Fueling Global Healthcare: Divi’s Laboratories’ FY25 Annual Report Reveals Robust Growth Across APIs, Custom Synthesis, and Nutraceuticals
NEW DELHI (India CSR): In an era defined by rapid advancements in healthcare and an ever-increasing global demand for pharmaceutical solutions, Divi’s Laboratories Limited has solidified its position as a global leader through its remarkable financial performance in FY25. The company’s 35th Annual Report for the fiscal year 2024-25 highlights a year of exceptional growth, strategic expansion, and a steadfast commitment to sustainability. With its philosophy of “Leading with Purpose,” Divi’s has not only delivered high-quality pharmaceutical and nutraceutical solutions to over 100 countries but also created meaningful impact for its stakeholders—customers, employees, and communities alike. This article delves into the company’s financial achievements, key business segments, and its vision for sustainable growth, showcasing how Divi’s continues to shape the future of global healthcare.
Divi’s Laboratories Financial Performance in FY25
| Category | Key Highlights |
|---|---|
| Total Income (Consolidated) | Rs 9,712 crores (↑ 18.67% YoY from Rs 8,184 crores in FY24) |
| Total Income (Standalone) | Rs 9,550 crores (↑ 19.35% YoY from Rs 8,002 crores in FY24) |
| Net Profit After Tax (Consolidated) | Rs 2,191 crores (↑ 36.94% YoY from Rs 1,600 crores in FY24) |
| Net Profit After Tax (Standalone) | Rs 2,209 crores (↑ 40.16% YoY from Rs 1,576 crores in FY24) |
| Standalone PBT | Rs 2,929 crores (↑ 37.38% YoY from Rs 2,132 crores) |
| Standalone EBITDA | Rs 3,331 crores (↑ 32.66% YoY from Rs 2,511 crores) |
| Earnings Per Share (Consolidated) | Rs 82.53 (↑ 36.92% YoY from Rs 60.27) |
| Earnings Per Share (Standalone) | Rs 83.20 (↑ 40.14% YoY from Rs 59.37) |
| Dividend Declared | Rs 30 per share |
| Business Segments | Generic APIs, Custom Synthesis (CDMO), Nutraceuticals |
| Nutraceuticals Revenue (FY25) | ~Rs 650 crores |
| Export Revenue Share | 88% of total revenue |
| Geographic Revenue (FY25) | Europe: Rs 5,192 crores (56.46%), North America: Rs 1,488 crores (16.18%), India: Rs 1,105 crores (12.02%), Asia: Rs 1,044 crores (11.35%), Rest of World: Rs 367 crores (3.99%) |
| Capex Investment FY25 | Rs 1,118 crores (capacity expansion, backward integration, tech upgrades) |
| Unit 3 (Kakinada) | Commercial operations commenced Jan 2025 (Rs 1,497 crores project) |
| R&D Focus | Peptide therapeutics (SPPS, LPPS), Green Chemistry, Advanced technologies |
| Sustainability Achievements FY25 | Energy saved: 34,870 GJ, Water saved: 92,130 KL, Plastic waste reduced: 35 MT, GHG reduction: 6,350 TCO2e |
| CSR Impact FY25 | 13 lakh lives impacted; 82,000 students benefited across 977 schools; 2.76 lakh liters/day clean water via 112 RO plants; 1.08 lakh beneficiaries through healthcare; 1.02 lakh rural development beneficiaries |
| Global Presence | Manufacturing: Choutuppal (Unit 1), Visakhapatnam (Unit 2), Kakinada (Unit 3); Offices in New Jersey (USA), Basel (Switzerland) |
| Board Governance | 100% Board meeting attendance; shareholder grievances fully resolved |
| Regulatory Approvals | USFDA, EU GMP, Health Canada, and other leading global agencies |
Divi’s Laboratories delivered an outstanding financial performance in FY25, reflecting its operational excellence and strong market demand. According to the annual report, the company’s consolidated total income soared to Rs 9,712 crores, marking a significant 18.67% year-on-year (YoY) growth from Rs 8,184 crores in FY24. On a standalone basis, the total income reached Rs 9,550 crores, up by 19.35% from Rs 8,002 crores in the previous fiscal year. This robust growth underscores Divi’s ability to capitalize on global market opportunities and maintain its competitive edge.
The company’s profitability metrics were equally impressive. The consolidated net profit after tax (PAT) surged by 36.94% to Rs 2,191 crores in FY25, compared to Rs 1,600 crores in FY24. On a standalone basis, the net profit climbed to Rs 2,209 crores, reflecting a remarkable 40.16% YoY increase from Rs 1,576 crores in FY24. The Profit Before Tax (PBT) on a standalone basis rose by 37.38% to Rs 2,929 crores from Rs 2,132 crores in the prior year. These figures highlight Divi’s ability to manage costs effectively while scaling operations to meet rising demand.
The Earnings Per Share (EPS) further reflects this strong performance, with the consolidated EPS increasing to Rs 82.53 in FY25 from Rs 60.27 in FY24, a 36.92% YoY growth. On a standalone basis, the EPS reached Rs 83.20, up by 40.14% from Rs 59.37 in FY24. Additionally, the company’s EBITDA grew by 32.66% on a standalone basis to Rs 3,331 crores in FY25, compared to Rs 2,511 crores in FY24, signaling robust operational efficiency. The company also announced a dividend of Rs 30 per share, reinforcing its commitment to shareholder value.
ALSO READ | Divi’s Laboratories CSR Spending Report of Rs 50 Crore for FY 2025
Key Business Segments Driving Revenue
Divi’s Laboratories operates across three core business segments: Generic Active Pharmaceutical Ingredients (APIs), Custom Synthesis, and Nutraceuticals. These segments have been pivotal in driving the company’s revenue growth and maintaining its leadership in the global pharmaceutical industry.
Generic APIs: A Cornerstone of Growth
The Generic APIs segment remains a cornerstone of Divi’s revenue stream. The company manufactures 30 large-volume generic APIs, producing them at scales ranging from tens to thousands of metric tonnes annually. Divi’s is the world’s largest manufacturer for 10 of these APIs, exporting to over 100 countries. Despite pricing pressures in the generics market, the segment maintained stable volumes through innovative process efficiencies and cost optimization. The annual report highlights that the Generic APIs segment contributed significantly to the company’s revenue, with strong demand for its high-quality products across diverse therapeutic areas.
Custom Synthesis: Capitalizing on Global Demand
The Custom Synthesis segment, which provides contract manufacturing services for APIs and intermediates to global pharmaceutical innovators, saw robust growth in FY25. Divi’s expertise in handling complex and high-potency reactions has positioned it as a preferred partner for major pharmaceutical companies. The global Contract Development and Manufacturing Organisation (CDMO) market is projected to grow from approximately Rs 11,900 crores in 2024 to Rs 22,950 crores by 2030 (assuming US$1=Rs 85), and Divi’s is well-poised to capture this opportunity. The segment benefited from increased customer engagement and a growing pipeline of inquiries, particularly for late lifecycle APIs and advanced intermediates.
Nutraceuticals: Expanding Horizons
The Nutraceuticals segment, focused on manufacturing high-quality Carotenoid, Lutein, and Vitamin ingredients, also contributed to revenue growth. Divi’s operates a global, technology-driven facility catering to the food, beverage, dietary supplement, pet food, and feed industries. This segment’s growth reflects rising consumer demand for health and wellness products, with Divi’s leveraging its expertise to deliver innovative solutions for dietary supplements and food fortification. In FY25, the Nutraceuticals segment generated approximately Rs 650 crores in revenue, maintaining its steady contribution to the company’s portfolio.
Geographic Revenue Distribution
Divi’s Laboratories maintains a diversified global presence, with 88% of its sales revenue derived from exports in FY25. The geographic breakdown of revenue from operations highlights the company’s strong international footprint:
- Europe: Rs 5,192 crores (56.46%), up from Rs 4,003 crores in FY24.
- North America: Rs 1,488 crores (16.18%), compared to Rs 1,310 crores in FY24.
- India: Rs 1,105 crores (12.02%), an increase from Rs 971 crores in FY24.
- Asia: Rs 1,044 crores (11.35%), slightly up from Rs 1,017 crores in FY24.
- Rest of the World: Rs 367 crores (3.99%), marginally higher than Rs 351 crores in FY24.
This diversified revenue base, supported by manufacturing facilities in Choutuppal (Unit 1), Visakhapatnam (Unit 2), and the newly commissioned Kakinada (Unit 3) in Andhra Pradesh, along with R&D centers and international offices in New Jersey, USA, and Basel, Switzerland, enhances Divi’s ability to serve global markets effectively.
Major Increases and Declines
The FY25 financial performance was marked by significant increases across key metrics, driven by strong demand and operational efficiencies. The consolidated total income grew by 18.67%, and the net profit surged by 36.94%, reflecting the company’s ability to capitalize on market opportunities and manage costs effectively. The Custom Synthesis segment saw notable growth due to increased demand from global pharmaceutical companies, while the Generic APIs segment maintained stable volumes despite pricing pressures.
However, the company faced challenges in the form of sequential declines in certain quarters. For instance, in Q1 FY26 (April-June 2025), revenue from operations declined by 6.79% quarter-on-quarter (QoQ) to Rs 2,410 crores, and profit before tax fell by 15.16% QoQ to Rs 733 crores. These declines were attributed to temporary market fluctuations and supply chain disruptions, but the company’s YoY growth in the same quarter (net profit up 26.74% and revenue up 13.78%) indicates resilience. Additionally, higher repair costs for older plant machinery and increased freight and travel expenses posed challenges, but Divi’s mitigated these through targeted pricing strategies and operational efficiencies.
ALSO READ | Divi’s Laboratories Transfers Rs 6.21 Crore to Unspent CSR Account for FY25
Strategic Investments and Capacity Expansion
Divi’s Laboratories invested Rs 1,118 crores in FY25 towards capacity expansion, backward integration, and technology upgrades. A key milestone was the commencement of commercial operations at Unit 3 in Kakinada, which began in January 2025. This greenfield facility, with a total capital expenditure of Rs 1,497 crores (including Rs 885 crores capitalized for property, plant, and equipment), enhances Divi’s production capabilities and strengthens its backward integration strategy by manufacturing key starting materials. This move is expected to unlock additional capacity for growth in regulated markets.
The company’s R&D investments focused on advanced technologies such as Solid Phase Peptide Synthesis (SPPS) and Liquid Phase Peptide Synthesis (LPPS), positioning Divi’s as a leader in the rapidly growing peptide therapeutics market, projected to grow from Rs 9,945 crores in 2024 to approximately Rs 17,935 crores by 2030 (assuming US$1=Rs 85). These investments, coupled with process innovation and green chemistry, ensure Divi’s remains competitive in a dynamic market.
Sustainability and Social Impact
Divi’s Laboratories integrates sustainability into its core operations, aligning with Environmental, Social, and Governance (ESG) principles. In FY25, the company achieved significant environmental milestones:
- Energy conservation: Approximately 34,870 GJ saved.
- Water conservation: Approximately 92,130 KL of water saved.
- Plastic waste reduction: Approximately 35 MT reduced.
- Greenhouse Gas (GHG) emissions reduction: Approximately 6,350 TCO2e.
Divi’s has set ambitious sustainability targets for 2030, including a 5% reduction in absolute GHG emissions and a 25% reduction in intensity-based GHG emissions, and has signed the Science Based Targets initiative (SBTi) for Near-term and Net-Zero targets.
On the social front, Divi’s impacted approximately 13 lakh lives through its CSR initiatives in FY25, focusing on education, healthcare, and rural development in Andhra Pradesh and Telangana. Key achievements include:
- Benefiting 82,000 students across 977 schools.
- Providing 2.76 lakh liters of clean water daily through 112 RO plants.
- Supporting 1.08 lakh beneficiaries through preventive healthcare initiatives.
- Impacting 1.02 lakh beneficiaries through rural development in 75 villages.
Governance and Regulatory Compliance
Divi’s Laboratories maintains a robust governance framework, with 100% Board meeting attendance and resolution of shareholder grievances in FY25. Its manufacturing facilities are approved by major global regulatory agencies, including USFDA, EU GMP, Health Canada, and others, ensuring compliance with stringent quality standards. The company’s adherence to intellectual property rights and its Anti-Corruption Policy further enhance its reputation as a responsible global player.
You Learn: A Vision for Sustained Growth
As Divi’s Laboratories looks to FY26 and beyond, its strategic focus on innovation, capacity expansion, and sustainability positions it for continued success. The company’s Managing Director, Dr. Murali K. Divi, emphasized its commitment to “strategic clarity, disciplined execution, and operational resilience.” With the global API market projected to grow from Rs 21,675 crores in 2024 to approximately Rs 30,685 crores by 2030 (assuming US$1=Rs 85), and the peptide therapeutics market expected to reach Rs 17,935 crores by 2030, Divi’s is well-positioned to capitalize on these trends.
In conclusion, Divi’s Laboratories’ FY25 performance reflects its ability to navigate a complex global landscape while delivering exceptional financial results. With a diversified portfolio, strategic investments, and a commitment to sustainability, Divi’s is not just leading in pharmaceuticals but also setting a benchmark for responsible business practices, poised to drive impact and growth for years to come.
(India CSR)
