Dr. Reddy's Laboratories Ltd.Strong Base Growth Amid Headwinds

Dr. Reddy's Laboratories reported consolidated revenues of ₹8,727 crores in Q3 FY26, growing 4.4% year-on-year, driven by strong performance in India and Emerging Markets despite Lenalidomide headwinds in North America.

The underlying base business delivered robust double-digit growth with adjusted EBITDA margin at 24.8%, excluding a one-time Labour Code provision. India business surged 19% year-on-year to ₹1,603 crores, with organic growth of 17-18% driven by innovative products gaining physician acceptance. Emerging Markets posted exceptional 32% growth to ₹1,896 crores. Net profit declined 14% to ₹1,210 crores primarily due to Lenalidomide erosion.

Management secured DCGI approval for Semaglutide with India launch scheduled for March 21, 2026, and Canada launch expected between February-May 2026. Abatacept IV BLA was filed on schedule with approval anticipated end of calendar 2026. Management expressed confidence in sustaining 15-16% India growth and continues pursuing selective business development opportunities while maintaining cost discipline.