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As of 2026-08-25
Over the last three years, Dr. Reddy's has shown compounded sales growth of 11% and compounded profit growth of -4%. Looking at the trailing twelve months (TTM), sales growth was -1% and profit growth was -43%.
Borrowings for Dr. Reddy's were 3,838 in March 2019, decreased to 2,210 in March 2020, and then increased to 3,384 in March 2022. By March 2024, borrowings were 2,002, but are projected to increase to 4,677 by March 2025 and 7,734 by March 2026.
As of the quarter ended June 30, 2026, Dr. Reddy's reported a Net Profit Margin of 5.49%, an EBITDA Margin of 15%, and an EBIT Margin of 8.37%. The Interest Coverage ratio was 5.40, and the Price to Earnings ratio was 29.77.
On August 11, 2026, there was an upward price movement of 3.91 standard deviations. On August 3, 2026, there was an upward price movement of 2.55 standard deviations. On July 23, 2026, the stock experienced a downside gap, opening materially below the previous close.
The identified support levels are S1 at 1182.075, S2 at 1163.86, S3 at 1128.45, S4 at 1099.59, and S5 at 1020.0. The resistance levels are R1 at 1212.86, R2 at 1251.78, R3 at 1315.0, R4 at 1377.80, and R5 at 1400.4.
Between March 2024 and the projected March 2026, the shareholding of Domestic Institutional Investors (DIIs) is expected to increase from 18.31% to 30.72%, while Foreign Institutional Investors (FIIs) are projected to decrease from 29.13% to 21.14%. Public shareholding is expected to decrease from 25.73% to 21.27%.
Showing 3 of 18 candles
Recent drawdown and price variability remain within the producer's contained-risk thresholds.
Upward price movement of 3.91 standard deviations recorded on 2026-08-11.
Unusual market activity that may warrant review of the underlying price, volume, or news context.
Upward price movement of 2.55 standard deviations recorded on 2026-08-03.
Unusual market activity that may warrant review of the underlying price, volume, or news context.
The session opened materially below the previous close, indicating a sharp repricing at the open.
The price gap may increase short-term downside uncertainty and warrants review of the underlying context.
Latest complete financial results for Q1 FY2027 and comparative quarterly trends.
| Metric | Q1 FY2026-27(Latest) | Q4 FY2025-26 | Q3 FY2025-26 | Q2 FY2025-26 | Q1 FY2025-26 |
|---|---|---|---|---|---|
| Profit Before Tax | ₹552.50 crore | ₹195.10 crore | ₹1,540.90 crore | ₹1,738.50 crore | PEAK₹1,904.80 crore |
| Profit Loss For Period | ₹435.60 crore | ₹221.30 crore | ₹1,189.60 crore | ₹1,336.80 crore | PEAK₹1,409.90 crore |
| Revenue From Operations | ₹8,099.80 crore | ₹7,546.40 crore | ₹8,753.40 crore | PEAK₹8,828.30 crore | ₹8,572.10 crore |
| Expenses | PEAK₹7,902 crore | ₹7,826.70 crore | ₹7,481.30 crore | ₹7,413.70 crore | ₹6,957.60 crore |
| Tax Expense | ₹117.70 crore | -₹21.60 crore | ₹353.60 crore | ₹408 crore | PEAK₹495.10 crore |
| Segment Profit Before Tax | ₹553.30 crore | ₹199.70 crore | ₹1,543.20 crore | ₹1,744.80 crore | PEAK₹1,905 crore |
Dr. Reddy's Laboratories reported a sequential rebound in revenue for the quarter ended 30 June 2026, though the top line remained below the level recorded a year earlier. Expenses continued to rise, outpacing sales growth on a year-over-year basis and narrowing the gap between income and costs. This dynamic led to a sharp year-over-year decline in profitability, despite a strong sequential recovery from the previous quarter's low.
Revenue from operations for the quarter ended 30 June 2026 was ₹8,099.80 crore. This represents a 7.33% increase from the ₹7,546.40 crore reported in the preceding March quarter. On a year-over-year basis, revenue decreased by 5.51% compared to ₹8,572.10 crore in the June 2025 quarter.
Total expenses for the quarter were ₹7,902 crore. Expenses increased by 0.96% from the previous quarter and rose by 13.57% compared to ₹6,957.60 crore a year ago. Over the past five quarters, expenses have risen in each period, moving from ₹6,957.60 crore in the June 2025 quarter to ₹7,902 crore in the current quarter.
The relationship between revenue and expenses shifted materially. In the June 2025 quarter, expenses accounted for approximately 81.2% of revenue. In the June 2026 quarter, expenses consumed approximately 97.6% of revenue. The combination of lower revenue and higher expenses narrowed the margin between sales and costs, reducing profitability.
Profit Before Tax (PBT) for the quarter ended 30 June 2026 was ₹552.50 crore. This reflects a substantial sequential recovery, increasing by 183.19% from the ₹195.10 crore reported in the March 2026 quarter. However, this sequential gain did not offset the year-over-year deterioration. PBT decreased by 70.99% compared to ₹1,904.80 crore in the June 2025 quarter.
Net Profit for the period was ₹435.60 crore. Net profit increased by 96.84% from the ₹221.30 crore in the previous quarter but fell by 69.1% from the ₹1,409.90 crore reported a year ago. The results show a sequential return to higher earnings from the March quarter's low, alongside a significant year-over-year decline.
Tax expense for the quarter was ₹117.70 crore. This contrasts with a tax benefit of ₹21.60 crore in the March 2026 quarter and a tax expense of ₹495.10 crore in the June 2025 quarter. The effective tax rate for the current quarter was approximately 21.3%, calculated as tax expense divided by profit before tax. This is lower than the effective rate of approximately 26.0% recorded in the June 2025 quarter.
Finance costs for the quarter ended 30 June 2026 were ₹125.50 crore, an increase of 18.73% from the ₹105.70 crore in the March quarter. On a year-over-year basis, finance costs increased by 51.2% from ₹83 crore in the June 2025 quarter. The rise in financing expenses contributed to the overall increase in total expenses.
Segment Profit Before Tax for the quarter was ₹553.30 crore, which closely aligns with the total Profit Before Tax of ₹552.50 crore. The difference of ₹0.80 crore indicates that unallocated corporate items had a negligible impact on the reported profit.
Segment Revenue from Operations matched Total Revenue from Operations at ₹8,099.80 crore. This alignment reflects standard consolidation practices where inter-segment revenue is eliminated, ensuring that segment-level performance is representative of the consolidated results.
The quarter ended 30 June 2026 shows a business that recovered revenue from the previous quarter's low but remains below the level of a year ago. Expenses have continued to climb, rising significantly faster than revenue on a year-over-year basis. The result is a sharp decline in profitability compared to the same period last year, driven by a cost structure that has expanded more rapidly than sales.
Exchange disclosures and regulatory announcements for Dr. Reddy's Laboratories.
Dr. Reddy's Laboratories published a newspaper notice on August 20, 2026, regarding the loss of share certificates by shareholders. The notice lists five shareholders (Ravindra Laxman Kamtekar, Ramjidas Tikayaram Bhatia, Nareshkumar Ramjidas Bhatia, and C R Swaminathan) with specific certificate numbers, share quantities, and distinctive numbers. Claims must be lodged within 15 days of publication, after which duplicate certificates will be issued.
Dr. Reddy's Laboratories announced that the USFDA classified the inspection outcome of its API manufacturing facility in Mirfield, West Yorkshire, UK as 'Voluntary Action Indicated (VAI)' and officially closed the inspection under 21 CFR 20.64(d)(3) as of August 14, 2026.
On August 14, 2026, Dr. Reddy's Laboratories Limited disclosed that the USFDA completed a GMP inspection at its FTO-3 formulations manufacturing facility in Bachupally, Hyderabad, which took place from August 6 to August 14, 2026. The company received Form 483 containing four observations and committed to addressing them within the stipulated timeline.
Dr. Reddy's Laboratories Limited disclosed that Mr. Deepak Sapra resigned from his positions as CEO, API and Services, and Senior Management Personnel to pursue opportunities outside the company. His employment and role within the senior management team will cease effective November 12, 2026. The resignation was formally communicated via a letter received by the company and reported to stock exchanges on August 13, 2026.
Dr. Reddy's Laboratories Limited has informed the Exchange about Resignation of Director/KMP/SMP |SUBJECT: Resignation of Director/KMP/SMP
Dr. Reddy's Laboratories Limited reported the resignation of Deepak Sapra, who served as CEO API and Services, with the resignation letter received on August 13, 2026. The effective date of his cessation from the role is November 12, 2026, following a stated reason to pursue opportunities outside the company.
On August 7, 2026, Dr. Reddy's Laboratories Limited terminated its February 11, 2022 distribution and promotion agreement with Novartis India Limited (NIL) following a change in NIL's controlling shareholding. The company will continue to commercialize the affected brands in India until September 30, 2026.
On August 1, 2026, Dr. Reddy's Laboratories announced that the U.S. Food and Drug Administration (FDA) approved its rituximab biosimilar for the U.S. market. This approval strengthens Dr. Reddy's biosimilars portfolio and its business in the United States. Fresenius Kabi will exclusively commercialize the product in the U.S. under a commercialization agreement.
Dr. Reddy's Laboratories confirmed a news item stating their antibiotic, NUZOLVENCE® (zoliflodacin), received Thailand FDA approval six months after US authorization. This approval was part of a joint press release with GARDP on July 27, 2026. The company stated no negotiations were taking place and no other material information requires disclosure under SEBI Listing Regulations, believing the news has no material impact.
Dr. Reddy's Laboratories Limited announced that the United States Food & Drug Administration (USFDA) completed a Pre-Approval Inspection (PAI) and Good Manufacturing Practices (GMP) inspection at its FTO-SEZ Process Unit-02 in Srikakulam, Andhra Pradesh, from July 20 to July 29, 2026. The company received a Form 483 with three observations, which it will address within the stipulated timeline.
Dr. Reddy's Laboratories Limited reported a Q1 FY27 revenue decline of 5.6% and an EBITDA margin of 12.5%, impacted by lower lenalidomide sales and a provision of ₹240 crores for semaglutide API related issues. The underlying base business showed double-digit growth across key geographies. The company plans to resume semaglutide commercial supplies by November 2026. The USFDA issued a Form 483 with seven observations following an inspection of the Bachupally facility, to which Dr. Reddy's has responded.
Dr. Reddy's Laboratories Limited reported a Q1 FY27 revenue decline of 5.6% and an EBITDA margin of 12.5%, impacted by lower lenalidomide sales and a provision of ₹240 crores for semaglutide API related issues. The underlying base business showed double-digit growth across key geographies. The company plans to resume semaglutide commercial supplies by November 2026. The USFDA issued a Form 483 with seven observations following an inspection of the Bachupally facility, to which Dr. Reddy's has responded.
At its 42nd Annual General Meeting on July 23, 2026, Dr. Reddy's Laboratories Ltd. approved the re-appointment of Dr. K P Krishnan as an Independent Director for a second five-year term from January 7, 2027, to January 6, 2032. The members also approved the appointment of Mr. Srikanth Velamakanni as an Independent Director for a five-year term from July 1, 2026, to June 30, 2031. Additionally, M/s Deloitte Haskins & Sells, LLP was appointed as the Statutory Auditors for a five-year term commencing from the conclusion of the 42nd AGM until the conclusion of the 47th AGM.
At its 42nd Annual General Meeting on July 23, 2026, Dr. Reddy's Laboratories Ltd. approved the re-appointment of Dr. K P Krishnan as an Independent Director for a second five-year term from January 7, 2027, to January 6, 2032. The members also approved the appointment of Mr. Srikanth Velamakanni as an Independent Director for a five-year term from July 1, 2026, to June 30, 2031. Additionally, M/s Deloitte Haskins & Sells, LLP was appointed as the Statutory Auditors for a five-year term commencing from the conclusion of the 42nd AGM until the conclusion of the 47th AGM.
Dr. Reddy's Laboratories Limited announced its unaudited financial results for the quarter ended June 30, 2026, following approval by the Board of Directors on July 22, 2026. These results were published in newspaper advertisements on July 23, 2026, in compliance with SEBI regulations.
Dr. Reddy's Laboratories Ltd. has provided a link to the audio recordings of its earnings call for the quarter ended June 30, 2026. The call was conducted on July 22, 2026, and the disclosure was made on July 23, 2026, in compliance with SEBI regulations.
At its 42nd Annual General Meeting on July 23, 2026, Dr. Reddy's Laboratories Ltd. approved the re-appointment of Dr. K P Krishnan as an Independent Director for a second five-year term from January 7, 2027, to January 6, 2032. The members also approved the appointment of Mr. Srikanth Velamakanni as an Independent Director for a five-year term from July 1, 2026, to June 30, 2031. Additionally, M/s Deloitte Haskins & Sells, LLP was appointed as the Statutory Auditors for a five-year term commencing from the conclusion of the 42nd AGM until the conclusion of the 47th AGM.
Dr. Reddy's Laboratories Ltd. has provided a link to the audio recordings of its earnings call for the quarter ended June 30, 2026. The call was conducted on July 22, 2026, and the disclosure was made on July 23, 2026, in compliance with SEBI regulations.
At its 42nd Annual General Meeting on July 23, 2026, Dr. Reddy's Laboratories Ltd. approved the re-appointment of Dr. K P Krishnan as an Independent Director for a second five-year term from January 7, 2027, to January 6, 2032. The members also approved the appointment of Mr. Srikanth Velamakanni as an Independent Director for a five-year term from July 1, 2026, to June 30, 2031. Additionally, M/s Deloitte Haskins & Sells, LLP was appointed as the Statutory Auditors for a five-year term commencing from the conclusion of the 42nd AGM until the conclusion of the 47th AGM.
Dr. Reddy's Laboratories Limited held its 42nd Annual General Meeting on July 23, 2026, via video conference. All resolutions presented, including the adoption of financial statements for the year ended March 31, 2026, the declaration of a final dividend of Rs. 8 per equity share, the re-appointment of directors, and the appointment of auditors, were passed by the required majority. The meeting also confirmed the remuneration for cost auditors for the upcoming financial year.
Dr. Reddy's Laboratories Limited held its 42nd Annual General Meeting on July 23, 2026, via video conference. All resolutions presented, including the adoption of financial statements for the year ended March 31, 2026, the declaration of a final dividend of Rs. 8 per equity share, the re-appointment of directors, and the appointment of auditors, were passed by the required majority. The meeting also confirmed the remuneration for cost auditors for the upcoming financial year.
Dr. Reddy's Laboratories Limited announced its unaudited financial results for the quarter ended June 30, 2026, following approval by the Board of Directors on July 22, 2026. These results were published in newspaper advertisements on July 23, 2026, in compliance with SEBI regulations.
On July 22, 2026, Dr. Reddy's Laboratories Ltd. announced the outcome of its Board Meeting, approving the unaudited financial results for the quarter ended June 30, 2026. The board also approved the appointment of Dr. Sridevi Khambhampaty as Global Head of Biologics and Senior Management Personnel, effective July 22, 2026. Additionally, M/s Deloitte Haskins & Sells, LLP was approved as the Independent Registered Public Accounting Firm for auditing financial statements for SEC filings.
On July 22, 2026, the Nomination, Governance and Compensation Committee of Dr. Reddy's Laboratories Limited approved the grant of 15,933 Indian Stock Options to an eligible employee under the Dr. Reddy’s Employees Stock Option Scheme, 2018. The exercise price per share is Rs. 1,206/-, and the options will vest 100% at the end of 3 years.
On July 22, 2026, Dr. Reddy's Laboratories Ltd. announced the outcome of its Board Meeting, approving the unaudited financial results for the quarter ended June 30, 2026. The board also approved the appointment of Dr. Sridevi Khambhampaty as Global Head of Biologics and Senior Management Personnel, effective July 22, 2026. Additionally, M/s Deloitte Haskins & Sells, LLP was approved as the Independent Registered Public Accounting Firm for auditing financial statements for SEC filings.
Recent market and company developments associated with Dr. Reddy's Laboratories.
Dr Reddy’s subsidiary Aurigene signs long-term manufacturing and supply deal with a global pharma for 20+ products, targeting US, Europe, Canada, and emerging markets.
India's drug regulator has cleared the path for local lenacapavir manufacturing. Two Indian pharmaceutical companies received waivers for local clinical trials. This move will improve access to the HIV prevention injection. Lenacapavir is a breakthrough twice-yearly injection for HIV prevention. Patient groups had urged the regulator to expedite this process.
The rising use of GLP-1 weight-loss drugs such as Ozempic and Mounjaro is creating a new consumer market in India, with companies developing protein- and fibre-rich foods, nutrition supplements and beauty products aimed at addressing side effects of rapid weight loss.
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Dr. Reddy’s Srikakulam facility receives three observations from U.S. FDA after recent Pre-Approval and GMP inspections.
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Comprehensive Section Breakdown for Dr. Reddy's Laboratories
Strategic Vision: Develops, manufactures, and markets pharmaceutical products globally.
Category: Manufacturing
Manufactures finished formulations in oral solid dosage, injectables, and inhaler formats across chronic therapeutic areas including oncology, cardiovascular, and gastroenterology.
Category: B2B Services
Produces bulk APIs and offers custom synthesis, process development, and contract manufacturing services to global pharmaceutical clients.
Category: Manufacturing
Develops and manufactures biosimilar proteins and monoclonal antibodies primarily for oncology and autoimmune therapies.
Core Thesis: An integrated global model links chemical research, active ingredient supply, and finished generic distribution.
• Upstream API Integration: The PSAI segment manufactures Active Pharmaceutical Ingredients (APIs) in-house, providing a secure raw material supply to the Global Generics division. • Global Generics and Biosimilars Co-Development: R&D centers coordinate design platforms, streamlining process scale-up and regulatory filings for biosimilars and complex injectables. • Emerging Market Brand Localization: Regional marketing divisions localize finished product packaging and formats, marketing products as branded generics under local names. • Custom Pharmaceutical Services (CPS): The PSAI division leverages excess manufacturing capacities to supply APIs and intermediates to external pharmaceutical firms.
• Vertical integration of API manufacturing
• Co-development model for generics and biosimilars
• Global R&D and manufacturing network
• Localization of products for emerging markets