Divi’s Laboratories’ (Divis) reported Q2FY22 performance was below our estimates. Consolidated revenue grew 13.6% YoY to Rs19.9bn (I-Sec: Rs20.9bn), EBITDA margin dropped 120bps YoY to 41.2% (I-Sec: 42.5%) and PAT grew 16.7% to Rs6.1bn (I-Sec: Rs6.3bn). The growth was driven primarily by custom synthesis business while generics declined YoY.