India · Delayed Price · Currency is INR Dr. Reddy's Laboratories Earnings Call Transcripts
Fiscal Year 2027
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Revenue declined 5.6% year-over-year due to lower lenalidomide sales and semaglutide API issues, but base business delivered double-digit growth across geographies. EBITDA margin was 12.5%, with guidance maintained for 20% margins as semaglutide supplies are expected to resume by November. Strong cash position supports ongoing business development and expansion.
Fiscal Year 2026
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A process impurity in scale-up batches of semaglutide API has halted commercial supply until at least late October, with 6–7 million pens now expected to be supplied between November and March. No recall or patient safety issues exist, but near-term sales and inventory will be affected.
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FY 2026 saw record revenues and double-digit base business growth, offset by lenalidomide headwinds and one-time charges. Strategic launches, especially semaglutide in Canada and India, and robust emerging market growth support a positive FY 2027 outlook.
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Q3 FY 2026 delivered 4.4% revenue growth and strong base business performance, offset by lower lenalidomide sales and pricing pressure in US and Europe generics. India and emerging markets saw robust double-digit growth, while biosimilar launches and regulatory progress continue to drive future outlook.
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Q2 FY26 saw 9.8% revenue growth and 14% profit rise year-over-year, led by consumer healthcare and ex-US markets, despite US generics pressure. Strategic launches, biosimilar progress, and disciplined cost control support a positive outlook, with margin recovery expected in two years.
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Q1 FY26 delivered 11% revenue growth and a 26.7% EBITDA margin, with strong cash generation and continued investment in innovation. U.S. generics faced price pressure, but India and emerging markets outperformed. Semaglutide and biosimilars remain key growth drivers.
Fiscal Year 2025
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Record annual revenue and EBITDA were achieved, driven by the NRT acquisition and strong generics growth across all regions. Margins remained robust despite one-off costs, and double-digit growth is expected to continue in FY 2026, with ongoing investments in biosimilars and innovation.
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Double-digit revenue and EBITDA growth were driven by the NRT acquisition and strong performance across key markets. R&D and SG&A investments remain elevated, with a focus on biosimilars, semaglutide, and innovation. Integration of the NRT business and new product launches are expected to support future growth.
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Q2 FY25 saw record sales and profit before tax, driven by strong growth across all markets and robust product launches. Major acquisitions and JV integrations were completed, while margins remained healthy despite one-time costs. Investments in R&D and infrastructure continue to support future growth.
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Q1 FY25 saw 14% revenue growth, record-high revenues, and stable margins, driven by strong North America and India performance, new launches, and strategic acquisitions. SG&A rose due to investments and one-off freight costs, while the company maintains a robust cash position and double-digit growth outlook.
Fiscal Year 2024
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A GBP 500 million acquisition of a leading global NRT portfolio, including Nicotinell, will expand the OTC platform, leveraging strong brands and established supply chains. The deal is expected to be margin-accretive, with growth driven by new launches, market expansion, and increased investment.