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Divi's Laboratories share price surged 4% in early trade on Monday, August 3, touching a fresh 52-week high of ₹8,500, after the pharmaceutical major reported a stronger-than-expected performance for the June quarter. The stock was trading near its day's high as investors cheered robust earnings and multiple brokerage upgrades.
As of 10:56 AM, Divi's Laboratories shares traded in the range of ₹8,105 to ₹8,500, compared with the previous close of ₹8,056. The stock opened at ₹8,380.
The rally came after the company delivered strong revenue and profit growth, with EBITDA margin expanding to 40.7%, marking its highest level in several quarters. Management also reaffirmed its guidance for double-digit revenue growth in FY27, while cautioning that quarterly earnings may remain volatile and should be evaluated on a full-year basis.
Following the earnings, several global brokerages turned more optimistic on the stock. Citi raised its target price to ₹11,700, while Jefferies increased its target to ₹10,200, matching Macquarie's target. The upgrades mean three major brokerages now have price targets above ₹10,000 for the stock.
Brokerages believe the exceptionally strong June-quarter performance may have been supported by one-off milestone or validation batch payments under custom synthesis contracts, which likely boosted margins during the quarter.
Despite the strong start to FY27, the company maintained a cautious outlook for the remainder of the year. Divi's Laboratories expects full-year gross margin to be around 60%, lower than the 68% recorded in the June quarter, while indicating that EBITDA margin for FY27 is likely to remain broadly in line with FY26. Investors will now watch whether the company can sustain its growth momentum over the coming quarters.
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