Divi's Labs to Widen Capacity at Manufacturing Facility with Huge Investment

Divi's Laboratories, a pharmaceutical firm, proposes to invest up to ₹700 crore in expanding its production facility. "The company is in the process of entering into a long-term supply agreement with a customer and is planning for capacity addition at its manufacturing facility with an estimated investment of ₹650 crore to ₹700 crore," the company said in a stock exchange filng.

It further said that the funding will come from internal accruals. The projected facility is expected to be operational around January 2027. Divi's Laboratories stated that it could not provide any additional information due to the confidentiality agreement it had signed with the customer. The pharmaceutical company recorded a 17% year-on-year growth in net profit to ₹358 crore during the third quarter of 2023-24. It fell short of CNBC-TV18's estimate of ₹444 crore.

In Q3 compared to the same period previous year, the company's profit increased from ₹306 crore to ₹358 crore. Revenue increased by 8.6% year on year at ₹1,855 crore, but fell short of CNBC's forecast of ₹2,083.8 crore. At 1.10 pm, Divi's Laboratories shares were trading at ₹3862.65, up 1.28%. The stock has risen 13.33% in the last month.