Key Quantitative Figures

Consolidated Financial Results (IFRS) for Q2FY27:

  • Revenues: ₹86,708 million (Down 1.5% YoY; Up 7.4% QoQ)
  • Gross Margin: 52.1% (Q2FY26: 54.7%; Q1FY27: 46.5%)
  • EBITDA: ₹17,828 million (20.6% of revenues)
  • Profit before Tax: ₹12,277 million (14.2% of revenues)
  • Profit after Tax attributable to Equity Holders: ₹9,250 million (10.7% of revenues)
  • Diluted EPS: ₹11.10 (Down 36% YoY)

Consolidated Financial Results (IFRS) for H1FY27:

  • Revenues: ₹167,413 million (Down 3.5% YoY)
  • Gross Margin: 49.4% (H1FY26: 55.8%)
  • EBITDA: ₹27,915 million (16.7% of revenues)
  • Profit before Tax: ₹17,803 million (10.6% of revenues)
  • Profit after Tax attributable to Equity Holders: ₹13,685 million (8.2% of revenues)
  • Diluted EPS: ₹16.42 (Down 52% YoY)

Segment-wise Revenue Performance for Q2FY27:

  • Global Generics: ₹77,927 million (90% of total revenues)
  • North America: ₹24,890 million (Down 23% YoY)
  • Emerging Markets: ₹20,595 million (Up 24% YoY)
  • India: ₹18,508 million (Up 17% YoY)
  • Europe: ₹13,935 million (Flat YoY)
  • Pharmaceutical Services and Active Ingredients (PSAI): ₹8,310 million (Down 12% YoY)
  • Others: ₹471 million (Up 357% YoY)

Balance Sheet Highlights as of September 30, 2026:

  • Cash & Cash Equivalents and Other Investments: ₹86,670 million
  • Trade Receivables: ₹101,399 million
  • Inventories: ₹81,182 million
  • Property, Plant and Equipment: ₹115,097 million
  • Goodwill and Other Intangible Assets: ₹117,145 million
  • Loans and Borrowings: ₹72,287 million
  • Trade Payables: ₹36,082 million
  • Equity: ₹389,370 million

Other Financial Metrics:

  • Operating Working Capital: ₹146,499 million
  • Capital Expenditure (Q2FY27): ₹1,900 million
  • Free Cash Flow (Q2FY27): ₹1,705 million
  • Net Cash Surplus: ₹25,024 million
  • Net Debt to Equity: (0.06)
  • Annualized Return on Capital Employed (RoCE): 9.5%

Dates of Action

  • Board Meeting Date: October 23, 2026 (3:00 PM IST to 4:38 PM IST)
  • Financial Period: Quarter and half-year ended September 30, 2026
  • Management Appointment Effective Date: November 13, 2026

Parties Involved

  • Board of Directors of Dr. Reddy's Laboratories Ltd.
  • Mr. Akhil Ravi (Appointed as Head API and Services)
  • Aurigene Pharmaceutical Services Ltd. (Wholly owned subsidiary)
  • Statutory Auditors: Deloitte Haskins & Sells LLP
  • Regulatory Authorities: USFDA, CDSCO, Thai FDA

Management Commentary

Co-Chairman & MD G V Prasad stated: "We continued to improve the overall health of our business, delivering double-digit base business growth and EBITDA margins of over 20% during the quarter. We remain focused on strengthening our core businesses, enhancing productivity, and investing in strategic growth platforms to deliver consistent performance, while creating long-term value drivers."

Business Highlights for Q2FY27

  • Partnered with Takeda for India's first CDSCO-approved dengue vaccine QDENGA
  • Expanded collaboration with Gilead Sciences for lenacapavir in 120 countries
  • Secured Thai FDA approval for zoliflodacin antibiotic with GARDP Foundation
  • Received USFDA approval for rituximab biosimilar for US market
  • Launched nivolumab biosimilar in India
  • Secured first biosimilar approval in India for abatacept IV
  • First-to-market launch of sugammadex injection in US
  • Generic semaglutide approved in 10 countries including Canada and India
  • CDMO business under Aurigene generated revenues of $100+ million in trailing 12 months
  • APSL secured strategic long-term manufacturing agreement with global pharma company

Regulatory Updates

  • Certain semaglutide batches found out of specification due to API issue
  • Received VAI classification after USFDA inspection at Mirfield, UK API facility (September 2025)
  • Received Form 483 with three observations at FTO-SEZ Process Unit-02, Srikakulam (July 2026)
  • Received Form 483 with four observations at formulations facility FTO-3, Bachupally, Hyderabad (August 2026)
  • Received Form 2953 with two observations at API facility in Mexico (July-September 2026)
  • Terminated distribution agreement with Novartis India due to change in controlling shareholding

ESG Highlights

  • Awarded 'Silver' medal by FinanceAsia in 'Best Large Cap Company in India' category
  • Improved CRISIL ESG Rating to 73/100 for FY26 from 66/100 in FY25

Capital Structure Impact

No change in share capital reported. Paid-up equity share capital remains at ₹835 million.

Cash Flow Implications

  • Q2FY27 free cash flow before acquisitions: ₹1,705 million
  • Dividend paid during H1FY27: ₹6,664 million
  • Income tax paid during H1FY27: ₹6,822 million

Forward-looking Statements

The document contains forward-looking statements subject to risks and uncertainties including economic conditions, market competition, regulatory changes, and geopolitical conflicts. The company assumes no obligation to update forward-looking statements.