Dr. Reddy’s Laboratories Reports Q1 FY26 Profit at ₹14,178 Mn; Revenue Rises 11% YoY

Hyderabad, July 23, 2025 — Dr. Reddy’s Laboratories Ltd. (NSE: DRREDDY | BSE: 500124 | NYSE: RDY) announced a consolidated net profit after tax of ₹14,178 million for the quarter ended on June 30, 2025 (Q1 FY26), recording 2% year-on-year (YoY) growth, but down 11% quarter-on-quarter.

The company generated ₹85,452 million of revenue, an 11% YoY revenue increase and flat every quarter, which was driven by strong branded market performance and revenue from the acquired Nicotine Replacement Therapy (NRT) business.

Dr. Reddy’s Laboratories Share Price Momentum

As of July 23, 2025, the share price of Dr. Reddy’s Laboratories Ltd. closed at ₹1,247.40, representing a 0.06% increase in value. The share opened at ₹1,240.20 and traded between a high of ₹1,252.10 and a low of ₹1,231.00.

Key Financial Highlights (Consolidated under IFRS)

The company reported consolidated revenue of ₹85,452 million in Q1 FY26, representing an increase of 11% YoY and flattish compared to the previous quarter. Net profit was up 2% YoY at ₹14,178 million but declined by 11% compared with last quarter. EBITDA grew by only 5% compared to the previous year, but was down 8% on a sequential basis. Diluted EPS of ₹17.02 reflects a similar trend. In summary, the company saw consistent YoY growth despite some sequential weakness.

Segment-Wise Revenue Performance

In Q1 FY26, revenue for Global Generics rose by 10% YoY to ₹75,620 million, driven by strong growth in Europe (+142%) due to the NRT acquisition. India and Emerging Markets grew by 11% and 18%, respectively, while North America declined by 11%. PSAI grew by 7% to ₹8,181 million, and “Others” surged to ₹1,651 million from ₹212 million.

Operational Metrics

• Gross Margin stood at 56.9%, down 350 bps YoY but up 134 bps QoQ.
• SG&A Expenses rose 13% YoY to ₹25,647 million due to continued investment in NRT and the Nestlé JV.
• R&D Spend was ₹6,244 million or 7.3% of revenue.
• Tax Rate remained flat at 26% YoY.

Business & Strategic Developments

• Biosimilar Expansion: Signed a new deal with Alvotech for biosimilar pembrolizumab (Keytruda).
  • India: Introduced Sensimune for dust mite-induced allergies and Beyfortus for RSV prevention.
  • US: Filed 1 ANDA and launched five new products.
  • Europe: 13 new products launched.
  • Emerging Markets: 26 new launches across regions.
• Haleon Acquisition: Integration of the NRT business advanced with the marketing authorisations transitioned in the UK and Nordics.

Management Commentary

G V Prasad, Co-Chairman & MD, stated – “We delivered double-digit growth this quarter over the same period last year, reflecting our strength in branded markets and positive momentum in the Nicotine Replacement Therapy portfolio. The pricing pressure on Lenalidomide is expected to intensify in the U.S. generics market. We remain focused on strengthening our base business through pipeline execution, productivity improvements, and business development”.

Company Overview

Dr. Reddy’s Laboratories Ltd. is a publicly listed global pharmaceutical company headquartered in Hyderabad, India. It offers a wide range of products and services including generics, biosimilars, APIs, and OTCs, across markets such as the US, India, Russia, Europe, and Brazil. The company is listed on BSE, NSE, NYSE, and NSE IFSC.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/7c329984-e099-4190-94e3-a3ab66691eaf.pdf

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