Dr. Reddy's Laboratories Ltd (RDY)
NYSE:RDY
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Earnings Data
Report Date
Jul 29, 2026Before Open (Confirmed)
Period Ending
2027 (Q1)Consensus EPS Forecast
0.1Last Year’s EPS
0.2Same Quarter Last Year
Moderate Sell
Based on 1 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
Balanced. The call highlighted several strategic achievements — record annual revenues, robust product launch and filing cadence, first-to-market semaglutide approval in Canada, abatacept BLA acceptance, completed NRT integration, and strong sustainability recognition. However, Q4 was materially affected by one-off charges (notably a large shelf-stock adjustment and impairments), significant margin pressure (Q4 gross margin down ~760 bps YoY), a sharp quarterly EBITDA decline (-37% YoY), and North America revenue weakness tied to loss of lenalidomide. Management emphasized that many negatives are one-offs or timing/regulatory related and reiterated confidence in base business growth, margin recovery (>50% gross margin target) and semaglutide/abatacept-driven upside, but near-term profitability and working capital remain areas of concern.Company Guidance
Record Annual Revenues
Adjusted full-year revenue of INR 34,046 crores (USD 3.63B), a 4.6% year-over-year increase; company noted 'highest ever annual revenues' despite product-specific headwinds.
Underlying Base Business Growth
Base business (excluding lenalidomide) delivered double-digit growth for Q4 and full year; all geographies except North America recorded double-digit growth.
Strong Product Launch and Filing Momentum
Q4 additions: 7 new products in North America; Emerging Markets added 49 new products in the quarter (129 in FY'26). Drug Master File filings: 48 in Q4, 128 in FY'26.
Semaglutide Regulatory Milestones and Launches
First-to-market approval for semaglutide injection in Canada; prior approval and day-1 launch in India (Obeda). Oral semaglutide approved in India. Company expects ~6-7M pens by end of calendar 2026 and targets ~12M units across markets in FY'27 (subject to approvals).
Biosimilars Progress (Abatacept)
U.S. FDA accepted BLA for abatacept (IV) for review (filed Dec 2025); IV expected potentially early calendar 2027. Biologics sales >$100M and abatacept expected to materially scale the business and drive breakeven potential post-launch.
Adjusted Profitability Metrics (FY'26)
Adjusted EBITDA for FY'26 of INR 8,419 crores (USD 897M), margin ~24.7% on adjusted revenue. Adjusted profit before tax for FY'26 INR 6,463 crores (USD 689M), margin ~19%.
Capital Allocation and Balance Sheet Strength
Free cash flow before acquisitions: INR 2,004 crores for FY'26; CapEx FY'26 INR 2,302 crores; net cash surplus INR 3,271 crores as of March 31, 2026. Guidance for FY'27 CapEx around INR 2,000 crores.
Sustainability and Corporate Recognition
EcoVadis Gold medal with highest-ever score of 80 (top 5% globally). Named top sustainable company in Indian healthcare by Business World and recognized in leadership category of Indian Corporate Governance Card for third consecutive year.
Dividend Recommendation
Board recommended dividend of INR 8 per equity share (face value INR 1) for FY'26, equivalent to 800% of face value, subject to shareholder approval.
Cost Discipline and R&D Productivity
Adjusted R&D spend for FY'26 (excluding one-offs) INR 2,385 crores (-13% YoY) ~7% of adjusted revenues; quarter R&D INR 541 crores (-26% YoY). Company expects R&D spend in FY'27 to be ~7-8% and projects margin recovery via cost efficiencies.
RDY Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
RDY Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 12, 2026 | $13.14 | $12.46 | -5.18% |
Jan 27, 2026 | $13.78 | $13.71 | -0.51% |
Oct 24, 2025 | $14.62 | $14.58 | -0.27% |
Jul 29, 2025 | $14.70 | $14.76 | +0.41% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Dr. Reddy's Laboratories Ltd (RDY) report earnings?
Dr. Reddy's Laboratories Ltd (RDY) is schdueled to report earning on Jul 29, 2026, Before Open (Confirmed).
What is Dr. Reddy's Laboratories Ltd (RDY) earnings time?
Dr. Reddy's Laboratories Ltd (RDY) earnings time is at Jul 29, 2026, Before Open (Confirmed).
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What is RDY EPS forecast?
RDY EPS forecast for the fiscal quarter 2027 (Q1) is 0.1.