Dr. Reddy’s Laboratories announced its financial results for the second quarter of FY27, reporting revenues of ₹8,671 crore, a 1.5% year-on-year increase. The company achieved an EBITDA margin of 20.6%, with EBITDA standing at ₹1,783 crore, marking a 24% year-on-year growth. Profit after tax (PAT) was ₹925 crore, up 36% YoY. The results reflect strong performance across key businesses and strategic initiatives.
Dr. Reddy’s Laboratories Reports Strong Q2 FY27 Financials
Dr. Reddy’s Laboratories has announced its unaudited financial results for the second quarter and half-year ended September 30, 2026. The company reported revenues of ₹8,671 crore for Q2 FY27, representing a 1.5% increase year-on-year, with a 7% increase quarter-on-quarter. This performance is attributed to double-digit growth in its base business, excluding certain segments.
Key Financial Highlights
The company achieved an EBITDA of ₹1,783 crore, with an EBITDA margin of 20.6%. This signifies a substantial 24% year-on-year growth in EBITDA and a 77% growth quarter-on-quarter. Profit Before Tax (PBT) stood at ₹1,228 crore, showing a 33% YoY increase. Profit After Tax (PAT) attributable to equity shareholders was ₹925 crore, up by a robust 36% year-on-year and 109% quarter-on-quarter.
Business Performance and Strategic Updates
In terms of business highlights, Dr. Reddy’s reported double-digit underlying base business growth, although reported YoY growth declined by 1.5% primarily due to lower lenalidomide sales. The company also announced an annualized Return on Capital Employed (RoCE) of 9.5% and a net cash surplus of ₹2,502 crore. Notable business developments include partnerships for dengue vaccine launch, expanded collaborations for HIV prevention, and approvals for biosimilars and generic treatments across various markets.
Segmental Revenue Split
The revenue split for Q2 FY27 shows Global Generics contributing 90% of the total revenue, amounting to ₹7,793 crore. PSAI contributed 9.5% with revenues of ₹831 crore, and Others accounted for 0.5%. The Global Generics segment saw revenue growth of 0.7% YoY and 8% QoQ, while PSAI grew 12% YoY and 2% QoQ. North America remains a significant market with revenues of ₹2,489 crore, followed by India (₹1,851 crore), Emerging Markets (₹2,059 crore), and Europe (₹1,393 crore).
Source: BSE
