Dr. Reddy’s Laboratories announced its Q3FY26 results, with revenue increasing by 4.4% YoY to ₹87,268 million. Growth was supported by branded businesses and favorable forex, offsetting lower Lenalidomide sales. The company continues to focus on disciplined execution of strategic priorities, aiming to create long-term value for its stakeholders.
Financial Performance
Dr. Reddy’s Laboratories reported a revenue of ₹87,268 million for Q3FY26, a 4.4% increase compared to the same quarter last year, but a 0.9% decline QoQ. Nine-month revenue reached ₹260,771 million, up by 8.4% YoY.
Gross margin stood at 53.6% in Q3FY26, compared to 58.7% in Q3FY25. R&D expenses amounted to ₹6,149 million, or 7.0% of revenues.
Profit before tax for Q3FY26 was ₹15,429 million, while profit after tax attributable to equity holders reached ₹12,098 million.
Segmental Performance
Global Generics: Q3FY26 revenue stood at ₹79,113 million, a 7% increase YoY and 1% QoQ. Nine-month revenue reached ₹233,231 million, up by 9% YoY.
North America: Q3FY26 revenues were ₹29,644 million, a 12% YoY decline. Nine-month revenues reached ₹96,175 million, a 12% YoY decline.
Europe: Q3FY26 revenues reached ₹14,476 million, a 20% YoY increase. Nine-month revenues were ₹40,981 million, a 77% YoY increase.
India: Q3FY26 revenues reached ₹16,032 million, a 19% YoY increase. Nine-month revenues reached ₹46,523 million, a 14% YoY increase.
Emerging Markets: Q3FY26 revenues were ₹18,961 million, a 32% YoY increase. Nine-month revenues reached ₹49,552 million, a 21% YoY increase.
Pharmaceutical Services and Active Ingredients (PSAI): Q3FY26 revenues were ₹8,018 million, a 2% YoY decrease. Nine-month revenues reached ₹25,649 million, a 6% YoY increase.
Key Business Highlights
Dr. Reddy’s entered into a strategic collaboration with Immutep for the commercialization of Eftilagimod Alfa.
The company launched Hevaxin, a recombinant vaccine for Hepatitis-E, in India.
Marketing authorization was received for Semaglutide injection in India.
The company completed filing of the Biologics License Application (BLA) for its Abatacept biosimilar candidate.
European Commission approved the company’s Denosumab biosimilar for the UK market.
Source: BSE
