Divi’s Labs Q3 net profit slips 1% on labour‑code charge; revenue up 12%

Divis Labs

Divi’s Laboratories on Wednesday reported that its December quarter net profit slipped marginally by 1 percent year‑on‑year, due to higher operating costs and a one‑time employee‑related charge dented the bottom line, even as revenue continued to rise.

Net profit for the December quarter fell 1 percent year‑on‑year to Rs.583 crore, compared with Rs 589 crore a year earlier, weighed down by a Rs 74‑crore exceptional charge arising from India’s newly notified labour codes.

Excluding this impact, operating performance remained firm, supported by stronger margins and improved forex gains of Rs 19 crore versus Rs 10 crore in the same quarter last year.

Consolidated revenue for the quarter increased 12.3 percent to Rs 2,604 crore, driven by growth in active pharmaceutical ingredients and nutraceuticals, though the company missed Street expectations of Rs 2,680 crore.

Earnings before interest, tax, depreciation and amortization jumped 19.8 percent year‑on‑year to Rs 890 crore, with margins expanding to 34.2 percent from 32 percent.

For the nine‑month period ended December 2025, Divi’s reported Rs 8,081 crore in total income, up from Rs 7,041 crore a year earlier, with profit after tax rising to Rs 1,817 crore from Rs 1,529 crore. Stronger forex gains of Rs 121 crore over the period helped bolster earnings.

Shares of Divis rose 2.43 percent on BSE on Tuesday and was trading at Rs 6322.45, while the benchmark Sensex dropped 0.09 percent and was trading at 84,198.80 points.