Dr. Reddy’s Laboratories (NYSE:RDY) Issues Earnings Results, Misses Expectations By $0.06 EPS

by · The Cerbat Gem

Dr. Reddy’s Laboratories (NYSE:RDY – Get Free Report) issued its quarterly earnings data on Tuesday. The company reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.06), FiscalAI reports. Dr. Reddy’s Laboratories had a net margin of 16.41% and a return on equity of 15.89%. The business had revenue of $852.55 million during the quarter, compared to analyst estimates of $886.58 million.

Here are the key takeaways from Dr. Reddy’s Laboratories’ conference call:

  • Dr. Reddy’s reported highest-ever annual revenues in FY2026, and management said the underlying base business delivered double-digit growth for both the quarter and the full year, despite product-specific headwinds and one-time items.
  • Quarterly results were hit by several one-offs, including a INR 453 crore lenalidomide shelf-stock adjustment, VAT-related provisions, and impairments tied to discontinued CAR-T and partnered programs, which sharply reduced reported profitability.
  • North America was pressured by lenalidomide, but management said the ex-lenalidomide U.S. business should grow double digits in FY2027 as new launches offset erosion in legacy products.
  • The company highlighted strong momentum in semaglutide, including regulatory approval in Canada and India launch progress, and said the product could be a major growth driver with pricing generally in the $25-$30 per unit range across many markets.
  • Management expects margins to improve in FY2027, guiding for gross margins above 50%, R&D spend of 7%-8% of sales, and a path toward the company’s aspirational 25% EBITDA margin as semaglutide and other launches scale.

Dr. Reddy’s Laboratories Trading Down 5.2%

NYSE RDY traded down $0.69 during mid-day trading on Tuesday, hitting $12.45. The company’s stock had a trading volume of 6,228,210 shares, compared to its average volume of 2,259,566. Dr. Reddy’s Laboratories has a 52-week low of $12.19 and a 52-week high of $16.17. The stock’s fifty day simple moving average is $13.67 and its two-hundred day simple moving average is $13.82. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.88 and a quick ratio of 1.38. The firm has a market capitalization of $10.39 billion, a P/E ratio of 16.17, a price-to-earnings-growth ratio of 20.55 and a beta of 0.27.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on RDY. Weiss Ratings raised shares of Dr. Reddy’s Laboratories from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday, April 27th. The Goldman Sachs Group lowered shares of Dr. Reddy’s Laboratories from a “neutral” rating to a “sell” rating in a report on Thursday, April 23rd. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $16.90.

Get Our Latest Stock Analysis on Dr. Reddy’s Laboratories

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Russell Investments Group Ltd. grew its position in shares of Dr. Reddy’s Laboratories by 803.8% during the fourth quarter. Russell Investments Group Ltd. now owns 3,091 shares of the company’s stock worth $43,000 after buying an additional 2,749 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Dr. Reddy’s Laboratories by 71.7% during the second quarter. EverSource Wealth Advisors LLC now owns 3,100 shares of the company’s stock worth $47,000 after buying an additional 1,294 shares in the last quarter. Public Employees Retirement System of Ohio acquired a new stake in shares of Dr. Reddy’s Laboratories during the fourth quarter worth approximately $66,000. Raymond James Financial Inc. acquired a new stake in shares of Dr. Reddy’s Laboratories during the second quarter worth approximately $67,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank acquired a new stake in shares of Dr. Reddy’s Laboratories during the third quarter worth approximately $78,000. Hedge funds and other institutional investors own 3.85% of the company’s stock.

Dr. Reddy’s Laboratories Company Profile

(Get Free Report)

Dr. Reddy’s Laboratories Ltd. is an India‐based multinational pharmaceutical company that develops, manufactures and markets a wide range of pharmaceutical products and services. Established in 1984 by the late Dr. Kallam Anji Reddy, the company has grown into a diversified healthcare enterprise offering generic and proprietary medicines, active pharmaceutical ingredients (APIs), biosimilars and custom research and manufacturing services (CRAMS). Its portfolio spans therapeutic areas such as oncology, cardiovascular care, dermatology, gastroenterology and pain management.

The company’s core activities include the development and commercialization of cost‐effective generic treatments for branded drugs that have lost patent protection, along with in‐house research into innovative molecule development.

Read More