Analyst Concall
Dr Reddy's management says current India sales growth sustainable
This story was originally published at 22:41 IST on 21 January 2026
Register to read our real-time news.Informist, Wednesday, Jan. 21, 2026
Please click here to read all liners published on this story
--Dr Reddy's: Will continue to invest in R&D on peptide, biosimilar products
--CONTEXT: Comments by Dr Reddy's Labs mgmt in post-earnings analyst concall
--Dr Reddy's: Innovative product pipeline driving India growth
--Dr Reddy's: Current rate of growth in India revenue sustainable
--CONTEXT: Dr Reddy's reported 19% YoY growth in Oct-Dec sales
--Dr Reddy's: Don't expect price erosion in semaglutide in near term
--Dr Reddy's: Expect to launch semaglutide in Brazil around July
--Dr Reddy's: Healthy double-digit sales growth sustainable in Russia
--Dr Reddy's: Gross margin in global generics seen 50-55% going ahead
By Shakshi Jain and Narayana Krishna
MUMBAI – Pharmaceuticals major Dr. Reddy's Laboratories Ltd. is confident of sustaining its current rate of revenue growth in the India market, the company's management said in a post-earnings conference call with investors and analysts Wednesday.
"Can it be more than 19%? It can, but I don't recommend to use it for now. What we can say is that the 15-16% is very sustainable. The rest depends on certain scenarios, but it might," company Chief Executive officer Erez Israeli said.
In the recently concluded December quarter, the company recorded a 19% year-on-year and 2% sequential growth in revenue contribution from the India market to INR 16.03 billion. More than 17% of this growth was organic and overall led by the innovative products portfolio, the management said.
The statement on its India sales growth also comes at a time when the company is gearing up to launch its first glucagon-like peptide-1 category drug generic semaglutide in India on Mar. 21.
Overall, the company reported a consolidated net profit of INR 12.10 billion for the December quarter, down 14.4% on year. The revenue for the quarter was up 4.4% on year at INR 87.53 billion.
Dr. Reddy's is also confident of sustaining a "healthy double-digit" revenue growth in Russia, the management said. In the three months ended Dec. 31, the company registered a 51% on-year and 21% sequential growth in revenues from the region at INR 10.56 billion.
SEMAGLUTIDE PLANS
Besides the plans for the India market, Dr. Reddy's expects to launch generic semaglutide in Brazil around July, the management said. Overall, the company expects to launch the product in 80 countries from the date of its India launch, the management said in a press conference preceeding the analyst conference call. The patent expiry date for semaglutide is Mar. 21.
"...over time when people will get approval, we are expecting (it) to be a very competitive market. There will be a short period of time that can be for weeks to months, it depends on the market in which we can have healthier prices. But then we are preparing ourselves for a very competitive market," Israeli said.
In most markets, the product is expected to be priced closer to the lower end of the $20-$70 per unit range expected by the market, as per the management.
On a question regarding a possible decline in margins of the company in the absence of Revlimid sales starting the ongoing quarter, the management said the gross margin in the global generics business is expected to range between 50-%-55% going ahead. The management earlier in the call said Dr. Reddy's is committed to investing in differentiated research and development programmes, especially for peptides and biosimilars.
The company announced its December-quarter earnings after markets closed. Ahead of the announcement, shares of the company closed Wednesday's session 0.8% lower at INR 1,157.20 on the National Stock Exchange. End
US$1 = INR 91.69
Edited by Deepshikha Bhardwaj
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. 2026. All rights reserved.
To read more please subscribe
Share this Story:
