Divi's Laboratories Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's shaping up to be a tough period for Divi's Laboratories Limited (NSE:DIVISLAB), which a week ago released some disappointing first-quarter results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 2.9% short of analyst estimates at ₹24b, and statutory earnings of ₹20.49 per share missed forecasts by 9.3%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Divi's Laboratories after the latest results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

After the latest results, the 28 analysts covering Divi's Laboratories are now predicting revenues of ₹107.1b in 2026. If met, this would reflect a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 9.9% to ₹95.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹109.6b and earnings per share (EPS) of ₹102 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

View our latest analysis for Divi's Laboratories

The analysts made no major changes to their price target of ₹6,376, suggesting the downgrades are not expected to have a long-term impact on Divi's Laboratories' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Divi's Laboratories at ₹7,750 per share, while the most bearish prices it at ₹4,250. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Divi's Laboratories' growth to accelerate, with the forecast 15% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 16% per year. Divi's Laboratories is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Divi's Laboratories going out to 2028, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Divi's Laboratories that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.