Dr Reddys Laboratories , a leading pharmaceutical company, held its 41st Annual General Meeting (AGM) on July 24, 2025, where shareholders approved several key resolutions, including the re-appointment of G V Prasad as Whole-Time Director designated as Co-Chairman and Managing Director for a five-year term.

Leadership Continuity

G V Prasad, one of the company's promoters and a veteran in the pharmaceutical industry, received shareholder approval for his re-appointment from January 30, 2026, to January 29, 2031. This decision follows the Board of Directors' earlier approval on May 9, 2025, based on recommendations from the Nomination, Governance and Compensation Committee.

Prasad, who holds engineering degrees from the Illinois Institute of Technology and Purdue University, brings over 36 years of leadership experience to his role. His re-appointment signifies a continuation of the strategic direction that has shaped Dr. Reddy's into a globally recognized organization known for scientific innovation, progressive people practices, and high standards of corporate governance.

Key AGM Resolutions

The AGM, conducted through Video Conferencing (VC) and Other Audio Visual Means (OAVM), saw the passage of several other important resolutions:

1. Adoption of financial statements for the year ended March 31, 2025
2. Declaration of a dividend of Rs. 8.00 per equity share for FY2025
3. Approval of remuneration for Cost Auditors M/s. Sagar & Associates for FY2026
4. Appointment of M/s. Makarand M. Joshi & Co. as Secretarial Auditors

Shareholder Participation and Voting

The AGM witnessed strong shareholder participation, with 85 members holding 22,33,11,552 shares attending via VC/OAVM. The company provided remote e-voting facilities and e-voting during the AGM to ensure maximum shareholder participation in the decision-making process.

Financial Performance

While specific financial details were not provided in the LODR data, the approval of financial statements and declaration of dividends suggest a stable financial performance for the fiscal year 2025.

Corporate Governance

The re-appointment of G V Prasad and the appointment of new auditors underscore Dr. Reddy's commitment to maintaining strong corporate governance practices. The company continues to focus on transparency and compliance with regulatory requirements.

Looking Ahead

As Dr. Reddy's Laboratories moves forward with its leadership team in place, the company is poised to continue its focus on innovation, global expansion, and enhancing shareholder value in the competitive pharmaceutical landscape.

The successful conclusion of the AGM and the overwhelming support for key resolutions reflect shareholder confidence in the company's strategic direction and leadership under G V Prasad's continued guidance.

Dr Reddys Laboratories shares traded 2.53% higher despite reporting quarterly results that missed analyst estimates. The company posted consolidated net profit of Rs 1,418.00 crore, up 1.8% year-on-year but below the Rs 1,514.00 crore consensus estimate. Revenue rose 11.4% to Rs 8,572.00 crore, missing projected Rs 8,693.00 crore.

Operating margins narrowed to 25.4% from 27.7% in the same quarter last year. The earnings miss was attributed to pricing pressure in the U.S. generics market, particularly on Revlimid, and lower operating leverage.

Brokerage Reactions

Brokerages had mixed reactions to the results:

• Morgan Stanley maintained an 'Equal-weight' rating with a Rs 1,298.00 target price.
• BofA reiterated a 'Buy' rating and raised its target price to Rs 1,600.00.
• Macquarie maintained a 'Neutral' rating with a Rs 1,190.00 target, describing the performance as a 'modest all-round miss.'

The company faces continued headwinds in the U.S. market and regulatory inspections at multiple sites. Despite these challenges, Dr. Reddy's shares showed resilience in the market.

Management Commentary

G V Prasad, Co-Chairman & MD, commented on the results: "We delivered double-digit growth this quarter over the same period last year, reflecting our strength in branded markets and positive momentum in the Nicotine Replacement Therapy portfolio. The pricing pressure on Lenalidomide is expected to intensify in the U.S. generics market. We remain focused on strengthening our base business by delivery of our pipeline assets, improving overall productivity and business development."

Segment Performance

The company's performance across different segments varied:

• Global Generics revenue increased by 10% year-on-year
• PSAI (Pharmaceutical Services and Active Ingredients) revenue grew by 7%
• North America revenues declined due to increased price erosion in certain key products
• Europe saw significant growth, up 142%, driven by the acquired Nicotine Replacement Therapy business
• India market grew by 11%, driven by new product introductions and price increases
• Emerging Markets showed strong performance, particularly in Russia with 28% year-on-year growth

Strategic Initiatives and Sustainability

Dr. Reddy's announced several strategic initiatives, including expanded partnerships and new product launches, to drive future growth. The company improved its Carbon Disclosure Project rating to 'A' in the Climate category, positioning it among the top 2% of global companies assessed.

Despite the mixed quarterly results, Dr. Reddy's Laboratories continues to focus on innovation, strategic partnerships, and sustainable growth in the competitive pharmaceutical sector.