Dr Reddy Q1FY26 Earnings Profit Flat at ₹1,409 Crore Despite 11% Revenue Growth

Dr Reddy’s Laboratories reported its Q1FY26 results for the April–June quarter. The company posted a 1.4% rise in consolidated net profit to ₹1,409 crore, slightly higher than ₹1,392 crore in the same period last year.

Dr Reddy Q1 FY26 Earnings: Revenue Sees Double-Digit Growth

Revenue from operations jumped 11.3% year-on-year to ₹8,572 crore, compared to ₹7,696 crore in Q1FY25. The company’s strong topline growth came primarily from its Global Generics segment, which contributed ₹7,562 crore, up from ₹6,885 crore last year. Revenue from Pharmaceutical Services and Active Ingredients dropped to ₹970 crore from ₹1,030 crore.

Rising Expenses Weigh on Profit

Total expenses for the quarter increased by 15.8%, reaching ₹6,957 crore from ₹6,006 crore last year. This rise in costs impacted the company’s profitability. EBITDA stood at ₹2,278 crore, representing 26.7% of total revenue.

Key Strategic Developments

• Partnered with Alvotech to co-develop and market a biosimilar version of Keytruda (pembrolizumab).
• Collaborated with Sanofi to launch Beyfortus, a drug for RSV prevention in India.
• Launched Sensimune, an immunotherapy for dust mite allergies, with ALK-Abelló.

Management Commentary

Co-Chairman & MD G.V. Prasad mentioned that pricing pressure on Lenalidomide in the U.S. market may increase. The company will continue to focus on pipeline delivery, productivity, and business development.

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Dr. Reddy's Laboratories Share Price Movement

As of July 23, 2025, Dr. Reddy's Laboratories share price (NSE: DRREDDY) is trading at ₹1,248.00, up by ₹8.00 or 0.65% for the day. The stock opened at ₹1,240.20 and touched an intraday high of ₹1,252.10 and a low of ₹1,231.00. The company has a market capitalisation of ₹1.04 lakh crore. It is currently trading at a price-to-earnings (P/E) ratio of 18.41 and offers a dividend yield of 0.64%. The stock's 52-week high stands at ₹1,421.49, while its 52-week low is ₹1,020.00. Dr. Reddy's Laboratories has declared a quarterly dividend amount of ₹2.00 per share.

Conclusion

While Dr Reddy’s delivered healthy revenue growth in Q1FY26, higher expenses limited profit growth. Strategic collaborations and a robust generic pipeline keep its long-term outlook stable.

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