Dr. Reddy's Laboratories Management Guidance Tracker

Management reiterated 25% as the sustainable EBITDA margin level, though near-term will be higher due to lenalidomide.

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 will remain higher in absolute terms as investments in brands and pipeline products continue, with revenue growth expected to provide operating leverage.

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%.

Management expects SG&A as a percentage of sales to be in the range of 27.5%-28% for the full fiscal year.

Management indicated SG&A as a percentage of sales will stay at current levels (~28%) going forward.

Management guided for EBITDA margins to remain around 28% in FY2026, similar to FY2025 levels, through productivity measures and revenue growth.

Aims to maintain EBITDA margin north of 25% for the base business, with semaglutide expected to be accretive.

Management maintains commitment to achieving 25%+ EBITDA margins within the next two years, driven by cost efficiencies and pipeline growth.

CFO guided PSAI gross margin to be in the 20-25% range going forward, up from 18% in Q2.

From Q4 FY26 onwards, without lenalidomide, global generics and PSAI gross margin expected in 50%-55% range.

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.

Expects sustained strong performance in North America generics, including base business growth and new product launches.

Management expects India business to exit FY2024 with double-digit growth, driven by licensing deals and focus portfolio expansion.

Company is on track to launch 25-30 products in the US this fiscal year, with 4 launched in Q2.

Rituximab biosimilar submitted in April 2023; pre-approval inspection completed. Launch expected in early FY2025 if regulatory issues resolved.

Management expects India base business to return to double-digit growth in coming quarters, driven by key brands growing at 1.5x market rate.

Approximately 26 products with potential sales >$10M each are expected to launch in the US over the next two years, subject to approvals.

Biosimilar pipeline includes six products aiming for first-to-market status, with first launch expected in early CY2027.

Management expects R&D investment to remain in the 8.5%-9% range, with fluctuations based on clinical trial timing.

Internal biosimilar pipeline expected to yield first product launch in Europe and US in FY27, with profitability thereafter.

R&D investment expected to be in the range of 8.5% to 9% of sales 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 guided that the Abatacept biosimilar is expected to launch in early calendar 2027, with phase III trials nearly complete.

Management expects full-year R&D investment to be in the range of 8.5% to 9% of sales.

Plans to file abatacept biosimilar in the US by December 2025, with potential launch in January 2027.

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.

Expects approval between end-Oct and early-Nov 2025, with launch at LOE in Jan 2026, subject to IP clearance and approval.

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.

Dr. Reddy's will launch generic Ozempic (diabetes) in India on March 21, with all strengths including oral Rybelsus.

Health Canada response expected between end-February and May 2026, with launch preparation underway for Q4 or Q1.

IV presentation BLA filed December 2025; approval expected around end-2026, with sub-Q filing in July 2026 and launch by Jan/Feb 2028.

Plans to sign tens of licensing deals for innovative products in India, with meaningful revenue contribution from FY2025.

The joint venture with Nestlé will require initial investment and brand registration; meaningful revenue contribution expected after FY27.

Biosimilar R&D currently ~20% of total R&D; expected to grow progressively with pipeline advancement.

Excluding divestment income, India business is expected to continue double-digit growth, driven by new product launches and partnerships.

Management expects North America generics to continue growing in single digits on a year-over-year basis, compensating for price erosion.

Expects to launch generic semaglutide in Canada upon patent expiry in January 2026, subject to regulatory approval.

Management expects double-digit revenue growth for FY2026, including contributions from new launches and biosimilars, despite REVLIMID exclusivity ending in January 2026.

Normal effective tax rate expected to be in the range of 24% to 25% for the fiscal year.

Management expects the normalized effective tax rate to be around 25% for the fiscal year.

R&D investments expected in this range for the full fiscal year.

R&D expenditure is expected to be in the range of 7%-8% of adjusted revenue in FY27.

Capital expenditure for the full year expected in this range, primarily for peptides and biosimilars.

Capital expenditure for FY27 is guided at approximately INR 2,000 crore, primarily for biosimilars and product-specific investments.