Dr. Reddy's reports steady Q2FY26 growth despite market challenges

Dr. Reddy's Laboratories reported consolidated revenues of ₹8,805 crores for Q2FY26, an increase of 9.8% year-over-year. This growth was largely driven by the integration of its consumer healthcare business and double-digit growth in other markets, despite pressures from product-specific price erosion in US Generics and lower Lenalidomide sales. The company achieved an EBITDA margin of 26.7%, with profit after tax attributable to equity holders rising 14% year-over-year to ₹1,437 crores.

Gross profit margin for the quarter was 54.7%, a decrease of 492 basis points year-over-year, mainly due to reduced Lenalidomide sales, price erosion, and one-time inventory provisions. SG&A spend increased 15% year-over-year to ₹2,644 crores, primarily due to investments in acquired consumer healthcare and branded generics. R&D spend declined 15% year-over-year to ₹620 crores due to reduced development on biosimilars.

The company secured regulatory approvals for its Semaglutide injection in India and received a positive opinion for its denosumab biosimilar candidate from the European Medicines Agency. Dr. Reddy's also expanded its portfolio with new product launches across North America, Europe, and Emerging Markets, alongside the acquisition of Stugeron® and related brands across 18 markets.