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Sep 30, 2025
Dr. Reddy's Q2 2026 Earnings Report
Dr. Reddy's reported steady revenue growth and higher net income in Q2 2026, driven by branded markets and the Nicotine Replacement Therapy portfolio.
Key Takeaways
Dr. Reddy's delivered a strong quarter with $992M in revenue and a 14% YoY increase in net income, despite declines in North America due to price erosion in Lenalidomide.
Revenue reached $992M, up from $903M last year.
Net income rose to $162M, a 14% YoY increase.
Strong performance in branded markets and NRT portfolio offset U.S. Lenalidomide decline.
R&D expenses declined 15% YoY due to reduced biosimilar funding.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Dr. Reddy’s remains focused on strengthening its branded portfolio, advancing its pipeline, and offsetting challenges in North America generics with contributions from the NRT business.
Positive Outlook
- Continued strong performance in branded markets.
- Integration of NRT portfolio gaining traction across regions.
- New product launches supporting growth in Europe and emerging markets.
- Lower effective tax rate due to jurisdictional mix.
- Positive regulatory developments for biosimilars and pipeline drugs.
Challenges Ahead
- Significant price erosion in North America Generics segment.
- Decline in Lenalidomide sales impacting top-line growth.
- Lower gross margins due to inventory provisions and price pressures.
- SG&A increase driven by VAT liability and discontinued products.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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