Divi’s Labs Q3 misses street estimates on profit; posts strong operating performance

Divi’s Laboratories Limited on Wednesday, February 11, reported a mixed set of Q3FY26 numbers, with revenue and profit missing Street expectations, even as operating performance and margins came in stronger than estimates.

The drugmaker reported a net profit of ₹583 crore for the December quarter, down 1% year-on-year from ₹589 crore, and below the CNBC-TV18 poll estimate of ₹640 crore. Revenue for the quarter rose 12.3% year-on-year to ₹2,604 crore, compared with ₹2,319 crore a year earlier, but also missed the Street estimate of ₹2,680 crore.

At the operating level, performance remained resilient, with EBITDA increasing 19.8% year-on-year to ₹890 crore, up from ₹743 crore in the year-ago quarter and above the CNBC-TV18 poll estimate of ₹855 crore. EBITDA margin expanded to 34.2%, compared with 32% a year ago and 32.7% in the September quarter, comfortably ahead of the Street estimate of 31.9%.

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Management said operational metrics improved during the quarter despite near-term revenue softness and indicated that growth drivers remain intact. On a sequential basis, revenue declined 4.1% quarter-on-quarter, while profit fell 15.4%, reflecting some moderation in quarterly momentum.

Earnings per share for the quarter stood at ₹21.98, compared with ₹22.20 in the year-ago period.

Shares of the company were trading 2.43% up at ₹6,325.50 as of 1.31 pm. The stock has gained 5.52% in the past six months.