Dr Reddys Laboratories , a leading Indian pharmaceutical company, has announced the dissolution of its wholly owned subsidiary, Imperial Owners and Land Possessions Private Limited (formerly Imperial Credit Private Limited). This development marks the conclusion of a voluntary liquidation process that began in early 2023.

Key Details of the Dissolution

• Approval Date: The National Company Law Tribunal (NCLT), Hyderabad Bench, approved the voluntary liquidation through an order dated August 5, 2025.
• Effective Date: The dissolution became effective from August 5, 2025.
• Notification: Dr Reddys Laboratories received the certified copy of the order on August 7, 2025.

Background and Impact

The dissolution of Imperial Owners and Land Possessions Private Limited follows a series of intimations provided by Dr Reddys Laboratories regarding the ongoing voluntary liquidation process. These intimations were dated:

• March 23, 2023
• January 30, 2024
• October 10, 2024

It's important to note that Imperial was not considered a material subsidiary of Dr Reddys Laboratories. As such, the company has stated that the liquidation will have no material impact on its consolidated financial statements.

Regulatory Compliance

This announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Dr Reddys Laboratories has duly informed the relevant stock exchanges, including:

• National Stock Exchange of India Ltd. (NSE)
• BSE Limited
• New York Stock Exchange Inc.
• NSE IFSC Ltd

Conclusion

The dissolution of Imperial Owners and Land Possessions Private Limited appears to be part of Dr Reddys Laboratories' ongoing efforts to streamline its corporate structure. While this development doesn't significantly impact the company's financials, it demonstrates the company's commitment to maintaining transparency with its stakeholders and adhering to regulatory requirements.

Dr Reddys Laboratories , a leading Indian pharmaceutical company, reported strong financial results for the first quarter, with consolidated revenues reaching ₹8,545.00 crores ($997.00 million). The company demonstrated resilient performance across most markets, achieving an 11% year-over-year growth while maintaining flat sequential growth.

Financial Highlights

• Consolidated revenues: ₹8,545.00 crores ($997.00 million), up 11% YoY
• EBITDA margin: 26.7%, slightly above the company's 25% target
• Profit after tax: ₹1,419.00 crores ($166.00 million)
• Gross profit margin: 56.9%, down 350 basis points YoY but up 134 basis points sequentially
• R&D spend: ₹624.00 crores ($73.00 million), 7.3% of sales

Segment Performance

North America Generics

• Revenue: $400.00 million, down 17% YoY
• Decline primarily due to price erosion in Lenalidomide and customer procurement timing
• Launched five new products during the quarter

European Generics

• Revenue: €131.00 million, up 124% YoY
• Growth driven by the acquired Nicotine Replacement Therapy portfolio
• Introduced 13 new generic products across European markets

India Business

• Revenue: ₹1,471.00 crores, up 11% YoY
• Double-digit growth momentum maintained
• Launched five new brands, including two innovative assets

Emerging Markets

• Revenue: ₹1,404.00 crores, up 10% YoY
• Growth driven by higher volumes and new product launches
• Russia business grew 17% YoY in constant currency terms

Strategic Developments

Dr. Reddy's CEO, Erez Israeli, highlighted several key strategic initiatives and updates:

1. Biosimilars: Entered a strategic collaboration with Alvotech for the co-development, manufacture, and commercialization of pembrolizumab, a biosimilar to Keytruda®.

2. Nicotine Replacement Therapy (NRT) Business: Successfully integrated operations in the UK and Nordics, with plans to expand to Canada, Australia, and select Western European countries.

3. Regulatory Inspections:

   • Middleburgh API facility in New York received VAI classification from USFDA
   • CTO-5 API facility in Miryalaguda, Telangana, and FTO-11 formulations facility in Srikakulam, Andhra Pradesh, underwent USFDA inspections

4. Semaglutide:

   • Expecting approval between late October and early November 2025
   • Targeting launch in January 2026, coinciding with loss of exclusivity
   • Anticipating capacity of 12 million pens for FY27 through partnership arrangements

5. R&D Focus: Concentrated on complex generics, high-impact areas like GLP-1 agonists, and biosimilars

Outlook

Dr. Reddy's maintains a positive outlook, focusing on strengthening its base business, advancing key pipeline assets, and improving efficiency. The company is actively exploring strategic partnerships and acquisitions to diversify and strengthen its portfolio.

Mr. Israeli emphasized the company's commitment to maintaining profitability, with a target EBITDA margin of 25% or higher. He also highlighted the potential of the GLP-1 agonist market, particularly semaglutide, as a significant growth driver for the coming years.

With a strong balance sheet, including a net cash surplus of $341.00 million, Dr. Reddy's is well-positioned to invest in future growth opportunities and navigate the evolving pharmaceutical landscape.

Conclusion

Dr. Reddy's Q1 results demonstrate the company's resilience and strategic focus on high-growth areas. Despite challenges in certain markets, the diversified business model and investments in innovative products position the company for sustained growth in the coming quarters.