Divi’s Labs Signs Long-Term Supply Pact, Plans Up to ₹7.50 Billion Capex

Divi’s Laboratories Ltd. said Saturday it has entered into a long-term manufacturing and supply agreement with a global pharmaceutical firm for advanced intermediates. To support the deal, the company will invest ₹6.50 billion–₹7.50 billion to expand capacity, it said in a filing with the exchanges.

The capex will be funded through a phase-wise capacity reservation advance from the customer. The company expects meaningful revenue contribution from the deal but did not disclose the customer's name or commercial details citing confidentiality.

The agreement is aimed at providing the customer with assured supply and will allow Divi’s Labs to strengthen its custom synthesis business, the company said.

For the March quarter, Divi’s Labs posted a net profit of ₹6.67 billion on revenue of ₹25.36 billion.