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

Executive summary

• Achieved record annual revenue exceeding $3.8 billion (₹32,554 Cr) 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, and new product launches in all geographies.

• Maintained disciplined cost structure while investing in R&D, biosimilars, and innovation, and executed value-accretive inorganic initiatives.

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

Financial highlights

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

• Q4 EBITDA: $290 million (₹2,475 Cr, 29% margin), up 32% YoY; full-year EBITDA: $1.1 billion (₹9,213 Cr, 28% margin), up 11%.

• Q4 profit after tax: $187 million (₹1,594 Cr), up 22% YoY; full-year profit after tax: $680 million (₹5,654 Cr), up 12% YoY.

• Dividend of INR 8 per share (800% of face value) recommended for FY25.

• Net cash surplus of ₹2,454 Cr as of March 31, 2025.

Outlook and guidance

• Double-digit revenue growth and margin maintenance expected for FY 2026, even post-REVLIMID patent expiry.

• R&D and SG&A expenses to remain at similar levels as a percentage of sales; focus on productivity and portfolio expansion to sustain margins.

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

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

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