Dr Reddy's Q1 FY26 results: PAT up 2% at Rs 1,418 crore, revenue climbs 11%
Dr Reddy's Q1: The company's gross margin declined to 56.9 per cent, down from 60.4 per cent in the corresponding quarter of the previous fiscal.
- Jul 23, 2025,
- Updated Jul 23, 2025 5:36 PM IST
Dr Reddy's Laboratories Ltd on Wednesday posted a slight year-on-year (YoY) increase in profit after tax for the quarter ended June 30, 2025 (Q1 FY26), with PAT rising 2 per cent to Rs 1,417.8 crore from Rs 1,392 crore in the corresponding period last year.
Revenue from operations grew 11 per cent YoY to Rs 8,545.2 crore, up from Rs 7,672.7 crore in Q1 FY25. However, the company's gross margin declined to 56.9 per cent, down from 60.4 per cent in the corresponding quarter of the previous fiscal.
GV Prasad, Co-Chairman & Managing Director, said, "We delivered double-digit growth this quarter over the same period last year, reflecting our strength in branded markets and strong momentum in our Nicotine Replacement Therapy portfolio. That said, pricing pressure on Lenalidomide in the US generics market is expected to intensify."
In North America, Dr Reddy's reported a revenue of Rs 3,410 crore in Q1 FY26, marking a YoY decline of 11 per cent, mainly due to heightened price erosion in key products such as Lenalidomide.
In emerging markets, the revenue figure rose 18 per cent YoY to Rs 1,400 crore in Q1 FY26, supported by higher volumes of existing products, successful new launches across several countries and favorable foreign exchange movements.
In Europe, Dr Reddy's reported Q1 FY26 revenues of Rs 1,270 crore, reflecting a strong YoY growth of 142 per cent, primarily driven by contributions from the acquired NRT portfolio and incremental gains from new product launches, although partially offset by price erosion.
The quarterly earnings were released post-market hours today. Earlier in the day, the stock rose 0.58 per cent to close at Rs 1,247.55.
Dr Reddy's Laboratories Ltd on Wednesday posted a slight year-on-year (YoY) increase in profit after tax for the quarter ended June 30, 2025 (Q1 FY26), with PAT rising 2 per cent to Rs 1,417.8 crore from Rs 1,392 crore in the corresponding period last year.
Revenue from operations grew 11 per cent YoY to Rs 8,545.2 crore, up from Rs 7,672.7 crore in Q1 FY25. However, the company's gross margin declined to 56.9 per cent, down from 60.4 per cent in the corresponding quarter of the previous fiscal.
GV Prasad, Co-Chairman & Managing Director, said, "We delivered double-digit growth this quarter over the same period last year, reflecting our strength in branded markets and strong momentum in our Nicotine Replacement Therapy portfolio. That said, pricing pressure on Lenalidomide in the US generics market is expected to intensify."
In North America, Dr Reddy's reported a revenue of Rs 3,410 crore in Q1 FY26, marking a YoY decline of 11 per cent, mainly due to heightened price erosion in key products such as Lenalidomide.
In emerging markets, the revenue figure rose 18 per cent YoY to Rs 1,400 crore in Q1 FY26, supported by higher volumes of existing products, successful new launches across several countries and favorable foreign exchange movements.
In Europe, Dr Reddy's reported Q1 FY26 revenues of Rs 1,270 crore, reflecting a strong YoY growth of 142 per cent, primarily driven by contributions from the acquired NRT portfolio and incremental gains from new product launches, although partially offset by price erosion.
The quarterly earnings were released post-market hours today. Earlier in the day, the stock rose 0.58 per cent to close at Rs 1,247.55.