Dr. Reddy’s Laboratories shares rally 6% as Q3 results beat expectations; check numbers

This comes after the pharmaceutical major posted its earnings for the third quarter of the 2025-26 financial year (Q3FY26).

The stock was trading 5.39% higher at ₹1,219.60 per equity share at around 11:14 am.

The scrip has gained nearly 3% in the past week but lost more than 5% over the month. On a year-to-date basis, it has fallen 3%.

While the stock touched a 52-week high of ₹1,379.70 on June 12, 2025, it reached a year’s low of ₹1,020 per unit on April 7, 2025.

Q3 results

The drugmaker reported a 14.4% year-on-year (YoY) decline in its consolidated net profit to ₹1,209.8 crore for the December FY26 quarter, compared to ₹1,413.3 crore in the year-ago period, it said in a regulatory filing on Wednesday.

While the profit fell, it beat analysts’ expectations, who expected the profit to slump 20-22% annually to ₹1,085-₹1,110 crore.

The pharmaceutical company’s revenue from operations gained 4.4% annually to ₹8,726.8 crore during the quarter under review, as against ₹8,358.6 crore in the third quarter of the 2024-25 fiscal year (Q3FY25).

However, analysts had expected its revenue to mostly remain flat, rising just 0.5–1% YoY to ₹8,390–8,425 crore.

Geographically, the company’s overall global generics segment witnessed a 7% annual growth to ₹7,911.3 crore, in comparison to ₹7,375.3 crore in the year-ago period.

Its revenue from the North America segment dropped 12% YoY to ₹2,964.4 crore in Q3FY26, in comparison to ₹3,383.4 crore in the same period of FY25, it said in a press release.

Its revenue from the Europe segment stood at ₹1,447.6 crore for the reporting quarter, marking a 20% annual jump from ₹1,209.6 crore in the December FY25 quarter.

Its India segment revenue increased 19% YoY to ₹1,603.2 crore for the third quarter of the current fiscal year, from ₹1,346.4 crore in the same period last year.

Furthermore, it clocked ₹1,896.1 crore in revenue from emerging markets for the quarter under review, reflecting a 32% annual growth from ₹1,435.8 crore in Q3FY25.

Its revenue from the Pharmaceutical Services and Active Ingredients (PSAI) segment saw a revenue of ₹801.8 crore, down by 2% annually from ₹821.9 crore.

At an operational level, its EBITDA (earnings before interest, tax, depreciation, and amortisation), also known as operating profit, stood at ₹2,049.3 crore for the October-December quarter of FY26. In Q3 of FY25, it had logged an EBITDA of ₹2,298.2 crore, down by 10.83% YoY.

Commenting on the earnings, G V Prasadm, Co-Chairman & MD, said: “Our growth in Q3FY26 was supported by continued momentum in our branded businesses, aided by favourable Jorex, thus offsetting the impact of lower Lenalidomide sales. We continue to focus on disciplined execution of our strategic priorities of base business growth, pipeline advancement, operational efficiencies, and select inorganic opportunities, to create long-term value for our stakeholders.”

Dr. Reddy’s Pharmaceuticals has a total market capitalisation of ₹1.02 lakh crore, as of January 22, 2026, according to data on the NSE.