Dr Reddys Laboratories

Dr. Reddy's Laboratories delivered consolidated revenues of ₹8,805 crores ($992 million) in Q2 FY26, marking 9.8% year-over-year growth despite pressure from lower Lenalidomide sales and product-specific price erosion in US generics. The growth was supported by the acquired consumer healthcare business and double-digit growth across other markets. EBITDA margins stood at 26.7%, while profit after tax grew 14% year-over-year to ₹1,437 crores ($162 million). The company made progress on key pipeline products with the Subject Expert Committee recommending approval for Semaglutide injection in India, and received positive opinion from European Medicines Agency for denosumab biosimilar. The India business reported strong 13% growth to ₹1,578 crores, moving up to 9th position in the Indian Pharmaceutical Market. North America generics declined 16% to $373 million due to Lenalidomide price erosion, while European generics grew 115% to €135 million driven by the acquired Nicotine Replacement Therapy portfolio. The company expects to submit Abatacept BLA by end of December 2025 and anticipates feedback on Semaglutide from Health Canada in coming weeks.

Dr Reddy's Laboratories has received a notice for not complying with Canadian regulations related to semaglutide, a diabetes and weight management medication.

Dr. Reddy's Labs has outlined its financial projections and strategic targets during a conference call. The company anticipates SG&A costs will be 28-30% of sales, while R&D expenses are projected to stay around 7% of sales. The pharmaceutical company plans to achieve target margins within two years, depending on the success of key products like Semaglutide and Abatacept. Dr. Reddy's is aiming for Semaglutide approvals in 87 nations within 12-15 months. The company expects gross margins between 20-25% in pharmaceutical services and active ingredients, and aims to achieve 25% EBITDA margins by FY27 despite short-term challenges from Lenalidomide decrease.