Divi's Labs shares jump 8% to fresh 52-week high after Q2 profit soars 64% YoY. What brokerages say after bumper results?

The shares of Divi's Laboratories soared over 8% during the Muhurat Trading session on Sunday after the company’s strong Q2 earnings boosted investor sentiment during the special trading session on Diwali.

Divi's Labs shares jumped to a fresh 52-week high of Rs 11,194 apiece on NSE on Sunday afternoon. This comes after the company reported a nearly 64% year-on-year (YoY) increase in consolidated net profit to Rs 1,127 crore for the September quarter of FY27 (Q2 FY27). Revenue from operations meanwhile jumped over 35% YoY to Rs 3,676 crore during the second quarter of FY27.

The company reported a foreign exchange gain of Rs 24 crore during the quarter, compared with a gain of Rs 63 crore in the corresponding quarter of the previous year.



Also read | Divi's Labs Q2 Results: PAT surges 64% YoY to Rs 1,127 crore; revenue jumps 35%

Not taking foot off the accelerator: Nuvama on Divi’s Labs share price

“Not taking foot off the accelerator” is how Nuvama explained Divi’s Labs earnings as the pharma company posted another strong quarter, beating revenue, EBITDA and profit consensus estimates by 15%, 33% and 29% respectively, driven by healthy CS-led mix with generic and nutraceuticals too posting double-digit growth.

Nuvama remained optimistic on Divi’s growth despite its ongoing capex cycle, driven by strong traction in CS business, three dedicated capex projects nearing commercialisation in coming quarters, compelling peptide CDMO opportunity, supported by installation of new 3,000- litre SPPS lines and a strong visibility in generics and nutraceutical segments, which provide an added lever.

The brokerage has a ‘Buy’ call on the stock with a target price of Rs 12,000 apiece, implying over 16% upside potential from the stock’s previous closing price of Rs 10,320.5 apiece.

Another bumper quarter for Divi’s Labs: Elara Capital

Elara Capital said Divi’s Labs saw another bumper quarter with standout performance, as revenue , EBITDA and profit came in 12%, 30% and 34% above its estimates, respectively. However, the domestic brokerage still maintained its ‘Sell’ rating on the shares with a target price of Rs 6,539 apiece, implying around 37% upside potential.

The brokerage highlighted that the company’s management maintained its “double -digit” growth guidance for FY27 without any clear indication of the durability of higher margins. “We do not expect the margin level to sustain for the full year,” it said, while noting that its bearish rating was driven by unjustifiably high valuations.

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Divi’s Labs share price

Divi’s Labs shares have jumped over 14% in one week and more than 17% in one month. The shares of the pharma company have gained more than 76% in 2026 so far and over 62% in one year.

In the longer term, the shares of the company have delivered multibagger returns of nearly 220% in three years and 115% in five years. The company has a market capitalisation of nearly Rs 2.97 lakh crore.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.