Dr. Reddy's reports strong Q2, H1 FY26 financials on acquisitions, pipeline growth

Dr. Reddy's Laboratories reported consolidated revenues of ₹88,051 million for Q2 FY26, a 9.8% year-over-year increase, with half-year revenues reaching ₹173,503 million, up 10.6% year-over-year. Profit after tax attributable to equity holders for Q2 FY26 was ₹14,372 million, marking a 14% rise, and for H1 FY26, it was ₹28,549 million, up 8%. Basic earnings per share for Q2 FY26 stood at ₹17.26, and for H1 FY26, at ₹34.30.

The strong performance was bolstered by the acquisition of the STUGERON® portfolio for $50.5 million in September 2025, enhancing its presence across 18 markets. Global Generics revenues grew 10% year-over-year to ₹78,498 million in Q2 FY26, with Europe showing exceptional growth of 138% year-over-year, significantly driven by the Nicotine Replacement Therapy (NRT) portfolio.

Despite North America Generics facing a 13% decline in Q2 FY26 revenues due to price erosion in key products like Lenalidomide, the company introduced seven new products during the quarter. Research and Development expenses decreased by 15% year-over-year to ₹6,202 million, reflecting optimized investment in biosimilars. Dr. Reddy's also received a "Voluntary Action Indicated" classification from the USFDA for its Srikakulam and Miryalaguda facilities, post inspections in July and May 2025 respectively.