Pharma major Dr Reddy’s Laboratories posted its Q1FY27 net profit at Rs 443.5 crore, declining 69% year-on-year from Rs 1,417.8 crore reported in Q1FY26. However, on a sequential basis, its consolidated net profit surged 97% from Rs 220.5 crore reported in the trailing quarter.
The pharma company reported its consolidated revenue from operations at Rs 8,070.5 crore, down 5.5% from Rs 8,545.2 crore posted in the year-ago period. Sequentially, the revenue jumped 7.3% from Rs 7,516. 2 crore reported in Q4FY26.
The drag in results came on the back of provisions worth Rs 239.7 crore, which were diverted towards inventory and other costs associated with semaglutide’s active pharmaceutical ingredient (API). The company noted its EBITDA and PBT margins fell 3% over the same.
Dr Reddy’s earnings before interest, tax, depreciation and amortisation stood at Rs 1,008.8 crore, down 55% YoY from Rs 2,278.4 crore reported in the year-ago period. On a quarter-on-quarter basis, its EBITDA advanced by nearly 3% from Rs 980.7 crore reported in the preceding quarter.
Commenting on the financials, G V Prasad, Co-Chairman & MD, 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 double-digit 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.”
Dr Reddy share price
The company’s stock ended Wednesday’s trade on NSE at 1,182.80, down nearly 2% from its previous close. Over the past month the pharma company’s stock has declined over 8%, while over the past six months it has fallen by more than 1%.
