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Revenue
₹8,506 Cr
verified against source
Revenue YoY
20%
reported change
EBITDA
₹2,475 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
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Quarter read
What the record says.
Dr. Reddy's delivered a strong Q4 FY25 with consolidated revenue of INR 8,506 crore (+20% YoY) and EBITDA of INR 2,475 crore (+32% YoY), driven by the NRT acquisition and broad-based generic growth. EBITDA margin expanded 267 bps YoY to 29.1%, despite a 300 bps gross margin decline from one-off manufacturing costs and lower milestone income. The North America generics business grew 7% YoY to $418M, while Europe surged 142% YoY to EUR 140M, boosted by NRT. Management guided for double-digit revenue growth in FY26 and stable margins, with REVLIMID exclusivity ending in January 2026. Key growth drivers include semaglutide launches in Canada/India in CY2026, biosimilar progress (abatacept filing by end-2025), and continued BD. Risk: potential U.S. tariffs on generics could pressure margins, though management is working with customers to mitigate supply disruptions.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects double-digit revenue growth for FY2026, including contributions from new launches and biosimilars, despite REVLIMID exclusivity ending in January 2026.
- Management guided for EBITDA margins to remain around 28% in FY2026, similar to FY2025 levels, through productivity measures and revenue growth.
- Management confirmed plans to launch generic semaglutide in Canada and India during calendar 2026, pending IP landscape and regulatory approvals.
- 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.
Risks flagged
- Potential tariffs on pharmaceutical imports could impact margins; management is working with customers to ensure supply continuity but uncertainty remains.
- Exclusivity ends in January 2026, leading to significant revenue decline; management expects to offset through growth in other segments but risk remains.
- Q4 gross margin fell 300 bps due to manufacturing overhead and lower milestone income; while management considers it one-off, recurrence could pressure margins.
- Multiple players may launch generic semaglutide in Canada, leading to price erosion and lower-than-expected market share for Dr. Reddy's.
Key quotes
- We are preparing ourselves for the scenarios, and we are obviously watching carefully the information as it will come. At this stage, the main effort is to ensure sustainability of supply.
- We believe that if it's FY 2026, double-digit growth is possible as well as maintaining the margins.
- We are gearing up to launch it during calendar 2026 in all the markets that the IP landscape will allow us to launch. This is still intact, and we are progressing nicely in our preparation for that.
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