Dr Reddy's Labs share price: PAT falls 36% in Q2; should you buy, sell or hold? Check targets
Dr Reddy's Labs shares jump after Q2 results as JPMorgan upgrades the stock. Check target prices and ratings from top domestic and global brokerages.
- Oct 26, 2026,
- Updated Oct 26, 2026 3:53 PM IST
Shares of Dr Reddys Laboratories Ltd jumped as much as 8 per cent during Monday's trading session after the pharma major reported better-than-expected margins for the September 2026 quarter. Shares of Dr Reddy's Labs soared nearly 7.75 per cent to Rs 1,318.80 during the session. However, the stock settled at Rs 1,303, up 6.4 per cent, taking the company's total market capitalisation to Rs 1.08 lakh crore.
Dr Reddy's Labs reported a 36 per cent YoY fall in net profit to Rs 913 crore, while revenue declined nearly 2 per cent on a yearly basis to Rs 8,670.8 crore for the quarter ended September 30, 2026. Its EBITDA declined 14 per cent YoY to Rs 1,731 crore, and margins contracted by 290 basis points to 19.90 per cent but remained above Street expectations.
Global brokerage firm JPMorgan upgraded Dr Reddy's Labs to 'neutral' from 'underweight' after nearly four years, with a price target of Rs 1,270. The brokerage said the stock's underperformance had made its risk-reward profile more balanced. The improvement was attributed to new product launches, a favourable business mix, cost efficiencies and foreign exchange tailwinds, JPMorgan noted.
Goldman Sachs raised its target price on Dr Reddy's to Rs 1,150 but retained a 'sell' rating. It increased its FY27-FY29 EPS estimates by up to 4 per cent. The brokerage expects mid-teens growth in India and Russia and double-digit growth in the US, excluding Revlimid. However, it flagged concerns over the generic Ozempic opportunity, a limited near-term pipeline of high-value products and pricing pressure on established drugs.
CLSA retained its 'hold' rating but raised its target price to Rs 1,280 from Rs 1,240. The brokerage said revenue was in line with expectations, while margins beat estimates due to better cost controls and lower R&D spending. It expects growth in the US and India, with generic semaglutide sales supporting margin improvement to 25 per cent.
HSBC has a 'buy' rating on the stock, with a target price of Rs 1,375. It raised its FY27 EPS estimate by 8.1 per cent, citing expectations of better gross margins in the second half of FY27. It remains positive on Dr Reddy's long-term growth prospects and the opportunity from generic semaglutide.
Among other brokerages, Choice Institutional Equities has an 'add' rating with a target price of Rs 1,380, while JM Financial, ICICI Securities and Systematix have 'buy' ratings with target prices of Rs 1,541, Rs 1,430 and Rs 1,461, respectively. Kotak has a 'reduce' rating with a target price of Rs 1,220. Nomura has a 'buy' rating with the highest target price of Rs 1,730, implying 33 per cent upside.
Shares of Dr Reddys Laboratories Ltd jumped as much as 8 per cent during Monday's trading session after the pharma major reported better-than-expected margins for the September 2026 quarter. Shares of Dr Reddy's Labs soared nearly 7.75 per cent to Rs 1,318.80 during the session. However, the stock settled at Rs 1,303, up 6.4 per cent, taking the company's total market capitalisation to Rs 1.08 lakh crore.
Dr Reddy's Labs reported a 36 per cent YoY fall in net profit to Rs 913 crore, while revenue declined nearly 2 per cent on a yearly basis to Rs 8,670.8 crore for the quarter ended September 30, 2026. Its EBITDA declined 14 per cent YoY to Rs 1,731 crore, and margins contracted by 290 basis points to 19.90 per cent but remained above Street expectations.
Global brokerage firm JPMorgan upgraded Dr Reddy's Labs to 'neutral' from 'underweight' after nearly four years, with a price target of Rs 1,270. The brokerage said the stock's underperformance had made its risk-reward profile more balanced. The improvement was attributed to new product launches, a favourable business mix, cost efficiencies and foreign exchange tailwinds, JPMorgan noted.
Goldman Sachs raised its target price on Dr Reddy's to Rs 1,150 but retained a 'sell' rating. It increased its FY27-FY29 EPS estimates by up to 4 per cent. The brokerage expects mid-teens growth in India and Russia and double-digit growth in the US, excluding Revlimid. However, it flagged concerns over the generic Ozempic opportunity, a limited near-term pipeline of high-value products and pricing pressure on established drugs.
CLSA retained its 'hold' rating but raised its target price to Rs 1,280 from Rs 1,240. The brokerage said revenue was in line with expectations, while margins beat estimates due to better cost controls and lower R&D spending. It expects growth in the US and India, with generic semaglutide sales supporting margin improvement to 25 per cent.
HSBC has a 'buy' rating on the stock, with a target price of Rs 1,375. It raised its FY27 EPS estimate by 8.1 per cent, citing expectations of better gross margins in the second half of FY27. It remains positive on Dr Reddy's long-term growth prospects and the opportunity from generic semaglutide.
Among other brokerages, Choice Institutional Equities has an 'add' rating with a target price of Rs 1,380, while JM Financial, ICICI Securities and Systematix have 'buy' ratings with target prices of Rs 1,541, Rs 1,430 and Rs 1,461, respectively. Kotak has a 'reduce' rating with a target price of Rs 1,220. Nomura has a 'buy' rating with the highest target price of Rs 1,730, implying 33 per cent upside.