Earnings downgrade a bitter pill for pharma major Divi's Labs stock

Weak quarterly results make brokerages turn bearish on the stock

Earnings downgrades for pharma major Divi’s Laboratories continue after the company delivered yet another quarter of underwhelming performance. Given the sharp divergence in expectation and the company's operational performance, brokerages have revised their FY25 earnings per share by 6-13 per cent. 

The disappointment for the contract development and manufacturing organisation (CDMO) on the revenue front was on account of the weak show of the generics segment. While overall revenues were up 9 per cent year-on-year (Y-o-Y), they were 3 per cent lower on a sequential basis due to pricing pressures in the generics space. While there is pricing pressure, the