Divi’s Laboratories shares capped a fierce rally at ₹11,097 on Friday, jumping 9.43% after the drugmaker delivered an across-the-board earnings beat powered by high-margin custom synthesis contracts and accelerating peptide demand. AirNews set fresh records. Net profit leaped 64% year-on-year to ₹1,127 crore for the September quarter, crushing institutional forecasts and leaving market desks recalibrating forward multiples ahead of trading on Monday, November 9.
Revenue from operations rose 35.4% to ₹3,676 crore, up from ₹2,715 crore a year earlier. Operating leverage kicked in hard. Earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 76% to ₹1,566 crore, lifting the Hyderabad-based active pharmaceutical ingredient manufacturer's operating margin to 42.6%—an expansion of nearly 1,000 basis points from the 32.7% recorded in the corresponding quarter of the previous fiscal year.
| Metric (Consolidated) | Q2FY27 | Q2FY26 | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹3,676 crore | ₹2,715 crore | +35.4% |
| EBITDA | ₹1,566 crore | ₹888 crore | +76.4% |
| EBITDA Margin | 42.6% | 32.7% | +990 bps |
| Net Profit | ₹1,127 crore | ₹689 crore | +63.6% |
Growth ran broad. Strong commercial volumes across the generics portfolio and custom synthesis division propelled the bottom line, reinforced by favourable currency movements. Divi’s also capitalised on manufacturing contracts tied to the fast-growing GLP-1 weight-loss and diabetes segment, converting validation work into high-margin commercial batches faster than market models anticipated.
Brokerage firm Motilal Oswal noted the performance outpaced its internal estimates on every operational parameter: revenue beat by 19%, while both EBITDA and net profit topped expectations by 33%. Following the blowout print, the brokerage revised its earnings forecasts upward by 21% for FY27 and 19% for FY28. It now projects a compound annual growth rate of 23% in revenue, 34% in EBITDA, and 33% in net earnings over the FY26–FY28 period, citing progress in commercialising late-stage validation projects and an improving run rate in nutraceuticals.
Yet institutional euphoria faces a hard mathematical boundary: valuation.
Motilal Oswal reiterated its 'Neutral' rating on Divi’s Laboratories with an unchanged target price of ₹11,110—signalling virtually flat price performance from Friday's close. Valuing the drugmaker at 65 times 12-month forward earnings, the brokerage warned that the market has already priced in its technological lead across contrast media, peptides, and large-scale manufacturing infrastructure.
Divi’s shares have rallied approximately 75% in 2026, including a 65% ascent over the past six months alone. When the market reopens on Monday, institutional trading desks will test whether momentum buyers can clear new lifetime highs, or whether valuation fatigue prompts profit-booking around the ₹11,100 mark.