Divi's Laboratories Ltd. share price target

We expect the company to grow its Revenue/EBITDA/PAT at a CAGR of 15.3% / 20% / 18.2% for the period of FY26-FY28.

We expect the company to grow its Revenue/EBITDA/PAT at a CAGR of 15.3% / 20% / 18.2% for the period of FY26-FY28.

Divi's Laboratories (DIVI) Q4FY26 EBITDA missed our estimates due to lower gross margin. Revenues were largely aided by CS segment and currency tailwind. Mgmt indicated inventory levels may increase further in Q1FY27E to ensure uninterrupted operations. We expect stable margins in FY27 and expect revenue to accelerate from FY28 as commencement of some CDMO and contrast media contracts along with peptide revenue scale up. Our FY27E/FY28E EPS estimates stand cut by 2-4%. We expect 19% EBITDA and PAT CAGR over FY26-28E. At CMP, stock is trading at 52x...

Sales/EBITDA /PAT reported 3.4%/10%/1 below our estimates. EBITDA Margin was reported 235 bps below our estimates at 33%

The outlook remains positive, supported by Divi's strong positioning in custom synthesis and a diversified pipeline, with management highlighting active engagement with global innovator customers and multiple projects progressing through development and validation. Ongoing capacity additions along with a focus on disciplined execution and supply reliability are expected to support future growth, while the nutraceuticals business continues to provide healthy momentum and diversification. The company has also completed construction of a dedicated peptide facility, strengthening its capabilities in this fast-evolving segment, and...

Divi’s enters the second half of FY26 with a healthy execution pipeline across Custom Synthesis, supported by multiple projects progressing through validation and expected to commercialize over the next 1–2 years.

Divi’s Laboratories’ (Divi’s) Q2FY26 result was in line with our expectations on all fronts. Constant currency growth slowed down to ~10.8% vs. 15% QoQ and 18% in FY25.

Divi’s Laboratories (DIVI) delivered better-than-expected performance in 2Q with a 4%/10%/10% beat on revenue/EBITDA/PAT.

The company's outlook remains positive due to growth drivers such as increased traction from global innovators, a healthy pipeline of RFPs, expansion of scientific and technological capabilities, and steady growth in the nutraceutical business. Management highlighted persistent pricing pressures in generics and higher cost escalation compared to custom synthesis, weighing on margins. Regulatory delays of 12-24 months for peptides, contrast media, and Kakinada approvals restricted near term revenue conversion. Divi's also faces the risk of losing business related to...

We have revised our FY26E/FY27E EPS estimates by -14.9%/-22.7%, respectively, as we factor in subdued growth traction in Generic API segment, lower other income and higher depreciation expenses on account of higher investments in its facilities.

Divi's Laboratories (DIVI) Q1FY26 EBITDA was 4% below our estimates led by lower margins despite higher CS revenues. We expect margins to improve, led by better product mix and stable raw material prices. Mgmt. suggested that moderation of raw material prices, increasing RFP's and commencement of some CDMO and contrast media contracts, will continue to aid revenues and margins. Our FY26E/FY27E EPS estimates stand marginally reduced by 3-4%. We expect 20% EBITDA CAGR and 12% PAT CAGR over FY25-27E. At CMP,...

Earnings below estimates, largely on price erosion pressure in generics offsetting the impact of Kakinada unit 3 on margins

Divi's Laboratories (DIVI) Q4FY25 EBITDA beat our estimates led by higher gross margin (62%; up 200 bps QoQ). We expect GMs to sustain, led by better product mix and stable raw material prices. Mgmt. suggested that moderation of raw material prices, increasing RFP's and commencement of some CDMO and contrast media contracts, will continue to aid revenues and margins. Our FY26E/FY27E EPS estimates broadly remain unchanged. We expect 22% EBITDA CAGR and 15% PAT CAGR over FY25-27E. At CMP, stock is trading at...

Q3 sales/EBITDA/PAT were 0.6%/7.5%/22.3% above our estimates. PAT was higher than estimated due to the adoption of the new tax regime

Divi’s Laboratories (DIVI) delivered in-line revenue. However, it reported better-than-expected EBITDA/PAT led by a better product mix and lower tax rate (due to the shift to a new tax regime).

Divis Labs’ revenue for the quarter amounted to Rs. 2,238 crore, marking a 17% y-o-y increase and a 6% q-o-q rise, which was 4% above estimates.

DIVI reported healthy 2QFY25 earnings which was a beat on our estimates. Exports contributed 87% of sales and the US 71%