1. Opening Hook
When most pharma CEOs were busy explaining inventory “rationalization,” Dr. Kiran Divi was busy engineering a peptide revolution — one amino acid at a time. Withcontrast media bubbling,custom synthesis roaring, andgenerics sulking, Divi’s is now a curious mix of old-school chemistry and new-age biocatalysis. Yet, the company insists it’s not chasing glamour, just good science — and ₹689 crore of quarterly profit doesn’t hurt. Strap in, because between Kakinada, peptides, and patents, this call had more chemistry than your college lab.
2. At a Glance
- Revenue up 17%– Chemistry clicked; spreadsheets sparkled.
- EBITDA ₹912 Cr, up 26%– Lab coats turned into profit coats.
- PAT ₹689 Cr, up 35%– Peptides paid the bills.
- Exports 90% of revenue– India makes, world takes.
- Custom Synthesis 56% mix– Outsourcing never sounded this profitable.
- Capex ₹1,550 Cr (H1)– Still building, still billing.
- Cash ₹3,451 Cr– Divi’s sits on a pharma-sized treasure chest.
3. Management’s Key Commentary
“We’ve delivered value across all business segments despite global trade dynamics.”(Translation: Even when China sneezes, our supply chain carries tissues.😏)
“Unit 3 in Kakinada is now supporting in-house production of intermediates.”(Translation: We’re done begging vendors — DIY chemistry is the new mantra.)
“Peptide synthesis is gaining strong momentum; we’re working with big pharma.”(Translation: We’ve got friends in high molecular weight places.)
“Three major capex programs are underway with long-term commitments.”(Translation: Money’s going into reactors, not marketing brochures.)
“Exports to the U.S. and Europe form 74% of total.”(Translation: We sell wellness where healthcare costs more than cars.)
“Backward integration and flow chemistry will keep us future-ready.”(Translation: Divi’s doesn’t chase trends; it invents them.)
“We’ll continue to invest based on long-term sustainable contracts.”(Translation: Slow and steady, but with ₹2,000 crore capex flair.🚀)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | YoY Growth | Commentary |
|---|---|---|---|---|
| Total Income | ₹2,860 Cr | ₹2,444 Cr | +17% | Stability meets scalability. |
| PBT | ₹912 Cr | ₹722 Cr | +26% | Science pays better than spreadsheets. |
| PAT | ₹689 Cr | ₹510 Cr | +35% | The molecule margin magic continues. |
| EBITDA Margin | 31.9% | 29.5% | +240 bps | Capex? Controlled. Costs? Contained. |
| Export Share | 90% | 88% | +2% | Divi’s doesn’t do domestic drama. |
| Product Mix | 44% Generics / 56% CS | 49% / 51% | +500 bps shift | Custom is the new constant. |
| Forex Gain | ₹63 Cr | ₹– | — | Rupee depreciation = pharma appreciation. |
| Cash Reserves | ₹3,451 Cr | ₹2,900 Cr | +19% | Pharma piggy bank getting heavier. |
Note:Nutraceutical revenue stood at ₹242 Cr this quarter — the vitamin side hustle stays alive.
5. Analyst Questions (Decoded)
Q:“Generics are under pressure — when’s the revival?”A:“Volumes stable, prices not.”(Translation: Customers stay, margins go on vacation.)
Q:“Can new peptide work lift margins?”A:“We’re just getting started.”(Translation: Patience — peptides need incubation.🧬)
Q:“Capex hit ₹1,550 Cr already — more coming?”A:“Yes, higher than ₹2,000 Cr this year.”(Translation: Divi’s spends like it knows what’s coming.)
Q:“Is growth China+1 driven?”A:“Maybe, maybe not — we just keep winning RFPs.”
