Big getting bigger thesis at play; remain OW

研报英文原文证据摘录

Big getting bigger thesis at play; remain OW

IdeaM

Key Takeaways from the Call

• Outlook: Management reiterated its historical aspiration for double-digit revenue

growth.

• Capacity utilization across all three units it is about 80% to 85% in F1Q27.

• Dedicated CS projects: Three major capex programs are nearing completion with

validations ongoing. Some product has already been shipped to customers as part

of validation. Commercial quantities will begin once regulatory qualifications by

agencies are completed.

• The three major capex projects together were valued at approximately Rs20bn,

with ~70% capitalized so far.

• Generics pricing: Generic volumes remained stable during the quarter while

pricing continued to reflect competitive market conditions.

• Generic business: Divi's has filed about four DMFs so far and is supplying

validation quantities to customers who are undergoing qualifications; commercial

volumes expected within 3–6 months post-qualification.

• Peptide: Peptides remain a key strategic investment area. Customer programs are

progressing across multiple stages of development, with qualification and

validation activities for several peptide fragments expected to advance over

coming quarters.

• Peptide capacity: The company is expanding its peptide capacity by acquiring

additional 3,000-litre solid-phase synthesis (SPS) reactors, citing strong future

opportunity in peptides. Capacity expansion is ongoing in both solid-phase and

liquid-phase peptide synthesis.

• On GLP-1 programs: Management confirmed validations of three large projects are

done and several other projects are in the pipeline, but declined to confirm

commercial supply specifics due to CDA restrictions.

• Contrast media business: Gadolinium compounds remain at the qualification