NYSE$RDY
Dr. Reddys Laboratories Limited · Q2 2026 earnings
Q2 2026 earnings · · Before market open · Investor relations
Briefing
Dr. Reddy's Q3 FY26 revenue grows 4.4% to $971M despite Lenalidomide headwinds
Dr. Reddy's Laboratories furnished its Q3 FY26 earnings call transcript on January 27, 2026 for the quarter ended December 31, 2025. Consolidated revenues were ₹7,872.7 crore, equivalent to about $971 million at ₹89.84 per dollar, up 4.4% year over year but down 0.9% sequentially. Underlying base business excluding Lenalidomide grew double digits, supported by branded India, emerging markets, and the acquired nicotine-replacement therapy consumer health franchise, while U.S. and Europe generics faced pricing pressure. Reported EBITDA was ₹2,049 crore ($228 million) at a 23.5% margin; adjusting for a one-time India Labour Codes provision, EBITDA margin was 24.8%. Profit after tax attributable to equity holders was ₹1,210 crore ($135 million), down 14% year over year, with diluted EPS of ₹14.52. Gross margin was 53.6% (54.1% adjusted). North America generics revenue was $338 million, India revenues were ₹1,603 crore (+19% YoY), and emerging markets revenues were ₹1,896 crore (+32% YoY). Net cash surplus was $342 million.
- Consolidated revenue of ~$971M rose 4.4% YoY; base business ex-Lenalidomide delivered double-digit growth.
- Adjusted EBITDA margin was 24.8% after a one-time Labour Codes provision; reported PAT was $135M with EPS ₹14.52.
- India branded business grew 19% YoY to ₹1,603 crore; emerging markets grew 32% YoY to ₹1,896 crore.
- U.S. generics revenue fell 16% YoY to $338M on lower Lenalidomide sales and price erosion.
- Semaglutide received DCGI marketing authorization in India; Abatacept IV BLA filed in the U.S. in December 2025.
Headline financials
Revenue & EPS history
Dr. Reddy's · Revenue · Quarterly
$971M
Revenue by segment
Dr. Reddy's · $35.5B total across 4 segments · Q2 2026
- Emerging Markets$19B—53.5%
- India$16B—45.2%
- North America Generics$338M—1.0%
- European generics revenue (EUR)$140M—0.4%
Forward guidance
Management reiterated focus on double-digit base-business growth, advancing Semaglutide and Abatacept, operational efficiencies, and selective partnerships, with India organic growth described as sustainably mid-teens excluding acquisitions.
Tailwinds
- Branded India and emerging markets delivered strong growth; NRT integration is progressing on plan.
- Semaglutide India launch is planned around March 21, 2026 with additional emerging-market filings underway.
Headwinds
- Lenalidomide decline and U.S./Europe price erosion continue to weigh on consolidated margins and North America revenue.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q2 2026
-1.1%
Avg return
Earnings day
-0.7%
Avg return
5 days after
-1.7%
Avg return
30 days after
40%
18 / 45 earnings
Positive
+9.9%
Q1 2021
Best reaction
-15.9%
Q1 2017
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2027 | — | — | — | |
| Q1 2026 | — | — | — | |
| Q4 2027 | -2.2% | +0.0% | -3.4% | |
| Q2 2026 | -0.1% | -0.8% | -3.9% | |
| Q3 2025 | -7.2% | -10.3% | -11.5% | |
| Q1 2024 | +3.1% | +0.5% | -1.1% | |
| Q4 2023 | -9.3% | +0.8% | +14.1% | |
| Q2 2023 | -0.5% | +0.0% | +3.1% | |
| Q1 2023 | -5.3% | -5.6% | -4.3% | |
| Q4 2022 | +7.2% | +8.0% | +3.6% | |
| Q2 2022 | +4.1% | +5.9% | +0.4% | |
| Q3 2022 | +3.9% | +5.9% | +0.4% | |
| Q1 2022 | -12.9% | -13.9% | -17.1% | |
| Q4 2021 | -0.8% | -0.3% | -13.4% | |
| Q3 2021 | -10.4% | -5.2% | -9.2% | |
| Q2 2021 | -2.6% | -3.1% | -3.9% | |
| Q1 2021 | +9.9% | +1.0% | -2.2% | |
| Q4 2020 | +3.9% | +7.0% | +18.1% | |
| Q3 2020 | +6.0% | +4.0% | +2.6% | |
| Q2 2020 | +0.4% | +2.9% | +4.0% | |
| Q1 2020 | -5.9% | +0.4% | +8.5% | |
| Q4 2019 | -7.7% | -0.9% | -4.9% | |
| Q2 2019 | +3.8% | +3.1% | -1.3% | |
| Q3 2019 | +3.9% | +3.1% | -1.3% | |
| Q1 2019 | +0.0% | +2.7% | +15.0% | |
| Q4 2018 | -0.5% | +0.5% | +18.3% | |
| Q3 2018 | -2.8% | -9.9% | -14.8% | |
| Q2 2018 | -1.4% | +1.7% | -3.1% | |
| Q1 2018 | -11.6% | -10.4% | -23.9% | |
| Q4 2017 | +4.7% | +3.2% | +1.2% | |
| Q3 2017 | -1.6% | -3.3% | -8.4% | |
| Q2 2017 | +4.9% | +7.2% | -1.6% | |
| Q1 2017 | -15.9% | -16.2% | -12.3% | |
| Q4 2016 | +1.3% | — | — | |
| Q3 2016 | -6.5% | — | — | |
| Q2 2016 | +2.9% | — | — | |
| Q1 2016 | +9.9% | — | — | |
| Q4 2015 | +3.0% | — | — | |
| Q3 2015 | -3.8% | — | — | |
| Q2 2015 | +0.5% | — | — | |
| Q1 2015 | -1.5% | — | — | |
| Q4 2014 | -9.5% | — | — | |
| Q3 2013 | -1.0% | — | — | |
| Q2 2013 | -2.2% | — | — | |
| Q1 2013 | -1.7% | — | — | |
| Q4 2013 | -0.4% | — | — | |
| Q1 2010 | +1.7% | — | — |
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