Key Quantitative Figures

Consolidated Results (IFRS):

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

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

Segment-wise Revenue (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 (Up 1% YoY)
  • PSAI: ₹8,310 million (Down 12% YoY)
  • Others: ₹471 million (Up 357% YoY)

Branded businesses (India, Emerging Markets, NRT) accounted for 53% of Q2FY27 revenues.

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

Dates of Action

  • Board Meeting: October 23, 2026 (3:00 PM to 4:38 PM IST)
  • Quarter Ended: September 30, 2026
  • Half Year Ended: September 30, 2026
  • Earnings Call: October 23, 2026 at 19:30 IST

Parties Involved

  • Board of Directors of Dr. Reddy's Laboratories Limited
  • Statutory Auditors: Deloitte Haskins & Sells LLP
  • Subsidiaries: Multiple entities listed in Appendix A of the report
  • Partners: Takeda, Gilead Sciences, GARDP Foundation
  • Regulators: USFDA, CDSCO, Thai FDA

Business Highlights

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

Operational Updates

  • Semaglutide API issue: Certain batches found out of specification, appropriate measures being taken
  • Received VAI classification from USFDA for Mirfield, UK API facility (September 2025)
  • Received Form 483 with three observations at Srikakulam, AP facility (July 2026)
  • Received Form 483 with four observations at Bachupally, Hyderabad facility (August 2026)
  • Received Form 2953 with two observations at Mexico API facility (July-September 2026)
  • Terminated distribution agreement with Novartis India due to change in controlling shareholding

Financial Impact Notes

  • Q1FY27 included ₹2,397 million provision for semaglutide API related impact
  • Growth impacted by lower lenalidomide revenues in North America
  • Underlying base business (ex-lenalidomide) delivered double-digit growth
  • FY26 included ₹4,530 million reduction in revenue from lenalidomide price adjustment
  • FY26 included various impairment charges including CAR-T program discontinuation

Forward-looking Statements

Management commentary included forward-looking statements about focusing on strengthening core businesses, enhancing productivity, and investing in strategic growth platforms. The document contains customary disclaimer about forward-looking statements being subject to risks and uncertainties.