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. Further, on May 18, 2026, the company filed the transcript of the earnings call for the quarter and financial year ended March 31, 2026, with the stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transcript has been made available on the company's official website.

Dr. Reddy's Laboratories Limited has announced an updated schedule for its participation in analyst and institutional investor meetings. The company, in an intimation dated May 16, 2026, filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, outlined a series of in-person group meets scheduled from May 20, 2026, to June 3, 2026.

Upcoming Investor Meeting Schedule

The management will engage with single institutions and investor groups across various global locations. The meetings are organized by financial institutions including Elara Capital, Bank of America, Nomura, and Investec. The detailed schedule is as follows:

Regulatory Disclosure

The intimation was submitted to the National Stock Exchange of India Ltd., BSE Limited, New York Stock Exchange Inc., and NSE IFSC Ltd. Dr. Reddy's Laboratories noted that the schedule of these meetings is subject to change due to any exigencies on the part of investors or the company. The filing was signed by K Randhir Singh, Company Secretary, Compliance Officer & Head-CSR.