Mar 31

Dr. Reddy's Q4 2025 Earnings Report

Dr. Reddy's reported solid results with revenue and net income growth driven by strong product launches and the integration of the NRT business.

Key Takeaways

Dr. Reddy’s delivered strong Q4 FY25 performance with 20% revenue growth and 22% increase in net income, fueled by strategic acquisitions and robust sales in key markets.

Total Revenue
$996M
Previous year: $853M
+16.8%
EPS
$0.22
Previous year: $0.19
+15.8%
Gross Margin
55.6%
Previous year: 58.6%
-5.1%
EBITDA
$290M
Previous year: $219M
+32.4%
R&D Expenses
$85M
Previous year: $80M
+6.3%
Gross Profit
$553M
Previous year: $500M
+10.7%
Cash and Equivalents
$799M
Previous year: $977M
-18.2%
Free Cash Flow
$111M
Previous year: $72.9M
+52.3%

Dr. Reddy's

Dr. Reddy's

Dr. Reddy's Revenue by Segment

Dr. Reddy's Revenue by Geographic Location

Forward Guidance

Dr. Reddy’s anticipates continued momentum supported by new product launches and strategic partnerships, while closely monitoring risks related to pricing pressure and global market volatility.

Positive Outlook

  • Strong U.S. product pipeline with 10 ANDA filings and 7 product launches in the quarter.
  • Integration of NRT business contributed significantly to revenue.
  • Europe saw robust growth with 145% YoY increase driven by NRT and base business.
  • Recognition for ESG initiatives and operational excellence.
  • Positive regulatory progress including BLA acceptance for biosimilars.

Challenges Ahead

  • Gross margin declined YoY due to price erosion and manufacturing leverage.
  • Impairment charges related to intangibles in generics business.
  • QoQ revenue decline in India and Emerging Markets due to lower volumes.
  • Ongoing pricing pressure in North America and Europe.
  • Higher SG&A expenses driven by marketing and personnel investments.

Revenue & Expenses

Visualization of income flow from segment revenue to net income