Key Financial Figures (Consolidated, IFRS, Q1FY27)

  • Revenues: ₹80,705 million (Down 5.6% YoY; Up 7.4% QoQ)
  • Gross Profit: ₹37,540 million (Margin: 46.5%)
  • EBITDA: ₹10,088 million (12.5% of Revenues)
  • Profit Before Tax (PBT): ₹5,526 million (6.8% of Revenues)
  • Profit After Tax (PAT) attributable to Equity Holders: ₹4,435 million (5.5% of Revenues)
  • Diluted EPS: ₹5.32
  • Provision for semaglutide API impact: ₹2,397 million, reducing gross profit, EBITDA, and PBT margins by ~3%.
  • Excluding semaglutide impact: Gross margin would be 49.4%, PBT margin 9.8%, EBITDA margin 15.4%.

Segmental Revenue Analysis (Q1FY27)

  • Global Generics: ₹71,993 million (89% of total; Down 5% YoY)
  • North America: ₹22,048 million (27% of total; Down 35% YoY, primarily due to lower lenalidomide sales)
  • Emerging Markets: ₹18,328 million (23% of total; Up 31% YoY)
  • India: ₹17,177 million (21% of total; Up 17% YoY)
  • Europe: ₹14,440 million (18% of total; Up 13% YoY)
  • Pharmaceutical Services and Active Ingredients (PSAI): ₹8,519 million (Up 4% YoY)
  • Branded businesses (India, Emerging Markets, NRT) accounted for 52% of total revenues.

Key Business Highlights (Q1FY27)

  • First-to-market launch of Bosutinib Tablets 400mg in the US with 180-day exclusivity.
  • Launched generic semaglutide injection in Canada and generic semaglutide tablets in India for Type 2 diabetes.
  • Launched 'Celevida GLP+' nutritional product in India via Dr. Reddy's-Nestle Health Science JV.
  • Toripalimab (nasopharyngeal carcinoma treatment) surpassed ₹100 crores in India in under two years.
  • Entered agreement with Innoviva Specialty Therapeutics to commercialize XACDURO® in South/Central America, Caribbean, Russia, and CIS.
  • Filed MAA for abatacept IV with EMA.
  • Received USFDA Fast Track Designation for COVA 302 (ALS treatment).

ESG Highlights

  • Completed 25 years of listing on NYSE.
  • Placed in top 1% globally by FTSE Russell sustainability rankings.
  • Ranked 165th globally and 5th among Indian companies by TIME-Statista's World's Most Sustainable Companies.

Other Updates

  • Received USFDA Form 483 with seven observations following Pre-License Inspection at Bachupally biologics facility in June 2026; responses submitted.
  • Semaglutide batches found out of specification due to API issue; measures being taken for quality and supply resumption.

Management Commentary

Co-Chairman & MD G V Prasad stated: "Our Q1FY27 performance reflected the expected transition beyond lenalidomide revenues, along with an unexpected impact related to semaglutide API. 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."

Appointment of Senior Management

  • Dr. Sridevi Khambhampaty appointed as Global Head of Biologics and Senior Management Personnel, and inducted into the Management Council, effective July 22, 2026.
  • She was most recently CEO of Shilpa Biologics and has prior experience at Syngene International, Intas Biopharma, and Dr. Reddy's.
  • She holds a PhD in Biological Sciences from NCBS (TIFR) and did postdoctoral research at Stanford University School of Medicine.

Appointment of Auditor

  • M/s Deloitte Haskins & Sells, LLP (Firm Registration No. 117366W/W-100018) appointed as Independent Registered Public Accounting Firm for auditing financial statements included in Form 20-F and reviewing interim statements filed on Form 6-K with the US SEC.
  • This aligns with their prior appointment as Statutory Auditors for a five-year term from the conclusion of the 42nd AGM to the 47th AGM, subject to shareholder approval.

Board Meeting Details

  • Meeting held on July 22, 2026, commenced at 2:30 p.m. IST and concluded at 4:03 p.m. IST.

Financial Statement Notes

  • Impairment of non-current assets, net: ₹15 million in Q1FY27 vs. ₹2,586 million in Q4FY26.
  • Other income, net: (₹845) million in Q1FY27, includes a ₹1,400 million litigation settlement gain and ₹1,890 million gain on sale of intangibles in prior periods.
  • Tax expense: ₹1,178 million in Q1FY27 (21.3% of PBT), lower due to reversal of prior provisions and favorable jurisdictional mix.
  • Geo-political conflicts (Russia, Ukraine, Middle East) considered in asset recoverability assessments; full recovery expected.

Balance Sheet Highlights (as of June 30, 2026)

  • Cash and Cash Equivalents and Other Investments: ₹91,508 million
  • Trade Receivables: ₹100,557 million
  • Inventories: ₹80,473 million
  • Property, Plant, and Equipment: ₹115,549 million
  • Goodwill and Other Intangible Assets: ₹116,463 million
  • Loans and Borrowings (Current & Non-Current): ₹71,952 million
  • Trade Payables: ₹37,497 million
  • Equity: ₹386,734 million
  • Net Cash Surplus: ₹30,568 million
  • Net Debt/Equity: (0.08)

Capital and Cash Flow

  • Capital Expenditure (Q1FY27): ₹3.1 billion
  • Free Cash Flow before Acquisitions (Q1FY27): (₹2,159) million
  • Annualised Return on Capital Employed (RoCE): 5.3%; 8% excluding semaglutide impact.

Earnings Call

  • Scheduled for July 22, 2026, at 19:30 IST / 10:00 am ET.

#Tags: #DrReddys #Q1Results #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Negative