The earnings call presented a mixed performance with solid revenue growth in several segments and strategic advancements in biosimilars and environmental achievements. However, challenges remain with declines in the U.S. generics market and a decrease in gross profit margins, along with regulatory observations from the USFDA.
Company Guidance
During Dr. Reddy's Laboratories' Q1 FY '26 earnings call, the company reported a steady double-digit revenue growth of 11% year-over-year, translating to INR 8,545 crores (USD 997 million). The EBITDA margin stood at 26.7%, slightly surpassing their target of 25%. However, the gross profit margin decreased by 350 basis points year-over-year to 56.9%, mainly due to price erosion in the generic segment, particularly lenalidomide. The SG&A expenses rose 13% year-over-year to INR 2,565 crores (USD 299 million), driven by strategic investments in consumer health care and nutraceuticals. R&D spend was INR 624 crores (USD 73 million), accounting for 7.3% of sales. The company maintained a net cash surplus of INR 2,922 crores (USD 341 million) and hedged USD 648 million using derivative contracts. The effective tax rate for the quarter was 25.9%, with the profit after tax reaching INR 1,419 crores (USD 166 million). Looking ahead, Dr. Reddy's anticipates growth driven by new product launches and strategic investments, although the U.S. generics market showed some softness.
Double-Digit Revenue Growth
Revenue grew by 11% year-over-year, driven by broad-based performance across most markets, except the U.S. generics business.
Biosimilar Business Momentum
Gained momentum through strategic collaboration with Alvotech for pembrolizumab, a biosimilar Keytruda, and sustained commitment to biosimilar development.
Environmental Leadership
Dr. Reddy's Carbon Disclosure Project (CDP) rating was elevated to an A, placing it among the top 2% globally.
India Business Growth
India business delivered a double-digit year-on-year growth of 11% with a 13% sequential increase, driven by new products and pricing.
Dr Reddy's Laboratories (RDY) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
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
Jul 29, 2025
$14.70
$14.76
+0.41%
May 09, 2025
$13.11
$13.33
+1.68%
Jan 23, 2025
$15.01
$14.08
-6.20%
Nov 05, 2024
$14.72
$14.54
-1.22%
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 Oct 24, 2025, Before Open (Confirmed).
What is Dr. Reddy's Laboratories Ltd (RDY) earnings time?
Dr. Reddy's Laboratories Ltd (RDY) earnings time is at Oct 24, 2025, Before Open (Confirmed).
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