HSIE Results Daily 25/05/2026: Divis Laboratories
By Prime Research | Published at: May 25, 2026 12:26 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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