Dr. Reddy's Laboratories Limited has completed the allotment of 12,665 equity shares to eligible employees on February 17, 2026, under its employee stock option programs. The pharmaceutical company issued these fully paid-up shares of Re.1/- each following the exercise of stock options by employees under established compensation schemes.

Stock Option Schemes Details

The share allotment was executed under two distinct employee benefit programs operated by the company. Dr. Reddy's Employees Stock Options Scheme, 2002 and Dr. Reddy's Employees ADR Stock Options Scheme, 2007 facilitated this employee participation in company ownership. Both schemes were originally established under the erstwhile SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and now comply with current SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Exercise Price Structure

The 12,665 shares were exercised at three different price points, reflecting the varying grant dates and market conditions when the options were originally awarded to employees:

Share Capital Impact

Following this allotment, Dr. Reddy's Laboratories' equity structure has been updated to reflect the additional shares in circulation. The company's total issued shares now stand at 83,46,44,020, with the total issued share capital reaching Rs. 83,46,44,020/-. The newly allotted shares carry distinctive numbers ranging from 834630356 to 834643020 and are issued under ISIN INE089A01031.

Regulatory Compliance

The share allotment was conducted in full compliance with regulatory requirements under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The newly issued equity shares rank pari passu with existing shares, ensuring identical rights and privileges for all shareholders. No lock-in restrictions apply to these shares, and they are immediately tradeable on the stock exchanges where Dr. Reddy's Laboratories is listed, including BSE Limited, National Stock Exchange of India Limited, New York Stock Exchange Inc., and NSE IFSC Limited.

Dr. Reddy's Laboratories Limited has informed stock exchanges about a tax audit decision received by its Russian subsidiary from local tax authorities, resulting in a penalty of INR 24.50 million.

Tax Audit Decision Details

Dr. Reddy's Laboratories LLC, Russia, a step-down wholly-owned subsidiary of Dr. Reddy's Laboratories Limited, received the tax audit decision on January 23, 2026, from The Interdistrict Inspectorate of the Federal Tax Service of Russia. The decision pertains to the levy of Value Added Tax (VAT) upon re-classification of marketing services as taxable services by the Russian tax authority.

Financial Impact Assessment

The Russian tax authority has quantified a penalty in the following amount:

Despite the penalty imposed, Dr. Reddy's Laboratories has stated that based on their evaluation, there is no material impact on the financials, operations, or other activities of the company.

Regulatory Compliance and Next Steps

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as required for material events affecting listed companies. The company has indicated that it will evaluate filing the necessary reply to the Russian tax authority in response to this tax audit decision.

The communication was signed by K Randhir Singh, Company Secretary, Compliance Officer & Head-CSR, and was addressed to major stock exchanges including the National Stock Exchange of India, BSE Limited, New York Stock Exchange, and NSE IFSC Limited on January 24, 2026.