New Delhi, July 22: Hurt by lower lenalidomide sales and a provision related to semaglutide, the consolidated net profit of Dr Reddy’s Laboratories attributable to equity holders fell 68.7 per cent year-on-year to ₹443.5 crore in the quarter ended June 30, 2026.
The Hyderabad-based pharmaceutical company had reported profit attributable to shareholders of ₹1,417.8 crore in the corresponding quarter of the previous financial year.
Sequentially, profit more than doubled from ₹220.1 crore in the March quarter.
Overall consolidated profit, including non-controlling interests, declined 69.2 per cent to ₹434.8 crore from ₹1,409.6 crore. Non-controlling interests recorded a loss of ₹8.7 crore, compared with a loss of ₹8.2 crore a year earlier.
Consolidated revenue declined 5.6 per cent year-on-year to ₹8,070.5 crore from ₹8,545.2 crore. Sequentially, revenue rose 7.4 per cent from ₹7,516.2 crore.
The company attributed the year-on-year decline primarily to lower lenalidomide revenue. It said its underlying business, excluding lenalidomide, registered double-digit growth across key geographies, aided by favourable currency movements.
Global Generics revenue fell 4.8 per cent to ₹7,199.3 crore from ₹7,562 crore and accounted for 89 per cent of consolidated revenue.
Revenue from Pharmaceutical Services and Active Ingredients rose 4.1 per cent to ₹851.9 crore. The statutory segment table reports ₹1,052.7 crore before eliminating ₹200.8 crore of inter-segment sales made to Global Generics at cost.
North America revenue declined 35.4 per cent year-on-year to ₹2,204.8 crore from ₹3,412.3 crore, largely because of lower lenalidomide sales. It accounted for 27 per cent of consolidated revenue.
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Emerging-markets revenue rose 30.5 per cent to ₹1,832.8 crore, supported by product launches and favourable currency movements. India revenue increased 16.8 per cent to ₹1,717.7 crore, while Europe revenue grew 13.3 per cent to ₹1,444 crore.
Branded businesses comprising India, emerging markets and the acquired nicotine-replacement-therapy consumer-health portfolio accounted for 52 per cent of quarterly revenue.
The company launched six products in North America, 43 across emerging markets, seven brands in India and 24 generic products in Europe during the quarter.
Dr Reddy’s recognised a ₹239.7 crore provision towards inventory and other associated costs after certain semaglutide batches were found to be out of specification because of an issue with the active pharmaceutical ingredient.
The company said the provision reduced its gross-profit, Ebitda and profit-before-tax margins by about 3 percentage points. It is taking measures to ensure product quality and resume supplies.
Cost of revenue rose 17.2 per cent to ₹4,316.5 crore, while gross profit declined 22.8 per cent to ₹3,754 crore.
The gross margin contracted to 46.5 per cent from 56.9 per cent a year earlier, a decline of about 1,039 basis points. Excluding the semaglutide-related impact, the company said the gross margin would have been 49.4 per cent. (BVI)
