Divi’s Lab Share Price Drops 4% After Q1 FY26 Results; PAT Falls 18% QoQ

Divi’s Laboratories’ Q1 FY26 results triggered a sharp reaction in the stock market, with shares falling over 4% intraday. While the company posted healthy year-on-year growth in profit and revenue, a steep quarter-on-quarter decline led to a cautious investor response.

Divi’s Lab QoQ Decline in Profit and Revenue

The company reported a consolidated net profit of ₹545 crore for the quarter ended June 2025. While this marked a 27% increase over ₹430 crore reported in Q1 of the previous financial year, it represented a sharp 17.67% decline from ₹662 crore recorded in Q4 FY25.

Revenue from operations followed a similar trend although it grew 14% year-on-year to ₹2,410 crore, it was down 6.79% from ₹2,586 crore in the previous quarter. The sequential drop raised concerns around momentum in Divi’s business as it entered the new financial year.

Operating profit for the quarter stood at ₹756 crore, up from ₹650 crore a year ago, with EBITDA margin improving slightly to 31.4% from 30.7%.

Divi’s Lab Share Price Performance

By early afternoon, Divi's Laboratories share price was at ₹6,146 down ₹263 or 4.10% from the previous close. The stock had opened slightly higher but slid quickly after the earnings announcement. The day’s low stood at ₹6,118, reflecting the cautious mood in the market following the results.

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Conclusion

As earnings season continues, the market will now look toward management commentary for insights into the company’s outlook. Key focus areas include updates on long-term supply contracts, and any progress on Divi’s plans to enter or expand in the high-potential GLP-1 drug segment. These factors will be crucial in determining whether the current weakness in stock price is temporary or part of a larger trend.

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