Divi's Laboratories shares hit 52-week high on robust Q2 earnings; analysts flag growth opportunities

The pharma major reported a consolidated net profit of ₹1,127 crore for the second quarter of the financial year 2026-27 (Q2 FY27), marking an increase of 64% from ₹689 crore in the same period last year.

The drugmaker’s revenue from operations grew 35% to ₹3,676 crore in the July-September quarter as compared to ₹2,715 crore in the corresponding quarter of the previous fiscal year.

The Hyderabad-headquartered company reported stable operational performance in the September quarter, as its earnings before interest, taxes, depreciation, and amortisation (EBITDA), also known as operating profit, advanced 76% to ₹1,566 crore as against ₹888 crore YoY.

Its operating profit margin expanded to 42.6% annually from 32.71% in Q2 FY26.

For the current quarter, Divi’s Labs’ forex gain was ₹24 crore as against a gain of ₹63 crore during the corresponding quarter of the previous year.

H1 FY27 updates

Divi's Laboratories reported a consolidated total income of ₹6,907 crore for the first half of FY27, compared to ₹5,389 crore in the corresponding period of the previous year.

The company’s profit after tax (PAT) stood at ₹2,029 crore for the half year, up from ₹1,234 crore in the year-ago period. Divi's Laboratories also reported a forex gain of ₹17 crore during the first half of FY27, compared to a gain of ₹102 crore in the corresponding period last year.

What analysts said

Analysts from Goldman Sachs said Divi's Laboratories’ Q2 revenue and EBITDA grew significantly ahead of their and street expectations, primarily driven by a 54% YoY growth in the custom synthesis (CS) business. The generics business also improved on healthy volume growth, despite continued pricing pressure in certain product categories.

The analysts attributed the improvement in EBITDA margin to a better product mix, higher contribution from custom synthesis, backward integration benefits at Unit 3 and operating leverage. They also raised their FY27-FY29 earnings per share (EPS) estimates by up to 17% to factor in the Q2 performance.

JP Morgan analysts in a note on Monday said the next growth opportunity for Divi's Laboratories lies in converting validation into commercialisation across three dedicated programmes. One programme is nearing commercialisation, while the other two are progressing over the next few quarters, subject to customer qualification and regulatory clearance.

The analysts also highlighted the company’s plans to scale its peptides business by adding multi-tonne capacity through multiple 3,000-litre solid-phase peptide synthesis (SPPS) reactors. Divi's Laboratories is targeting a position among the top three integrated global players in peptides.

Divi’s Labs share price trends

At 1:23 PM, Divi’s Labs shares were trading at ₹11,534.5 apiece on the National Stock Exchange, gaining 3.9%.

From the beginning of the year, Divi’s Labs shares have soared 82%. Over a month’s time, the stock has surged 23.5%, while for a six-month period, it has skyrocketed 72%.

According to NSE data, as of November 9, 2026, Divi’s Labs has a total market capitalisation of ₹3.06 lakh crore.