GS on Divis Labs ; Buy, TP Rs 11700

2Q Revenue/EBITDA grew +35%/+76% yoy, significantly ahead of GS/street expectations (+21%/+38% vs GSe), primarily driven by Custom synthesis (CS), which grew 54% yoy (+34% vs GSe), while Generics also improved (+12% yoy, +4% vs GSe) on healthy volume growth, despite pricing pressure persisting in certain product categories. EBITDA margin came in at 42.6% (+535bps vs GSe, +989bps yoy) driven by better mix (higher CS), backward integration benefits at Unit 3, & operating leverage. Raise FY27-29E EPS by up to 17% to factor in Q2 beat

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