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Revenue
₹8,828 Cr
verified against source
Revenue YoY
9.8%
reported change
EBITDA
₹2,351 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Dr. Reddy's Q2 FY26 revenue grew 9.8% YoY to INR 8,805 crore, driven by broad-based growth across markets and the acquired NRT business, partially offset by lower Revlimid sales and US price erosion. EBITDA margin contracted 174 bps YoY to 26.7% due to product mix and one-time provisions. PAT rose 14% YoY to INR 1,437 crore, aided by lower tax rate. Management reiterated confidence in returning to 25%+ EBITDA margins over two years, supported by cost initiatives and pipeline assets like semaglutide and abatacept. Key risks include US FDA delays on biosimilar approvals and competitive pricing in Canada for semaglutide.
Colored figures show movement against the previous available record.
Guidance to track
- Management maintains commitment to achieving 25%+ EBITDA margins within the next two years, driven by cost efficiencies and pipeline growth.
- BLA for abatacept IV will be submitted by end of calendar 2025, with high confidence in approval.
- Expects to obtain approval in 87 countries and launch 12 million pens, with Canada as a key market.
- CFO guided PSAI gross margin to be in the 20-25% range going forward, up from 18% in Q2.
Risks flagged
- Rituximab BLA received a CRL; abatacept and semaglutide approvals face regulatory uncertainty.
- Revlimid sales are declining faster than expected, with Q3 likely the last quarter of meaningful contribution.
- Multiple filers and potential compounding pharmacy entry could lead to aggressive pricing and lower margins.
- Awaiting Delhi High Court decision; adverse ruling could delay India launch and impact export plans.
Key quotes
- I absolutely believe, and I'm maintaining it, that in the next two years, we will absolutely get back to the growth and to the margins.
- The more Semaglutide we will have, the more growth we'll have, the more BD we'll have. We can actually do it much, much faster.
- I'm not worried on the not getting approval. I'm certain that we'll get approval.
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