EarningsQ2 2027 Earnings Report
DE:RDDA Q2 2027 EPS Results
Actual EPS€0.10
Consensus EPS€0.09
Beat/MissBeat by +€0.02
One Year Ago EPS€0.17
DE:RDDA Q2 2027 Revenue Results
Actual Revenue€809.60M
Expected Revenue€798.65M
Beat/MissBeat by +€10.96M
YoY Revenue Growth-10.05%
Earnings Announcement Details
QuarterQ2 2027
Date10/23/2026
TimeBefore Open
Conference CallFriday, October 23, 2026
DE:RDDA Upcoming Earnings
Dr Reddy's Laboratories's next earnings date is estimated for January 22, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
DE:RDDA Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Management highlighted double-digit growth in the underlying business, strong emerging-market and India performance, sequential margin expansion, progress in semaglutide validation and launches, biosimilar and complex-generic opportunities, CDMO growth, and a strong net cash position. The main negatives were the 1.5% year-over-year consolidated revenue decline, lower Lenalidomide sales, declines in North America, Europe, and PSAI, higher input and logistics costs, and remaining regulatory and validation uncertainty around key products.Company Guidance
Underlying Business Delivered Double-Digit Growth
Excluding Lenalidomide in North America, the underlying base business maintained its growth momentum and delivered double-digit growth overall and across North America, emerging markets, and India.
EBITDA Margin Improved Sequentially
EBITDA margin was 20.6% for the quarter. EBITDA including other income was ₹17.83 thousand crores, or US$186 million, with an 806 basis-point sequential improvement. Management attributed the improvement to the business mix, higher-margin new products, base-business strength, and productivity efforts.
Revenue Improved Sequentially
Consolidated revenue was ₹8.01 thousand crores, or US$905 million, down 1.5% year over year but up 7.4% sequentially.
Gross Margin Reached 52.1%
Reported gross margin was 56.2% for Global Generics and 11.8% for PSAI. Consolidated gross margin was stated at 52.1%, up 562 basis points sequentially. Management expects gross margin to remain in the 50% to 55% range and said it should improve from here.
Strong Emerging Markets Growth
Emerging-market revenue was ₹2,059 crore, representing 25% of overall revenue, with growth of 84% year over year and 12% quarter over quarter. Management attributed growth to new product launches, acquisitions, and favorable currency movement. The company introduced 27 new products across emerging markets in Q2 FY27.
India Business Continued to Outperform the Market
India revenue was ₹1.85 thousand crore, representing 21% of overall revenue, and grew 17.8% sequentially while delivering robust double-digit year-over-year growth. Growth was driven by recent launches, acquired brands, price increases, and higher volumes. The company’s IPM rank improved to 8 for the quarter and 9 for the year.
India Market Outperformance and Brand Momentum
According to September 2026 IQVIA data, Dr. Reddy’s moving quarterly total growth was 21% versus 14.7% for the Indian pharmaceutical market, while moving annual total growth was 19.4% versus 13.2% for the market. Four brands featured in the IPM Top 50 new launches, and four new brands were launched during the quarter.
North America Base Business Continued to Grow
North America generic revenue was US$264 million, representing 29% of overall revenue, down 29% year over year and up 12% sequentially. Excluding Lenalidomide, the underlying base business delivered strong double-digit growth driven by new product launches. Six new products were launched during the quarter, including the first-to-market launch of Sugammadex injection.
Semaglutide Supply Resumption Remained on Track
Management said the API scale-up issue had been resolved, all necessary API had been shipped to the fill-and-finish partner, and validation was in process. Subject to successful validation, the company expects to reload semaglutide directly and through partners by November 2026. Management said it remained confident based on existing orders.
Semaglutide Regulatory Expansion Continued
Generic semaglutide had been approved in 10 countries across Latin America, Africa, the Middle East, Canada, and India. Management clarified that the broader target is now 89 markets, with regulatory processes continuing despite the scale-up issue. Brazil was expected in Q4, while launches in smaller markets were expected from the end of Q3 or beginning of Q4, with some launches in December and January.
Semaglutide Volume Opportunity Maintained
Management reaffirmed the current-year guidance of 6 to 7 million devices. The previously discussed run rate of 12 to 15 million pens over the following 12 months remained the company’s estimate, subject to market approvals, market success, competition, and partner market share.
Progress Across Biosimilars and Complex Generics
The company received US FDA approval for its rituximab biosimilar, to be commercialized in the United States through Fresenius Kabi, and launched nivolumab in India, marking its entry into biosimilar immuno-oncology in India. Both rituximab and nivolumab were developed and manufactured in-house. The company also continued advancing abatacept and other complex generics toward regulatory review.
Abatacept Launch Preparation Continued
The abatacept goal date remained December 22, 2026. Management said the Bachupally plant inspection had been completed and the company was preparing for a December launch, subject to US FDA approval. Smaller quantities could be sold from day one, with broader ramp-up expected after approximately six months when formulary codes and registrations are obtained.
Biosimilar Strategy Combines Internal Development and Partnerships
The company plans to pursue biosimilars through its own facilities and through partnerships. Abatacept is expected to be the first meaningful product launched from the company’s own facilities, followed by additional products. Management cited pembrolizumab and daratumumab as products expected within the next five years and said abatacept could generate hundreds of millions of dollars.
Global Partnerships and Product Approvals Expanded
The company partnered with Takeda to bring India’s first approved dengue vaccine, Dengvaxia, to India’s private market in the first half of FY27. It expanded its collaboration with Gilead Sciences to enable access to investigational once-yearly lenacapavir for HIV prevention in 120 countries, secured approval for zoliflodacin for gonorrhea treatment in Thailand within six months of US FDA approval, and continued preparing additional complex injectable launches.
Consumer Health and NRT Profitability Remained Strong
Management said the NRT business was performing well under its new business model, with expected growth between high single digits and potentially double digits. Although the model results in less reported sales, management said profitability was well above the expectations included in the business model.
CDMO Business Delivered Growth and Expansion Potential
Origin Pharmaceutical Services generated more than US$100 million in revenue during the last 12 months and delivered double-digit growth during the quarter. The company filed 28 Drug Master Files globally. Management said the CDMO business included innovation and discovery work, production-transfer projects, and Phase II and Phase III projects, and maintained a plan for the business to reach 2x to 3x its current numbers in the next three to four years.
Strong Liquidity Position
The company reported a net cash surplus of ₹2.5 thousand crores, or US$261 million, as of September 30, 2026. Quarterly cash flow was ₹1.71 crores, or US$18 million, and quarterly cash CapEx outflow was ₹1.86 crores, or US$19 million.
Sustainability Recognition Improved
The company received a silver medal in the Best Large Cap Company in India category at the Asia’s Best Companies 2026 awards. Its CRISIL ESG score improved to 73 out of 100 from 66, making it the only pharmaceutical company in the leadership category.
Management Maintained Positive Margin and Growth Outlook
Management said the company was targeting sustainable EBITDA margins of 25% over time and expected margins to remain above 20%. It cited growth in emerging markets, India, consumer health, and the United States, continued expense control, and new product launches as support for maintaining or improving margins.
DE:RDDA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed