Hyderabad: Dr Reddy’s Laboratories has delivered a resilient performance in Q3 FY26, with its profits rising to Rs.1,210 crore, a 14% year on year increase, beating estimates. Revenues were at Rs. 8,727 crore, a 0.9% decline quarter on quarter (QoQ) from the Rs.8,805 crore reported in the last quarter.
The company has faced various product-specific challenges, specifically with Revlimid, where tighter margins have dragged down. The crucial US pharmaceutical market, which accounts for more than a quarter of its revenue, has seen revenues decline as the overall North America business witnessed a 9% QoQ revenue decline at Rs. 2,964 crore.
However, its India business witnessed a healthy 19% YoY growth, with revenues reaching Rs.1,603 crore. During the quarter, Dr Reddy launched the Hevaxin vaccine for Hepatitis E vaccine, besides the local manufacturing license for its Semaglutide injection destined for exports.
Along with this, the company has entered into a strategic collaboration with Immutep for commercialising Efilagimod Alfa.
Over the years, Dr Reddy’s has been at the forefront of pharmaceutical manufacturing in India, with its export of APIs and its international expansion through its various acquisitions and partnerships. The company’s shares haven’t been performing well lately, declining 7.77% to Rs.1,156 as on January 21 on a year to date basis.
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