Dr Reddy's targets net zero by FY2045, eliminates coal use

2 min read     Updated on 01 Jul 2026, 02:18 AM
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AI Summary

Dr Reddy's Laboratories filed its Business Responsibility and Sustainability Report for FY26, reporting a standalone turnover of ₹20,102 crore and eliminating coal from its fuel mix. The company committed to net zero emissions by FY2045 and carbon neutrality by 2030, with exports contributing 68% of turnover.

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Dr Reddy's Laboratories Ltd filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, reporting a standalone turnover of ₹20,102 crore. The pharmaceutical major committed to achieving net zero greenhouse gas emissions across its value chain by FY2045, a target approved by the Science Based Targets initiative (SBTi) during FY26. Additionally, the company aims for carbon neutrality in its direct operations by 2030. Exports contributed 68% of the total turnover, while 71% of input materials were sourced locally from within India.

The company detailed its environmental performance, highlighting the elimination of coal from its operational fuel mix. In FY26, Dr Reddy's completed a multi-year fuel transition, converting all primary operating boilers across its manufacturing network to biomass, briquettes, or piped natural gas. This initiative contributed to a reduction in Scope 1 and Scope 2 emissions. The company reported a decrease in total energy consumption to 46,49,832 GJ from 47,53,823 GJ in the previous year, with energy intensity improving to 13.8 GJ/₹ Million.

Financial and Operational Metrics

Dr Reddy's operations span pharmaceutical development, manufacturing, and sales, which account for 100% of its turnover. The report indicates that 71.5% of procurement was directly sourced from within the country, while 5.3% was sourced directly from MSMEs or small producers.

Metric FY 2025-26 FY 2024-25
Standalone Turnover ₹20,102 crore -
Export Contribution 68% -
Local Sourcing (India) 71.5% 72.7%
Sourcing from MSMEs 5.3% 5.2%

Environmental Performance

Water consumption stood at 19,56,215 kilolitres, with a water intensity of 5.82 KL/₹ Million. The company has implemented Zero Liquid Discharge facilities across 16 global manufacturing facilities. The report also noted that Dr Reddy's is a water-positive company since FY2023.

Parameter FY 2025-26 FY 2024-25
Total Energy Consumed (GJ) 46,49,832 47,53,823
Total Scope 1 Emissions (MT CO2e) 1,16,841 1,42,772
Total Scope 2 Emissions (Market Based) (MT CO2e) 57,977 94,690
Total Water Consumption (KL) 19,56,215 1,973,220

Social and Governance Highlights

The company employed 36,726 permanent and other-than-permanent employees as of the end of FY26. Women constituted 23.8% of the total workforce. The report noted that 43% of new launches in priority markets were first-to-market, exceeding the company's target of 40% by 2030. Dr Reddy's has set a goal to serve 1.5 billion patients by 2030. Regarding governance, the company stated that it received no fines or penalties from regulatory agencies during the financial year.

Historical Stock Returns for Dr Reddys Laboratories

1 Day5 Days1 Month6 Months1 Year5 Years
+2.11%+1.75%+7.86%+9.39%+8.13%+23.22%

What specific capital investments will be required to transition from the 2030 carbon neutrality goal to the broader net-zero target by 2045?

How will the elimination of coal and shift to biomass impact long-term operational costs and profitability margins?

What strategies will Dr Reddy's employ to reduce Scope 3 emissions given that 68% of turnover comes from exports?

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Dr Reddy's fixes July 23 for AGM, recommends Rs 8 dividend

1 min read     Updated on 21 Jun 2026, 02:13 AM
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AI Summary

Dr Reddy's Laboratories has scheduled its 42nd Annual General Meeting for July 23, 2026, via video conference, recommending a final dividend of Rs 8 per share for FY26. The record date for dividend entitlement is July 10, 2026. The company detailed TDS regulations, requiring shareholders to submit necessary documents by June 30, 2026, to ensure correct tax deduction.

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Dr Reddy's Laboratories has scheduled its 42nd Annual General Meeting (AGM) for Thursday, July 23, 2026, at 11.00 a.m. IST via video conference. The Board of Directors has recommended a final dividend of Rs 8 per equity share of face value Rs 1 each for the financial year ended March 31, 2026. Shareholders must ensure their bank details are updated to receive the dividend payment electronically on or before July 30, 2026.

The company has fixed Friday, July 10, 2026, as the record date to determine the entitlement of members to the final dividend, subject to approval at the AGM. The notice for the AGM and the Integrated Annual Report for FY26 will be sent electronically to shareholders who have registered their email addresses with the company or depository participants. Physical copies will not be dispatched.

Shareholders can participate in the AGM only through video conferencing or other audio-visual means, and their attendance will count towards the quorum. A remote e-voting facility will be available for members to cast their votes prior to or during the meeting. Detailed procedures for e-voting and joining the virtual meeting will be provided in the notice.

The company has outlined tax deduction at source (TDS) regulations applicable to dividend income effective from April 1, 2026. For resident shareholders with a valid PAN, the TDS rate is 10%, while it rises to 20% for those without a valid PAN or with an inoperative PAN. No tax will be deducted if the total dividend income does not exceed Rs 10,000 during the tax year 2026-27.

Non-resident shareholders will be subject to TDS at 20% plus applicable surcharge and cess, unless they opt for benefits under the Double Tax Avoidance Treaty (DTAA). To avail DTAA benefits, non-resident shareholders must submit a self-attested Tax Residency Certificate, PAN details, and Form 41. Shareholders must submit all necessary documents to the Registrar and Transfer Agent by 11.59 pm IST on June 30, 2026, to ensure the correct tax rate is applied.

Shareholder Category TDS Rate
Resident with valid PAN 10%
Resident without PAN/Invalid PAN 20%
Non-Resident (without DTAA) 20% + surcharge & cess

Historical Stock Returns for Dr Reddys Laboratories

1 Day5 Days1 Month6 Months1 Year5 Years
+2.11%+1.75%+7.86%+9.39%+8.13%+23.22%

How will the shift to a fully virtual AGM format impact shareholder engagement and voting participation compared to traditional physical meetings?

What does the recommended dividend of Rs 8 per share indicate about Dr Reddy's free cash flow and capital allocation strategy for FY26?

Could the new TDS regulations effective April 1, 2026, influence dividend yield attractiveness for foreign institutional investors?

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