NYSE$RDY
Dr. Reddys Laboratories Limited · Q4 2027 earnings
Q4 2027 earnings · · Investor relations
Briefing
Dr. Reddy's Q4 FY26: ₹7,969 crore adjusted revenue as lenalidomide headwinds hit; base business grows double digits
Dr. Reddy's reported Q4 and full-year FY26 results on May 12, 2026, with adjusted revenue of ₹7,969 crores ($849 million) for the quarter (down 6% YoY) and ₹34,046 crores ($3.63 billion) for the year (up 4.6%). Results were weighed down by a ₹453 crore lenalidomide shelf-stock adjustment, impairments on discontinued CAR-T and partnered programs, and VAT provisions; adjusted profit before tax was ₹994 crores for the quarter versus reported PBT of ₹199 crores. Underlying base business excluding lenalidomide grew double digits across geographies except North America. Management declared an ₹8 per share dividend, highlighted semaglutide and abatacept pipeline progress, and guided for gross margins above 50% and R&D spend of 7–8% of revenue in FY27.
- Adjusted Q4 revenue was ₹7,969 crores ($849 million), down 6% YoY, while FY26 adjusted revenue rose 4.6% to ₹34,046 crores despite lenalidomide decline
- Reported Q4 net income was ₹220 crores with diluted EPS of ₹2.64; FY26 diluted EPS was ₹51.42 on ₹4,285 crores net income
- One-time items included a ₹453 crore lenalidomide shelf-stock adjustment, ₹228 crore in impairments, and VAT provisions that cut reported margins
- Geographic strength: India revenue grew 20% YoY to ₹1,566 crores; Emerging Markets rose 29% to ₹1,806 crores; North America generics fell 40% YoY to $251 million adjusted
- Board recommended ₹8 dividend per share; pipeline milestones include semaglutide approvals in Canada and India and USFDA acceptance of abatacept biosimilar BLA
Headline financials
Revenue & EPS history
Dr. Reddy's · Revenue · Quarterly
₹79.7B
Revenue by segment
Dr. Reddy's · ₹79.5B total across 5 segments · Q4 2027
- North America Generics₹23.6B—29.6%
- Emerging Markets₹18.1B—22.7%
- India₹15.7B—19.7%
- Europe₹12.8B—16.0%
- PSAI (Active Pharmaceutical Ingredients)₹9.48B—11.9%
Forward guidance
Management expects base business to sustain double-digit growth, North America ex-lenalidomide to grow double digits, consolidated gross margins to improve above 50% in FY27, SG&A to remain near FY26 levels, R&D at 7–8% of revenue, and effective tax rate of 24–25% in FY27.
Tailwinds
- Semaglutide launches and abatacept biosimilar BLA acceptance expected to drive future growth
- India and Emerging Markets delivered robust double-digit revenue growth in Q4
- Cost efficiency and productivity initiatives targeted to lift gross margins above 50%
Headwinds
- Lenalidomide revenue decline and shelf-stock adjustment continue to pressure North America
- Price erosion in European and unbranded generics businesses
- One-time impairments and VAT provisions may recur if unresolved
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 Q4 2027
-1.1%
Avg return
Earnings day
-0.7%
Avg return
5 days after
-1.6%
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% | — | — | |
| 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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