- Home
- Results news
- Dr. Reddy's Laboratories
- Q2 FY27 results
Dr. Reddy's Laboratories Q2 FY27 results: net profit down 31.7% to ₹913.20 crore, revenue down 1.5%
Dr. Reddy's Laboratories Limited reported consolidated Q2 FY27 revenue of ₹8,698 crore, down 1.5% from Q2 FY26 but up 7.4% from Q1 FY27. EBITDA was ₹1,731 crore at a 19.9% margin, while net profit was ₹913.20 crore and basic EPS was ₹11.1.
Key points
- Revenue was ₹8,698 crore in Q2 FY27, down 1.5% from ₹8,828 crore in Q2 FY26 and up 7.4% from ₹8,100 crore in Q1 FY27.
- EBITDA was ₹1,731 crore at a 19.9% margin, down 13.9% year on year and up 101.3% from the previous quarter.
- Net profit was ₹913.20 crore, down 31.7% from ₹1,337 crore a year earlier and up 109.6% from ₹435.60 crore in Q1 FY27.
- Basic EPS was ₹11.1, compared with ₹16.18 in Q2 FY26 and ₹5.33 in Q1 FY27.
- Global Generics revenue was ₹7,796.5 crore, down 0.3% year on year, while PSAI revenue was ₹1,063.6 crore, down 11.9%.
How did Dr. Reddy's Laboratories perform in Q2 FY27?
Dr. Reddy's Laboratories reported Q2 FY27 consolidated revenue of ₹8,698 crore, against ₹8,828 crore in Q2 FY26 and ₹8,100 crore in Q1 FY27. The company also filed standalone results of ₹5,572.6 crore revenue and ₹695.8 crore profit after tax, against ₹387.3 crore profit before tax for the quarter.
EBITDA for the quarter was ₹1,731 crore, with a margin of 19.9%, compared with ₹2,010 crore and a 22.8% margin in Q2 FY26. Against Q1 FY27, EBITDA rose from ₹859.90 crore and the margin increased from 10.6%. Profit before tax was ₹1,235 crore, compared with ₹1,738 crore a year earlier and ₹552.50 crore in the previous quarter.
Net profit was ₹913.20 crore, down from ₹1,337 crore in Q2 FY26 but up from ₹435.60 crore in Q1 FY27. Profit attributable to equity shareholders was ₹924.80 crore, and basic EPS was ₹11.1, against ₹16.18 and ₹5.33 in the two earlier quarters.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 8,698 | 8,100 | 8,828 | −1.5% | +7.4% |
| Other income | 156.20 | 354.70 | 323.90 | −51.8% | −56.0% |
| Total expenses | 7,619 | 7,902 | 7,414 | +2.8% | −3.6% |
| EBITDA | 1,731 | 859.90 | 2,010 | −13.9% | +101.3% |
| EBITDA margin | 19.9% | 10.6% | 22.8% | −2.9 pp | +9.3 pp |
| Profit before tax | 1,235 | 552.50 | 1,738 | −28.9% | +123.6% |
| Tax | 314.40 | 117.70 | 408 | −22.9% | +167.1% |
| Net profit | 913.20 | 435.60 | 1,337 | −31.7% | +109.6% |
| EPS (₹) | 11.10 | 5.33 | 16.18 | −31.4% | +108.3% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Dr. Reddy's Laboratories' costs and profit?
Total expenses were ₹7,619 crore in Q2 FY27, up ₹205 crore or 2.8% from Q2 FY26. Cost of materials rose ₹219.70 crore or 15.2%, employee cost increased ₹159.80 crore or 11.0%, finance costs rose ₹34.10 crore or 37.6%, and depreciation increased ₹22.10 crore or 4.4%. Other expenses fell ₹55.40 crore or 2.5%.
Other income fell ₹167.70 crore or 51.8% to ₹156.20 crore from Q2 FY26. There was no exceptional item in either quarter, while tax was ₹314.40 crore, down ₹93.60 crore or 22.9%. The company said reported revenue growth was affected by lower lenalidomide sales in North America.
Against Q1 FY27, total expenses fell ₹283.30 crore or 3.6%, while other income fell ₹198.50 crore or 56.0%. Tax was ₹314.40 crore, up ₹196.70 crore or 167.1%. The company said Q1 FY27 included a ₹240 crore provision towards inventory and other costs related to the semaglutide API issue.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 1,661 | 1,441 | +219.70 | +15.2% |
| Employee cost | 1,612 | 1,452 | +159.80 | +11.0% |
| Finance costs | 124.80 | 90.70 | +34.10 | +37.6% |
| Depreciation | 526.70 | 504.60 | +22.10 | +4.4% |
| Other expenses | 2,187 | 2,243 | −55.40 | −2.5% |
| Total expenses | 7,619 | 7,414 | +205 | +2.8% |
| Other income | 156.20 | 323.90 | −167.70 | −51.8% |
| Tax | 314.40 | 408 | −93.60 | −22.9% |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
In H1 FY27, consolidated revenue was ₹16,797.6 crore, down 3.5% from ₹17,400.4 crore in H1 FY26. Total income fell 3.9% to ₹17,308.5 crore from ₹18,014.6 crore, while profit before tax was ₹1,787.8 crore, down 50.9% from ₹3,643.3 crore.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 16,798 | 17,400 | −3.5% |
| Profit before tax | 1,788 | 3,643 | −50.9% |
| Net profit | 1,349 | 2,747 | −50.9% |
| EPS (₹) | 16.44 | 33.22 | −50.5% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
At 30 September 2026, total assets were ₹57,631.3 crore, compared with ₹58,123.4 crore at 31 March 2026. Total equity rose to ₹39,126.1 crore from ₹38,230.9 crore, while borrowings fell to ₹5,826.0 crore from ₹6,293.5 crore.
Cash was ₹1,329.4 crore at 30 September 2026, compared with ₹1,536.8 crore at 31 March 2026. Inventories rose to ₹8,118.2 crore from ₹7,653.4 crore, trade receivables were ₹10,139.9 crore against ₹10,123.4 crore, and trade payables were ₹3,236.3 crore against ₹3,037.9 crore.
H1 FY27 operating cash flow was ₹434.8 crore, compared with ₹3,020.2 crore in H1 FY26. Investing cash flow was ₹812.4 crore against negative ₹2,873.5 crore, while financing cash flow was negative ₹1,468.6 crore against negative ₹652.6 crore. Capital expenditure was ₹581.7 crore, compared with ₹1,208.6 crore.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 57,631 | 58,123 |
| Total equity | 39,126 | 38,231 |
| Borrowings | 5,826 | 6,294 |
| Cash and equivalents | 1,329 | 1,537 |
| Inventories | 8,118 | 7,653 |
| Trade receivables | 10,140 | 10,123 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | 434.80 | 3,020 |
| Cash from investing | 812.40 | −2,874 |
| Cash from financing | −1,469 | −652.60 |
| Capital expenditure | 581.70 | 1,209 |
Source: Company's results filing (XBRL).
How has Dr. Reddy's Laboratories done over the last 8 quarters?
Revenue rose from ₹7,546.4 crore in Q4 FY26 to ₹8,099.8 crore in Q1 FY27 and ₹8,697.8 crore in Q2 FY27. The high point in the eight-quarter series was ₹8,828.3 crore in Q2 FY26, while the low was ₹7,546.4 crore in Q4 FY26.
Net profit bottomed at ₹221.3 crore in Q4 FY26 and reached ₹435.6 crore in Q1 FY27 before rising to ₹913.2 crore in Q2 FY27. The high was ₹1,586.7 crore in Q4 FY25. The EBITDA margin also recovered from 5.1% in Q4 FY26 to 10.6% and then 19.9% in Q2 FY27, below its 22.8% year-ago level.
Which businesses drove the quarter?
Global Generics reported revenue of ₹7,796.5 crore, down 0.3% from ₹7,823.5 crore in Q2 FY26, and EBIT of ₹4,383.3 crore against ₹4,643.1 crore. The reported EBIT margin was 56.2%.
Pharmaceutical Services and Active Ingredients reported revenue of ₹1,063.6 crore, down 11.9% from ₹1,207.9 crore, and EBIT of ₹98.4 crore against ₹170.6 crore. Its EBIT margin was 9.3%. Others reported revenue of ₹48.2 crore, up 368.0% from ₹10.3 crore, with EBIT of ₹39.1 crore and an EBIT margin of 81.1%.
| Segment | Revenue | Revenue YoY | EBIT | EBIT margin |
|---|---|---|---|---|
| a) Global Generics | 7,796 | −0.3% | 4,383 | 56.2% |
| b) Pharmaceutical Services and Active Ingredients | 1,064 | −11.9% | 98.40 | 9.3% |
| c) Others | 48.20 | +368.0% | 39.10 | 81.1% |
Source: Company's results filing (XBRL segment data).
What else did the company announce?
On 23 October 2026, the board approved the unaudited consolidated financial results for the quarter and half-year ended 30 September 2026 under IFRS and Ind AS, together with standalone results and the statutory auditors’ limited review reports. It also approved the results press release.
The board appointed Akhil Ravi as Head API and Services and Senior Management Personnel, and inducted him into the Management Council, effective 13 November 2026. He will continue to lead operations at Aurigene Pharmaceutical Services, a wholly owned subsidiary, and the filing records that he is a related party.
What did Dr. Reddy's Laboratories' management say?
Management maintained the target for direct and partner semaglutide supplies to reload in November 2026, subject to successful API and drug-product validation. The FY27 guidance remained 6-7 million semaglutide devices, while a 12-15 million pen run rate over the 12 months from April remained a tentative estimate subject to launch and market-share success.
Management said abatacept timing was unchanged but acknowledged the risk of a USFDA complete response letter. Other risks included semaglutide validation timing, lenalidomide erosion, lower PSAI API uptake, generic price erosion in Europe, and input, solvent and freight inflation expected to weigh on EBITDA by about 100 bps.
Co-Chairman and Managing Director G V Prasad said the company was focused on strengthening core businesses, enhancing productivity and investing in strategic growth platforms. Management also said ex-lenalidomide growth remained double-digit across North America, emerging markets and India.
How did Dr. Reddy's Laboratories shares react?
Dr. Reddy's Laboratories rose 1.2% within five minutes of the after-market filing, was up 0.3% after 15 minutes and 30 minutes, and closed the reaction day 6.8% above its pre-results close of ₹1,229.5. By the next day's close, the stock was up 6.5% from that close, and by the fifth session it was up 9.2%.
The Pharmaceuticals industry’s median move was 1.2% on the reaction day, 3.1% by the next day and 3.2% by the fifth day. Dr. Reddy's exceeded the industry median by 5.6 percentage points, 3.4 percentage points and 6.0 percentage points over those periods. The Nifty 100 moved 0.7%, 1.0% and 3.9%, respectively.
Earlier reaction-day moves were negative 0.9% on 22 July 2026, 0.2% on 12 May 2026, 5.4% on 21 January 2026, 0.2% on 24 October 2025, 1.7% on 23 July 2025, 3.1% on 9 May 2025, negative 4.9% on 23 January 2025 and 1.8% on 5 November 2024.
| After the filing | Stock | Pharmaceuticals median |
|---|---|---|
| 5 minutes | −1.2% | |
| 15 minutes | +0.3% | |
| 30 minutes | +0.3% | |
| Reaction day | +6.8% | +1.2% |
| Next day | +6.5% | +3.1% |
| 5 days | +9.2% | +3.2% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 22 July 2026 | −0.9% |
| 12 May 2026 | +0.2% |
| 21 January 2026 | +5.4% |
| 24 October 2025 | +0.2% |
| 23 July 2025 | +1.7% |
| 9 May 2025 | +3.1% |
| 23 January 2025 | −4.9% |
| 5 November 2024 | +1.8% |
Source: MarketPing price-reaction measurement.
How did other Pharmaceuticals companies do?
Sixty Pharmaceuticals companies filed for the quarter as of 4 November 2026, and their median revenue growth was 19.8%. Among the 51 peers that grew faster than Dr. Reddy's Laboratories, nine grew slower. Dr. Reddy's revenue declined 1.5% in the quarter.
Of the 54 peers for which profit was compared, 39 reported higher profit. These peer figures cover Pharmaceuticals companies that had filed by 4 November 2026 and do not include Dr. Reddy's Laboratories.
| Dr. Reddy's Laboratories revenue growth (YoY) | −1.5% |
|---|---|
| Median of 60 other Pharmaceuticals companies | +19.8% |
| Companies with slower revenue growth than Dr. Reddy's Laboratories | 9 of 60 |
| Companies with faster revenue growth than Dr. Reddy's Laboratories | 51 of 60 |
| Companies whose net profit rose | 39 of 54 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Dr. Reddy's Laboratories' revenue in Q2 FY27?
Revenue from operations was ₹8,698 crore, down 1.5% from ₹8,828 crore in Q2 FY26 (consolidated).
Did Dr. Reddy's Laboratories make a profit in Q2 FY27?
Yes. Net profit was ₹913.20 crore, against a net profit of ₹1,337 crore in Q2 FY26.
What was Dr. Reddy's Laboratories' EPS in Q2 FY27?
Basic earnings per share were ₹11.10, against ₹16.18 in Q2 FY26.
How did Dr. Reddy's Laboratories shares react to the Q2 FY27 results?
On the reaction day the stock moved +6.8% from the previous close; the median Pharmaceuticals stock moved +1.2%.
When did Dr. Reddy's Laboratories announce its Q2 FY27 results?
On 23 October 2026, in a filing to the NSE.
Sources
- Outcome of Board Meeting (NSE, 23 October 2026) · PDF
- Outcome of Board Meeting (NSE, 23 October 2026) · PDF
- The earnings call (24 October 2026)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
This is information, not investment advice. MarketPing does not recommend buying or selling any security.