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Revenue
₹8,038 Cr
verified against source
Revenue YoY
17%
reported change
EBITDA
₹2,280 Cr
latest reported figure
Source
nse xbrl
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Dr. Reddy's delivered a strong Q2 FY25 with consolidated revenues of ₹8,016 crore, up 17% YoY, driven by broad-based growth across all markets. EBITDA margin stood at 28.4% (29.1% adjusted for one-time costs), while PAT (ex-NCI) was ₹1,255 crore. Key growth drivers included robust performance in North America (16% YoY), India (18% YoY), and Russia (27% YoY in constant currency). The company completed the Nicotinell acquisition and Nestlé JV, and is investing in high-value generics, biosimilars (Abatacept launch targeted early 2027), and GLP-1 APIs. Management expects SG&A to be 27.5%-28% of sales for FY25 and R&D at 8.5%-9%. A key risk is the dependency on US FDA approvals for complex product launches and potential pricing erosion in generics.
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Guidance to track
- Management expects SG&A as a percentage of sales to be in the range of 27.5%-28% for the full fiscal year.
- Management expects R&D investment to be in the range of 8.5%-9% of sales for the full fiscal year.
- Management expects the normalized effective tax rate to be around 25% for the fiscal year.
- Management guided that the Abatacept biosimilar is expected to launch in early calendar 2027, with phase III trials nearly complete.
Risks flagged
- Launch of high-value products like Rituximab biosimilar in the US depends on FDA approval, which is uncertain and could be delayed.
- Revenue from lenalidomide (Revlimid) is subject to confidential agreements and competitive pressures; management declined to provide specific guidance on future sales.
- Russia business faces unfavorable forex movements; despite hedging, devaluation could impact reported revenues.
- A product faced procurement constraints from contract manufacturers, leading to a ₹92 crore impairment; similar issues could affect other products.
Key quotes
- We delivered a strong performance this quarter with broad-based top-line growth and healthy operating margins, resulting in higher-ever quarterly sales and PBT.
- We are not going for the 45 per year, but we are spending on the, let's say, more selective type of products, but with a higher value.
- I believe that the most important product we launch in the beginning of 2027, and this is Abatacept.
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