Dr. Reddy’s Laboratories (DRREDDY) Q2 26/27 earnings summary

Executive summary

• Q2FY27 revenue was INR 8,671 crore, down 1.5% YoY and up 7.4% QoQ; underlying base business grew at a double-digit rate excluding North American lenalidomide.

• EBITDA was INR 1,783 crore at a 20.6% margin; attributable profit was INR 925 crore.

• H1FY27 revenue declined 3.5% YoY to INR 167.4bn, EBITDA fell 40% to INR 27.9bn and attributable profit fell 52% to INR 13.7bn.

Financial highlights

• Consolidated revenue was INR 8,671 crore ($905 million); new launches, favorable FX and base-business growth partly offset lower lenalidomide sales.

• EBITDA was INR 1,783 crore; PBT was INR 1,228 crore and PAT attributable to equity holders was INR 925 crore.

• SG&A rose 6% YoY to INR 2,808 crore; R&D declined 16% YoY to INR 524 crore.

Outlook and guidance

• Gross margin is expected to remain within 50%-55%; management expects EBITDA margin above 20% and targets 25% over time.

• Semaglutide relaunch is targeted for November 2026, subject to validation; FY device guidance is 6-7 million, with a tentative 12-15 million pen run rate discussed for the following 12 months from April.

• R&D is expected at 7%-8% of revenue in coming quarters; FY CapEx guidance is INR 1,600-INR 1,700 crore.