Q4 Result: Dr Reddy’s Profit Slumps 86% as Revenue Falls 12%; Dividend Declared

Mumbai, May 13: Dr Reddy’s Laboratories reported a sharp decline in its March quarter performance, as profit and revenue both fell.

Consolidated net profit dropped 86% year-on-year to ₹221 crore for the quarter ended March 2026. The sharp decline, which marks the second quarterly fall in profit, resulted from an impairment charge on a discontinued cancer therapy programme. Due to the charge, the company reported a net loss of ₹135 crore in its global generics segment. Also, it recognised an impairment charge of ₹91.4 crore after discontinuing a late-stage lung cancer study.

Revenue for the quarter declined 12% year-on-year, highlighting softness with the contraction weighing on overall profitability.

To be sure, the company gets a huge portion of its revenue from North America. Sales were also hit by weaker demand for the generic version of Bristol-Myers Squibb’s cancer drug Revlimid, which had been a key business driver for Dr Reddy’s in recent years.

To be sure, after the drug’s patent expiry, competition has increased.

Dr Reddy’s also announced a dividend of ₹8 per share.

The results highlight the challenges for global pharmaceutical exporters, particularly those conducting business in regulated markets like the US where currency movements, pricing dynamics, and regulatory factors often play a significant role in quarterly performance.

Investors will now focus on management commentary regarding pipeline developments, new product launches, and growth outlook across geographies. Performance in key therapeutic areas, as well as progress in complex generics and speciality segments, will be closely watched in the coming quarters.

Analysts are also likely to monitor margin trends, especially in the US market, which remains a critical revenue driver for the firm. Cost optimisation initiatives and operational efficiencies could play an important role in stabilising earnings momentum going forward.

Source:

• https://nsearchives.nseindia.com/corporate/DRREDDY_12052026163727_SEintimation_Outcome_of_BM_12052026_signed.pdf