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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.
डॉ. रेड्डी की चौथी तिमाही की कमाई (SSA को छोड़कर) 7,969 करोड़ रुपये रही, जो पिछले साल से 6% कम है। इसकी वजह लेनालिडोमाइड दवा के स्टॉक में 453 करोड़ रुपये का अस्थायी समायोजन था। कंपनी का मुनाफा मार्जिन (EBITDA) 19.5% रहा, जो 25% के लक्ष्य से कम है। इसकी वजह कम सकल मुनाफा (48%) और ज्यादा खर्चे हैं। लेनालिडोमाइड को छोड़कर बाकी कारोबार में दो अंकों की बढ़त हुई। प्रबंधन को उम्मीद है कि अगले साल सकल मुनाफा 50% से ऊपर और EBITDA मार्जिन 25% के करीब होगा, जब सेमाग्लूटाइड जैसी नई दवाएं लॉन्च होंगी। मुख्य जोखिम हैं ब्राजील में देरी और अमेरिका में सस्ती दवाओं की प्रतिस्पर्धा।
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Semaglutide approval delays in Brazil
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Semaglutide unit sales guidance (CY 2026)
6-7 million units
N/A
Management expects 6-7 million semaglutide units sold by end of calendar 2026 across approved markets.
India business growth (Q4 YoY)
20%
+20% YoY
India revenues grew 20% YoY to INR 1,566 crore, outperforming IPM growth of 11.6%.
North America generics revenue (ex-SSA)
$251 million
-40% YoY
North America generics revenue declined 40% YoY due to lower lenalidomide sales and shelf-stock adjustment.
Emerging markets revenue growth (Q4 YoY)
29%
+29% YoY
Emerging markets revenue grew 29% YoY to INR 1,806 crore, led by new launches and volume growth.
What Changed vs Last Quarter
NEW
FY27 gross margin above 50%
Management expects gross margins to improve above 50% in FY27, driven by semaglutide launches and cost improvement programs.
NEW
FY27 EBITDA margin near 25% with semaglutide
EBITDA margin is expected to approach 25% in FY27, aided by semaglutide sales, though may be slightly below.
NEW
FY27 R&D spend 7%-8% of revenue
R&D expenditure is expected to be in the range of 7%-8% of adjusted revenue in FY27.
NEW
FY27 CapEx around INR 2,000 crore
Capital expenditure for FY27 is guided at approximately INR 2,000 crore, primarily for biosimilars and product-specific investments.
DROPPED
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.
DROPPED
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.
DROPPED
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.
DROPPED
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.
NEW RISK
Semaglutide approval delays in Brazil
Brazil approval for semaglutide is delayed by 3-4 months, which could impact FY27 unit sales guidance of 12 million units.
NEW RISK
Lenalidomide shelf-stock adjustment recurrence
A surprise INR 453 crore shelf-stock adjustment hit Q4 revenue; similar customer-driven adjustments could recur.
NEW RISK
U.S. generics price erosion
U.S. generics revenue has been flat despite new launches, indicating significant price erosion that may continue.
NEW RISK
CAR T and partnered asset discontinuation
Impairment of INR 135 crore on CAR T and INR 93 crore on partnered asset (Immutep) highlights R&D pipeline risk.
RISK GONE
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.
RISK GONE
Lenalidomide revenue cliff from Q4
CEO advised to assume zero lenalidomide revenue from Q4 FY26, which will impact overall revenue and margins.
RISK GONE
Semaglutide pricing pressure and competition
Management expects eventual competition in Canada and other markets, with pricing likely settling at lower end of $20-$70 range.
RISK GONE
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.
🤫 Topics management stopped discussing
Mentioned in Q1 FY26, Q3 FY25, Q3 FY26, Q4 FY25
Dr. Reddy's will launch generic Ozempic (diabetes) in India on March 21, with all strengths including oral Rybelsus.
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.
Fast read
Guidance and risk preview
Management expects gross margins to improve above 50% in FY27, driven by semaglutide launches and cost improvement programs.
Brazil approval for semaglutide is delayed by 3-4 months, which could impact FY27 unit sales guidance of 12 million units.
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