Citi has maintained its buy rating on Divi’s Laboratories with a target price of ₹9,140 per share, stating that 2026 could mark a clear inflection point for the company as multiple high-value pipeline catalysts begin to play out over the next 12 months.
The brokerage highlighted Divi’s strong exposure to GLP-1 related opportunities, with Tirzepatide expected to contribute in 1H 2026 and Orforglipron likely to follow in 2H 2026. Citi believes these molecules represent structurally large and durable opportunities, positioning Divi’s well within the evolving global diabetes and obesity treatment landscape.
Beyond GLP-1s, Citi pointed to contrast media as another key growth driver, with Iohexol and increased capacity in Iopromide expected to support revenue expansion. In addition, several custom synthesis (CS) products are maturing, with commercialisation likely in the near term. The generic API segment is also expected to recover in 2026, supported by patent expiries across multiple molecules this year.
While Citi cautioned that quarterly earnings may remain volatile given the B2B nature of Divi’s business, it emphasised that the medium-to-long-term growth story remains firmly intact. The brokerage estimates that Divi’s revenue and EBITDA could expand by nearly 3x and 4x, respectively, over FY25–FY30E, with its FY27 and FY28 EPS estimates already 10% and 18% ahead of consensus.
Citi concluded that Divi’s combination of scale, balance sheet strength, and pipeline visibility makes it one of the strongest long-term compounding stories within Indian pharmaceuticals.
Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
