Dr. Reddy’s Laboratories has announced its unaudited financial results for the first quarter of Fiscal Year 2027 (Q1 FY27), ending June 30, 2026. The company reported ₹8,071 crore in revenues, marking a 6% YoY and 7% QoQ increase. EBITDA stood at ₹1,009 crore, with a margin of 12.5%. The company also highlighted progress in its business segments and strategic priorities.
Dr. Reddy’s Laboratories Q1 FY27 Financial Highlights
Dr. Reddy’s Laboratories Ltd. announced its unaudited financial results for the first quarter of Fiscal Year 2027 (Q1 FY27), which concluded on June 30, 2026. The company reported ₹8,071 crore in revenues, reflecting a 6% year-over-year (YoY) growth and a 7% quarter-over-quarter (QoQ) increase. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter was ₹1,009 crore, with an EBITDA margin of 12.5%. Profit Before Tax (PBT) was reported at ₹553 crore, and Profit After Tax (PAT) attributable to equity shareholders stood at ₹443 crore.
Key Financial Metrics and Performance
The reported revenues reached ₹8,071 crore. The EBITDA margin was 12.5%, and PBT was ₹553 crore. PAT attributable to equity shareholders was ₹443 crore. The company noted a semaglutide API related impact of ₹240 crore, which included inventory provision and other associated costs. EBITDA margin was further affected by increased solvent and freight costs stemming from the Middle East conflict. Reported Return on Capital Employed (RoCE) was 5.3%, and excluding the semaglutide API impact, it was 8%. The company maintained a healthy Net Cash surplus of ₹3,058 crore.
Business Highlights and Strategic Progress
Dr. Reddy’s continued to progress across its strategic priorities. Key business highlights include the first-to-market launch of the anti-cancer drug, bosutinib 400mg, in the US with a 180-day exclusivity. The company also became the first to launch generic semaglutide injection for Type 2 Diabetes in Canada and launched generic semaglutide tablets in India. New nutrition offerings, Celevida GLP+, were launched in collaboration with Nestlé. The novel in-licensed oncology drug, Toripalimab, entered the ₹100 crore club in India in under two years. Furthermore, a partnership was formed with Innoviva Specialty Therapeutics to develop and commercialize XACDURO®, a critical-care antibiotic. The company also received Fast Track Designation from the USFDA for its partnered product, COYA 302, for ALS treatment, and filed a Marketing Authorisation Application for abatacept IV with the European Medicines Agency.
Other Updates and ESG Focus
In terms of other updates, Dr. Reddy’s celebrated 25 years of NYSE listing. The company was placed in the top 1% globally by FTSE Russell and ranked 165th globally among TIME-Statista World’s Most Sustainable Companies. The company received a Form 483 with 7 observations following a PLI at its biologics facility in Bachupally, to which it responded within the timeline. It was also noted that certain batches of semaglutide were found to be out of specification due to an API issue.
Revenue Split and Geographic Performance
Overall revenues for Q1 FY27 stood at ₹8,071 crore, with Global Generics accounting for 89% and PSAI (Pharmaceutical Services and Active Ingredients) at 11%. Global Generics generated ₹7,199 crore, with PSAI at ₹852 crore. Geographically, North America contributed ₹2,205 crore, Europe ₹1,444 crore, India ₹1,718 crore, and Emerging Markets ₹1,833 crore. The North America performance was driven by double-digit growth in the base business, though impacted by lower lenalidomide sales. Emerging Markets saw growth driven by new product launches and favorable forex. India demonstrated consistent double-digit growth and outperformance. Europe’s performance was influenced by generics launches and forex tailwinds, offset by pricing pressure. PSAI margins were impacted by semaglutide API-related factors.
Key Financial Metrics Overview
Key financial metrics for Q1 FY27 included Revenues of ₹8,071 crore, Gross Margins of 46.5%, SG&A at 35.7%, R&D at 7.1%, and EBITDA Margins of 12.5%. Diluted EPS was ₹5.3. ROCE (Annualized) stood at 5.3%, CAPEX at ₹307 crore, and Cash Flow at -₹216 crore. Net Debt/Equity was -0.08. The company also provided specific adjustments for certain metrics, such as excluding semaglutide API impact and lenalidomide shelf stock adjustments.
Source: BSE
