Shares of Divi's Laboratories surged to a 52-week high of Rs 11,824 on the National Stock Exchange on Monday morning, 9 November 2026, after the drugmaker reported record second-quarter results. The stock was trading around Rs 11,460, up 3.27% or Rs 363, by 11.47 a.m., after opening flat at Rs 11,097, according to The Hindu BusinessLine.

The results, announced on Saturday, 7 November, after a board meeting, showed consolidated revenue of Rs 3,676 crore for the September quarter, up 35.4% year on year from Rs 2,715 crore a year earlier. Profit after tax rose 63.6% to Rs 1,127 crore, compared with Rs 689 crore in the same quarter last year.

Record revenue, earnings and margins

Earnings before interest, tax, depreciation and amortisation rose 76% year on year to Rs 1,566 crore, from Rs 888 crore, and the EBITDA margin expanded to 42.6% from 32.7% a year earlier, CNBC-TV18 reported. Motilal Oswal noted that Divi's reported its highest-ever quarterly revenue, EBITDA and net profit in the second quarter of the 2026-27 financial year.

Custom synthesis, which makes drug ingredients to order for global pharmaceutical companies, was the main growth engine. It grew 54% year on year and now contributes 62% of revenue, according to The Hindu BusinessLine. Total income for the quarter was Rs 3,770 crore, against Rs 2,860 crore a year earlier.

Brokers split on the outlook

Brokerages were largely positive but split on whether the strong margins can last. Goldman Sachs retained its Buy rating with a target of Rs 11,700, noting that revenue and EBITDA beat its estimates by 21% and 38% respectively, and raised its earnings estimates for the 2026-27 to 2028-29 financial years by up to 17%.

JPMorgan, which has an Overweight rating on the stock, raised its target to Rs 12,500, pointing to the conversion of pipeline projects from validation to commercial production across three dedicated capital spending programmes and the company's ambition to rank among the top three integrated global players in peptide synthesis. It lifted earnings forecasts by 18% to 30% for the same period.

The contrarian note came from Elara Securities, which reiterated a Sell rating with a target of Rs 6,539, implying a 43% fall from Monday's trading levels. Elara questioned whether margins of 42.6% can be sustained, noting they are above the company's historical range outside the Covid period, and flagged that management declined to give clear visibility on sustaining them.

What it means for investors

Divi's Laboratories is one of India's leading makers of active pharmaceutical ingredients, the chemical building blocks of medicines. The September quarter figures show demand for its custom synthesis work remains strong, but the debate among brokers is now about margins rather than sales: bulls see a pipeline converting into commercial orders, while bears warn the current profitability may not last.

Divi's Labs hits 52-week high as street cheers record Q2 (The Hindu BusinessLine) and Divi's Laboratories Q2 results (CNBC-TV18).