Analyst Concall
Dr Reddy's sees double-digit revenue growth continue FY26
This story was originally published at 21:46 IST on 9 May 2025
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--Dr Reddy's: FY26 capex will be similar to FY25's spend of INR 27 billion
--Dr Reddy's: FY25 capex spent mostly on peptides facilities
--Dr Reddy's: Expect double digit growth to continue in FY26
--Dr Reddy's: Push from Revlimid to US sales to continue for few qtrs more
--CONTEXT: Dr Reddy's mgmt comments in post-earnings call with analysts
--Dr Reddy's: FY26 R&D expenditure to be similar to FY25
By Narayana Krishna
HYDERABAD – Dr. Reddy's Laboratories Ltd. expects the double-digit revenue growth to continue in 2025-26 (Apr-Mar), led by innovative and complex product launches and market share gains from existing products, the management said in a conference call with analysts after the Jan-Mar earnings were announced. Dr. Reddy's reported a consolidated net profit of INR 56.55 billion for FY25, up 1.4% from the previous year. The company's revenue for the year rose 17% to INR 325.54 billion.
For the March quarter, the company reported a consolidated net profit of INR 16 billion, up 22% on year. Revenue for the quarter was up 20% on year at INR 85 billion.
The company said the generic cancer drug Revlimid will continue to contribute to the overall sales growth in the US for some more quarters, though there is some price erosion due to competition. The company said the price erosion in the US is low compared to FY24 and it is expected to be stable going forward.
The company expects its research and development spend in FY26 to be similar to FY25. The company spent INR 27.4 billion on research and development in FY25, which was 8.4% of the total sales. Most of the R&D spend will be on complex generics, peptide-based products, novel oncology, and biosimilar products.
The company sees capital expenditure in the current year to be the same as FY25, mostly on creating infrastructure for peptide-based products and biosimilars. The company's capital expenditure in FY25 was INR 27 billion.
On the likely imposition of tariffs on pharmaceutical products in the US, Dr. Reddy's said it is preparing for any scenario that may emerge. The focus for now is to avoid supply disruptions due to this uncertainty, the company said.
On Friday, shares of Dr. Reddy's closed 0.7% higher at INR 1,155.90 on the National Stock Exchange. End
Edited by Ashish Shirke
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