Divi’s Laboratories Share Price Rallies as the Company Enters the ₹3 Trillion Market Cap Club
Divi’s Laboratories shares extend their rally
Divi’s Laboratories shares reached a record high of ₹11,818 in Monday’s intraday trading, rising 7% on the BSE. The move extended a 7.5% gain during Muhurat trading after the pharmaceutical company reported strong results for the quarter ended September 2026 (Q2FY27).
The stock advanced for a 12th consecutive trading session and gained 32% over that period. It was up 105% from its 52-week low of ₹5,648, recorded on April 2, 2026. Over two sessions following the results, the share price rose about 15%.
Divi’s joins the ₹3 trillion market cap club
Divi’s market capitalisation crossed ₹3 trillion for the first time. At 9:40 a.m. on Monday, the company’s market cap stood at ₹3.09 trillion, with its shares trading 5% higher at ₹11,656.75. The BSE Sensex was down 0.32% at the time.
Divi’s ranked 30th among companies by market capitalisation, according to BSE data. It moved ahead of Oil and Natural Gas Corporation, Bharat Electronics, Bajaj Auto and Bajaj Finserv. Within the pharmaceutical sector, it ranked second behind Sun Pharmaceutical Industries, whose market cap was ₹4.6 trillion.
Q2 results: custom synthesis leads revenue growth
Revenue for Q2FY27 increased 35% year on year to ₹3,676 crore. Custom Synthesis (CS) revenue rose 44% to ₹2,200 crore. Nutraceuticals revenue grew 13% to ₹273 crore, while Generics revenue increased 4.3% to ₹1,050 crore. The company attributed growth across segments mainly to healthy volumes.
- Adjusted profit after tax: up 64% year on year to ₹1,127 crore.
- EBITDA: up 76.4% to ₹1,566 crore.
- EBITDA margin: expanded 989 basis points to 42.6%.
- Gross profit margin: rose 739 basis points to 67.9%.
Higher contribution from Custom Synthesis and improved gross margins supported profitability. The results also drew attention to the company’s contract development and manufacturing organizations (CDMO) business, where analysts reported strong growth tied to validation batches and programs approaching commercial production.
Brokerages assess custom synthesis and CDMO prospects
ICICI Securities sees project-led growth
ICICI Securities said Custom Synthesis benefited from shipments of validation batches to customers. Three large dedicated projects are progressing through validation, and one is nearing commercialization. The brokerage expects two other projects to reach commercialization over the next few quarters.
Three additional projects, each requiring estimated capital expenditure of ₹650–700 crore, are expected to be commercialized from the second half of FY27 or in FY28. ICICI Securities said backward integration from Unit 3 and expanded peptide capabilities have also supported the gross margin profile. It noted that pricing pressure in generics may continue for several quarters, while management maintained its guidance for double-digit revenue growth with sustained margins.
Jefferies maintains a Buy rating
Jefferies said Q2FY27 earnings came well ahead of its estimates, with growth across all three divisions. Its analysts cited 50% year-on-year growth in CDMO and 18% growth in generics, as well as an EBITDA margin at its highest level since the Covid era. Jefferies attributed the performance to validation batches and programs nearing commercial production. The brokerage retained its Buy rating and set a price target of ₹12,550.
Choice Institutional Equities raises estimates
Choice Institutional Equities pointed to commercial projects, peptide order inflows, drug master file filings and new generics launches as potential sources of continued growth. It projected a 22.7% revenue compound annual growth rate for FY26–FY29E and an EBITDA margin of 36.5% in FY27E.
The brokerage expects capital expenditure to remain elevated as Divi’s expands capacity in peptides, key starting materials and nutraceuticals. It raised its FY27E and FY28E earnings estimates by 15.6% and 23.4%, respectively, and revised its target price to ₹12,650 while retaining an ADD rating.
What investors should watch
- Progress of projects moving from validation to commercial production.
- Continued demand and order inflows for peptides and Custom Synthesis.
- Generics pricing pressure and its effect on segment growth.
- Capacity expansion spending and the company’s ability to sustain margins.
Brokerage ratings, estimates and price targets reflect the views of the cited analysts and are not guarantees of future performance. This article is for informational purposes and is not investment advice.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.