Long-term EBITDA margin target of ~25%
Management reiterated 25% as the sustainable EBITDA margin level, though near-term will be higher due to lenalidomide.
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Dr. Reddy's Laboratories · forward-looking guidance across the available source record.
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U.S. growth momentum to continue
Expects sustained strong performance in North America generics, including base business growth and new product launches.
India innovation pipeline to drive top-5 aspiration
Plans to sign tens of licensing deals for innovative products in India, with meaningful revenue contribution from FY2025.
R&D investment in biosimilars to increase
Biosimilar R&D currently ~20% of total R&D; expected to grow progressively with pipeline advancement.
SG&A spend to be 27.5%-28% of sales for FY25
Management expects full-year SG&A as a percentage of sales to be in the range of 27.5% to 28%, despite Q1 being higher at 29.6%.
R&D spend to be 8.5%-9% of sales for FY25
R&D investment expected to be in the range of 8.5% to 9% of sales for the full fiscal year.
Effective tax rate of 24%-25% for FY25
Normal effective tax rate expected to be in the range of 24% to 25% for the fiscal year.
US generics to grow in single digits for FY25
Management expects North America generics to continue growing in single digits on a year-over-year basis, compensating for price erosion.
Semaglutide launch in Canada by early 2026
Expects approval between end-Oct and early-Nov 2025, with launch at LOE in Jan 2026, subject to IP clearance and approval.
R&D spend 7%-7.5% of sales for FY26
R&D investments expected in this range for the full fiscal year.
CapEx outflow INR 2,500-2,700 crore for FY26
Capital expenditure for the full year expected in this range, primarily for peptides and biosimilars.
EBITDA margin aspiration of 25%+ for base business
Aims to maintain EBITDA margin north of 25% for the base business, with semaglutide expected to be accretive.
India business to achieve double-digit growth by end of FY2024
Management expects India business to exit FY2024 with double-digit growth, driven by licensing deals and focus portfolio expansion.
25-30 product launches in US for FY2024
Company is on track to launch 25-30 products in the US this fiscal year, with 4 launched in Q2.
Biosimilar rituximab launch in US in early FY2025
Rituximab biosimilar submitted in April 2023; pre-approval inspection completed. Launch expected in early FY2025 if regulatory issues resolved.
SG&A as % of sales to remain around 28-29% for FY2024
CFO indicated SG&A as a percentage of sales will be in the 28-29% range for the full year, despite investments in digitalization and brands.
SG&A spend to be 27.5%-28% of sales for FY25
Management expects SG&A as a percentage of sales to be in the range of 27.5%-28% for the full fiscal year.
R&D spend to be 8.5%-9% of sales for FY25
Management expects R&D investment to be in the range of 8.5%-9% of sales for the full fiscal year.
Normalized ETR around 25% for FY25
Management expects the normalized effective tax rate to be around 25% for the fiscal year.
Abatacept biosimilar launch in early calendar 2027
Management guided that the Abatacept biosimilar is expected to launch in early calendar 2027, with phase III trials nearly complete.
EBITDA margin to return to 25%+ in two years
Management maintains commitment to achieving 25%+ EBITDA margins within the next two years, driven by cost efficiencies and pipeline growth.
Abatacept BLA submission by end of December 2025
BLA for abatacept IV will be submitted by end of calendar 2025, with high confidence in approval.
Semaglutide launch in 87 countries within 12-15 months
Expects to obtain approval in 87 countries and launch 12 million pens, with Canada as a key market.
PSAI gross margin to improve to 20-25%
CFO guided PSAI gross margin to be in the 20-25% range going forward, up from 18% in Q2.
India business to deliver double-digit growth from FY25
Management expects India base business to return to double-digit growth in coming quarters, driven by key brands growing at 1.5x market rate.
26 meaningful US launches over FY25-26
Approximately 26 products with potential sales >$10M each are expected to launch in the US over the next two years, subject to approvals.
Six biosimilars targeting first-to-market by FY30
Biosimilar pipeline includes six products aiming for first-to-market status, with first launch expected in early CY2027.
SG&A investments to continue at elevated levels
SG&A spend will remain higher in absolute terms as investments in brands and pipeline products continue, with revenue growth expected to provide operating leverage.
R&D spend guidance of 8.5%-9% for FY25
Management expects full-year R&D investment to be in the range of 8.5% to 9% of sales.
Semaglutide launch in Canada in January 2026
Expects to launch generic semaglutide in Canada upon patent expiry in January 2026, subject to regulatory approval.
Abatacept biosimilar filing in December 2025
Plans to file abatacept biosimilar in the US by December 2025, with potential launch in January 2027.
SG&A expenses to remain around 28% of sales
Management indicated SG&A as a percentage of sales will stay at current levels (~28%) going forward.
Semaglutide launch in India on March 21, 2026
Dr. Reddy's will launch generic Ozempic (diabetes) in India on March 21, with all strengths including oral Rybelsus.
Canada Semaglutide approval expected by May 2026
Health Canada response expected between end-February and May 2026, with launch preparation underway for Q4 or Q1.
Abatacept U.S. launch expected end of calendar 2026
IV presentation BLA filed December 2025; approval expected around end-2026, with sub-Q filing in July 2026 and launch by Jan/Feb 2028.
Global generics gross margin range 50%-55% post-lenalidomide
From Q4 FY26 onwards, without lenalidomide, global generics and PSAI gross margin expected in 50%-55% range.
R&D spend to be 8.5%-9% of sales in FY25
Management expects R&D investment to remain in the 8.5%-9% range, with fluctuations based on clinical trial timing.
India business to grow double-digit in FY25
Excluding divestment income, India business is expected to continue double-digit growth, driven by new product launches and partnerships.
Nestlé JV to contribute post-FY27
The joint venture with Nestlé will require initial investment and brand registration; meaningful revenue contribution expected after FY27.
First meaningful biosimilar launch in FY27
Internal biosimilar pipeline expected to yield first product launch in Europe and US in FY27, with profitability thereafter.
Double-digit revenue growth in FY26
Management expects double-digit revenue growth for FY2026, including contributions from new launches and biosimilars, despite REVLIMID exclusivity ending in January 2026.
EBITDA margin maintained at ~28% in FY26
Management guided for EBITDA margins to remain around 28% in FY2026, similar to FY2025 levels, through productivity measures and revenue growth.
Semaglutide launch in Canada and India in CY2026
Management confirmed plans to launch generic semaglutide in Canada and India during calendar 2026, pending IP landscape and regulatory approvals.
Abatacept filing by end of CY2025
Phase III trials ongoing; submission planned for end of 2025, with IV launch expected immediately after patent expiry and sub-Q launch a year later.
FY27 gross margin above 50%
Management expects gross margins to improve above 50% in FY27, driven by semaglutide launches and cost improvement programs.
FY27 EBITDA margin near 25% with semaglutide
EBITDA margin is expected to approach 25% in FY27, aided by semaglutide sales, though may be slightly below.
FY27 R&D spend 7%-8% of revenue
R&D expenditure is expected to be in the range of 7%-8% of adjusted revenue in FY27.
FY27 CapEx around INR 2,000 crore
Capital expenditure for FY27 is guided at approximately INR 2,000 crore, primarily for biosimilars and product-specific investments.