Divi’s Laboratories (DIVI IN) – Q1FY27 Result Update – Strong beat; growth to sustain – ACCUMULATE
Published on 03 Aug 2026
Divi’s Laboratories (DIVI) Q1FY27 EBITDA growth of 72% YoY strongly beat our estimates by 48%. Revenues were largely aided by CS segment and currency tailwind. Mgmt cited that revenue growth in CS was aided by commencement of three capex projects entering validation stage. Further inventory gains also aided higher GMs. We expect margins and CS revenues to accelerate in FY27/28 with GLP based opportunities. Our FY27E/FY28E EPS estimates stand increased by 7-9%. We expect 25% EBITDA and PAT CAGR over FY26-28E. At CMP, stock is trading at 57x FY28E EPS. We Maintain our ‘Accumulate’ rating with revised TP of INR 8,600/share.
