Dr. Reddy’s Stock Up by More Than 2% Today, After June Quarter Result

Mumbai, July 24, 2025 – Shares of Dr. Reddy’s Laboratories Ltd. (NSE: DRREDDY) are up today, following the company’s better-than-expected Q1 FY26 results, announced yesterday. The company reported sales momentum in branded markets and the Nicotine Replacement Therapy (NRT) portfolio. At 11:35 a.m. the stock price is up by 2.42% at Rs 1277.60.

Dr. Reddy’s Share Price Movement

The share traded at ₹1277.30 (2.40% higher than the previous day’s close) at 11:00 AM. The high-low range remained between ₹ 1,256.10 and ₹ 1,287.90. The trade volume has been on the higher side (20,49,834 shares traded by 11:00 AM). The stock has rallied by 8.40% in the past three months. The company’s P/E ratio is 18.41, compared to the industrial average of 35.50.

What’s Driving the Rally?

The stock reaction comes on the heels of the company reporting ₹14,178 million in consolidated net profit for Q1 FY26, a 2% YoY growth, despite sequential pressure from Lenalidomide pricing in the U.S. Revenue grew 11% YoY to ₹85,452 million, bolstered by the performance of branded generics in India, emerging markets, and the newly integrated Haleon NRT business in Europe.

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 NRT portfolio.”

Technicals & Outlook

• Delivery % stood at a healthy 51.08%, suggesting long-term investor interest.
• Annualised Volatility was 24.84%, in line with sector trends.
• The adjusted P/E of 18.14 remains attractive given the company’s 22% RoCE and strong cash flows.

With today’s gains, Dr. Reddy’s continues to trade comfortably between its 52-week low of ₹1,020 and high of ₹1,421.49, signalling potential room for upside should growth in branded portfolios and biosimilars sustain in the upcoming quarters.

Company Overview

Dr. Reddy’s Laboratories Ltd. is a global pharmaceutical major headquartered in Hyderabad, India, offering a portfolio of APIs, generics, biosimilars, and OTC products. It is listed on the NSE, BSE, NYSE, and NSE IFSC, and forms part of the NIFTY 50 index.

REF: https://www.nseindia.com/get-quotes/equity?symbol=DRREDDY

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