DRREDDYNSEDr. Reddy's Laboratories Limited· PharmaceuticalsHighNeutral
Announced Tue, 12 May · 16:39 IST

Dr. Reddy's Laboratories Limited has submitted to the Exchange, the financial results for the period ended March 31, 2026.

Pat NegativeEbitda Margin CompressionExceptional ItemAuditor Mid Year ChangeResults View source PDF

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AI summary

Dr. Reddy's reported FY26 revenues of ₹335,933 million, up 3.2% YoY, driven by Emerging Markets (+23%), India (+16%) and Europe (+55%, including NRT acquisition), partially offset by a 22% decline in North America due to lower Lenalidomide sales. Q4FY26 was severely impacted by one-offs: a ₹4,530 million Shelf Stock Adjustment for Lenalidomide, ₹2,277 million in impairments (CAR-T program discontinuation + Eftilagimod alfa), ₹1,141 million VAT provision, and ₹1,170 million New Labour Codes provision. PAT for FY26 fell 24% to ₹42,850 million (Q4: ₹2,201 million, down 86% YoY). EBITDA margin compressed to 22.8% in FY26 vs 28.3% in FY25. The Board recommended ₹8 dividend per share, appointed Deloitte Haskins & Sells as new statutory auditors (replacing previous auditor), and added two independent directors. The auditors issued an un-modified (clean) opinion.

Likely market impact

Dr. Reddy's faced a challenging Q4/FY26 due to major one-time hits from Lenalidomide pricing and discontinued R&D programs. Underlying business remains solid with strong growth in India, Emerging Markets and Europe, but margin compression and North America weakness are near-term concerns. The clean audit opinion and new auditor appointment (Deloitte) are neutral-to-positive governance signals.