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Dr Reddy's Earnings May Plummet 40% in Q1
21 Jul
Summary
- Dr Reddy's earnings pressure expected in Q1 FY27.
- Analysts predict EBITDA decline of 35% and profit dip of 40%.
- US market pricing and Revlimid lack impact profits.
Dr Reddy's Laboratories is projected to encounter substantial earnings pressure for the first quarter of the current fiscal year, which concluded on June 30, 2026. The company is scheduled to release its Q1 financial results on July 22, 2026.
Analysts foresee a potential decline of approximately 35% in EBITDA and a 40% decrease in net profit. These forecasts are influenced by continued pricing challenges within the United States market, compounded by the lack of revenue from the generic Revlimid and erosion in its established product portfolio in North America.
In the preceding year's first quarter, Dr. Reddy's consolidated net profit saw a marginal increase of 1%, reaching ₹1,409 crore for the period ending June 30, 2025. This was a slight rise from ₹1,392 crore in the same period of the previous year, partly due to price erosion in North America. The company's revenue, however, demonstrated growth, increasing by 11% from ₹7,672 crore in Q1 FY25 to ₹8,545 crore in Q1 FY26.
