NSE: DRREDDY · BSE: 500124
DR. REDDY S LABORATORIES
Develops, manufactures and sells generic pharmaceuticals globally, with operations spanning India, the US, Europe and emerging markets. Global Generics made up 85.8% of FY26 segment revenue at Rs 18,202.7 crore with a 24.0% segment EBIT margin, while Pharmaceutical Services and Active Ingredients (PSAI) contributed 14.0% at Rs 2,975.0 crore with a -3.0% segment EBIT margin. The Q1 FY27 geographic mix was North America Generics US$236M, Emerging Markets Rs 1,833 crore (+31% YoY), India Rs 1,718 crore (+17% YoY), Europe EUR 131M and PSAI US$91M. Manufacturing sits at facilities in Bachupally (biologics) and Srikakulam (FTO-SEZ), with FY27 capex guided at around Rs 1,800 crore and 27 US product launches targeted. Recent regulatory actions include USFDA approval for a rituximab biosimilar (to be commercialized in the US by Fresenius Kabi), a bosutinib first-to-file launch with 180-day exclusivity in the US, and Form 483s with 7 observations at Bachupally and 3 at Srikakulam. Q1 FY27 was hit by a Rs 240 crore semaglutide API provision and lower lenalidomide, with EBITDA margin at 12.5%; semaglutide supply is targeted to resume by November 2026. Materials accounted for 19.3% of FY26 revenue, employees 17.8% and other operating expenses 26.8%. AR · MarketPing reader · 2026-08-03
Revenue streams, as the annual report describes them. Global Generics (86%), Pharmaceutical Services and Active Ingredients (PSAI) (14%), Others (0%). Cyclical, asset-heavy pharmaceuticals with global generic, API and biosimilar operations exposed to USFDA inspections and product-specific supply disruptions.
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 21,545 | 24,670 | 28,011 | 32,644 | 33,700 |
| EBITDA (ex other income) | 3,768 | 6,349 | 7,933 | 8,547 | 6,454 |
| margin % | 17.5 | 25.7 | 28.3 | 26.2 | 19.1 |
| Owners' profit | 2,183 | 4,507 | 0 | 5,655 | 4,196 |
| EPS, as reported (₹) | 131.57 | 271.47 | 335.22 | 67.89 | 50.41 |
| ROE % · ROCE % | 11.4 · 15.4 | 19.4 · 26.0 | 19.7 · 25.1 | 16.9 · 21.8 | 10.9 · 13.9 |
| Debt / equity (x) | 0.17 | 0.06 | 0.06 | 0.12 | 0.16 |
| Cash from operations | 2,811 | 5,887 | 4,543 | 4,643 | 5,674 |
| Capex | (1,466) | (1,132) | (1,640) | (2,750) | (2,331) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 8,038 | 8,381 | 8,528 | 8,572 | 8,828 | 8,753 | 7,546 | 8,100 |
| Profit before tax | 1,911 | 1,870 | 2,000 | 1,905 | 1,739 | 1,541 | 195 | 553 |
| Net profit | 1,342 | 1,404 | 1,587 | 1,410 | 1,337 | 1,190 | 221 | 436 |
| EPS (₹) | 15.08 | 16.97 | 19.12 | 17.04 | 16.18 | 14.53 | 2.65 | 5.33 |
Exhibit 3: Segment revenue, FY26
| Segment | Revenue, ₹ crore | Share % |
|---|---|---|
| a) Global Generics | 22,373 | 65.0 |
| b) Pharmaceutical Services and Active Ingredients | 3,280 | 9.5 |
| c) Others | 50 | 0.1 |
| Global Generics | 7,573 | 22.0 |
| Pharmaceutical Services and Active Ingredients | 987 | 2.9 |
| Others | 164 | 0.5 |
| Total, before eliminations | 34,427 | 100.0 |
Exhibit 4: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| SUN PHARMACEUTICAL IND L | 4,21,677 | 34.9 | 5.03 | 22.6 | 13.7 | 17.5 | 11.8 | 32.3 |
| DIVI S LABORATORIES LTD | 2,53,976 | 87.0 | 15.15 | 65.5 | 15.3 | 18.8 | 8.7 | 42.8 |
| TORRENT PHARMACEUTICALS L | 1,54,957 | 73.1 | 8.81 | 38.5 | 12.2 | 8.0 | 11.8 | 33.1 |
| LAURUS LABS LIMITED | 1,17,877 | 107.7 | 21.70 | 65.6 | 16.4 | 17.2 | 7.2 | 32.0 |
| ZYDUS LIFESCIENCES LTD | 1,17,315 | 26.2 | 3.97 | 15.1 | 17.3 | 18.0 | 12.4 | 25.2 |
| DR. REDDY S LABORATORIES ◆ | 1,11,506 | 34.5 | 2.92 | 14.9 | 10.9 | 13.0 | 12.1 | 15.0 |
| CIPLA LTD | 1,10,320 | 32.7 | 3.20 | 16.9 | 11.2 | 14.7 | 8.0 | 19.7 |
| MANKIND PHARMA LIMITED | 1,02,829 | 50.3 | 6.21 | 28.3 | 11.7 | 10.8 | — | 27.3 |
Exhibit 5: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 34.5 | 30.8 | 88 of 158 | 45% |
| P/B | 2.9 | 3.1 | 78 of 163 | 53% |
| ROCE | 13.0 | 10.8 | 77 of 183 | 58% |
| ROE | 10.9 | 9.8 | 80 of 166 | 52% |
| Debt / Equity | 0.2 | 0.2 | 86 of 166 | 49% |
| EBITDA margin | 15.0 | 17.5 | 92 of 165 | 45% |
| Revenue growth | (5.5) | 16.3 | 129 of 161 | 20% |
| Profit growth | (69.1) | 30.9 | 138 of 158 | 13% |
| Market cap | 111506 | 806 | 6 of 181 | 97% |
Exhibit 6: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 28 Oct 2026 · USFDA closes inspection of Dr Reddy's unit with VAI classification | regulatory legal | medium | — | — |
| 24 Oct 2026 · Newspaper advertisement published for Q2 and H1 FY27 results | compliance | minimal | — | — |
| 24 Oct 2026 · Earnings call audio and video shared for September 2026 quarter | investor communications | low | — | — |
| 23 Oct 2026 · Auditors give unmodified review of September 2026 results | compliance | minimal | — | — |
| 23 Oct 2026 · Akhil Ravi appointed Head of API and Services effective November 13, 2026 | management changes | medium | — | — |
| 23 Oct 2026 · Q2 revenue and profit fall as EBITDA margin improves from Q1 | results | high | — | — |
| 23 Oct 2026 · Q2 FY27 profit rises 36% as base business posts double-digit growth | investor communications | medium | — | — |
| 23 Oct 2026 · Q2 and H1 FY27 revenue and profit decline despite sequential recovery | results | high | — | — |
| 21 Oct 2026 · Zytorvi approved for advanced esophageal cancer in India | compliance | low | — | — |
| 14 Oct 2026 · USFDA issues 3 observations at Visakhapatnam facility | regulatory legal | high | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.