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Revenue
₹7,546 Cr
verified against source
Revenue YoY
-6%
reported change
EBITDA
₹1,554 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Dr. Reddy's Q4 FY26 revenue (ex-SSA) was INR 7,969 crore, down 6% YoY, dragged by a INR 453 crore lenalidomide shelf-stock adjustment. EBITDA margin of 19.5% (adjusted) missed the 25% aspirational target, impacted by lower gross margins (48%) and higher SG&A. The base business (ex-lenalidomide) grew double-digits. Management expects FY27 gross margins above 50% and EBITDA margins near 25% as semaglutide launches ramp up. Key risks include delayed semaglutide approvals (Brazil) and competitive pricing erosion in U.S. generics.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects gross margins to improve above 50% in FY27, driven by semaglutide launches and cost improvement programs.
- EBITDA margin is expected to approach 25% in FY27, aided by semaglutide sales, though may be slightly below.
- R&D expenditure is expected to be in the range of 7%-8% of adjusted revenue in FY27.
- Capital expenditure for FY27 is guided at approximately INR 2,000 crore, primarily for biosimilars and product-specific investments.
Risks flagged
- Brazil approval for semaglutide is delayed by 3-4 months, which could impact FY27 unit sales guidance of 12 million units.
- A surprise INR 453 crore shelf-stock adjustment hit Q4 revenue; similar customer-driven adjustments could recur.
- U.S. generics revenue has been flat despite new launches, indicating significant price erosion that may continue.
- Impairment of INR 135 crore on CAR T and INR 93 crore on partnered asset (Immutep) highlights R&D pipeline risk.
Key quotes
- We were also surprised by this. It was not part of any arrangement or anything like that. I cannot speak on the details on the relationship or the customers, but it's, it came from them, I guess, certain planning issues or mistake at their end and that's, the outcome of it.
- Our list price will be, give or take about half of what Novo Nordisk will be, that's can be shared because it will be listed.
- We are planning to maintain the base without Sema at around 20%. This is the plan, and the Sema is supposed to help us to get more than that.
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