Shares of Divi’s Laboratories fell nearly 3% on Friday, November 7, despite the company reporting a strong 35% year-on-year (YoY) rise in consolidated net profit for the second quarter of FY26. The stock slipped to Rs 6,733, down from the previous close of Rs 6,883.5, even as its results came broadly in line with Street expectations.
The pharma major posted a net profit of Rs 700 crore, compared to Rs 510 crore in the same quarter last year, surpassing the estimated Rs 600 crore. Its EBITDA increased to Rs 900 crore from Rs 720 crore YoY, while EBITDA margin improved to 32.7% versus 30.6% last year. Divi’s also recorded foreign exchange gains of Rs 63 crore in the quarter.
While the performance remained robust, analysts noted that the stock’s decline was primarily driven by profit booking, as Divi’s had already seen a sharp rally over the past month. The stock has surged nearly 10% in the last 30 days, moving from Rs 6,000 to Rs 6,800 levels, placing it among the better-performing pharma counters in recent weeks.
Market observers suggest that investors opted to book gains at higher levels, leading to a temporary pullback, even as the company’s fundamentals remain strong.
At the current market price of Rs 6,733, Divi’s Laboratories holds a market capitalization of Rs 1.78 trillion, with a P/E ratio of 77.29 and a dividend yield of 0.45%. The stock has traded between Rs 4,955 and Rs 7,071.5 over the past year.
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