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Dr. Reddy's Q3 FY26 revenue grew 4.4% YoY to INR 8,727 crore, with base business (ex-lenalidomide) delivering double-digit growth. EBITDA margin of 23.5% (24.8% adjusted for one-time labor code provision) declined 401bps YoY due to lower lenalidomide sales and pricing pressure. PAT fell 14% to INR 1,210 crore. India business surged 19% YoY driven by innovative portfolio, while North America generics declined 16% due to lenalidomide erosion. Semaglutide launch in India on track for March 21, with Canada approval expected by May. Abatacept BLA filed on schedule. Key risk: regulatory delays for biosimilars (Denosumab CRL, Rituximab re-inspection) could push U.S. launches beyond FY27.
डॉ. रेड्डी की तीसरी तिमाही में कमाई पिछले साल से 4.4% बढ़कर 8,727 करोड़ रुपये हुई। लेनालिडोमाइड दवा को छोड़कर बाकी कारोबार में दोहरे अंकों की बढ़त रही। मुनाफा 14% घटकर 1,210 करोड़ रुपये रहा। भारत में कारोबार 19% बढ़ा, जबकि अमेरिका में जेनेरिक दवाओं की बिक्री 16% गिरी। सेमाग्लूटाइड दवा भारत में 21 मार्च तक लॉन्च होगी और कनाडा में मई तक मंजूरी मिलने की उम्मीद है। मुख्य जोखिम: बायोसिमिलर दवाओं के लिए नियामक देरी से अमेरिका में लॉन्च 2027 के बाद हो सकता है।
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India Business Growth
19%
+19% YoY
India revenue grew 19% YoY to INR 1,603 crore, driven by innovative portfolio and STUGERON acquisition.
North America Generics Revenue
$338M
-16% YoY
Decline primarily due to lower lenalidomide sales and price erosion in key products.
Emerging Markets Revenue
INR 1,896 Cr
+32% YoY
Robust growth driven by new product launches and favorable forex, with Russia up 21% in constant currency.
NRT Business Constant Currency Growth
8%
+8% YoY
Nicotine replacement therapy business grew 8% in constant currency, with EBITDA margin exceeding 25%.
What Changed vs Last Quarter
NEW
Semaglutide launch in India on March 21, 2026
Dr. Reddy's will launch generic Ozempic (diabetes) in India on March 21, with all strengths including oral Rybelsus.
NEW
Canada Semaglutide approval expected by May 2026
Health Canada response expected between end-February and May 2026, with launch preparation underway for Q4 or Q1.
NEW
Abatacept U.S. launch expected end of calendar 2026
IV presentation BLA filed December 2025; approval expected around end-2026, with sub-Q filing in July 2026 and launch by Jan/Feb 2028.
NEW
Global generics gross margin range 50%-55% post-lenalidomide
From Q4 FY26 onwards, without lenalidomide, global generics and PSAI gross margin expected in 50%-55% range.
DROPPED
EBITDA margin to return to 25%+ in two years
Management maintains commitment to achieving 25%+ EBITDA margins within the next two years, driven by cost efficiencies and pipeline growth.
DROPPED
Abatacept BLA submission by end of December 2025
BLA for abatacept IV will be submitted by end of calendar 2025, with high confidence in approval.
DROPPED
Semaglutide launch in 87 countries within 12-15 months
Expects to obtain approval in 87 countries and launch 12 million pens, with Canada as a key market.
DROPPED
PSAI gross margin to improve to 20-25%
CFO guided PSAI gross margin to be in the 20-25% range going forward, up from 18% in Q2.
NEW RISK
Regulatory delays for biosimilars in U.S.
Denosumab received CRL from FDA due to partner Alvotech's facility issues; Rituximab requires re-inspection. Both face delays of at least 6-12 months.
NEW RISK
Lenalidomide revenue cliff from Q4
CEO advised to assume zero lenalidomide revenue from Q4 FY26, which will impact overall revenue and margins.
NEW RISK
SG&A cost growth moderation uncertain
SG&A as % of revenue remains elevated at 30% (ex-one-off); management expects growth to moderate but absolute level may not decline.
RISK GONE
US FDA delays on biosimilar approvals
Rituximab BLA received a CRL; abatacept and semaglutide approvals face regulatory uncertainty.
RISK GONE
Revlimid revenue decline
Revlimid sales are declining faster than expected, with Q3 likely the last quarter of meaningful contribution.
RISK GONE
Patent litigation outcome in India for semaglutide
Awaiting Delhi High Court decision; adverse ruling could delay India launch and impact export plans.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q2 FY25, Q3 FY25
R&D investments expected in this range for the full fiscal year.
Mentioned in Q2 FY25, Q2 FY26, Q4 FY25
Revlimid sales are declining faster than expected, with Q3 likely the last quarter of meaningful contribution.
Mentioned in Q2 FY26, Q3 FY25
BLA for abatacept IV will be submitted by end of calendar 2025, with high confidence in approval.
Mentioned in Q1 FY26, Q3 FY25
Lenalidomide sales expected to drop significantly after Q2 FY26; magnitude depends on pricing and competitor behavior.
Mentioned in Q1 FY25, Q1 FY26
Base US business faces ongoing price erosion; management expects flat to single-digit growth but uncertainty remains.
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Guidance and risk preview
Dr.
Denosumab received CRL from FDA due to partner Alvotech's facility issues; Rituximab requires re-inspection.
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