# DRREDDY (DRREDDY) — Stock analysis

> Faxioms all-in-one stock review. Canonical page: https://faxioms.com/stocks/drreddy

## Current market snapshot

- Exchange: BSE
- Country: India
- Price: ₹1,240
- Change: +0.86%
- As of: 2026-10-13
- 1D return: +0.86%
- 5D return: +2.65%
- 1M return: +6.39%
- Latest complete quarter: fy27_q1

## Faxioms Analysis

_As of 2026-10-13_

### Technical Outlook

As of October 13, 2026, DRREDDY's daily technical setup shows a bullish trend, with the price trading above key moving averages and the Supertrend indicator. This is supported by a developing trend conviction, indicated by an ADX of 23.46. However, this bullish daily picture contrasts with weaker signals on longer timeframes, as the weekly and monthly Supertrend indicators are bearish, and their respective ADX values (15.52 and 10.26) suggest weak trend conviction. The stock is positioned near the upper end of its 20-day and 50-day trading ranges, at +89.2% and +89.6% respectively, and is 14.0% above its available low, indicating limited room for upside within these shorter-term ranges.

The stock exhibits elevated risk, with annualized volatility at +22.9% and a current drawdown of -9.9%. The nearest resistance is observed at ₹1243.97 (0.32% above the current price), followed by ₹1252.29 (0.99% above). Support is located at ₹1220.43 (1.58% below the current price). A confirmed break above the ₹1243.97 resistance level could strengthen the bullish daily setup, while a move below the ₹1220.43 support level would indicate increasing downside pressure, potentially aligning with the weaker weekly and monthly trends.

- Daily bullish trend with conflicting bearish signals on weekly and monthly timeframes.
- Developing trend conviction on daily charts (ADX 23.46) contrasted with weak conviction on longer timeframes.
- Elevated risk indicated by +22.9% annualized volatility and a -9.9% current drawdown.
- Nearest resistance at ₹1243.97 (0.32%) and support at ₹1220.43 (1.58%).
- Confirmation of bullish setup above ₹1243.97; invalidation below ₹1220.43.

- Doji
- Inside Bar
- Evening Star

### News Context

India's food regulator, the Food Safety and Standards Authority of India (FSSAI), issued a notice on October 9, 2026, to a joint venture involving Dr. Reddy's Laboratories and Nestle India. The notice pertains to alleged misleading claims made about their Celevida GLP+ supplement. This action by the FSSAI comes amidst broader regulatory scrutiny, as the authority is reportedly preparing to implement tighter rules for quick-commerce platforms, including those that deliver food products. These proposed regulations, reported around October 13, 2026, aim to enhance platform accountability and address concerns related to food safety and misbranding in the online food market, which is valued at approximately $80 billion.

- On October 9, 2026, FSSAI issued a notice to a Dr. Reddy's and Nestle India joint venture regarding misleading claims for the Celevida GLP+ supplement.
- The FSSAI is reportedly preparing to introduce stricter regulations for quick-commerce platforms, as of October 13, 2026.
- These potential new rules aim to increase accountability for online food platforms and address misbranding and safety issues.
- The online food market in India is estimated to be worth $80 billion.

- [FSSAI to tighten grip on $80 billion online market](https://www.thehindubusinessline.com/companies/fssai-to-tighten-grip-on-80-billion-online-market/article71577824.ece)
- [Blinkit, Instamart and Amazon Now to face stricter rules? FSSAI says ‘trying to tighten, make accountable’ | Company Business News](https://www.livemint.com/companies/news/blinkit-instamart-and-amazon-now-to-face-stricter-rules-fssai-says-trying-to-tighten-make-accountable-11791865938042.html)
- [India’s food regulator acts against GLP-1 supplement for misleading claims](https://www.cnbctv18.com/india/indias-food-regulator-fssai-acts-against-glp-1-supplement-misleading-claims-dr-reddys-laboratories-drl-nestle-india-dabur-india-consumers-20008150.htm)

### What Changed

Recent news for Dr. Reddy's (DRREDDY) on the BSE indicates that India's food regulator, FSSAI, is planning to implement stricter rules for online food delivery and quick-commerce platforms. This development, reported around October 13, 2026, aims to enhance accountability and address concerns regarding food safety, misbranding, and unsafe practices within the burgeoning online market, estimated at $80 billion. Separately, the company's stock saw a slight increase, closing at ₹1240.0 on October 13, 2026, up from ₹1229.4 previously. The continuing context for Dr. Reddy's remains unchanged, with its common name being 'Dr. Reddy's' and listed on the BSE.

- On October 13, 2026, FSSAI announced plans to tighten rules for online food markets and quick-commerce platforms.
- Dr. Reddy's stock closed at ₹1240.0 on October 13, 2026, an increase from its previous close of ₹1229.4.

- [FSSAI to tighten grip on $80 billion online market](https://www.thehindubusinessline.com/companies/fssai-to-tighten-grip-on-80-billion-online-market/article71577824.ece)
- [Blinkit, Instamart and Amazon Now to face stricter rules? FSSAI says ‘trying to tighten, make accountable’ | Company Business News](https://www.livemint.com/companies/news/blinkit-instamart-and-amazon-now-to-face-stricter-rules-fssai-says-trying-to-tighten-make-accountable-11791865938042.html)

### Official Filings

Dr. Reddy's Laboratories Limited has disclosed that its wholly owned subsidiary, Dr. Reddy's Laboratories, Inc., received a penalty of $32,350.20 from the IRS on October 2, 2026. This penalty was for a misclassification of a fiscal year reference during tax payment. The company has assessed the situation and stated that this incident will not materially impact its financials, operations, or other activities. Additionally, the company announced that its US Food and Drug Administration (USFDA) Pre-Approval Inspection (PAI) at the Pydibhimavaram manufacturing facility, which concluded on October 7, 2026, resulted in two observations on a Form 483. Dr. Reddy's plans to address these observations within the stipulated timeline. The company also scheduled its board meeting for October 23, 2026, to consider the unaudited financial results for the quarter ended September 30, 2026, and will host an earnings call on the same day.

- On October 2, 2026, a penalty of $32,350.20 was imposed on Dr. Reddy's Laboratories, Inc. by the IRS due to a fiscal year reference misclassification during tax payment, with no material financial or operational impact expected.
- The USFDA completed a Pre-Approval Inspection at Dr. Reddy's Pydibhimavaram facility from October 5-7, 2026, issuing a Form 483 with two observations that the company will address.
- Dr. Reddy's Laboratories Limited will announce its unaudited financial results for the quarter ended September 30, 2026, on October 23, 2026.
- A board meeting is scheduled for October 23, 2026, to approve the financial results for the quarter ended September 30, 2026.
- The trading window for Dr. Reddy's securities will be closed from September 24, 2026, to October 25, 2026.

- [Dr. Reddy's Laboratories Limited has informed the Exchange about General Updates |SUBJECT: General Updates](https://nsearchives.nseindia.com/corporate/DRREDDY_08102026155720_SE_intimation_08102026_signed.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about Certificate under SEBI (Depositories and Participants) Regulations, 2018 |SUBJECT: Certificate under SEBI (Depositories and Participants) Regulations, 2018](https://nsearchives.nseindia.com/corporate/DRREDDY_07102026143434_Certificate_under_74_5__signed__1_.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange regarding a press release dated October 07, 2026, titled "Intimation of Earnings call". |SUBJECT: Press Release](https://nsearchives.nseindia.com/corporate/DRREDDY_07102026144117_SE_Intimation_Earning_call_Notification_07102026_signed.pdf)
- [DR. REDDY'S LABORATORIES LIMITED has informed the Exchange about Action(s) taken or orders passed (sub-para 20) |SUBJECT: Actions initiated/taken or orders passed-XBRL](https://nsearchives.nseindia.com/corporate/xbrl/AIATOP_251_WebXMLFile_20261004_103459328.xml)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about imposition of penalty to Dr. Reddy s Laboratories, Inc. ( DRL Inc ), a step-down wholly owned subsidiary of the Company. |SUBJECT: Action(s) taken or orders passed](https://nsearchives.nseindia.com/corporate/DRREDDY_03102026171508_SE_intimation_03102026_signed.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange regarding the Trading Window closure pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015 |SUBJECT: Trading Window](https://nsearchives.nseindia.com/corporate/DRREDDY_22092026170027_DRL_SE_intimation_Trading_window_closure_22092026_signed.pdf)
- [Financial Results |Meeting Date: 23-Oct-2026](https://nsearchives.nseindia.com/corporate/DRREDDY_22092026165813_DRL_SE_intimation_Trading_window_closure_22092026_signed.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about Closure of Trading Window |SUBJECT: Trading Window-XBRL](https://nsearchives.nseindia.com/corporate/xbrl/CLOSURE_TRADING_WINDOW_251_WebXMLFile_20260922_171925867.xml)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about Board Meeting to be held on 23-Oct-2026 to inter-alia consider and approve the Unaudited Financial results of the Company for the Quarterly ended September 2026 . |SUBJECT: Board Meeting Intimation](https://nsearchives.nseindia.com/corporate/xbrl/PRIOR_INTIMATION_251_WebXMLFile_20260922_171933823.xml)
- [Board Meeting Intimation |Meeting Date: 23-Oct-2026](https://nsearchives.nseindia.com/corporate/xbrl/PRIOR_INTIMATION_251_WebXMLFile_20260922_171933823.xml)

### Fundamentals

Dr. Reddy's reported a sequential increase in revenue from operations, rising to ₹8,099.80 crore in Q1 FY2026-27 from ₹7,546.40 crore in Q4 FY2025-26. This top-line growth was accompanied by a sequential increase in net profit, which grew to ₹435.60 crore from ₹221.30 crore in the prior quarter. The company also saw its operating profit increase sequentially to ₹553.30 crore from ₹199.70 crore. The company's cash flow from operations has shown a positive trend, increasing from ₹4,543.0 in Mar 2024 to ₹5,674.0 in Mar 2026. However, investments in fixed assets have also risen, with Cash from Investing Activity increasing from -₹4,034.0 in Mar 2024 to -₹6,425.0 in Mar 2026, alongside a rise in borrowings from ₹2,002 crore in Mar 2024 to ₹7,734 crore in Mar 2026. The company's Return on Equity (ROE) has seen a decline, from 16% over 3 and 5-year periods to 11% in the last year.

- Revenue from operations increased sequentially to ₹8,099.80 crore in Q1 FY2026-27.
- Net profit saw a sequential increase to ₹435.60 crore in Q1 FY2026-27, indicating improved earnings quality.
- Cash flow from operations has trended upwards, reaching ₹5,674.0 in Mar 2026, but borrowings have also significantly increased to ₹7,734 crore by Mar 2026.
- The next checkpoint to monitor is the sustainability of the Return on Equity, which has declined to 11% in the last year from 16% over longer periods.

### Bull Case

On the daily timeframe, Dr. Reddy's exhibits a bullish Supertrend direction, indicating a positive short-term technical setup. The Exponential Moving Average (EMA) 20 slope is positive at 5.95, and the Simple Moving Average (SMA) 20 slope is also positive at 15.08, suggesting upward momentum. The company's market capitalization stands at ₹1,026,155,942,379.0 as of the latest data. Over the past month, the stock has seen a return of +6.4%.

- Daily Supertrend direction is bullish.
- EMA 20 slope is +5.95 and SMA 20 slope is +15.08 on the daily chart.
- Market capitalization is ₹1,026,155,942,379.0.
- Monthly return was +6.4%.

- [FSSAI to tighten grip on $80 billion online market](https://www.thehindubusinessline.com/companies/fssai-to-tighten-grip-on-80-billion-online-market/article71577824.ece)
- [Blinkit, Instamart and Amazon Now to face stricter rules? FSSAI says ‘trying to tighten, make accountable’ | Company Business News](https://www.livemint.com/companies/news/blinkit-instamart-and-amazon-now-to-face-stricter-rules-fssai-says-trying-to-tighten-make-accountable-11791865938042.html)
- [India’s food regulator acts against GLP-1 supplement for misleading claims](https://www.cnbctv18.com/india/indias-food-regulator-fssai-acts-against-glp-1-supplement-misleading-claims-dr-reddys-laboratories-drl-nestle-india-dabur-india-consumers-20008150.htm)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about General Updates |SUBJECT: General Updates](https://nsearchives.nseindia.com/corporate/DRREDDY_08102026155720_SE_intimation_08102026_signed.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about Certificate under SEBI (Depositories and Participants) Regulations, 2018 |SUBJECT: Certificate under SEBI (Depositories and Participants) Regulations, 2018](https://nsearchives.nseindia.com/corporate/DRREDDY_07102026143434_Certificate_under_74_5__signed__1_.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange regarding a press release dated October 07, 2026, titled "Intimation of Earnings call". |SUBJECT: Press Release](https://nsearchives.nseindia.com/corporate/DRREDDY_07102026144117_SE_Intimation_Earning_call_Notification_07102026_signed.pdf)
- [DR. REDDY'S LABORATORIES LIMITED has informed the Exchange about Action(s) taken or orders passed (sub-para 20) |SUBJECT: Actions initiated/taken or orders passed-XBRL](https://nsearchives.nseindia.com/corporate/xbrl/AIATOP_251_WebXMLFile_20261004_103459328.xml)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about imposition of penalty to Dr. Reddy s Laboratories, Inc. ( DRL Inc ), a step-down wholly owned subsidiary of the Company. |SUBJECT: Action(s) taken or orders passed](https://nsearchives.nseindia.com/corporate/DRREDDY_03102026171508_SE_intimation_03102026_signed.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange regarding the Trading Window closure pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015 |SUBJECT: Trading Window](https://nsearchives.nseindia.com/corporate/DRREDDY_22092026170027_DRL_SE_intimation_Trading_window_closure_22092026_signed.pdf)
- [Financial Results |Meeting Date: 23-Oct-2026](https://nsearchives.nseindia.com/corporate/DRREDDY_22092026165813_DRL_SE_intimation_Trading_window_closure_22092026_signed.pdf)

### Bear Case

Dr. Reddy's faces regulatory scrutiny regarding its Celevida GLP+ supplement, with India's food regulator, FSSAI, issuing a notice for alleged misleading claims. This action by the FSSAI, which is also preparing to implement stricter rules for online food sales and quick-commerce platforms, introduces operational and reputational risks. Technically, the stock shows a bearish trend on the weekly timeframe, with the Supertrend indicator indicating a 'bearish' direction. The monthly trend also shows a 'bearish' Supertrend direction, despite a 'bullish' daily trend. The stock is trading near several resistance levels, with the nearest at ₹1243.97, representing a 0.32% increase from the current price of ₹1240.0.

- FSSAI issued a notice to Dr. Reddy's for misleading claims on its Celevida GLP+ supplement.
- The company operates within a market where FSSAI is tightening online food sales and quick-commerce regulations.
- Weekly and monthly technical trends indicate a bearish Supertrend direction.
- The stock is trading near immediate resistance at ₹1243.97.

- [FSSAI to tighten grip on $80 billion online market](https://www.thehindubusinessline.com/companies/fssai-to-tighten-grip-on-80-billion-online-market/article71577824.ece)
- [Blinkit, Instamart and Amazon Now to face stricter rules? FSSAI says ‘trying to tighten, make accountable’ | Company Business News](https://www.livemint.com/companies/news/blinkit-instamart-and-amazon-now-to-face-stricter-rules-fssai-says-trying-to-tighten-make-accountable-11791865938042.html)
- [India’s food regulator acts against GLP-1 supplement for misleading claims](https://www.cnbctv18.com/india/indias-food-regulator-fssai-acts-against-glp-1-supplement-misleading-claims-dr-reddys-laboratories-drl-nestle-india-dabur-india-consumers-20008150.htm)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about General Updates |SUBJECT: General Updates](https://nsearchives.nseindia.com/corporate/DRREDDY_08102026155720_SE_intimation_08102026_signed.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about Certificate under SEBI (Depositories and Participants) Regulations, 2018 |SUBJECT: Certificate under SEBI (Depositories and Participants) Regulations, 2018](https://nsearchives.nseindia.com/corporate/DRREDDY_07102026143434_Certificate_under_74_5__signed__1_.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange regarding a press release dated October 07, 2026, titled "Intimation of Earnings call". |SUBJECT: Press Release](https://nsearchives.nseindia.com/corporate/DRREDDY_07102026144117_SE_Intimation_Earning_call_Notification_07102026_signed.pdf)
- [DR. REDDY'S LABORATORIES LIMITED has informed the Exchange about Action(s) taken or orders passed (sub-para 20) |SUBJECT: Actions initiated/taken or orders passed-XBRL](https://nsearchives.nseindia.com/corporate/xbrl/AIATOP_251_WebXMLFile_20261004_103459328.xml)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about imposition of penalty to Dr. Reddy s Laboratories, Inc. ( DRL Inc ), a step-down wholly owned subsidiary of the Company. |SUBJECT: Action(s) taken or orders passed](https://nsearchives.nseindia.com/corporate/DRREDDY_03102026171508_SE_intimation_03102026_signed.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange regarding the Trading Window closure pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015 |SUBJECT: Trading Window](https://nsearchives.nseindia.com/corporate/DRREDDY_22092026170027_DRL_SE_intimation_Trading_window_closure_22092026_signed.pdf)
- [Financial Results |Meeting Date: 23-Oct-2026](https://nsearchives.nseindia.com/corporate/DRREDDY_22092026165813_DRL_SE_intimation_Trading_window_closure_22092026_signed.pdf)

### FAQs

**What recent regulatory actions has Dr. Reddy's faced?**

Dr. Reddy's and Nestle India's joint venture received a notice from India's food regulator, FSSAI, concerning misleading claims about their Celevida GLP+ supplement. Additionally, Dr. Reddy's Laboratories, Inc., a subsidiary, was issued a penalty of $32,350.20 by the IRS on October 2, 2026, for a fiscal year reference error during tax payment. The company stated this has no material impact on its financials or operations.

**What was the outcome of the USFDA inspection at Dr. Reddy's manufacturing facility?**

The USFDA completed a Pre-Approval Inspection (PAI) at Dr. Reddy's FTO-11 manufacturing facility in Pydibhimavaram, Andhra Pradesh, from October 5-7, 2026. The inspection resulted in a Form 483 with two observations, which the company has stated it will address within the stipulated timeline.

**When will Dr. Reddy's announce its financial results for the quarter ended September 30, 2026, and what is the technical outlook?**

Dr. Reddy's will announce its financial results for the quarter and six months ended September 30, 2026, on Friday, October 23, 2026. An earnings call is scheduled for the same day. As of October 13, 2026, the daily trend is indicated as 'bullish' by the Supertrend indicator, with the plus DI (30.82) above the minus DI (17.29). However, the weekly trend is 'bearish', with the Supertrend direction being bearish and the minus DI (24.08) above the plus DI (22.57).

**What are the nearest support and resistance levels for Dr. Reddy's stock?**

As of October 13, 2026, the nearest resistance level is at ₹1243.97, which is 0.32% above the current price. Further resistance levels are at ₹1252.29 and ₹1258.53. The nearest support level is at ₹1220.43, which is 1.58% below the current price. Additional support levels are identified at ₹1205.87 and ₹1187.74.

- [FSSAI to tighten grip on $80 billion online market](https://www.thehindubusinessline.com/companies/fssai-to-tighten-grip-on-80-billion-online-market/article71577824.ece)
- [Blinkit, Instamart and Amazon Now to face stricter rules? FSSAI says ‘trying to tighten, make accountable’ | Company Business News](https://www.livemint.com/companies/news/blinkit-instamart-and-amazon-now-to-face-stricter-rules-fssai-says-trying-to-tighten-make-accountable-11791865938042.html)
- [India’s food regulator acts against GLP-1 supplement for misleading claims](https://www.cnbctv18.com/india/indias-food-regulator-fssai-acts-against-glp-1-supplement-misleading-claims-dr-reddys-laboratories-drl-nestle-india-dabur-india-consumers-20008150.htm)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about General Updates |SUBJECT: General Updates](https://nsearchives.nseindia.com/corporate/DRREDDY_08102026155720_SE_intimation_08102026_signed.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about Certificate under SEBI (Depositories and Participants) Regulations, 2018 |SUBJECT: Certificate under SEBI (Depositories and Participants) Regulations, 2018](https://nsearchives.nseindia.com/corporate/DRREDDY_07102026143434_Certificate_under_74_5__signed__1_.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange regarding a press release dated October 07, 2026, titled "Intimation of Earnings call". |SUBJECT: Press Release](https://nsearchives.nseindia.com/corporate/DRREDDY_07102026144117_SE_Intimation_Earning_call_Notification_07102026_signed.pdf)
- [DR. REDDY'S LABORATORIES LIMITED has informed the Exchange about Action(s) taken or orders passed (sub-para 20) |SUBJECT: Actions initiated/taken or orders passed-XBRL](https://nsearchives.nseindia.com/corporate/xbrl/AIATOP_251_WebXMLFile_20261004_103459328.xml)
- [Dr. Reddy's Laboratories Limited has informed the Exchange about imposition of penalty to Dr. Reddy s Laboratories, Inc. ( DRL Inc ), a step-down wholly owned subsidiary of the Company. |SUBJECT: Action(s) taken or orders passed](https://nsearchives.nseindia.com/corporate/DRREDDY_03102026171508_SE_intimation_03102026_signed.pdf)
- [Dr. Reddy's Laboratories Limited has informed the Exchange regarding the Trading Window closure pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015 |SUBJECT: Trading Window](https://nsearchives.nseindia.com/corporate/DRREDDY_22092026170027_DRL_SE_intimation_Trading_window_closure_22092026_signed.pdf)
- [Financial Results |Meeting Date: 23-Oct-2026](https://nsearchives.nseindia.com/corporate/DRREDDY_22092026165813_DRL_SE_intimation_Trading_window_closure_22092026_signed.pdf)
## Technical analytics

- As of: 2026-10-13
- Daily trend: Moderate Uptrend
- Weekly trend: Weak Uptrend
- Pivot point: ₹1,220.43
- Risk regime: Price Risk Currently Contained

### Support levels
- 1187.7375000000002
- 1163.1654296875
- 1129.225

### Resistance levels
- 1252.2920589447021
- 1315
- 1377.8000000000002

### Return and range metrics

| Metric | Value |
| --- | --- |
| return_1 | +0.86% |
| return_10 | +1.56% |
| return_1m | +6.39% |
| return_1y | -1.77% |
| return_20 | +6.39% |
| return_3m | +0.45% |
| return_5 | +2.65% |
| return_6m | +0.33% |
| return_since_start | -9.42% |
| return_ytd | -1.07% |

### Risk and volatility metrics

| Metric | Value |
| --- | --- |
| state | contained_risk |
| label | Price risk currently contained |
| summary | Recent drawdown and price variability remain within the producer's contained-risk thresholds. |
| maximum_drawdown | -20.88% |
| annualized_volatility | +22.85% |

## Quarterly financials

- Latest complete quarter: fy27_q1

# Revenue Recovers from Quarterly Low, While Expense Growth Compresses Year-Over-Year Profitability

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 and Expense Trends

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.

## Profitability and Margins

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 and Finance Costs

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 Performance

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.

## Key Takeaway

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.

### Ratios

## Shareholding pattern

- Quarter: FY2027-Q1
- As of: 2026-06-30
- Promoter holding: +26.64%
- FII holding: +20.67%
- DII holding: +31.75%
- Mutual fund holding: +13.16%
- Retail holding: +7.34%
- Promoter pledged: +0.00%

### Major reported shareholders

- LIFE INSURANCE CORPORATION OF INDIA P & GS FUND — +12.16%
- GVP Family Trust — +11.51% (Trusts)
- J P Morgan Chase Bank NA — +11.41%
- VSD Family Trust — +9.06% (Trusts)
- ICICI PRUDENTIAL VALUE DISCOVERY FUND — +4.41%
- KALLAM SATISH REDDY HUF — +3.31%
- NPS TRUST-A/C SBI PENSION FUND SCHEME TAX SAVER-TIER 2 — +3.15%
- NIPPON LIFE INDIA TRUSTEE LTD-A/C-NIPPON INDIA NIFTY 50 VALUE 20 INDEX FUND — +1.88%
- PARAG PARIKH FLEXI CAP FUND — +1.76%
- GUNUPATI VENKATESWARA PRASAD HUF — +1.52%

## Official filings

- 2026-10-08 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_08102026155720_SE_intimation_08102026_signed.pdf)
- 2026-10-07 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_07102026143434_Certificate_under_74_5__signed__1_.pdf)
- 2026-10-07 — Press Release: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_07102026144117_SE_Intimation_Earning_call_Notification_07102026_signed.pdf)
- 2026-10-04 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/xbrl/AIATOP_251_WebXMLFile_20261004_103459328.xml)
- 2026-10-03 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_03102026171508_SE_intimation_03102026_signed.pdf)
- 2026-09-22 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_22092026170027_DRL_SE_intimation_Trading_window_closure_22092026_signed.pdf)
- 2026-09-22 — Board Meeting Notice: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_22092026165813_DRL_SE_intimation_Trading_window_closure_22092026_signed.pdf)
- 2026-09-22 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/xbrl/CLOSURE_TRADING_WINDOW_251_WebXMLFile_20260922_171925867.xml)
- 2026-09-22 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/xbrl/PRIOR_INTIMATION_251_WebXMLFile_20260922_171933823.xml)
- 2026-09-22 — Board Meeting Notice: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/xbrl/PRIOR_INTIMATION_251_WebXMLFile_20260922_171933823.xml)
- 2026-09-21 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_21092026165037_SEIntimation_Investormeet_21092026_signed.pdf)
- 2026-09-18 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_18092026084516_SE_intimation_18092026_NSE_signed.pdf)
- 2026-09-18 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_18092026090427_DRL_SE_intimation_18092026_signed.pdf)
- 2026-09-17 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/content/RSS/Online_announcements.xml)
- 2026-09-16 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_16092026220955_Stock_Exchange_Intimation_newspaper_advertisement_-_16092027.pdf)
- 2026-09-11 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_11092026220841_SE_intimation_11092026_signed.pdf)
- 2026-09-10 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_10092026174022_SE_Intimation_Allotment_of_ESOP_10092026_1.pdf)
- 2026-09-10 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/xbrl/ALTERATION_OF_CAPITAL_AND_FUND_RAISING_251_WebXMLFile_20260910_174432313.xml)
- 2026-08-26 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/xbrl/ALTERATION_OF_CAPITAL_AND_FUND_RAISING_251_WebXMLFile_20260826_154911982.xml)
- 2026-08-26 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_26082026161224_Stock_Exchange_initmation_dated_26082026.pdf)
- 2026-08-20 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_20082026153328_SE_Intimation_newspaper_advertisement_-_20082026Singed.pdf)
- 2026-08-14 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_14082026231157_SE_intimation_14082026_signed.pdf)
- 2026-08-14 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_14082026233205_SE_intimation_14082026-Bachupally.pdf)
- 2026-08-13 — Generic Announcement: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_13082026164551_Stock_Exchange_intimation_dated_13082026.pdf)
- 2026-08-13 — Management Change: Dr. Reddy's Laboratories Limited — [Official attachment](https://nsearchives.nseindia.com/corporate/DRREDDY_ROID_96298_KMP_Doc.zip)

## News and market events

- 2026-10-13 — The Hindu: **FSSAI to tighten grip on $80 billion online market** — FSSAI tightens online food rules, demanding expiry dates, batch numbers, photos of dark kitchens, and platform accountability amid crackdown on misbranding and unsafe practices. — [Source](https://www.thehindubusinessline.com/companies/fssai-to-tighten-grip-on-80-billion-online-market/article71577824.ece)
- 2026-10-13 — Mint: **Blinkit, Instamart and Amazon Now to face stricter rules? FSSAI says ‘trying to tighten, make accountable’ | Company Business News** — India’s food regulator FSSAI is preparing tighter rules for quick-commerce platforms, including Blinkit, Instamart and Amazon Now, amid rising enforcement over food safety violations. Here's all we know… — [Source](https://www.livemint.com/companies/news/blinkit-instamart-and-amazon-now-to-face-stricter-rules-fssai-says-trying-to-tighten-make-accountable-11791865938042.html)
- 2026-10-09 — CNBC-TV18: **India’s food regulator acts against GLP-1 supplement for misleading claims** — India's food regulator, FSSAI, issued a notice to Dr Reddy's and Nestle India's joint venture for misleading claims regarding their Celevida GLP+ supplement. — [Source](https://www.cnbctv18.com/india/indias-food-regulator-fssai-acts-against-glp-1-supplement-misleading-claims-dr-reddys-laboratories-drl-nestle-india-dabur-india-consumers-20008150.htm)
- 2026-10-05 — MONEYCONTROL: **Healthcare, pharma shares extend decline for 3rd day; Sun Pharma, Dr. Reddy's among top losers** — stock — [Source](https://www.moneycontrol.com/news/business/markets/healthcare-shares-extend-decline-for-3rd-day-sun-pharma-dr-reddy-s-fall-up-to-1-14044964.html)
- 2026-09-29 — CNBC-TV18: **FII selling intensifies to nearly ₹10,000 crore as Nifty heads for worst September in 25 years** — FIIs stepped up selling on Tuesday even as domestic institutions continued to buy, with the Nifty down nearly 7% in September so far. — [Source](https://www.cnbctv18.com/market/fii-selling-intensifies-to-nearly-rs10000-crore-as-nifty-heads-for-worst-september-in-25-years-20001374.htm)
- 2026-09-29 — BUSINESS: **Dr Reddys Laboratories Ltd up for third straight session** — Dr Reddys Laboratories Ltd is quoting at Rs 1243, up 1.8% on the day as on 12:49 IST on the NSE. The stock is up 1.58% in last one year as compared to a 7.89% slide in NIFTY and a 25.3% slide in the Nifty Pharma index. — [Source](https://www.business-standard.com/markets/capital-market-news/dr-reddys-laboratories-ltd-up-for-third-straight-session-126092900585_1.html)
- 2026-09-29 — MONEYCONTROL: **Pharma stocks gain on US tariff exemption on some specialty drugs** — pharma stocks — [Source](https://www.moneycontrol.com/news/business/markets/pharma-stocks-gain-on-us-tariff-exemption-on-some-specialty-drugs-14040978.html)
- 2026-09-29 — Mint: **Crude oil shock and higher yields: Why Indian stock markets may remain volatile in near term - where should you invest?** — With Indian equities under pressure from high crude prices and rising bond yields, experts recommend a cautious investment approach. Focus on accumulating high-quality stocks while monitoring key factors. Tailored strategies emphasize technical analysis and sector strength amidst ongoing volatility. — [Source](https://www.livemint.com/market/stock-market-news/crude-oil-shock-and-higher-yields-why-indian-stock-markets-may-remain-volatile-in-near-term-where-should-you-invest-11790665625517.html)
- 2026-09-29 — CNBC-TV18: **Dr. Reddy's shares upgraded by Citi after three years, target raised; Stock gains** — Citi said the acceptance of Abatacept indicated the most challenging development and biosimilar hurdles were behind for the company in terms of the biological license application (BLA). — [Source](https://www.cnbctv18.com/market/dr-reddys-laboratories-share-price-citi-upgrade-after-three-years-target-raised-margins-abatacept-semaglutide-20000727.htm)
- 2026-09-29 — Mint: **Top stocks to buy for short term: M&M, Engineers India and 1 other by Master Capital Services - Target price, stop loss** — Top stocks to buy for short term: An expert from Master Capital Services suggests a stock-specific approach for short-term investments. M&M, Engineers India, and Dr Reddy's Laboratories show strong potential for recovery.  — [Source](https://www.livemint.com/market/stock-market-news/top-stocks-to-buy-for-short-term-m-m-engineers-india-dr-reddys-labs-check-target-price-for-up-to-11-upside-in-11790573842765.html)
- 2026-09-29 — BUSINESSTODAY: **Pharma stocks: Sun Pharma, Dr Reddy’s, Cipla, Biocon and others in focus today; here's why** — Pharma stocks, Sun Pharma, Dr Reddy’s, Cipla, Biocon — [Source](https://www.businesstoday.in/markets/trending-stocks/story/pharma-stocks-sun-pharma-dr-reddys-cipla-biocon-others-in-focus-today-heres-why-558401-2026-09-29)
- 2026-09-29 — CNBC-TV18: **Nifty Outlook for September 29: Bears strengthen grip; 22,650-22,500 seen as next support zone** — The market’s short-term trend remains weak, although temporarily oversold conditions could trigger a pullback, analysts say. — [Source](https://www.cnbctv18.com/market/nifty-outlook-tuesday-september-29-bears-strengthen-grip-22650-22500-seen-as-next-support-zone-20000250.htm)
- 2026-09-28 — The Hindu: **Markets sink to April lows at noon; crude surge, FII selling batter sentiment across sectors** — FIIs continued their selling trend, offloading equities worth ₹3,694 crore in the previous session, while DIIs purchased approximately ₹2,838 crore — [Source](https://www.thehindubusinessline.com/markets/markets-sink-to-april-lows-at-noon-crude-surge-fii-selling-batter-sentiment-across-sectors/article71518803.ece)
- 2026-09-28 — MONEYCONTROL: **Dr Reddy's shares gain over 1% after Nomura retains 'Buy'; Rs1,740 target, key biologics milestones ahead** — Dr Reddy's, Dr Reddy's shares, Dr Reddy's stocks, Dr Reddy's share price, Nomura — [Source](https://www.moneycontrol.com/news/business/stocks/dr-reddy-s-shares-gain-over-1-after-nomura-retains-buy-rs1-740-target-key-biologics-milestones-ahead-14039696.html)
- 2026-09-25 — BUSINESSTODAY: **Sensex, Nifty extend losing streak to seventh week, longest ever; what's next?** — Sensex, Nifty, stock market, Indian stock market, share market, Nifty 50, BSE Sensex, weekly market performance, seven-week losing streak, longest losing streak, Friday market, realty stocks, auto stocks, FMCG stocks, IT stocks, midcap stocks, smallcap stocks, foreign fund outflows, crude oil prices, global yields, Nifty outlook, market outlook — [Source](https://www.businesstoday.in/markets/stocks/story/sensex-nifty-extend-losing-streak-to-seventh-week-longest-ever-whats-next-557889-2026-09-25)
- 2026-09-24 — Mint: **India-Mexico may sign trade pact, report reveals: Autos, pharma, engineering—who stands to gain? | Mint** — India and Mexico are set to finalize the Terms of Reference for a preferential trade agreement in early October, focusing on trade facilitation and market access. This could boost Indian exports, particularly in automobiles and pharmaceuticals, despite upcoming tariffs on imports from India. — [Source](https://www.livemint.com/economy/indiamexico-may-sign-trade-pact-report-reveals-autos-pharma-engineering-who-stands-to-gain-11790259606449.html)
- 2026-09-24 — MONEYCONTROL: **India, Mexico may sign ToR for preferential trade pact in early October: Sources** — india mexico trade deal, mexico trade agreement, free trade agreement, exports, trade, imports, piyush goyal — [Source](https://www.moneycontrol.com/news/india/india-mexico-may-sign-tor-for-preferential-trade-pact-in-early-october-sources-14037223.html)
- 2026-09-22 — REDIFF.COM: **Top Pharma Firms Maintain Volume Growth Amid Market Shift to Chronic Therapies** — India's 10 largest pharmaceutical companies have consistently maintained positive average volume growth throughout 2026, while smaller rivals have experienced more erratic performance, driven by a market shift towards chronic and sub-chronic therapies. — [Source](https://www.rediff.com/business/report/indias-top-10-pharma-companies-sustain-volume-growth-outperforming-smaller-rivals/20260922.htm)
- 2026-09-22 — BUSINESSTODAY: **L&T, DRL, Vijaya Diagnostic, M&M Financial: Buy, Hold or Sell? Here are target prices** — L&T shares, Dr Reddy's Laboratories shares, Vijaya Diagnostic Centre shares, Mahindra & Mahindra Financial Services shares, M&M Finance shares, Antique Stock Broking, stock target prices, Buy rating, Hold rating, brokerage recommendations, valuation, share price target — [Source](https://www.businesstoday.in/markets/stocks/story/lt-drl-vijaya-diagnostic-mm-financial-buy-hold-or-sell-here-are-target-prices-557064-2026-09-22)
- 2026-09-22 — Times of India: **Top stocks to buy today: Stock market recommendations for September 22, 2026 - check list** — India Business News: Stock market recommendations: LIC Housing Finance, Supreme Industries, Hitachi Energy India, and Dr Reddy's Laboratories - these are the top stocks to. — [Source](https://timesofindia.indiatimes.com/business/india-business/top-stock-recommendations-for-september-22-2026-lic-housing-finance-supreme-industries-hitachi-energy-india-dr-reddys-laboratories-stocks-to-buy-today/articleshow/134392458.cms)
- 2026-09-21 — BUSINESSTODAY: **Dr. Reddy’s, Lupin shares among buzzing stocks as pharma sector back in focus** — Aditya Agarwal market view, stock specific strategy, pharma stocks to watch, Dr Reddy's share outlook, Lupin stock outlook, Nifty flat performance, small cap outperformance, Indian stock market strategy, sector rotation India, defensive sectors India, pharma sector outperform, broader market weakness, quality stock picks, Dalal Street outlook, Indian equities analysis, buying interest at lower levels, market cautious outlook, stock market investment strategy, Business Today market news, Coheren Wealth Aditya Agarwal — [Source](https://www.businesstoday.in/markets/stocks/story/dr-reddys-lupin-shares-among-buzzing-stocks-as-pharma-sector-back-in-focus-556848-2026-09-21)
- 2026-09-21 — MONEYCONTROL: **Drugmakers move closer to launch landmark HIV drug as CDSCO eases approval process** — lenacapvir, ARV, prophylaxis, HIV prevention, Gilead, Emcure, Hetero, DRL, HIV, AIDS — [Source](https://www.moneycontrol.com/news/business/drugmakers-move-closer-to-launch-landmark-hiv-drug-as-cdsco-eases-approval-process-14034536.html)
- 2026-09-21 — MONEYCONTROL: **Pharma stocks rise up to 6% amid defensive buying, strong product pipeline; Mankind Pharma, Wockhardt lead gains** — Pharma stocks, Sun Pharma — [Source](https://www.moneycontrol.com/news/business/markets/pharma-stocks-rise-up-to-6-amid-defensive-buying-strong-product-pipeline-mankind-pharma-wockhardt-lead-gains-14034517.html)
- 2026-09-21 — BUSINESS: **Nifty's 6-week losing run: 9 stocks fall 10-14%; 6 defy trend, add ₹73K cr** — Bogged down by crude oil prices trading above $100, the Nifty 50 index has lost 5 per cent during the six-week selloff, which is also its longest since 2020. — [Source](https://www.business-standard.com/markets/news/nifty-s-6-week-losing-run-9-stocks-fall-10-14-6-defy-trend-add-73k-cr-126092100326_1.html)
- 2026-09-18 — Times of India: **Dengue vaccine to hit market by first half of 2027** — India News: NEW DELHI: India's first dengue vaccine is expected to be available in the private market in the first half of 2027. Takeda Pharma and Dr Reddy's Labo. — [Source](https://timesofindia.indiatimes.com/india/dengue-vaccine-to-hit-market-by-first-half-of-2027/articleshow/134343715.cms)

## Business profile

**Strategic vision:** Develops, manufactures, and markets pharmaceutical products globally.

### Business segments
- **Global Generics:** Manufactures finished formulations in oral solid dosage, injectables, and inhaler formats across chronic therapeutic areas including oncology, cardiovascular, and gastroenterology.
- **Pharmaceutical Services and Active Ingredients (PSAI):** Produces bulk APIs and offers custom synthesis, process development, and contract manufacturing services to global pharmaceutical clients.
- **Biologics (Biosimilars):** Develops and manufactures biosimilar proteins and monoclonal antibodies primarily for oncology and autoimmune therapies.

### Competitive strengths
- Vertical integration of API manufacturing
- Co-development model for generics and biosimilars
- Global R&D and manufacturing network
- Localization of products for emerging markets

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## Freshness and sources

- Data as of: 2026-10-13
- Source: Faxioms public stock analysis API

Canonical: https://faxioms.com/stocks/drreddy
Markdown representation: https://faxioms.com/stocks/drreddy?render=md