HSIE Results Daily 25/05/2026: Divis Laboratories

Authored By Prime Research | Last Modified: May 25, 2026 01:23 PM IST

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Muted Q4; visibility of growth and margin stays

EBITDA (+5% YoY) was ~3% below estimates, as moderate sales growth (+10% YoY) and generic API growth were offset by lower gross margin and steady costs. Divi’s highlighted that GLP-1 capacity build-up was on track and several peptide projects are progressing well.

The company expects commercial phase opportunities from FY27 onward, supported by peptide demand, generic API expansion, Nutra growth, and gradual pickup in custom synthesis business.

Q4 highlights: Sales grew 10% YoY to INR 28.3bn. Custom synthesis grew 18% YoY while generic API declined 3% YoY.
EBITDA performance: EBITDA grew 5% YoY to INR 9.34bn with EBITDA margin at 33%.
Peptide business: Divi’s continues to expand peptide manufacturing infrastructure and expects strong demand visibility over FY26-28E.
Capex and expansion: The company is progressing on Unit 3 and Kakinada projects to support future growth opportunities.
Outlook: Management expects steady business growth supported by GLP-1 supply opportunities and generic API commercialization.

Quarterly Financial Summary

(INR mn)	4QFY26	4QFY25	YoY (%)	3QFY26	QoQ (%)	FY26	FY27E	FY28E
Net Revenue	28,310	25,850	10	26,040	9	1,05,600	1,24,130	1,46,309
EBITDA	9,340	8,860	5	8,900	5	34,410	42,804	52,232
APAT	6,808	6,543	4	6,241	9	24,642	30,838	38,094
EPS (INR)	25.6	24.7	4	23.5	9	92.8	116.2	143.5
P/E (x)							59.3	48.0
EV/EBITDA (x)							41.8	34.0
RoCE (%)	20						22	23

BUY

CMP (as on 22 May 2026)	INR 6,900
Target Price	INR 7,870
NIFTY	23,719

Key Changes

	OLD	NEW
Rating	ADD	ADD
Price Target	INR 7630	INR 7870
EBITDA %	(0.9)	(1.6)

Key Stock Data

Bloomberg code	DIVI IN
No. of Shares (mn)	265
MCap (INR bn)	1,832
6m avg traded value (INR mn)	2,161
52 Week high / low	INR 7,078 / 5,637

Stock Performance (%)

	3M	6M	12M
Absolute (%)	9.7	8.3	5.5
Relative (%)	18.6	19.8	12.4

Shareholding Pattern (%)

	Dec-25	Mar-26
Promoters	51.88	51.88
FIs & Local MFs	19.18	19.13
FPIs	20.08	20.29
Public & Others	8.86	8.70
Pledged Shares	–	–

Source:

BSE Company
HSIE Research

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Please Note: The information shared is intended solely for informational purposes and does not make any investment recommendations.
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