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Shares of Divi’s Laboratories Ltd were in sharp focus on Monday, rising over 3 per cent to trade around Rs 6,573 on the NSE, as investors warmed up to the view that 2026 could mark a turning point for the pharma major. Positive commentary from global brokerage Citi and a strong pipeline of growth catalysts lifted sentiment around the stock despite broader market volatility.

Market participants are increasingly betting that the next 12 months could reshape Divi’s growth trajectory. Analysts point to a rare convergence of multiple large opportunities — GLP-1 drugs, contrast media, custom synthesis and a revival in generics — which together could drive a meaningful step-up in earnings over the medium to long term.

While the stock has seen bouts of short-term volatility in recent quarters, brokerages believe the company’s core fundamentals remain intact, supported by scale, strong execution capabilities and a robust balance sheet.

The GLP-1 segment is being seen as the single largest growth lever for Divi’s going forward. Citi expects Tirzepatide-related opportunities to materialise in the first half of FY26, followed by the possible entry of Orforglipron in the second half of FY26.

Another key driver is the contrast media business, where Divi’s has already started seeing traction. The brokerage highlighted a production ramp-up in Iohexol and ongoing capacity expansion for Iopromide, both of which operate in high-margin segments. Better capacity utilisation in this vertical is expected to support margin expansion over the coming years.

Divi’s custom synthesis (CS) portfolio is also nearing an important phase. Several CS products are approaching maturity, with commercialisation likely in the near term, according to analysts.

Also, the generics business is showing signs of revival, aided by multiple patent expiries over the next few years. This is expected to provide incremental growth after a relatively muted phase.

Citi cautioned that due to the B2B nature of Divi’s business, quarterly earnings could remain volatile. However, the brokerage remains confident about the broader trajectory, estimating that revenue and EBITDA could grow 3x to 4x between FY25 and FY30.

The brokerage also expects FY27 earnings per share to be 10 per cent above consensus estimates, while FY28 EPS could beat expectations by nearly 18 per cent, reflecting the operating leverage from new growth drivers.

Citi has maintained its ‘Buy’ rating on Divi’s Laboratories with a target price of Rs 9,140, indicating substantial upside from current levels. Analysts believe that despite near-term noise, Divi’s is entering a phase where multiple long-gestation investments could start delivering results.

For long-term investors, the message from Dalal Street is clear: volatility may persist, but the growth runway for Divi’s appears stronger than it has been in years.

Shweta Birendra Shukla is a Senior Sub-editor at Zee Business, born and raised in Mumbai—the city that never sleeps and the financial capital that never stops buzzing.