Dr Reddy’s Laboratories’ consolidated net profit declined 86 per cent at ₹220 crore in the fourth quarter of the last financial year ended March 31, 2026, compared to ₹1,593 crore in the corresponding quarter of the previous year.
The total revenue of the Hyderabad-based company decreased 12 per cent at ₹7,516 crore in the quarter under review against ₹8,506 crore in the year-ago period.
In a press conference on Tuesday, M V Narasimham, CFO, Dr Reddy’s, attributed decline in revenue and net profit to lower lenalidomide (generic Revlimid) sales in the US and some specific items which were one-offs.
The results include the adverse impact of a Shelf Stock Adjustment (SSA) related to lenalidomide of ₹453 crore, impairment of CAR-T assets and Eftilagimod Alfa of a total of ₹228 crore and provisions related to VAT liability of ₹ 114 crore. Additionally, FY26 also included the adverse impact of VAT liability provision of ₹69 crore and ₹117 crore for New Labour Codes, the CFO said.
Revenue from North America declined 51 per cent at ₹1,756 crore while the same from Europe, India and emerging markets grew 14 per cent, 20 per cent and 29 per cent, respectively.
For the full year, total revenue increased 3 per cent at ₹33,593 crore even as the net profit declined 24 per cent at ₹4,285 crore.
Semaglutide
Dr Reddy’s is betting big on Semaglutide generic. It received the Notice of Compliance from the Pharmaceutical Drugs Directorate for generic Semaglutide injection in Canada, indicated for treatment of Type 2 diabetes. “We will be launching the drug in Canada over the next few days,’’ said Erez Israeli, CEO, Dr Reddy’s, adding that the company had adequate capacity to cater to the market needs in Canada.
Beyond Canada, it has already filed for approvals in multiple geographies and would launch the generic after approvals, according to Deepak Sapra, CEO – API & Services. “Semaglutide is a vehicle for us to enter GLP space and the Canadian approval validates our capabilities,’’ Sapra said. Dr Reddy’s, which received approval for the oral Semaglutide in India, will soon launch it in the domestic market at a “competitive” price, he added.
It has already launched generic Semaglutide Injection in India for treatment of Type 2 diabetes, under the brand ‘Obeda’ on the first day of market formation post loss of exclusivity in March.
During the quarter under review, it also forayed into hormone replacement therapy in India with acquisition of Progynova and related assets and received acceptance for review by the United States Food and Drug Administration (USFDA) of the Biologics License Application (BLA) for the Intravenous (IV) presentation of our abatacept biosimilar in the US.
Plan ahead
Going forward in the current financial year, Dr Reddy’s will focus on strengthening peptides, biosimilars, consumer health products and innovation. By 2030, the company would continue to be a large player in the generic segment but will also come in other key segments, G V Prasad, Co-Chairman and Managing Director, G V Prasad said.
Dr Reddy’s plans to invest ₹2,000 crore in the capex in the current financial year and will also scout for suitable acquisitions as it had a net cash surplus of ₹3,271 crore.
The board recommended a final dividend of ₹8 per equity share of face value of ₹1 each for FY26, subject to the approval of shareholders at the ensuing annual general meeting. The record date for determining the members eligible to receive the dividend has been fixed as July 10, 2026.
Dr Reddy’s scrip lost 0.75 per cent on the Bombay Stock Exchange to end at ₹1,270.10.