Dr. Reddy’s Q2 results: Firm sees broad-based growth; net profit rises to ₹1,347 crore, revenue jumps 10% YoY

The company’s revenue from operations stood at ₹8,828 crore year-on-year (YoY) for the quarter under review as compared to ₹8,038 crore, marking an increase of 10%, driven by price increases, new launches and higher volumes.

The drugmaker’s operating profit, or earnings before interest, taxes, depreciation, and amortisation (EBITDA), slipped 3.23% to ₹2,010 crore as against ₹2,077 crore YoY.

In Q2 FY26, the firm’s margin contracted to 22.7% in contrast to 25.8% reported in the same quarter last fiscal year.

Commenting on the results, co-Chairman & MD G V Prasad said, “Growth in Q2 was driven by momentum in branded markets and steady contributions from the Nicotine Replacement Therapy (NRT) portfolio, which helped offset the decline in US Lenalidomide sales. We remain focused on strengthening our core business, advancing key pipeline assets, driving productivity and pursuing business development initiatives.”

For H1 FY26, the firm’s consolidated revenues were ₹17,350 crore, gaining 11% YoY growth. 

The Hyderabad-based firm noted that the growth during the second quarter was broad-based across key markets, except for North America Generics, which witnessed higher price erosion in select products and lower lenalidomide sales.

North America sales stood at ₹3,241 crore, a year-on-year drop of 13% compared to ₹3,728 crore. Europe revenue increased to ₹1,376 crore compared to ₹577 crore in the year-ago period. Emerging markets saw a revenue growth of 14% to ₹1,655 crore in the second quarter.

Pharmaceutical Services and Active Ingredients (PSAI), the business vertical, reported a revenue of ₹945 crore against ₹841 crore, a rise of 12%.

In the reporting quarter, Dr Reddy’s received a Form 483 with seven observations for the formulations manufacturing facility, FT0-11, in Srikakulam, Andhra Pradesh, after a GMP and a Pre-Approval Inspection (PAI) conducted by the United States Food & Drug Administration (USFDA) in July 2025. The USFDA has classified the inspection outcome as 'Voluntary Action Indicated (VAI)' in October 2025.

Impairments for Q2 FY26 amounted to ₹70 crore, including a one-time charge of ₹50 crore related to property, plant, and equipment at the Middleburgh facility. Other operating income stood at ₹270 crore, while net finance income was ₹80 crore.

On Friday, shares of Dr Reddy's Laboratories closed at ₹1,282.70 apiece on NSE, rising 0.26%.