More Stories

Informist, Friday, Oct. 24, 2025

 

Please click here to read all liners published on this story

--Dr Reddy's Jul-Sept consol net profit INR 13.47 bln 
--Analysts saw Dr Reddy's Jul-Sept consol revenue at INR 87 bln 
--Dr Reddy's Jul-Sept consol revenue INR 88.28 bln 
--Dr Reddy's Jul-Sept consol PAT INR 13.47 bln vs INR 12.56 bln year ago 
--Dr Reddy's Jul-Sept consol revenue INR 88.28 bln vs INR 80.38 bln year ago 
--Dr Reddy's Apr-Sept consol PAT INR 27.65 bln vs INR 26.48 bln year ago 
--Dr Reddy's Apr-Sept consol revenue INR 174.00 bln vs INR 157.34 bln yr ago 
--Dr Reddy's Jul-Sept consol EBITDA INR 23.51 bln vs INR 22.80 bln year ago 
--Dr Reddy's Jul-Sept consol EBITDA margin 26.7% vs 28.4% year ago 
--Dr Reddy's Jul-Sept consol gross margin 54.7% vs 59.6% year ago 
--Dr Reddy's Jul-Sept global generics sales INR 78.50 bln, up 10% on year 
--Dr Reddy's Q2 N America generics sales INR 32.41 bln, down 13% on year 
--Dr Reddy's Jul-Sept India generics revenue INR 15.78 bln, up 13% on year 
--Dr Reddy's: Focused on strengthening core ops, advancing key pipeline assets 
--Dr Reddy's Jul-Sept emerging markets revenue INR 16.55 bln, up 14% on yr 
--Dr Reddy's Jul-Sept consol R&D expenses INR 6.20 bln, down 15% on year 
--Dr Reddy's: Capex was INR 5.11 bln in Jul-Sept vs 7.35 bln year ago 
--Dr Reddy's: Price erosion, lower lenalidomide sales hit N America revenue Q2 

By Narayana Krishna and Anshul Choudhary

 

HYDERABAD - Dr. Reddy's Laboratories Ltd. on Friday reported a consolidated net profit of INR 13.47 billion for the September quarter. The net profit was up 7.3% on year but was below analysts' estimate of INR 14.04 billion. The company's revenue from operations rose nearly 10% on year to INR 88.28 billion and beat the market estimate of INR 87 billion.

Price erosion in some products in the US and lower sales of cancer drug generic Revlimid were the key reason for the company's September quarter net profit coming below analysts' estimate. The near-10% rise in revenue was the slowest year-on-year growth in seven quarters. Sales from North America, which accounts for nearly 40% of the company's consolidated revenue, declined 13% on year to INR 32.41 billion.

"Growth was broad-based across key markets, except for North America Generics, which witnessed higher price erosion in select products and lower lenalidomide sales. The acquired Consumer Healthcare portfolio in nicotine replacement therapy -NRT also contributed positively to overall performance," Dr. Reddy's said in a press release.

 

Within the generics business, the company's revenue from Europe, including sales from the acquired consumer healthcare portfolio of Haleon plc, rose 138% on year to INR 13.76 billion. Excluding the acquired business, revenue from Europe was up 17% on year. Among other regions, revenue from India rose 13% on year to INR 15.78 billion and revenue from emerging markets rose 14% on year to INR 16.55 billion.

 

Overall, the company's revenue from its generics business was INR 78.50 billion in the September quarter, up 10% on year. Its revenue from selling active ingredients and pharmaceutical services was up 12% on year at INR 9.45 billion.

 

The company's operating profit improved on year, but margins were down likely due to lower prices of products in the US. Its consolidated earnings before interest, taxes, depreciation, and amortisation rose 3% on year to INR 23.51 billion. Its consolidated EBITDA margin fell 170 basis points to 26.7% and gross margin was down 490 bps to 54.7%.

 

A double-digit rise in consolidated expenses during the quarter affected Dr. Reddy's profitability. Its expenses rose a little more than 15% on year to INR 74.14 billion, largely on account of higher cost of material. Its purchase of stock-in-trade rose 36% on year to INR 17.46 billion.

 

The company spent INR 6.20 billion on research and development in the September quarter, 15% lower compared to the previous year. The R&D expense declined to 7% of total revenue from just over 9% a year ago. The company spent INR 5.11 billion on capital expenditure during the quarter, lower than INR 7.35 billion in the same period last year.

 

For the six months ended September, the company's consolidated net profit rose 4% on year to INR 27.65 billion. Revenue for the same period was up nearly 11% at INR 174 billion. On Friday, shares of the company closed slightly higher at INR 1,283.60 per share on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.