Highlights

• Dr Reddy’s reports Q4 FY26 revenue of Rs 7,516 crore with 12% year-on-year growth.
• India and emerging markets businesses record double-digit growth during fourth quarter performance.
• DRREDDY shares trade lower despite semaglutide and biosimilar regulatory developments in multiple markets.

Dr. Reddy's Laboratories (NSE:DRREDDY) announced its Q4 FY26 and FY26 audited financial results on May 12, 2026. The company reported quarterly revenue growth supported by India, Europe and emerging markets businesses, while profitability was impacted by shelf stock adjustments linked to lenalidomide and other specific items.

Quarterly Financial Performance

Dr Reddy’s reported Q4 FY26 revenue of Rs 7,516 crore, compared to Rs 6,713 crore in the corresponding period last year, reflecting 12% year-on-year growth. EBITDA stood at Rs 981 crore with EBITDA margin of 13%.

Profit before tax was reported at Rs 199 crore, while profit after tax attributable to equity shareholders came at Rs 220 crore during the quarter. The company said financials were impacted by a shelf stock adjustment of Rs 453 crore related to lenalidomide, impairment charges of Rs 228 crore linked to CAR-T and Eftilagimod Alfa, and VAT liability provision of Rs 114 crore.

Excluding specific items, revenue stood at Rs 7,969 crore while EBITDA margin was 19.5%.

Source: Company Filing

FY26 Financial Highlights

For FY26, consolidated revenue stood at Rs 33,593 crore, up 3% year-on-year. EBITDA came at Rs 7,659 crore with EBITDA margin of 23%, while PAT attributable to shareholders was Rs 4,285 crore.

The company stated that excluding shelf stock adjustment, FY26 revenue stood at Rs 34,046 crore, representing 4.6% year-on-year growth. Net cash surplus stood at Rs 3,271 crore as of March 31, 2026.

India Business Performance

India business revenue reached Rs 1,566 crore in Q4 FY26, rising 20% year-on-year. Growth was supported by innovation portfolio expansion, new product launches, acquisitions and price increases.

The company launched generic semaglutide injection in India under the brand name ‘Obeda®’ and also secured approval from DCGI for generic semaglutide tablets. Dr Reddy’s also entered hormone replacement therapy through acquisition of Progynova® and Cyclo-Progynova® in India.

North America and Emerging Markets

North America revenue stood at Rs 1,756 crore during Q4 FY26. The business was impacted by lower lenalidomide sales and one-time shelf stock adjustment. Excluding this impact, revenue was Rs 2,209 crore.

Emerging markets revenue increased 29% year-on-year to Rs 1,806 crore, supported by product launches, higher volumes and favourable forex movement. Europe revenue rose 14% year-on-year to Rs 1,452 crore.

The company also stated that it became the first company to secure approval for generic semaglutide injection for Type 2 Diabetes in Canada.

Share Performance

Dr Reddy’s Laboratories (NSE:DRREDDY) shares traded at Rs 1,256.20 on May 14, 2026, down 0.72%. The stock opened at Rs 1,265.30 and touched an intraday high of Rs 1,275.00 and low of Rs 1,256.00. Previous close stood at Rs 1,265.30, while VWAP was Rs 1,262.10.

Source: Trading View

Key Risks

• Product-specific pricing pressure may affect North America revenue growth trajectory.
  • Regulatory observations could impact approvals and product commercialization timelines globally.
  • Currency volatility may influence profitability across emerging and European markets.
  • One-time inventory adjustments can impact quarterly earnings and margin performance.

Summary

Dr Reddy’s Laboratories (NSE:DRREDDY) reported Q4 FY26 revenue of Rs 7,516 crore with growth across India, Europe and emerging markets businesses. Profitability was impacted by lenalidomide-related shelf stock adjustments and impairment charges. India business benefited from semaglutide launches and acquisitions. Despite operational growth and regulatory approvals, DRREDDY shares traded lower in the market session following the quarterly earnings announcement.

FAQs

Q: What was Dr Reddy’s Q4 FY26 revenue figure?
A: Dr Reddy’s reported Q4 FY26 revenue of Rs 7,516 crore during the quarter.

Q: Why did Dr Reddy’s profitability decline in Q4 FY26?
A: Profitability was impacted by lenalidomide shelf stock adjustment and impairment-related charges during quarter.

Q: What was the DRREDDY share price movement after earnings?
A: DRREDDY shares traded lower by 0.65% during the May 14, 2026 trading session.