Dr. Reddy's Laboratories Q3 Earnings Call Highlights

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MarketBeat

Wed, January 21, 2026 astatine 11:14 AM CST 9 min read

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Q3 results: Consolidated gross roseate 4.4% YoY to ₹8,727 crore ($971m) portion reported EBITDA borderline was 23.5% (24.8% excluding a one‑time labor‑code provision); nett aft taxation fell 14% YoY to ₹1,210 crore, pressured by little lenalidomide income and pricing erosion successful U.S./Europe contempt double‑digit maturation successful the basal concern excluding lenalidomide.
Pipeline and deals: Dr. Reddy’s precocious cardinal programs—semaglutide has India selling authorization with a planned motorboat connected March 21 and a imaginable Canada motorboat betwixt end‑Feb and May pending Health Canada, abatacept IV BLA was filed successful Dec 2025 and EU/US timelines were outlined—and the institution struck a commercialization collaboration with Immutep for eftilagimod alpha with $20m upfront and up to $350m successful milestones.
Regional mix: North America generics gross fell 16% YoY (mainly lenalidomide and terms erosion), portion India grew 19% and emerging markets jumped 32%, helping offset the U.S. decline; the institution continues to adhd caller launches and record galore planetary filings to enactment growth.
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Dr. Reddy's Laboratories (NYSE:RDY) reported a “resilient performance” successful its fiscal 3rd 4th of FY26, with gross maturation and dependable profitability contempt what absorption described arsenic product-specific headwinds, led by little lenalidomide income and continued pricing unit successful U.S. and European generics.

On the company’s net call, Chief Financial Officer M.V. Narasimham (MVN) said consolidated gross roseate 4.4% twelvemonth implicit twelvemonth to ₹8,727 crore ($971 million), though it declined 0.9% sequentially. Management attributed the quarter’s show to double-digit maturation successful basal businesses excluding lenalidomide, arsenic good arsenic favorable overseas speech movements, partially offset by weaker lenalidomide contributions and generic terms erosion.

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MVN said reported EBITDA borderline was 23.5%, which included a one-time proviso tied to changes successful worker payment obligations nether caller labour codes successful India. Excluding that provision, EBITDA borderline was 24.8%.

Gross borderline fell to 53.6%, down 505 ground points twelvemonth implicit twelvemonth and 104 ground points sequentially. MVN cited respective drivers down the compression, including little lenalidomide sales, terms erosion successful unbranded generics, adverse merchandise premix successful the PSA segment, and the labor-code provision. Adjusted for the one-off, gross borderline was 54.1%. Reported gross borderline was 57.4% for planetary generics and 17.3% for PSA.