Dr. Reddy's Q1 FY27 Revenue ₹8,071 Cr, Margin 12.5%

Q1 FY27 Revenues: ₹8,071
Q1 FY27 Gross Margin: 46.5%
Q1 FY27 EBITDA: ₹1,011 (12.5% margin)
Q1 FY27 PBT: ₹551 (6.8% margin)
Semaglutide API Related Impact: ₹240 crore (inventory provision and associated costs)
Net Cash Surplus: ₹3,058 crore as of June 30, 2026
Diluted EPS: ₹5.3
Reported RoCE (Annualized): 5.3%
RoCE excluding semaglutide impact: 8%

Revenue Comparison: Q4 FY26: ₹7,516 Cr; Q3 FY26: ₹8,727 Cr; Q2 FY26: ₹8,805 Cr; Q1 FY26: ₹8,545 Cr
Gross Margin Comparison: Q4 FY26: 44.8%; Q3 FY26: 53.6%; Q2 FY26: 54.7%; Q1 FY26: 56.9%
EBITDA Margin Comparison: Q4 FY26: 13.0%; Q3 FY26: 23.5%; Q2 FY26: 26.7%; Q1 FY26: 26.7%
EBITDA margin was further impacted by higher solvent and freight costs arising from the Middle East conflict.
Financials are presented excluding a semaglutide API related impact of ₹240 Cr. Excluding this impact, key metrics were:
Revenues: ₹8,087 Cr (vs. ₹8,071 Cr reported)
Gross Margin: 49.4% (vs. 46.5% reported)
EBITDA Margin: 15.4% (vs. 12.5% reported)
PBT Margin: 9.8% (vs. 6.8% reported)

US Market: Achieved 10.3% growth vs. US generics market growth of 2.1% (excl. Lenalidomide, per IQVIA MAT Jun'26). Launched 6 new products in Q1.
First-to-Market Launches:
Launched generic bosutinib 400mg (anti-cancer drug) in the US with 180-day exclusivity.
First company to launch generic semaglutide injection for Type 2 Diabetes in Canada.
Launched generic semaglutide tablets in India.
Product Launches: Launched nintedanib (complex generic for lung diseases) and launched nutrition offering Celevida GLP+ through a collaboration with Nestlé.
In-licensing & Partnerships:
Toripalimab (oncology drug) entered the "₹100 crore club" in under 2 years of launch in India.
Partnered with Innoviva Specialty Therapeutics to develop and commercialize XACDURO® (critical-care antibiotic) in select emerging markets.
Regulatory Milestones:
Received Fast Track Designation from USFDA for partnered product COYA 302 for ALS treatment.
Filed Marketing Authorisation Application for abatacept IV presentation with the European Medicines Agency (EMA).
Secured approval in South Africa for toripalimab.

Received a Form 483 with 7 observations following a Pre-License Inspection (PLI) at its biologics facility in Bachupally in June 2026. The company responded within the timeline.
Certain batches of semaglutide were found to be out of specification due to an issue associated with the API.

Celebrated 25 years of NYSE listing.
Placed in the top 1% globally by FTSE Russell.
Ranked 165th globally among TIME–Statista World's Most Sustainable Companies (5th among Indian companies).

India: Grew at 14.6% (IPM growth at 13.5%). Ranked #9 in IPM for FTM & MQT (Jun'26). Launched 7 new brands. Holds leadership in Stomatologicals (#1) and Vaccines (#2). Has 15 brands in the ₹100 Cr+ club and 25 brands in the IPM Top 300.
Europe: Revenues impacted by pricing pressure and a change in the operating model for NRT (Nicotine Replacement Therapy), which is stated to be profit-neutral.
PSAI (Pharmaceutical Services and Active Ingredients): Revenue grew YoY due to momentum in the CDMO business and favorable forex, though margins were impacted by the semaglutide API issue. Excluding this impact, PSAI gross margins were 12.9% (vs. 4.5% reported).

Pending Approvals: 76 ANDAs (including 46 Para IVs and 24 FTFs) and 3 NDAs as of June 2026.
New Filings: 5 ANDA and 1 NDA filings in Q1 FY27.

The presentation outlines a strategic focus on:

Strengthening core businesses and building future growth drivers (Peptides, Biosimilars, Consumer Health, Innovative Assets).
Advancing key products (Semaglutide including resumption of supplies, Abatacept).
Driving efficiencies through better operational leverage.
Augmenting organic growth with M&A and In-Licensing.
Enhancing capabilities (People, Digital, Processes).
Focusing on quality, compliance, and sustainability.