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

*this image is generated using AI for illustrative purposes only.
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 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 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?































