Dr Reddy’s Laboratories expects a gradual recovery in the coming fiscal year after last year’s profit dip hit by pressures in the US business. Growth remains solid across India, Europe, and emerging markets. The company’s outlook leans on upcoming launches including semaglutide and abatacept, alongside improved product mix and tighter cost controls to lift margins by FY27.
Dr Reddy’s Laboratories reported a sharp 86% year-on-year fall in consolidated net profit to Rs 221 crore for the March-ended quarter. Revenue also declined 12%, adding pressure to the business outlook. Despite the steep profit drop, the company announced a dividend of Rs 8 per share, offering a small positive for investors.
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Dr Reddy’s has joined forces with Nestle Health Science to roll out Celevida GLP+, a nutrition supplement designed for people managing type 2 diabetes and obesity while on GLP-1/GIP therapy. The collaboration aims to address day to day nutritional challenges that can emerge during treatment, adding a targeted option beyond standard diabetes and weight management care.
Dr Reddy’s Laboratories has received market authorization from Health Canada for its generic semaglutide injection, becoming the first company approved for the diabetes therapy in Canada. The Bengaluru-based pharma is now preparing a launch to expand access for patients who rely on the treatment, potentially easing pressure on medication availability and costs.
Dr Reddy’s shares dropped about 2% after Goldman Sachs downgraded the stock and Citigroup turned cautious. Brokerages pointed to limited growth visibility, pipeline concerns, and valuation risks, alongside generics pricing pressure. Citi also flagged muted near-term opportunities in semaglutide, prompting analysts to warn that downside risks may persist despite earlier optimism.
Dr Reddy’s has received regulatory approval in India to roll out its generic oral semaglutide. The approval follows a head to head comparative study in India that found the formulation non inferior to Novo Nordisk’s Rybelsus. The company says this clinical evidence helped it secure approval under India’s biosimilar regulatory pathway.
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