Active Pharmaceutical Ingredients (API) manufacturer Divi's Laboratories Limited reported a strong financial performance for the first quarter of FY27, driven by healthy demand across its API synthesis and custom manufacturing businesses.

For the quarter ended June 30, 2026, the company reported consolidated revenue from operations of Rs. 3,080 crore, registering a 27.8% year-on-year increase from Rs. 2,410 crore in the corresponding quarter last year. On a sequential basis, revenue grew 8.8% from Rs. 2,831 crore recorded in Q4 FY26.

Total consolidated income rose 24.3% year-on-year to Rs. 3,144 crore, while profit before tax (PBT) surged 61% to Rs. 1,180 crore, compared with Rs. 733 crore in Q1 FY26.

The company's profit after tax (PAT) climbed 65.5% to Rs. 902 crore, up from Rs. 545 crore in the year-ago quarter. Diluted earnings per share (EPS) increased to Rs. 33.95, compared with Rs. 20.49 in Q1 FY26.

On a standalone basis, revenue from operations increased to Rs. 2,974 crore from Rs. 2,357 crore a year earlier, while total income rose to Rs. 3,037 crore.

Standalone profit before tax grew 56% to Rs. 1,165 crore, while profit after tax rose nearly 60% to Rs. 891 crore, compared with Rs. 557 crore in the corresponding quarter of FY26. Basic and diluted EPS stood at Rs. 33.55 against Rs. 20.95 a year ago.

Total consolidated expenses for the quarter stood at Rs. 1,964 crore, compared with Rs. 1,796 crore in Q1 FY26. Raw material consumption increased to Rs. 1,503 crore, while employee benefit expenses rose to Rs. 408 crore. Depreciation and amortisation expenses were Rs. 133 crore, finance costs remained low at Rs. 6 crore, and other expenses stood at Rs. 431 crore.

During the quarter, the company reported a foreign exchange loss of Rs. 7 crore, compared with a forex gain of Rs. 39 crore in the corresponding quarter last year.

The company recorded a total tax expense of Rs. 278 crore, including current tax of Rs. 291 crore and a deferred tax credit of Rs. 13 crore, resulting in an effective tax rate of approximately 23.6%.

Divi's Laboratories' paid-up equity share capital remained unchanged at Rs. 53 crore, while other equity stood at Rs. 16,708 crore as of March 31, 2026.

Following the results announcement, the company's shares traded higher on the BSE. The stock was last trading at Rs. 8,056.65, compared with the previous close of Rs. 7,840.50, after touching an intraday high of Rs. 8,087.00.