Divi’s Laboratories (DIVI IN) – Q3FY26 Result Update – CS remains core growth engine – Accumulate
Published on 12 Feb 2026
Divi’s Laboratories (DIVI) Q3FY26 EBITDA was 3% above our estimates led by higher CS revenues and currency led tailwinds. 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 FY27E/FY28E EPS estimates stand cut by 2-5%. We expect 20% EBITDA CAGR and 18% PAT CAGR over FY26-28E. At CMP, stock is trading at 47x FY28E EPS. We Maintain our ‘Accumulate’ rating with revised TP of Rs6,850/share, valuing at 50x FY28E EPS.
