Divi’s Laboratories (DIVI IN) – Q2FY26 Result Update – Peptides and CS to anchor future growth – Accumulate
Published on 10 Nov 2025
Divi’s Laboratories (DIVI) Q2FY26 EBITDA was a beat; 7% above our estimates led by 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 broadly remain unchanged. We expect 20% EBITDA CAGR and 19% PAT CAGR over FY25-28E. At CMP, stock is trading at 53x Sept2027E EPS. We Maintain our ‘Accumulate’ rating with revised TP of Rs7,050/share, valuing at 55x Sept 2027E EPS.
