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Dr. Reddy's Laboratories Reports Q1 FY27 Results: Net Profit Stands at ₹435 Crore Amid North America Softness; Sequential Earnings Surge 97%
Posted On : 2026-07-22 22:30:31( TIMEZONE : IST )
Dr. Reddy's Laboratories Limited announced its unaudited consolidated financial results for the first quarter ended June 30, 2026, prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
The Hyderabad-based pharmaceutical major recorded consolidated revenue from operations of ₹80,705 million (₹8,070.5 crore) for Q1 FY27. While top-line and bottom-line metrics faced year-on-year pressure-primarily owing to lower North American generics realisations-the company demonstrated a sharp sequential recovery, with net profit nearly doubling compared to the preceding quarter.
Executive Financial Summary
Revenue from Operations: Stood at ₹80,705 million for Q1 FY27, representing a 5.6% year-on-year (YoY) decline compared to ₹85,452 million reported in Q1 FY26. On a quarter-on-quarter (QoQ) basis, revenue grew 7.4% over ₹75,162 million recorded in Q4 FY26.
Gross Profit: Came in at ₹37,540 million for the quarter under review, down 22.8% YoY from ₹48,627 million in CPLY, but up 11.4% sequentially from ₹33,691 million in Q4 FY26.
Operating Expenses: Total operating expenses-including selling, general, and administrative (SG&A) costs, R&D, and other income-stood at ₹33,756 million, compared to ₹31,152 million in Q1 FY26 and ₹32,366 million in Q4 FY26.
Profit Before Tax (PBT): Reported at ₹5,526 million for Q1 FY27, down 71.0% YoY from ₹19,047 million in Q1 FY26. Sequentially, PBT surged 177.5% from ₹1,991 million in Q4 FY26.
Profit for the Period (PAT): Total net profit stood at ₹4,348 million, down 69.2% YoY compared to ₹14,096 million in Q1 FY26. Sequentially, PAT advanced 97.2% compared to ₹2,205 million in Q4 FY26.
Net Profit Attributable to Equity Holders: Stood at ₹4,435 million for the quarter, compared to ₹14,178 million in Q1 FY26 and ₹2,201 million in Q4 FY26.
Earnings Per Share (EPS): Basic and diluted EPS for Q1 FY27 stood at ₹5.32 per equity share of face value Re. 1/- each, compared to ₹17.04 (basic) and ₹17.02 (diluted) in Q1 FY26. On a sequential basis, EPS doubled from ₹2.64 in Q4 FY26.
Revenue & Segment Breakdown
The company's primary business segments delivered mixed regional performances during the quarter:
Global Generics Segment
Global Generics remained the anchor segment, contributing ₹71,993 million to overall revenues (89% of total revenue). The segment experienced a 4.8% YoY decline from ₹75,620 million in Q1 FY26, but expanded 9.4% sequentially over ₹65,802 million in Q4 FY26. Gross profit from the segment stood at ₹37,123 million.
Regional performance across the Global Generics footprint included:
North America: Revenue came in at ₹22,048 million, down 35.4% YoY from ₹34,123 million in Q1 FY26. However, the geography posted a 25.5% sequential growth over ₹17,562 million in Q4 FY26.
Emerging Markets: Delivered strong top-line momentum, generating ₹18,328 million in Q1 FY27-a 30.5% YoY rise over ₹14,042 million in CPLY, and a 1.5% sequential rise over ₹18,057 million in Q4 FY26.India (Domestic Market): Recorded healthy double-digit expansion, reaching ₹17,177 million-up 16.8% YoY compared to ₹14,711 million in Q1 FY26, and up 9.7% sequentially from ₹15,663 million in Q4 FY26.
Europe: Generated ₹14,440 million in Q1 FY27, reflecting a 13.3% YoY growth over ₹12,744 million in CPLY, while remaining broadly flat sequentially compared to ₹14,520 million in Q4 FY26.
Commenting on the results, Co-Chairman & MD, G V Prasad said: "Our Q1FY27 performance reflected the expected transition beyond lenalidomide revenues, along with an unexpected impact related to semaglutide AP!. However, our underlying base business continued to deliver healthy doubledigit growth across all key geographies. Our focus remains on improving the health of our base business through disciplined execution and operational excellence, while building our future pipeline of peptides, biosimilars, and innovative assets to deliver long-term growth."
