Dr Reddy’s Laboratories announced a 14% decrease in its consolidated net profit for the December quarter of the fiscal year 2026. The company’s net profit fell to Rs 1,209.8 crore in Q3 FY26 from Rs 1,413.3 crore in the same period last year. Revenue from operations increased by 4.4% to Rs 8,726.8 crore, supported by growth in key markets.
On the operational front, EBITDA dropped by 10.8% year-on-year to Rs 2,049.3 crore. The company’s gross margins also decreased to 53.6% in Q3 FY26 from 58.7% in Q3 FY25. Dr Reddy’s mentioned that growth was strong across various regions except for North America Generics, which saw a decline primarily due to lower Lenalidomide sales.
Global generics revenue reached Rs 1,791 crore in Q3 FY26, showing a 7% increase year-on-year and a 1% sequential rise. While North America Generics reported a 12% decline, Europe’s revenue rose by 20%, India by 19%, and emerging markets by 32%. The Pharmaceutical Services and Active Ingredients (PSAI) segment experienced a 2% revenue decline to Rs 800 crore during the quarter.
Research and development spending decreased by 8% year-on-year to Rs 610 crore, mainly due to lower biosimilar development expenses after significant investments related to Abatacept. Dr Reddy’s highlighted its focus on complex generics, biosimilars, peptides, and novel biologics in its R&D efforts.
