2026 an 'inflection year' for Divi's Laboratories; Citi sees 43% upside

Shares of Divi's Laboratories Ltd. gained nearly 2% on Tuesday, January 6, as brokerage firm Citi said it is positive on the stock.

Citi maintained its "buy" rating on Divi's Laboratories with a price target of ₹9,140 apiece, a potential upside of 42.9% from its previous closing price.

This is the highest target on the street for Divi's Laboratories, with Jefferies' ₹7,850 target coming in second.

The analyst said Divi's Laboratories has strong pipeline catalysts over the next 12 months. These include:

• GLP-1: Tirzepatide and Orforglipron, which will be launched, probably in the first and second half of 2026, respectively.


• Contrast media: Iohexol and increased capacity of Iopromide.

Besides, various custom synthesis (CS) products are maturing and may be commercialised in the near-term, while the generic segment

too is expected to witness a recovery in 2026, driven by pipeline products which are seeing a patent expiry this year, Citi said.

While the quarterly numbers may experience volatility and present forecasting challenges for the company's B2B business, the medium-to-long-term story remains intact, according to the note by Citi.

Citi said it believes the company's revenue and earnings before interest, tax, depreciation, and amortisation (EBITDA) can triple, or even quadruple over financial year 2025-2030.

The brokerage's EPS estimates for financial year 2027 and 2028 for Divi's are 10% and 18% higher than consensus estimates respectively.

Of the 32 analysts that have coverage on the stock, 14 have a "buy" rating, six have a "hold" rating and 12 have a "sell" rating.

Shares of Divi's Laboratories are trading 1.3% higher at ₹6,448.5 on Tuesday. The stock has risen 9.5% in the last one month.

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