Dr. Reddy's Laboratories Q1 Results: Net Profit Rises 2% YoY to Rs 1,418 Crore, Revenue Grows 11%

Pharmaceutical major Dr. Reddy's Laboratories reported its financial results for the first quarter (Q1) of FY26 on Thursday, posting a modest 2% year-on-year (YoY) increase in consolidated net profit at Rs 1,418 crore. The company's revenue from operations rose 11% YoY to Rs 8,545 crore, driven by broad-based growth across geographies and segments, including contributions from its acquired consumer healthcare portfolio.

Dr Reddy's Laboratories Q1 Results: Net Profit and Revenue in Q1 FY2026

However, on a quarter-on-quarter (QoQ) basis, the profit declined by 11%, while revenue remained largely flat.

The company attributed its top-line performance to a steady performance in branded markets and increased contribution from the Nicotine Replacement Therapy (NRT) portfolio it acquired in recent quarters.

Dr Reddy's Laboratories EBITDA: The EBITDA for the June quarter stood at Rs 2,280 crore, registering a 5% YoY increase, although the EBITDA margin declined by 530 basis points to 56.9%. This margin contraction was mainly due to price erosion in the generics segment and lower operating leverage. A favourable product mix helped offset some of these pressures.

Global Generics Segment Faces US Headwinds

Dr. Reddy's Global Generics business brought in Rs 7,560 crore, reflecting a 10% YoY increase, although the figure remained unchanged sequentially. The North America market, a key revenue contributor, witnessed a sharp 11% YoY decline in revenue to Rs 3,410 crore, mainly due to increased pricing pressure in critical generic drugs, particularly Lenalidomide, a treatment for multiple myeloma. The company also warned that pricing pressures in the US generics market are likely to intensify further, impacting performance in upcoming quarters.

Dr Reddy's Launched Five New Products

During the quarter, Dr. Reddy's launched five new products in the US and filed one new abbreviated new drug application (ANDA) with the US Food and Drug Administration (USFDA). Meanwhile, European operations recorded Rs 1,270 crore in revenue, reflecting an impressive 142% YoY growth, driven primarily by the NRT acquisition and strong performance from new product launches in the region.

India Sees Double-Digit Growth on New Launches

In India, the pharmaceutical giant reported Rs 1,470 crore in revenue, marking an 11% increase YoY. This was supported by new product introductions, price hikes, and effective commercial strategies. The company introduced five new brands in India during the quarter, further strengthening its domestic portfolio.

Revenues from emerging markets improved by 18% YoY, backed by higher sales volumes, successful new product launches, and a favourable forex environment. In the Pharmaceutical Services and Active Ingredients (PSAI) segment, revenue reached Rs 820 crore, reflecting a 7% YoY growth.

Dr Reddy's Share Price Today

On Wednesday, shares of Dr. Reddy's Laboratories closed at Rs 1,248 on the National Stock Exchange (NSE), registering a mild gain of 0.6%. Despite margin pressures, the company's consistent top-line growth and geographic diversification signal resilience in a challenging global pharma landscape.