Dr Reddy’s Laboratories share price declines over 1% post Q2 results

Dr Reddy’s Laboratories reported a 7.25% year-on-year (YoY) rise in consolidated net profit to ₹1,347 crore for the quarter ended September 30, compared with ₹1,256 crore in the corresponding period last year. However, the PAT fell short of market expectations.

The drugmaker’s revenue from operations grew 10% YoY to ₹8,828 crore from ₹8,038 crore, supported by price hikes, new product launches and higher sales volumes. However, the company’s operating profit (EBITDA) declined 3.23% to ₹2,010 crore from ₹2,077 crore a year ago.

The EBITDA margin narrowed to 22.7% in Q2 FY26, down from 25.8% in the same quarter of the previous fiscal.

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 the first half of FY26, the company’s consolidated revenue rose 11% year-on-year to ₹17,350 crore.

The Hyderabad-headquartered firm said growth in the second quarter was broad-based across major markets, except North America Generics, which faced heightened price erosion in certain products and lower lenalidomide sales.

Hence, revenue from North America declined 13% YoY to ₹3,241 crore from ₹3,728 crore. Europe revenue surged to ₹1,376 crore from ₹577 crore in the same period last year, while emerging markets posted a 14% rise to ₹1,655 crore during the quarter.

The Pharmaceutical Services and Active Ingredients (PSAI) division recorded revenue of ₹945 crore, up 12% from ₹841 crore in the corresponding period.

Dr Reddy’s Laboratories' share price

At 9:37 AM, shares of Dr Reddy’s Laboratories were trading 0.58% lower at ₹1,275.70 per equity share on the National Stock Exchange (NSE).

Over the past five trading sessions, shares of Dr Reddy’s Laboratories have declined 0.75% but gained 3.70% in the past month. In the last six months, the stock has risen 6.75%, though it remains down 6.47% year-to-date.

The shares hit a 52-week high of ₹1,405.90 on January 8, 2025, and a 52-week low of ₹1,020 on April 7, 2025. As of October 27, the company's market capitalisation stood at ₹1,06,329.79 crore.