
• Scope 3 emissions: 1,200,799 tCO2e; intensity 0.00001156 MT CO2e/rupee turnover.
• Water: withdrawal 2,762,689 KL; consumption 3,655,825 KL.
• Water discharge: surface water 437,108 KL; to CETP 4,588 KL; total 445,907 KL.
• ZLD implemented at Unit-I; RO/STP water reused.

Stakeholder Engagement & Complaints

• Stakeholders: employees, customers, investors, suppliers, community, government.
• Engagement channels: email, website, meetings; frequency continuous or as required.
• Shareholders complaints: 102 filed; 0 pending; Customers 35 filed; 6 pending.
• Value chain assessments: ~54.52% of partners by value participated.
• Grievance mechanisms: policies accessible online; CSR activities engage communities.

Other Notable Metrics

• Affiliations with 7 trade associations.
• MSME inputs: 22.08%; domestic sourcing: 71.27%.
• Gross wages to females: 9.2% of total wages.
• Data privacy/cybersecurity: ISO 27001-aligned policies; no data breaches reported.
• BRSR core indicators assued by Bureau Veritas; 9 indicators covered.