Dr Reddy's Laboratories reported a sharp decline in its financial performance for the quarter ended March 31, 2026, primarily impacted by specific one-time items including a shelf stock adjustment and impairment charges. The company's consolidated net profit for Q4FY26 stood at ₹220 Cr, a significant decrease of 86% compared to the corresponding period in the previous year. Revenue from operations for the quarter was ₹7,516 Cr, marking a 12% year-on-year decline. The board recommended a final dividend of ₹8 per share during the quarter.

Q4 Financial Performance

The company reported an EBITDA of ₹981 Cr for the quarter, down 60% year-on-year, with an EBITDA margin of 13%. The financial results were adversely affected by specific items, including a shelf stock adjustment (SSA) of ₹453 Cr related to lenalidomide, a VAT liability provision of ₹114 Cr, and an impairment of CAR-T & Eftilagimod Alfa amounting to ₹228 Cr. Excluding these specific items, the EBITDA margin was reported at 19.5%.

FY26 Financial Highlights

For the full fiscal year FY26, the company reported revenues of ₹33,593 Cr, a 3% year-on-year increase. Profit after tax (PAT) for the year stood at ₹4,285 Cr, down 24% YoY, while EBITDA was ₹7,659 Cr, a decline of 17% YoY with a margin of 23%. Excluding the impact of specific items such as the SSA, VAT liability, and impairment charges, the company noted a double-digit growth in its base business. Excluding the one-time SSA of ₹453 Cr, revenues for FY26 were ₹34,046 Cr, representing a growth of 4.6%. The Return on Capital Employed (RoCE) for the year was reported at 16%, which improved to 17.5% when excluding the impact of specific items.

Segment Performance

Revenue from North America fell 51% year-on-year to ₹1,756 Cr, largely due to lower lenalidomide sales and the one-time shelf stock adjustment. Excluding the SSA, North America revenues declined by 38%. Conversely, Emerging Markets revenues grew 29% to ₹1,806 Cr, driven by new product launches and favorable forex. India revenues increased 20% to ₹1,566 Cr, supported by new brand launches and acquisitions, while Europe revenues rose 14% to ₹1,452 Cr, aided by forex tailwinds.

Operational and Business Highlights

Despite the quarterly decline, the company highlighted double-digit growth in its base business, excluding the impact of lenalidomide and its SSA. Dr Reddy's secured approval for generic semaglutide injection in Canada and launched the product under the brand name 'Obeda' in India. The company also forayed into Hormone Replacement Therapy with the acquisition of Progynova and Cyclo-Progynova in India. Additionally, the Biologics Licence Application (BLA) for its abatacept biosimilar was accepted for review by the USFDA. The company also completed the integration of 95% of the acquired NRT business by value as of March 2026.

Regulatory Disclosures

In compliance with SEBI's listing regulations, Dr Reddy's filed a disclosure on May 12, 2026, sharing the audio recording of its Q4FY26 earnings call conducted on the same date, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was submitted to the National Stock Exchange of India, BSE Limited, New York Stock Exchange, and NSE IFSC Ltd., and the recording has been made available on the company's official website. Subsequently, on May 13, 2026, the company submitted copies of the newspaper advertisement regarding the audited financial results to the stock exchanges, confirming publication in Business Standard and Andhra Prabha, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

dr reddys laboratories witnessed a notable block trade on the National Stock Exchange (NSE), with approximately 407,964 shares transacted at a price of ₹1261.30 per share. The total value of the block trade stood at ₹51.46 crores, drawing attention from market participants who closely monitor such large-scale transactions.

Block Trade Details

The following table summarises the key parameters of the block trade recorded on the NSE:

Significance of Block Trades

Block trades involve the purchase or sale of a large number of shares in a single transaction and are typically executed by institutional investors such as mutual funds, foreign portfolio investors, or other large financial entities. Such transactions are conducted outside the open market order book to minimise price impact and are closely watched as they may reflect significant portfolio activity by major stakeholders.