Divi's Laboratories (Divis) reported Q3FY21 performance broadly in line with our estimates, though reported margin and PAT was impacted by one-time staff incentive of Rs 340 mn. Consolidated revenue grew 21.9% YoY to Rs 17.0 bn, EBITDA margin improved 520bps YoY to 40.6%, 200bps impacted by one-time staff incentive and PAT grew 31.1% to Rs 4.7 bn. The growth was driven across generic APIs and CRAMS businesses. Strong positioning of Divis will help in monetising the growth opportunity in API and CRAMS space given its stellar execution track record and it being one of the preferred suppliers. Further, recently done and planned capex of ~Rs 22 bn reinforces our view as Divis is known for expanding capacities with very high business visibility. Retain Add.