Dr. Reddy's Q1FY27 Revenue Down 6% YoY to ₹80,705 Crore, Appoints Dr. Sridevi Khambhampaty
Dr. Reddy's Q1FY27 consolidated revenues were ₹80,705 million (₹8,070.5 crore), down 5.6% YoY. Profit after tax attributable to equity holders was ₹4,435 million (₹443.5 crore). Dr. Sridevi Khambhampaty appointed Global Head of Biologics. Deloitte Haskins & Sells appointed as Independent Registered Public Accounting Firm. Results impacted by lower lenalidomide sales and semaglutide API issue.
The financial results show a substantial decrease in profitability and revenue, directly affecting the company's financial health. The appointment of a new Global Head of Biologics is also a significant operational change.
The company reported a significant year-on-year decline in profit after tax and revenue, primarily due to lower lenalidomide sales and an issue with semaglutide API, which negatively impacted financial performance.
Dr. Reddy's Laboratories Limited announced its unaudited financial results for the quarter ended June 30, 2026. The company reported consolidated revenues of ₹80,705 million (approximately ₹8,070.5 crore), a decrease of 5.6% year-on-year and an increase of 7.4% quarter-on-quarter. Profit after tax attributable to equity holders was ₹4,435 million (approximately ₹443.5 crore), a decline of 69% year-on-year. The decrease in revenue was primarily attributed to lower lenalidomide sales and an unexpected impact related to semaglutide API. The company's underlying base business, excluding lenalidomide, showed healthy double-digit growth across key geographies.
In a significant development, the Board of Directors approved the appointment of Dr. Sridevi Khambhampaty as Global Head of Biologics and Senior Management Personnel, effective July 22, 2026. The Board also approved the appointment of M/s Deloitte Haskins & Sells, LLP as the Independent Registered Public Accounting Firm for auditing financial statements for the Annual Report on Form 20-F and reviewing interim financial statements for the U.S. Securities and Exchange Commission on Form 6-K.
The company's Global Generics segment reported revenues of ₹71,993 million, a decline of 5% YoY, accounting for 89% of consolidated revenues. North America revenues were ₹22,048 million, down 35% YoY, mainly due to lower Lenalidomide sales, though six new products were launched in the region. Emerging Markets saw a revenue growth of 31% YoY to ₹18,328 million, driven by new launches and favorable forex. India revenues grew 17% YoY to ₹17,177 million, supported by new brand launches and price increases. Europe revenues were ₹14,440 million, up 13% YoY, with growth moderated by pricing pressure in generics. Pharmaceutical Services and Active Ingredients (PSAI) reported revenues of ₹8,519 million, a 4% YoY increase.
Key financial highlights include a Gross Margin of 46.5%, impacted by adverse product mix and the semaglutide API issue. Selling, General & Administrative (SG&A) expenses increased by 12% YoY. Research and Development (R&D) expenses decreased by 8% YoY. Profit before Tax (PBT) declined by 71% YoY to ₹5,526 million. The company also noted a provision of ₹2,397 million towards inventory and other associated costs related to semaglutide API, impacting gross profit, EBITDA, and PBT margins.
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