Net Profit Surges 64%, Revenue Jumps 35%

DIVISLAB **Divi's Laboratories: Net Profit Surges 64%, Revenue Jumps 35%** **DIVISLAB** Divi's Laboratories reported a strong Q2 FY27 performance, with consolidated net profit rising 63.6% year-on-year to ₹1,127 crore compared with ₹689 crore in Q2 FY26. **Why it matters:** Revenue from operations increased 35.4% to ₹3,676 crore, while EBITDA surged approximately 60.7% to ₹1,660 crore. EBITDA margin improved to 42.6% from 32.7% a year ago. The company's performance reflects strong business momentum and improved operating profitability. First-half consolidated net profit also increased to ₹2,029 crore from ₹1,234 crore. **My view:** Strong revenue growth, margin expansion and robust profitability highlight Divi's operational strength. However, sustaining these elevated margins and converting earnings into healthy cash flows will be important. **What to watch:** Custom synthesis growth, API demand, export business, capacity utilisation, EBITDA margins and operating cash flows. **Stance:** Divi's Laboratories continues to demonstrate strong earnings momentum. Investors should also evaluate valuations and sustainability of growth before making investment decisions. **Disclosure:** I am a SEBI Registered Research Analyst. This content is for educational and informational purposes only and is not investment advice or a recommendation to buy or sell any security. Investments in securities markets are subject to market risks.