Dr Reddy’s Laboratories Limited has reported a consolidated net profit of Rs. 435 crore for the first quarter of FY27, even as the company faced pressure from weaker North American generics realisations.
The pharmaceutical major announced its unaudited consolidated financial results for the quarter ended June 30, 2026, prepared under International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
The company posted consolidated revenue from operations of Rs. 8,070.5 crore during Q1 FY27, down 5.6% year-on-year from Rs. 8,545.2 crore in the same quarter last year. However, revenue improved 7.4% sequentially from Rs. 7,516.2 crore in Q4 FY26.
Despite the year-on-year decline, Dr. Reddy’s delivered a sharp earnings recovery, with net profit rising 97.2% sequentially from Rs. 220.5 crore in Q4 FY26 to Rs. 434.8 crore in Q1 FY27.
Gross profit for the quarter stood at Rs. 3,754 crore, declining 22.8% compared with Rs. 4,862.7 crore in Q1 FY26. On a quarter-on-quarter basis, gross profit increased 11.4% from Rs. 3,369.1 crore.
Total operating expenses, including selling, general and administrative expenses, research and development costs, and other income, stood at Rs. 3,375.6 crore, compared with Rs. 3,115.2 crore in Q1 FY26 and Rs. 3,236.6 crore in Q4 FY26.
Profit before tax came in at Rs. 552.6 crore, declining 71% year-on-year from Rs. 1,904.7 crore. Sequentially, however, PBT surged 177.5% from Rs. 199.1 crore in the previous quarter.
Net profit attributable to equity holders stood at Rs. 443.5 crore, compared with Rs. 1,417.8 crore in Q1 FY26 and Rs. 220.1 crore in Q4 FY26.
Basic and diluted earnings per share (EPS) stood at Rs. 5.32 per equity share of face value Re. 1 each, compared with Rs. 17.04 (basic) and Rs. 17.02 (diluted) in Q1 FY26. Sequentially, EPS doubled from Rs. 2.64 in Q4 FY26.
The Global Generics segment continued to anchor Dr. Reddy’s performance, contributing Rs. 7,199.3 crore, accounting for 89% of total revenue.
The segment declined 4.8% year-on-year from Rs. 7,562 crore in Q1 FY26 but expanded 9.4% sequentially from Rs. 6,580.2 crore in Q4 FY26. Gross profit from the segment stood at Rs. 3,712.3 crore.
Regional performance remained mixed.
North America: Revenue declined 35.4% year-on-year to Rs. 2,204.8 crore from Rs. 3,412.3 crore in Q1 FY26. However, the business recovered 25.5% sequentially from Rs. 1,756.2 crore in Q4 FY26.
Emerging Markets: Revenue increased 30.5% year-on-year to Rs. 1,832.8 crore from Rs. 1,404.2 crore, while rising 1.5% sequentially.
India Domestic Market: Revenue grew 16.8% year-on-year to Rs. 1,717.7 crore from Rs. 1,471.1 crore and increased 9.7% sequentially.
Europe: Revenue rose 13.3% year-on-year to Rs. 1,444 crore from Rs. 1,274.4 crore, while remaining largely stable compared with Rs. 1,452 crore in Q4 FY26.
Commenting on the results, Co-Chairman & MD, G V Prasad said: "Our Q1FY27 performance reflected the expected transition beyond lenalidomide revenues, along with an unexpected impact related to semaglutide AP!. However, our underlying base business continued to deliver healthy double digit growth across all key geographies.
"Our focus remains on improving the health of our base business through disciplined execution and operational excellence, while building our future pipeline of peptides, biosimilars, and innovative assets to deliver long-term growth."
