NIFTY Pharma rallies nearly 3% to hit fresh new peak; Divi’s Labs, Gland Pharma lead gains after Q2 results

The NIFTY Pharma rose as much as 2.8% to hit a new high of 29,224.85 as majority of its components, including Divi's Laboratories and Gland Pharma, were trading in the positive territory.

At 1:52 pm, the index was up 1.41%, or 401 points, to 28,829.30. NIFTY Pharma has gained 6.35% in a week and 11.05% a month. Year-to-date, it advanced 27.39%.

Divi's Laboratories up 4%

Revenue from operations advanced 35.39% to ₹3,676 crore in Q2FY27 from ₹2,715 crore a year earlier.

Its total expenses climbed to ₹2,265 crore in the quarter under review from ₹1,948 crore in the same period a year ago, it added.

The company's post-tax profit for the first half of the current fiscal year (H1 FY27), however, declined 35.39% to ₹2,029 crore versus ₹2,568 crore in the year-ago period.

Analysts at Goldman Sachs said that Divi's Labs revenue was better than street expectations driven by custom synthesis and generic segments.

JP Morgan analysts stated that the pharma company's revenue beat consensus by 15%, driven by custom synthesis on continued validation-batch supplies.

"What lies ahead is conversion of validation into commercialisation across three dedicated programs (one nearing commercialisation; two progressing over next few quarters subject to customer qualification & regulatory clearance) & peptides scaling as Divi’s adds multi-tonne capacity via multiple 3,000-litre SPPS reactors and targets a top-three integrated global position in peptides," it said.

Gland Pharma rises over 6% post strong earnings

Its revenue from operations increased to ₹1,833.58 crore in the reporting quarter from ₹1,486.87 crore in Q2 FY26.

Gland Pharma Executive Chairman Srinivas Sadu said, "We delivered another quarter of strong growth...driven by strong execution across our businesses. Our CDMO business grew 31 per cent year-on-year, supported by expanding customer engagements, strategic partnerships and a robust opportunity pipeline".

"With continued investments in manufacturing capabilities, innovation and capacity expansion, we remain well positioned to capitalise on growing global outsourcing opportunities and create sustainable long-term value for shareholders," he added.

Stocks of Sai Life Sciences, Glenmark Pharma, Laurus Labs and Mankind Pharma climbed 6.22%, 3.53%, 3.11% and 2.61%, respectively.

Wockhardt Pharma advanced 1.39%, while Zydus Lifesciences surged 0.76%. Lupin and Dr Reddy's shares were also up 0.5% each.