Divi's Laboratories Ltd. reported a 23% year-over-year increase in profit after tax (PAT) for the fourth quarter of fiscal year 2025, reaching Rs 662 crore, surpassing the CNBC-TV18 poll estimate of Rs 608.4 crore. The company's revenue for the quarter rose by 12.2% to Rs 2,585 crore, slightly above the poll's projection of Rs 2,563.8 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 886 crore, beating the expected Rs 818 crore, with an EBITDA margin of 34.27%, higher than the anticipated 31.90%. Divi's Labs also declared a dividend of Rs 30 per share for the quarter. The company's shares extended gains, rising nearly 5% following the announcement of the Q4 results, which beat estimates. Brokerage firm Morgan Stanley maintained an 'overweight' rating on Divi's Lab and hiked its target price, while Antique upgraded its rating to 'Hold' from 'Sell' and raised its target price to Rs 6,575 from Rs 4,150. In the broader market, the Nifty India Defence Index has shown strong momentum, rising 9% in May to reach a new high, following robust gains in previous months. This surge has taken the market capitalization of listed defence companies to an all-time peak of Rs 11.23 lakh crore, reflecting strong investor confidence. Notable performers within the index include DCX Systems, MTAR Technologies, and Hindustan Aeronautics, among others. Railway-related stocks such as IRFC, Titagarh Rail, and IRCON have also seen significant gains, with shares surging amid optimism about renewed orders from the Railways. Texmaco Rail & Engineering Ltd. reported a 26% return over the past week, despite a decrease in net profit for the January-March 2025 quarter to Rs 39.95 crore from Rs 45.25 crore the previous year. The company recommended a dividend of 75% on shares with a face value of Re 1.