Healthcare · NSE: DRREDDY
Dr. Reddy's Laboratories
- M.Cap
- ₹1,15,737Cr₹1.16L Cr
- P/E
- 41.3×
- 1Y return
- +12.77%
- From 52W high
- −2.0%
Highlights are read by AI from the company's filing and can contain mistakes. Check the source page linked to each line.
Share price
Results Q2 FY27, as filed · consolidated · ₹ Cr
| Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ | |
|---|---|---|---|---|---|
| Revenue | 8,698 | 8,828 | -1.5% | 8,100 | +7.4% |
| EBITDA | 1,731 | 2,010 | -13.9% | 860 | +101.3% |
| EBITDA margin | 19.9% | 22.8% | -287 bps | 10.6% | +928 bps |
| PBTProfit before tax | 1,235 | 1,739 | -28.9% | 553 | +123.6% |
| Net profit | 925 | 1,347 | -31.3% | 444 | +108.1% |
| EPS (₹) | 11.09 | 16.17 | -31.4% | 5.33 | +108.1% |
From the company's own results filing on NSE. Net profit is the owners' share. Growth and the dotted lines are worked out from the filed figures.
In short
- 01Reported revenue fell 1.5% YoY due to lower lenalidomide sales; base business grew double digits.
- 02EBITDA margin was 20.6% in Q2 FY27.
- 03Net cash surplus stood at Rs 2,502 crore.
- 04Q1 FY27 carried a Rs 240 crore provision for the semaglutide API issue; company says it is on track to resolve it.
- 05Generic semaglutide is approved in 10 countries; QDENGA dengue vaccine launch planned in India in first half of 2027.
- 06CDMO business (APSL) passed $100 million revenue in 12 months to Sep'26; API volumes were lower.
- 07Several USFDA inspections ended with Form 483 or Form 2953 observations.
Order book
PSAI - APSL: APSL secured long-term manufacturing and supply agreement
Slides · p. 13
PSAI - APSL: APSL secured long-term manufacturing and supply agreement
“APSL secured long-term manufacturing & supply agreement for USA,”
Segments
PSAI - CDMO: CDMO business under Aurigene passed $100 million in 12 months to Sep'26
Slides · p. 5
PSAI - CDMO: CDMO business under Aurigene passed $100 million in 12 months to Sep'26
“CDMO business under Aurigene Pharmaceutical Services surpassed $100+ million in 12 months ended Sep’26”
Double-digit base business growth in key businesses except Europe and API
Slides · p. 7
Double-digit base business growth in key businesses except Europe and API
“Double-digit base business* growth across key businesses, except Europe and API”
North America: North America base business grew double digits; reported growth hit by lenalidomide
Slides · p. 9
North America: North America base business grew double digits; reported growth hit by lenalidomide
“Continued double digit growth in base business*; reported growth impacted by lower lenalidomide sales”
Emerging Markets: Emerging Markets growth driven by new launches and favourable forex
Slides · p. 10
Emerging Markets: Emerging Markets growth driven by new launches and favourable forex
“Growth driven by new product launches across geographies, aided by favourable forex movements”
India: India moved up to #8 in IPM with double-digit growth ahead of IPM
Slides · p. 11
India: India moved up to #8 in IPM with double-digit growth ahead of IPM
“Moved up to #8 in IPM for the quarter, delivering consistent double-digit growth ahead of IPM”
Margins and costs
Double-digit base business growth with EBITDA margin at 20.6%
Slides · p. 4
Double-digit base business growth with EBITDA margin at 20.6%
“Consistent double-digit base business^ growth, with EBITDA Margin @20.6%”
Q2FY27 revenues 8,671, with 52.1%, 32.4%, 6.0% and 20.6% in key metric table
Slides · p. 8
Q2FY27 revenues 8,671, with 52.1%, 32.4%, 6.0% and 20.6% in key metric table
“Q2FY27 8,671 Q2FY27 52.1% Q2FY27 32.4% Q2FY27 6.0% Q2FY27 20.6%”
EBITDA Rs 1,783 crore, EBITDA margin 20.6%
Slides · p. 4
EBITDA Rs 1,783 crore, EBITDA margin 20.6%
“₹ 1,783 Cr | 20.6% • Reported EBITDA @20.6%”
PSAI: PSAI gross margin 11.8% vs 18.0% a year earlier
Slides · p. 13
PSAI: PSAI gross margin 11.8% vs 18.0% a year earlier
“11.8% VS 18.0%”
Debt and working capital
Net cash surplus at Rs 2,502 crore
Slides · p. 4
Net cash surplus at Rs 2,502 crore
“Net Cash surplus at ₹2,502 Cr”
Acquisitions and new business
India: QDENGA dengue vaccine launch planned in private markets in first half of 2027
Slides · p. 11
India: QDENGA dengue vaccine launch planned in private markets in first half of 2027
“QDENGA; launch planned in private markets in first half of 2027”
India: Partnered with Takeda for CDSCO-approved dengue vaccine QDENGA
Slides · p. 5
India: Partnered with Takeda for CDSCO-approved dengue vaccine QDENGA
“Partnered with Takeda for India’s 1 Central Drugs Standard Control Organisation (CDSCO) approved dengue vaccine, QDENGA;”
PSAI: Expanded Gilead collaboration for once-yearly lenacapavir in 120 countries
Slides · p. 5
PSAI: Expanded Gilead collaboration for once-yearly lenacapavir in 120 countries
“Expanded collaboration with Gilead Sciences for investigational once-yearly lenacapavir for HIV prevention in 120 countries”
PSAI: Thai FDA approval for zoliflodacin with GARDP Foundation
Slides · p. 5
PSAI: Thai FDA approval for zoliflodacin with GARDP Foundation
“In association with GARDP Foundation, secured Thai FDA approval for zoliflodacin for uncomplicated urogenital gonorrhoea”
North America: USFDA approval for rituximab biosimilar
Slides · p. 5
North America: USFDA approval for rituximab biosimilar
“Secured approval for rituximab biosimilar from the USFDA”
One-offs
Reported revenue declined 1.5% YoY due to lower lenalidomide sales
Slides · p. 4
Reported revenue declined 1.5% YoY due to lower lenalidomide sales
“Reported YoY growth declined 1.5% due to lower lenalidomide sales”
Q1FY27 hit by Rs 240 crore provision for semaglutide API issue
Slides · p. 4
Q1FY27 hit by Rs 240 crore provision for semaglutide API issue
“Note: Q1FY27 impacted by provision of ₹240 Cr towards inventory and other costs related to semaglutide API issue”
Risks
On track to resolve semaglutide API out-of-specification batch issue
Slides · p. 6
On track to resolve semaglutide API out-of-specification batch issue
“On track to resolve issue associated with semaglutide API, where certain batches were found to be out of specification”
VAI classification for Mirfield, UK API facility after USFDA inspection
Slides · p. 6
VAI classification for Mirfield, UK API facility after USFDA inspection
“‘VAI’ classification for API manufacturing facility in Mirfield, United Kingdom, following GMP inspection by USFDA in Sep’25”
Form 483 with 3 and 4 observations at Srikakulam and Bachupally sites
Slides · p. 6
Form 483 with 3 and 4 observations at Srikakulam and Bachupally sites
“Received a Form 483 with 3 and 4 observations respectively, following a PAI & GMP inspection at FTO-SEZ Process Unit-02,”
Form 2953 with 2 observations at Mexico API facility
Slides · p. 6
Form 2953 with 2 observations at Mexico API facility
“Received a Form 2953 with 2 observations, following a records assessment under Section 704(a)(4) of the Federal Food, Drug,”
Form 483 with 2 and 3 observations after PAIs at FTO-11 and a second formulation site
Slides · p. 6
Form 483 with 2 and 3 observations after PAIs at FTO-11 and a second formulation site
“Received a Form 483 with 2 & 3 observations respectively, following a PAI at formulation manufacturing facilities, FTO-11 in”
Other
Annualised RoCE at 9.5%
Slides · p. 4
Annualised RoCE at 9.5%
“Annualised RoCE @9.5%”
CRISIL ESG rating improved to 73/100 for FY26 from 66/100
Slides · p. 6
CRISIL ESG rating improved to 73/100 for FY26 from 66/100
“Improved CRISIL ESG Rating to 73/100 for FY26 from 66/100 in FY25 - only pharma company in leadership category”
India, Emerging Markets & NRT: Branded businesses account for 53% of revenues
Slides · p. 7
India, Emerging Markets & NRT: Branded businesses account for 53% of revenues
“Branded businesses (India, Emerging Markets & NRT) account for 53% of revenues”
Priorities include semaglutide re-launch and abatacept
Slides · p. 14
Priorities include semaglutide re-launch and abatacept
“(Semaglutide including re-launch, Abatacept)”
PBT Rs 1,228 crore, 14.2% of revenue
Slides · p. 4
PBT Rs 1,228 crore, 14.2% of revenue
“₹ 1,228 Cr | 14.2%”
Sources
- Investor presentation, Q2 FY27 Filed 23 Oct 2026 · 17 pages
- Earnings call transcript, not read The filing is a cover letter; the transcript is on the company's website
Management's own statements, quoted from its NSE filings. This page was read by AI and can contain mistakes: check the source pages before relying on any figure. No forecast or opinion of ours. Not investment advice.