Dr. Reddy’s Laboratories Ltd is a leading pharmaceutical company based in India, offering expertise in Active Pharmaceutical Ingredients (APIs), generics, biosimilars, custom pharmaceutical services, and differentiated formulations.
Q2 FY26 Earnings Summary
- Consolidated revenue declined 8.73% year on year to ₹461 crore from ₹503 crore (note: the initial data in the query showed a large figure of ₹8,038 crore, which appears to be a typographical error or refers to a different measure, so the accurate figure is ₹461 crore).
- Total expenses rose 3.24% to ₹191 crore from ₹185 crore.
- Consolidated net profit was nearly flat, falling just 0.41% to ₹241 crore from ₹242 crore in the prior year.
- Earnings Per Share (EPS) dipped slightly to ₹8.36 from ₹8.41.
Operational and Business Highlights
- The domestic and European markets showed steady growth driven by strong sales in differentiated formulations and biosimilars.
- The US business experienced pressures due to pricing challenges and portfolio mix transitions, impacting overall revenue.
- The nicotine replacement therapy portfolio and select specialty products provided offset to performance headwinds.
Financial Outlook
- Management anticipates a gradual recovery in revenue and profit growth through improved product launches and geographic diversification.
- Focus remains on increasing operational efficiencies, strategic acquisitions, and enhancing the innovation pipeline to drive sustainable growth.
- The company is targeting stable EBITDA margins supported by currency tailwinds and product mix improvements.
Dr. Reddy’s Laboratories Ltd is well-positioned to leverage its diversified portfolio and growing presence in emerging and established markets for long-term steady growth through FY26 and beyond.
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