Dr. Reddy’s Laboratories (DRREDDY) Q4 24/25 earnings summary

Executive summary

• Achieved record annual revenue exceeding ₹32,554 crore ($3.8 billion) in FY25, up 17% year-over-year, and crossed $1 billion in EBITDA for the first time, with highest ever quarterly revenues and profits in Q4.

• Double-digit growth across all geographies and business segments, with underlying growth (excluding acquired NRT business) at 12% YoY.

• Growth was driven by the strategic acquisition of the Nicotine Replacement Therapy (NRT) business, strong generics, consumer health, innovation, and biosimilars.

• Maintained disciplined cost structure, increased R&D investments, and focused on differentiated pipelines and strategic collaborations.

• Ended the year with a net cash surplus of ₹2,454 crore ($287 million), supporting future growth initiatives.

Financial highlights

• Q4 revenue: ₹8,506 crore ($996 million), up 20% year-over-year and 2% sequentially; full-year revenue: ₹32,554 crore ($3.8 billion), up 17%.

• Q4 EBITDA: ₹2,475 crore ($290 million), up 32% year-over-year; full-year EBITDA: ₹9,213 crore ($1.1 billion), up 11%.

• Q4 EBITDA margin: 29.1%; full-year EBITDA margin: 28.3%.

• Q4 profit after tax: ₹1,594 crore ($187 million), up 22% year-over-year; full-year profit after tax: ₹5,655 crore, up 12%.

• Dividend of ₹8 per share (800% of face value) recommended.

Outlook and guidance

• Expects double-digit growth and margin maintenance in FY 2026, even post-REVLIMID patent expiry.

• Continued focus on strengthening core businesses, investing in innovative and differentiated products, and driving operational efficiency.

• R&D and SG&A costs to remain at similar levels, with focus on productivity and portfolio expansion.

• CapEx for FY 2026 expected to be similar to FY 2025, mainly for peptides, biosimilars, and complex molecules.

• Integration of ESG into business strategy and ongoing investments in R&D and commercial capabilities.