Strong topline growth, margin expansion

BNP Paribas and Kotak Securities expect contract development and manufacturing firm’s first quarter income increase at 18% annually and NUVAMA is 14%. According to Nuvama, post -tax profit is expected to grow by 34% each year.

According to Kotak, the company’s private synthesis portfolio is expected to continue with 23% growth annually in April-June quarter. It is seen that the generic active pharmaceutical components (API) grow by 13% annually, but decreased from the previous three months by 4%.

(Special synthesis refers to the production of specific chemical compounds such as new APIs or intermediates. APIs are the basic components of a drug responsible for making treatment effective.)

The intermediaries expects a solid margin expansion on interest, taxes, depreciation and pre -depreciation gains.

“We expect Divi to grow 33% of FAVÖK. LaKotak securities said analysts in a note.

Divi’s EBITDA margin recovered in the fourth quarter of 2024-25 after a two-year decline. The margin was contracted to 28.1% before 35-38% increased from 35-38% to 31.7% in FY25.

Elara Securities analysts said that various factors such as regulatory compatibility requirements have contributed significantly to Divi’s cost in the last decade.

“Although there is no leap visibility in the margin, we are building a EBITDA margin of 33.7% in FY26E and 35.4% in FY27E in our projections,” they said.

Double -digit growth in FY26

Divi’s management envisaged a double -digit income increase for this financial year.

In the fourth quarter of the company, the increase in income increased to 12.2% after four four quarters of high-level growth between 18-25%. In the last 10 years, income has grown in a compound growth rate of 8% and 11.6% during the US dollar periods.

The company’s net profit increased by 23% in the fourth quarter La662 Crore and EBITDA increased by 21.2% in a year La886 Crore.

25 Divi’s income in financial years grew 19% La9,712 CRORE, NET PROFIT WAS 37% INCREASE La2,191 Crore.

In the March quarter, he received a strong momentum in Divi’s special synthesis business with high levels of customer participation and “a healthy increase in RFPs (proposal requests) and regular site visits”.

In May, the Company signed a leading global pharmaceutical company with a high-time production and procurement agreement of chemical building blocks used in the process of developing advanced products-drugs. Divi’s Investing LaFor this, the capacity expansion is 650-750 Crore.

“This partnership not only strengthens our presence in the special synthesis area, but also opens new ways for our growth led by innovation.” He said.

Divi’s peptide business also gains significant traction as global demand for peptide-based treatments such as GLP-1s and GIPs. These treatments are used to treat diseases by imitating natural peptides such as hormones.

Divi said, “In order to address this increasing demand, we have made strategic investments in both solid phase and liquid phase synthesis skills. These investments will be effective in expanding our proposals and maintaining our competitiveness in this rapidly developing therapeutic field.”

The high valuation of Divi’s laboratory continues to be concerned. “The narratives around China+1 and GLP-1 have kept very high growth expectations alive and took the stock valuation beyond reasonable levels.” He said.