Rs 2,800 profit per share! Brokerages bullish on this pharma stock after Q3 results

Analysts gave mixed views on Divi’s Laboratories after the company reported its Q3FY26 results. While some brokerages maintained a positive outlook, others were cautious on the stock.

Based on analyst targets, Divi’s Laboratories has an upside of up to Rs 2,854, or 45 per cent, from the current price of Rs 6,286.45, with the highest target at Rs 9,140. The downside is around Rs 236, or 4 per cent, with the lowest target at Rs 6,050.

Divi’s Laboratories Q3 Results

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The company’s net profit for the quarter ended December 2025 remained largely unchanged at Rs 583 crore compared to Rs 589 crore in the same quarter last year. On a sequential basis, however, net profit fell from Rs 696 crore in the previous quarter.

Divi reported one-time expenses of Rs 74 crore during the quarter due to the implementation of new labour codes. Excluding this exceptional item, profit before tax for the quarter rose to Rs 780 crore from Rs 726 crore in the year-ago period.

Revenue for the quarter grew from Rs 2,401 crore to Rs 2,692 crore, while consolidated EBITDA rose nearly 20 per cent year-on-year to Rs 898 crore. On a nine-month basis for FY26, the company’s revenue increased 14.8 per cent and net profit surged 18.5 per cent compared to the same period last year.

Divi’s Laboratories Share Price Target

Analysts gave mixed recommendations on the stock after the results.

Jefferies maintained a Buy rating on Divi’s Laboratories, raising its target price to Rs 8,100 from Rs 8,000. The brokerage said that Q3 revenue was in line with estimates while EBITDA and adjusted PBT delivered 12 per cent and 8 per cent beats, respectively.

It noted that nutraceuticals and custom synthesis continued strong growth of over 15 per cent, while generics remained subdued. Jefferies said the company’s growth momentum is expected to continue in FY27, with three major dedicated CDMO projects scheduled to start commercial sales from the second half of calendar year 2027.

Citi also maintained a Buy rating, setting a target price of Rs 9,140. It highlighted strong 20 per cent EBITDA growth in the quarter and said management provided clear visibility for FY27 and FY28.

Multiple custom synthesis products are expected to move to commercial volumes over the next 12 months, including Tirzepatide (GLP-1). Citi said these projects could expand margins and that the company’s double-digit growth trajectory is likely to continue, even with patent expiries.

Morgan Stanley and JP Morgan maintained Overweight ratings on the stock. Morgan Stanley raised its target to Rs 7,989 from Rs 7,541, indicating 25 per cent upside, while JP Morgan lowered its target to Rs 7,300 from Rs 7,800, suggesting 14 per cent upside. Both highlighted continued growth in custom synthesis and strong visibility for future earnings.

Goldman Sachs maintained a Neutral rating, lowering its target to Rs 6,050 from Rs 6,375, indicating 5 per cent downside. It noted that while custom synthesis outperformed, generics remained subdued, and valuations offered no significant upside.

Divi’s Laboratories Share Price History

Divi’s Laboratories, listed on the BSE 100 index, operates in the pharmaceutical sector and has a market capitalisation of Rs 1,71,878 crore. The stock has seen mixed performance over different time frames.

In the past week, it rose 6.93 per cent, but over the past month, it fell 2.15 per cent. In the last three months, it declined 0.91 per cent, while it gained 8.11 per cent over six months and 8.83 per cent in one year.

Over a longer term, the stock has delivered strong returns, rising 130.34 per cent in three years and 72.72 per cent in five years.

Shares of Divi’s Laboratories were trading at Rs 6,246, down Rs 228.45 or 3.53 per cent at the time of reporting.