Dr. Reddy’s Q1 net plunges 69% to ₹435.6 cr on lower revenue
Dr. Reddy’s Laboratories reported a 69% drop in net profit for the June quarter, totaling 435.6 crore rupees. The decline is attributed to lower sales of the cancer drug lenalidomide and a 240 crore rupee provision for quality issues with semaglutide.
Why it matters
The financial performance of a major pharmaceutical company impacts market confidence and reflects broader challenges in the generic drug industry.
Hyderabad-based generic drugmaker Dr. Reddy’s Laboratories’ consolidated net profit slumped 69% year-on-year (YoY) to ₹.435.6 crore in the June quarter amid lower sales of cancer drug lenalidomide and nearly ₹240 crore provision necessitated by recent quality issue around weight loss drug Semaglutide.
Total revenue from operations stood at ₹8,099.8 crore (₹8,572.1 crore), showed its results prepared in accordance with Indian Accounting Standards (Ind AS).
“Our Q1FY27 performance reflected the expected transition beyond lenalidomide revenues, along with an unexpected impact related to semaglutide active pharmaceutical ingredient (API). However, our underlying base business continued to deliver healthy double digit growth across all key geographies,” co-chairman and managing director G V Prasad said.
The focus remains on improving health of the base business through disciplined execution and operational excellence, while building future pipeline of peptides, biosimilars and innovative assets to deliver long-term growth, he said.
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