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Dr. Reddy’s Laboratories Secures Interim Stay on Tax Reassessment Order

Story Highlights
  • Dr. Reddy’s Laboratories received an interim stay from the Telangana High Court on a tax reassessment order.
  • The company believes no tax was escaped in the merger and is monitoring the situation closely.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Dr. Reddy’s Laboratories Secures Interim Stay on Tax Reassessment Order

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Dr Reddy’s Laboratories ( (RDY) ) has shared an update.

On August 26, 2025, Dr. Reddy’s Laboratories announced that the Telangana High Court has granted an interim stay on a reassessment order issued by the Income Tax Authority concerning alleged tax escapement following the merger of Dr. Reddy’s Holding Limited into Dr. Reddy’s Laboratories Limited. The company had previously received a show cause notice and an order for reassessment, prompting it to file a writ petition seeking to quash the proceedings. Dr. Reddy’s maintains that there has been no tax escapement and is monitoring the situation closely, with assurances that the company’s promoters will indemnify the company against any liabilities arising from the merger.

The most recent analyst rating on (RDY) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Dr Reddy’s Laboratories stock, see the RDY Stock Forecast page.

Spark’s Take on RDY Stock

According to Spark, TipRanks’ AI Analyst, RDY is a Outperform.

Dr Reddy’s Laboratories demonstrates strong financial performance and reasonable valuation, which are the primary drivers of its stock score. However, technical indicators suggest a neutral trend, and the earnings call revealed some challenges, particularly in the U.S. generics market and regulatory issues, which slightly dampen the overall outlook.

To see Spark’s full report on RDY stock, click here.

More about Dr Reddy’s Laboratories

Dr. Reddy’s Laboratories Limited is a pharmaceutical company based in Hyderabad, India, known for its production of generic medications, active pharmaceutical ingredients, and biologics. The company focuses on providing affordable and innovative medicines to patients worldwide.

Average Trading Volume: 1,478,764

Technical Sentiment Signal: Strong Buy

Current Market Cap: $12.23B

For an in-depth examination of RDY stock, go to TipRanks’ Overview page.

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