Divi’s Laboratories (DIVI IN) – Q2FY27 Result Update – Strong beat aided by CS segment and higher GMs – ACCUMULATE
Published on 09 Nov 2026
Divi’s Laboratories (DIVI) Q2FY27 EBITDA growth of 76% YoY strongly beat our estimates. 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 and new commercialisations. Further backward integration of Unit 3 at Kakinada also aided higher GMs. We expect margins and CS revenues to accelerate in FY28E/29E with GLP based opportunities. Our FY28E/FY29E EPS estimates stand increased by +20%. We expect ~31%/~27% EBITDA/PAT CAGR over FY26-29E. At CMP, stock is trading at 50.6x P/E Sept’28E. We value at 60x P/E Sept’28E and maintain our ‘Accumulate’ rating with revised TP of INR 11,400/share.
