Press Release
CONTACT | |
INVESTOR RELATIONS | MEDIA RELATIONS |
AISHWARYA SITHARAM aishwaryasitharam@drreddys.com | PRIYA K priyak@drreddys.com |
DR. REDDY'S LABORATORIES LTD.
8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India.
Dr. Reddy's Q3 & 9MFY26 Financial ResultsHyderabad, India, January 21, 2026: Dr. Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY
| NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter and nine months ended December 31, 2025. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).
Particulars Q3FY26 9MFY26
Revenues ₹ 87,268 Mn[Up: 4.4% YoY; Down 0.9% QoQ]
₹ 260,771 Mn
[Up: 8.4% YoY]
Gross Margin 53.6%[Q3FY25: 58.7%; Q2FY26: 54.7%]
55.1%
[9MFY25: 59.5%]
SG&A Expenses ₹ 26,918 Mn[Up: 12% YoY; 2% QoQ]
₹ 79,001 Mn
[Up: 13% YoY]
R&D Expenses ₹ 6,149 Mn[7.0% of Revenues]
₹ 18,595 Mn
[7.1% of Revenues]
EBITDA ₹ 20,493 Mn[23.5% of Revenues]
₹ 66,788 Mn
[25.6% of Revenues]
Profit before Tax ₹ 15,429 Mn[17.7% of Revenues]
₹ 52,826 Mn
[20.3% of Revenues]
Profit after Taxattributable to Equity Holders
₹ 12,098 Mn
[13.9% of Revenues]
₹ 40,649 Mn
[15.6% of Revenues]
Commenting on the results, Co-Chairman & MD, G V Prasad said: "Our growth in Q3FY26 was supported by continued momentum in our branded businesses, aided by favourable forex, thus offsetting the impact of lower Lenalidomide sales. We continue to focus on disciplined execution of our strategic priorities of base business growth, pipeline advancement, operational efficiencies, and select inorganic opportunities, to create long-term value for our stakeholders."
All amounts in millions, except EPS All US dollar amounts based on convenience translation rate of 1 USD = ₹89.84
Dr. Reddy's Laboratories Limited & Subsidiaries Revenue Mix by Segment for the quarterParticulars | Q3FY26 | Q3FY25 | YoY Gr % | Q2FY26 | QoQ Gr% |
(₹) | (₹) | (₹) | |||
Global Generics | 79,113 | 73,753 | 7 | 78,498 | 1 |
North America | 29,644 | 33,834 | (12) | 32,408 | (9) |
Europe | 14,476 | 12,096 | 20 13,762 | 5 | |
India | 16,032 | 13,464 | 19 | 15,780 | 2 |
Emerging Markets | 18,961 | 14,358 | 32 | 16,548 | 15 |
Pharmaceutical Services and Active Ingredients (PSAI) | 8,018 | 8,219 | (2) | 9,450 | (15) |
Others | 137 | 1,614 | (92) | 103 | 33 |
Total | 87,268 | 83,586 | 4 | 88,051 | (1) |
Particulars | 9MFY26 | 9MFY25 | YoY Gr% |
(₹) | (₹) | ||
Global Generics | 233,231 | 214,187 | 9 |
North America | 96,175 | 109,578 | (12) |
Europe | 40,981 | 23,132 77^ | |
India | 46,523 | 40,687 | 14 |
Emerging Markets | 49,552 | 40,791 | 21 |
PSAI | 25,649 | 24,283 | 6 |
Others | 1,891 | 2,005 (6) | |
Total | 260,771 | 240,475 | 8 |
^Excluding acquired Consumer Healthcare business in Nicotine Replacement Therapy (NRT) sales; revenue growth is at 16% YoY.
Q3FY26 Revenue Mix 9MFY26 Revenue Mix
9%
0.2%
34%
22%
18%
17%
10%
1%
19%
37%
18%
16%
Consolidated Income Statement for the quarter
Particulars | Q3FY26 | Q3FY25 | YoY Gr % | Q2FY26 | QoQ Gr% | |||
($) | (₹) | ($) | (₹) | ($) | (₹) | |||
Revenues | 971 | 87,268 | 930 | 83,586 | 4.4 | 980 | 88,051 | (0.9) |
Cost of Revenues | 450 | 40,462 | 384 | 34,534 | 17 | 444 | 39,911 | 1 |
Gross Profit | 521 | 46,806 | 546 | 49,052 | (5) | 536 | 48,140 | (3) |
% of Revenues | 53.6% | 58.7% | 54.7% | |||||
Selling, General & Administrative Expenses | 300 | 26,918 | 268 | 24,117 | 12 | 294 | 26,436 | 2 |
% of Revenues | 30.8% | 28.9% | 30.0% | |||||
Research & Development Expenses | 68 | 6,149 | 74 | 6,658 | (8) | 69 | 6,202 | (1) |
% of Revenues | 7.0% | 8.0% | 7.0% | |||||
Impairment of Non-Current Assets, net | 3 | 271 | (0) | (4) | (6,875) | 7 | 662 | (59) |
Other (Income)/Expense, net | (9) | (770) (5) | (439) | 75 | (30) | (2,673) | (71) | |
Results from Operating Activities | 158 | 14,238 | 208 | 18,720 | (24) | 195 | 17,513 | (19) |
Finance (Income)/Expense, net | (13) | (1,168) | 0 | 20 | (5,940) | (9) | (774) | 51 |
Share of Profit of Equity Investees, net of tax | (0) | (23) | (0) | (42) | (45) | (1) | (63) | (63) |
Profit before Income Tax | 172 | 15,429 | 209 | 18,742 | (18) | 204 | 18,350 | (16) |
% of Revenues | 17.7% | 22.4% | 20.8% | |||||
Income Tax Expense | 39 | 3,533 | 52 | 4,704 | (25) | 45 | 4,082 | (13) |
Profit for the Period | 132 | 11,896 | 156 | 14,038 | (15) | 159 | 14,268 | (17) |
% of Revenues | 13.6% | 16.8% | 16.2% | |||||
Attributable to Equity holders of the Parent Co. | 135 | 12,098 | 157 | 14,133 | (14) | 160 | 14,372 | (16) |
% of Revenues | 13.9% | 16.9% | 16.3% | |||||
Attributable to Non-controlling interests | (2) | (202) | (1) | (95) | 113 | (1) | (104) | 95 |
Diluted Earnings per Share (EPS) | 0.16 | 14.52 | 0.19 | 16.94 | (14) | 0.19 | 17.25 | (16) |
Particulars | Q3FY26 | Q3FY25 | Q2FY26 | |||
($) | (₹) | ($) | (₹) | ($) | (₹) | |
Profit before Income Tax | 172 | 15,429 | 209 | 18,742 | 204 | 18,350 |
Interest (Income) / Expense, net* | (5) | (422) | (5) | (475) | (6) | (552) |
Depreciation | 35 | 3,178 | 30 | 2,733 | 34 | 3,091 |
Amortization | 23 | 2,037 | 22 | 1,986 | 22 | 1,960 |
Impairment | 3 | 271 | (0) | (4) | 7 | 662 |
EBITDA | 228 | 20,493 | 256 | 22,982 | 262 | 23,511 |
% of Revenues | 23.5% | 27.5% | 26.7% | |||
*Includes income from Investment
Consolidated Income Statement for the nine months periodParticulars | 9MFY26 | 9MFY25 | YoY Gr% | ||
($) | (₹) | ($) | (₹) | ||
Revenues | 2,903 | 260,771 | 2,677 | 240,475 | 8 |
Cost of Revenues | 1,305 | 117,198 | 1,083 | 97,310 | 20 |
Gross Profit | 1,598 | 143,573 | 1,594 | 143,165 | 0.3 |
% of Revenues | 55.1% | 59.5% | |||
Selling, General & Administrative Expenses | 879 | 79,001 | 777 | 69,815 | 13 |
% of Revenues | 30.3% | 29.0% | |||
Research & Development Expenses | 207 | 18,595 | 224 | 20,122 | (8) |
% of Revenues | 7.1% | 8.4% | |||
Impairment of Non-Current Assets, net | 10 | 933 | 10 | 925 | 1 |
Other (Income)/Expense, net | (47) | (4,182) (21) | (1,893) | 121 | |
Results from Operating Activities | 548 | 49,226 | 603 | 54,196 | (9) |
Finance (Income)/Expense, net | (39) | (3,512) | (26) | (2,372) | 48 |
Share of Profit of Equity Investees, net of tax | (1) | (88) | (2) | (162) | (46) |
Profit before Income Tax | 588 | 52,826 | 631 | 56,730 | (7) |
% of Revenues | 20.3% | 23.6% | |||
Income Tax Expense | 140 | 12,565 | 171 | 15,357 | (18) |
Profit for the Period | 448 | 40,261 | 461 | 41,373 | (3) |
% of Revenues | 15.4% | 17.2% | |||
Attributable to Equity holders of the Parent Co. | 452 | 40,649 | 452 | 40,606 | 0.1 |
% of Revenues | 15.6% | 16.9% | |||
Attributable to Non-controlling interests | (4) | (388) | 9 | 767 | (151) |
Diluted Earnings per Share (EPS) | 0.54 | 48.78 | 0.54 | 48.68 | 0.2 |
Particulars | 9MFY26 9MFY25 | |||
($) | (₹) | ($) | (₹) | |
Profit before Income Tax | 588 | 52,826 | 631 | 56,730 |
Interest (Income) / Expense, net* | (22) | (2,002) | (31) | (2,775) |
Depreciation | 102 | 9,162 | 88 | 7,870 |
Amortization | 65 | 5,867 | 52 | 4,634 |
Impairment | 10 | 933 | 10 | 925 |
EBITDA | 743 | 66,787 | 750 | 67,384 |
% of Revenues | 25.6% | 28.0% | ||
*Includes income from Investment
Key Balance Sheet ItemsParticulars | As on 31st Dec 2025 | As on 30th Sep 2025 | As on 31st Dec 2024 | |||
($) (₹) | ($) | (₹) | ($) (₹) | |||
Cash and Cash Equivalents and Other Investments | 971 | 87,191 | 828 | 74,393 | 715 | 64,198 |
Trade Receivables | 1,149 | 103,206 | 1,088 | 97,738 | 1,026 | 92,212 |
Inventories | 879 | 79,009 | 844 | 75,821 | 797 | 71,630 |
Property, Plant, and Equipment | 1,286 | 115,544 | 1,246 | 111,981 | 1,036 | 93,053 |
Goodwill and Other Intangible Assets | 1,277 | 114,727 | 1,260 | 113,240 | 1,166 | 104,780 |
Loans and Borrowings (Current & Non-Current) | 754 | 67,732 | 652 | 58,539 | 569 | 51,085 |
Trade Payables | 454 | 40,796 | 448 | 40,248 | 401 | 36,022 |
Equity | 4,183 | 375,756 | 4,030 | 362,082 | 3,579 | 321,565 |
Entered into a strategic collaboration with Immutep for commercialisation of a novel, immunotherapy oncology drug, Eftilagimod Alfa, in key global markets outside North America, Europe, Japan, and Greater China, for an upfront of US$20 million, potential regulatory and commercial milestones of up to US$349.5 million as well as double digit royalties.
Launched Hevaxin®, a novel, recombinant vaccine for the prevention of Hepatitis-E virus infection in India.
- Integration of 85% of acquired Consumer Healthcare business in Nicotine Replacement Therapy (NRT) business by value completed as of December 2025.
Received the marketing authorization for Semaglutide injection in India from Drugs Controller General of India (DCGI), following the recommendation of Subject Expert Committee (SEC) under Central Drugs Standard Control Organization (CDSCO).
Received a Notice of Non-Compliance from Pharmaceutical Drugs Directorate in Canada for Semaglutide injection, outlining requests for additional information and clarifications on specific aspects of our submission. Submitted response by mid-November 2025.
Completed filing of the Biologics License Application (BLA) for the Intravenous (IV) presentation of our abatacept biosimilar candidate in December 2025.
Received European Commission (EC) approval and marketing authorisation from Medicines and Healthcare products Regulatory Agency (MHRA) in United Kingdom for denosumab biosimilar. Launched the product in Germany in December 2025.
Received a Complete Response Letter (CRL) from the United States Food & Drug Administration (USFDA) for denosumab biosimilar BLA, developed by our partner, Alvotech. The CRL refers to the observations from a pre-license inspection of Alvotech's Reykjavik manufacturing facility.
Received a CRL for rituximab biosimilar BLA, in reference to the ongoing resolution of observations arising from the Pre Approval Inspection (PAI) of our Biologics facility at Bachupally, Hyderabad, Telangana, India conducted in September 2025, as well as certain aspects pertaining to the BLA. Further, received a Post- Application Action Letter (PAAL) from USFDA, in relation to the response submitted to the aforesaid mentioned observations related to rituximab biosimilar.
Aurigene Pharmaceutical Services Limited (APSL), our CDMO business, served as the exclusive API manufacturer for two of 46 Novel Drugs approved by USFDA in 2025.
APSL delivered three discovery programs through it's in-house, AI assisted drug discovery platform, 'Aurigene.AI'.