Dr Reddys Laboratories Ltd 6-K, filed Oct 24, 2025
Dr Reddys Laboratories Ltd (RDY)
About this 6-K
Dr Reddys Laboratories Ltd filed this 6-K on October 24, 2025.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
October 2025
Commission File Number 1-15182
DR. REDDY’S LABORATORIES LIMITED
(Translation of registrant’s name into English)
8-2-337, Road No. 3, Banjara Hills
Hyderabad, Telangana 500 034, India
+91-40-49002900
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ______
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ______
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b): 82-________.
EXHIBITS
| 2 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| DR. REDDY’S LABORATORIES LIMITED (Registrant) | |||
| Date: October 24, 2025 | By: | /s/ K Randhir Singh | |
| Name: | K Randhir Singh | ||
| Title: | Company Secretary | ||
| 3 |
Exhibit 99.1
 |
Dr. Reddy's Laboratories Ltd. |
| 8-2-337, Road No. 3, Banjara Hills | |
| Hyderabad – 500 034, Telangana, India | |
| CIN: L85195TG1984PLC004507 | |
| Tel: + 91 40 4900 2900 | |
| Fax: + 91 40 4900 2999 | |
| Email: mail@drreddys.com | |
| Web: www.drreddys.com |
October 24, 2025
National Stock Exchange of India Ltd. (Scrip Code: DRREDDY)
BSE Limited. (Scrip Code: 500124)
New York Stock Exchange Inc. (Stock Code: RDY)
NSE IFSC Ltd. (Stock Code: DRREDDY)
Dear Sir/Madam,
Sub: Outcome of Board Meeting
Pursuant to Regulations 30 and 33 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) and in furtherance to our letter dated September 22, 2025, we would like to inform that the Board of Directors of the Company, at their meeting held today, i.e. October 24, 2025, have inter alia approved the Unaudited Financial Results of the Company for the quarter and half-year ended September 30, 2025. In this regard, we are enclosing herewith:
| 1. | Unaudited Consolidated Financial Results of the Company for the quarter and half-year ended September 30, 2025, prepared in compliance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB); |
| 2. | Press Release on Unaudited Financial Results of the Company for the quarter and half-year ended September 30, 2025; |
| 3. | Unaudited Consolidated Financial Results of the Company for the quarter and half-year ended September 30, 2025, as per Indian Accounting Standards; |
| 4. | Unaudited Standalone Financial Results of the Company for the quarter and half-year ended September 30, 2025, as per Indian Accounting Standards; and |
| 5. | Limited Review Reports of the Statutory Auditors on the Unaudited Standalone and Consolidated Financial Results as mentioned at serial nos. 3 & 4. |
The Board Meeting commenced at 2:00 PM (IST) and concluded at 3:57 PM (IST).
This is for your information and records.
Thanking you.
Yours faithfully,
For Dr. Reddy’s Laboratories Limited
K Randhir Singh
Company Secretary, Compliance Officer & Head-CSR
Encl: as above
Exhibit 99.2
 |
Dr. Reddy’s Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, India. CIN : L85195TG1984PLC004507
Tel : +91 40 4900 2900 Fax : +91 40 4900 2999 Email : mail@drreddys.com www.drreddys.com |
DR. REDDY'S LABORATORIES LIMITED
Unaudited consolidated financial results of Dr. Reddy's Laboratories Limited and its subsidiaries for the quarter and half year ended 30 September 2025 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)
All amounts in Indian Rupees millions
| Quarter ended | Half year ended | Year ended | ||||||||||||||||||||||||
| Sl. No. | Particulars | 30.09.2025 | 30.06.2025 | 30.09.2024 | 30.09.2025 | 30.09.2024 | 31.03.2025 | |||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
| 1 | Revenues | 88,051 | 85,452 | 80,162 | 173,503 | 156,889 | 325,535 | |||||||||||||||||||
| 2 | Cost of revenues | 39,911 | 36,825 | 32,393 | 76,736 | 62,776 | 135,107 | |||||||||||||||||||
| 3 | Gross profit (1 - 2) | 48,140 | 48,627 | 47,769 | 96,767 | 94,113 | 190,428 | |||||||||||||||||||
| 4 | Selling, general and administrative expenses | 26,436 | 25,647 | 23,007 | 52,083 | 45,698 | 93,870 | |||||||||||||||||||
| 5 | Research and development expenses | 6,202 | 6,244 | 7,271 | 12,446 | 13,464 | 27,380 | |||||||||||||||||||
| 6 | Impairment of non-current assets, net | 662 | - | 924 | 662 | 929 | 1,693 | |||||||||||||||||||
| 7 | Other income, net | (2,673 | ) | (739 | ) | (984 | ) | (3,412 | ) | (1,454 | ) | (4,358 | ) | |||||||||||||
| Total operating expenses | 30,627 | 31,152 | 30,218 | 61,779 | 58,637 | 118,585 | ||||||||||||||||||||
| 8 | Results from operating activities [(3) - (4 + 5 + 6 + 7)] | 17,513 | 17,475 | 17,551 | 34,988 | 35,476 | 71,843 | |||||||||||||||||||
| Finance income | 1,681 | 2,400 | 2,312 | 4,081 | 3,747 | 7,553 | ||||||||||||||||||||
| Finance expense | (907 | ) | (830 | ) | (757 | ) | (1,737 | ) | (1,355 | ) | (2,829 | ) | ||||||||||||||
| 9 | Finance income, net | 774 | 1,570 | 1,555 | 2,344 | 2,392 | 4,724 | |||||||||||||||||||
| 10 | Share of profit of equity accounted investees, net of tax | 63 | 2 | 61 | 65 | 120 | 217 | |||||||||||||||||||
| 11 | Profit before tax (8 + 9 + 10) | 18,350 | 19,047 | 19,167 | 37,397 | 37,988 | 76,784 | |||||||||||||||||||
| 12 | Tax expense, net | 4,082 | 4,951 | 5,752 | 9,033 | 10,653 | 19,539 | |||||||||||||||||||
| 13 | Profit for the period/year (11 - 12) | 14,268 | 14,096 | 13,415 | 28,364 | 27,335 | 57,245 | |||||||||||||||||||
| Attributable to: | ||||||||||||||||||||||||||
| Equity holders of the parent company | 14,372 | 14,178 | 12,553 | 28,549 | 26,473 | 56,544 | ||||||||||||||||||||
| Non-controlling interests | (104 | ) | (82 | ) | 862 | (185 | ) | 862 | 701 | |||||||||||||||||
| 14 | Earnings per equity share attributable to equity shareholders of parent | |||||||||||||||||||||||||
| Basic earnings per share of Re.1/- each | 17.26 | 17.04 | 15.07 | 34.30 | 31.79 | 67.88 | ||||||||||||||||||||
| Diluted earnings per share of Re.1/- each | 17.25 | 17.02 | 15.05 | 34.26 | 31.74 | 67.78 | ||||||||||||||||||||
| (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | ||||||||||||||||||||||
| Segment information | All amounts in Indian Rupees millions |
| Quarter ended | Half year ended | Year ended | ||||||||||||||||||||||||
| Sl. No. | Particulars | 30.09.2025 | 30.06.2025 | 30.09.2024 | 30.09.2025 | 30.09.2024 | 31.03.2025 | |||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
| Segment wise revenue and results: | ||||||||||||||||||||||||||
| 1 | Segment revenue: | |||||||||||||||||||||||||
| a) Global Generics | 78,498 | 75,620 | 71,576 | 154,118 | 140,434 | 289,552 | ||||||||||||||||||||
| b) Pharmaceutical Services and Active Ingredients | 11,584 | 9,709 | 11,030 | 21,293 | 21,339 | 43,235 | ||||||||||||||||||||
| c) Others | 103 | 1,651 | 179 | 1,754 | 391 | 2,137 | ||||||||||||||||||||
| Total | 90,185 | 86,980 | 82,785 | 177,165 | 162,164 | 334,924 | ||||||||||||||||||||
| Less: Inter-segment revenues | 2,134 | 1,528 | 2,623 | 3,662 | 5,275 | 9,389 | ||||||||||||||||||||
| Net revenues | 88,051 | 85,452 | 80,162 | 173,503 | 156,889 | 325,535 | ||||||||||||||||||||
| 2 | Segment results: | |||||||||||||||||||||||||
| Gross profit from each segment | ||||||||||||||||||||||||||
| a) Global Generics | 46,428 | 46,086 | 45,162 | 92,514 | 89,680 | 179,606 | ||||||||||||||||||||
| b) Pharmaceutical Services and Active Ingredients | 1,700 | 1,082 | 2,518 | 2,782 | 4,286 | 9,157 | ||||||||||||||||||||
| c) Others | 12 | 1,459 | 89 | 1,471 | 147 | 1,665 | ||||||||||||||||||||
| Total | 48,140 | 48,627 | 47,769 | 96,767 | 94,113 | 190,428 | ||||||||||||||||||||
| Less: Selling and other un-allocable expenditure, net of other income | 29,790 | 29,580 | 28,602 | 59,370 | 56,125 | 113,644 | ||||||||||||||||||||
| Total profit before tax | 18,350 | 19,047 | 19,167 | 37,397 | 37,988 | 76,784 | ||||||||||||||||||||
Global Generics segment includes operations of Biologics business. Inter-segment revenues represent sale from Pharmaceutical Services and Active Ingredients to Global Generics and Others at cost.
Segmental capital employed
As certain assets of the Company including manufacturing facilities, development facilities, treasury assets and liabilities are often deployed interchangeably across segments, it is impractical to allocate these assets and liabilities to each segment. Hence, the details for capital employed have not been disclosed in the above table.
Notes:
| 1 | The above Statement of unaudited consolidated financial results of Dr. Reddy’s Laboratories Limited (the “parent company”), together with its subsidiaries (collectively, the “Company”), joint ventures and associates, have been prepared in accordance with recognition and measurement principles of IAS 34 as issued by the International Accounting Standards Board (IASB), and presented as per the format of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, and were reviewed and recommended by Audit Committee and approved by the Board of Directors at their meetings held on 24 October 2025. The Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon. |
| 2 | During the quarter and six months period ended 30 September 2025, consequent to certain technical challenges in product development, the Company decided to discontinue development of conjugated estrogen at its site in Middleburgh, New York. Consequent to discontinuance of development, the Company recorded the following financial impacts, resulting in a net loss of Rs.47 million in the income statement: |
- Impairment loss of the entire carrying value of Rs.535 million for property, plant and equipment;
- Inventory related provisions of Rs.260 million;
- Other development program related wind down costs of Rs.129 million;
- Gain recognized from the write back of liabilities no longer required of Rs.877 million.
This transaction pertains to the Company’s Global Generics segment.
| 3 | "Impairment of non-current assets, net" for the year ended 31 March 2025 primarily includes: |
a. Impairment of intangibles pertaining to acquisition from Mayne:
-an amount of Rs.907 million towards Haloette® (a generic equivalent to Nuvaring®), a product-related intangible, due to constraints on procurement of the underlying product from its contract manufacturer, resulting in a lower recoverable value compared to the carrying value.
-an amount of Rs.270 million pertaining to impairment of certain product related intangibles, due to adverse market conditions resulting in lower recoverable value compared to the carrying value.
b. Other impairments:
-an impairment loss of Rs. 288 million consequent to adverse market conditions with respect to certain product related intangibles forming part of the Company’s global generic business in India and Europe.
The above impairment charge pertains to the Company’s Global Generics segment.
| 4 | In September 2025, the Company had acquired the STUGERON brand from Janssen Pharmaceutica NV ( an affiliate of Johnson & Johnson) for a consideration of Rs.4,464 million ($50.5 million).The portfolio acquired includes STUGERON® FORTE and STUGERON® PLUS, across 18 markets in the Asia-Pacific and Europe, Middle East, and Africa regions, with India and Vietnam as the key markets. |
| 5 | “Other income, net” for the quarter and year ended 31 March 2025 includes cumulative amount of foreign exchange gain of Rs. 1,551 million, reclassified from the foreign currency translation reserve upon divestment of the membership interest in the subsidiary “Dr. Reddy’s Laboratories Louisiana LLC”. This transaction pertains to the Company's Global Generics segment. |
| 6 | During the six months ended 30 September 2025, the Company received a Field Tax Audit Report from the Federal Tax service authority for one of its foreign subsidiaries for the period from January 2020 to December 2022. The report classified that certain services would be subject to value-added tax (VAT). The Company filed objections, and a revised report was issued on 15 September 2025. The Company submitted further objections, stating that the specified services should not be subject to VAT on 6 October 2025 and is awaiting the final tax assessment. |
Based on its best estimate, the Company has recorded a provision of Rs.695 million under “Selling, general and administrative expenses”, and believes that the likelihood of any further liability that may arise on account of this is not probable.
| 7 | Pursuant to the amendment in The Finance Act 2024, resulting in withdrawal of indexation benefit on long-term capital gain, the Company has written off Deferred Tax Asset amounting to Rs.473 million, created in earlier period on land, during the quarter and half year ended 30 September 2024. |
| 8 | Consolidated statements of financial position |
All amounts in Indian Rupees millions
| Particulars | As at | As at | ||||||
| 30.09.2025 | 31.03.2025 | |||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | 9,906 | 14,654 | ||||||
| Other investments | 59,906 | 43,254 | ||||||
| Trade and other receivables | 97,738 | 90,420 | ||||||
| Inventories | 75,821 | 71,085 | ||||||
| Derivative financial instruments | 114 | 557 | ||||||
| Other current assets | 36,032 | 30,142 | ||||||
| Total current assets | 279,517 | 250,112 | ||||||
| Non-current assets | ||||||||
| Property, plant and equipment | 111,981 | 97,761 | ||||||
| Goodwill | 12,298 | 11,810 | ||||||
| Other intangible assets | 100,942 | 96,803 | ||||||
| Investment in equity accounted investees | 5,184 | 4,811 | ||||||
| Other investments | 4,581 | 10,391 | ||||||
| Deferred tax assets | 22,717 | 18,508 | ||||||
| Tax assets | 3,713 | 1,821 | ||||||
| Other non-current assets | 1,072 | 972 | ||||||
| Total non-current assets | 262,488 | 242,877 | ||||||
| Total assets | 542,005 | 492,989 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Trade and other payables | 40,248 | 35,523 | ||||||
| Short-term borrowings | 41,155 | 38,045 | ||||||
| Long-term borrowings, current portion | 5,747 | 857 | ||||||
| Provisions | 6,548 | 6,168 | ||||||
| Tax liabilities | 7,628 | 3,028 | ||||||
| Derivative financial instruments | 2,836 | 1,286 | ||||||
| Other current liabilities | 46,765 | 45,485 | ||||||
| Total current liabilities | 150,927 | 130,392 | ||||||
| Non-current liabilities | ||||||||
| Long-term borrowings | 11,637 | 7,864 | ||||||
| Deferred tax liabilities | 14,827 | 14,108 | ||||||
| Provisions | 173 | 156 | ||||||
| Other non-current liabilities | 2,359 | 3,303 | ||||||
| Total non-current liabilities | 28,996 | 25,431 | ||||||
| Total liabilities | 179,923 | 155,823 | ||||||
| Equity | ||||||||
| Share capital | 835 | 834 | ||||||
| Treasury shares | (1,937 | ) | (2,264 | ) | ||||
| Share premium | 11,310 | 11,133 | ||||||
| Share based payment reserve | 1,637 | 1,642 | ||||||
| Capital redemption reserve | 173 | 173 | ||||||
| Retained earnings | 337,683 | 315,793 | ||||||
| Other reserves | 3,979 | 3,979 | ||||||
| Other components of equity | 4,809 | 2,098 | ||||||
| Equity attributable to equity holders of the parent company | 358,489 | 333,388 | ||||||
| Non-controlling interests | 3,593 | 3,778 | ||||||
| Total equity | 362,082 | 337,166 | ||||||
| Total liabilities and equity | 542,005 | 492,989 | ||||||
| 9 | Consolidated statements of cash flows |
All amounts in Indian Rupees millions
| Particulars | Half year ended | |||||||
| 30.09.2025 | 30.09.2024 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash flows from/(used in) operating activities : | ||||||||
| Profit for the period | 28,364 | 27,335 | ||||||
| Adjustments for: | ||||||||
| Tax expense, net | 9,033 | 10,653 | ||||||
| Fair value changes and profit on sale of financial instruments measured at FVTPL*, net | (1,277 | ) | (2,245 | ) | ||||
| Depreciation and amortization | 9,816 | 7,785 | ||||||
| Impairment of non-current assets | 662 | 929 | ||||||
| Allowance for credit losses (on trade receivables and other advances) | 679 | 96 | ||||||
| Gain on sale or de-recognition of non-current assets, net | (268 | ) | (447 | ) | ||||
| Share of profit of equity accounted investees | (65 | ) | (120 | ) | ||||
| Inventories write-down | 3,450 | 2,844 | ||||||
| Foreign exchange (gain)/loss, net | (509 | ) | 507 | |||||
| Interest income, net | (303 | ) | (54 | ) | ||||
| Equity settled share-based payment expense | 212 | 208 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade and other receivables | (7,689 | ) | (4,182 | ) | ||||
| Inventories | (8,186 | ) | (11,331 | ) | ||||
| Trade and other payables | 8,846 | 4,062 | ||||||
| Other assets and other liabilities, net | (3,718 | ) | (9,474 | ) | ||||
| Cash generated from operations | 39,047 | 26,566 | ||||||
| Income tax paid, net | (8,845 | ) | (8,754 | ) | ||||
| Net cash generated from operating activities | 30,202 | 17,812 | ||||||
| Cash flows (used in)/from investing activities : | ||||||||
| Purchase of property, plant and equipment | (12,084 | ) | (12,646 | ) | ||||
| Proceeds from sale of property, plant and equipment | 142 | 411 | ||||||
| Purchase of other intangible assets | (8,198 | ) | (1,687 | ) | ||||
| Proceeds from sale of other intangible assets | 239 | 419 | ||||||
| Payment for acquisition of businesses | - | (51,441 | ) | |||||
| Purchase of other investments | (102,831 | ) | (138,326 | ) | ||||
| Proceeds from sale of other investments | 93,289 | 162,988 | ||||||
| Investment in associates | (51 | ) | (317 | ) | ||||
| Interest and dividend received | 759 | 1,280 | ||||||
| Net cash (used in)/from in investing activities | (28,735 | ) | (39,319 | ) | ||||
| Cash flows (used in)/from financing activities : | ||||||||
| Proceeds from issuance of equity shares (including treasury shares) | 288 | 157 | ||||||
| Purchase of treasury shares | ||||||||
| Proceeds from issuance of equity shares in subsidiary to non-controlling interests | - | 7,056 | ||||||
| Proceeds from short-term borrowings, net | 2,675 | 27,556 | ||||||
| Payment of principal portion of lease liabilities | (565 | ) | (735 | ) | ||||
| Dividend paid | (6,659 | ) | (6,662 | ) | ||||
| Interest paid | (2,265 | ) | (1,681 | ) | ||||
| Net cash used in financing activities | (6,526 | ) | 25,691 | |||||
| Net increase in cash and cash equivalents | (5,059 | ) | 4,184 | |||||
| Effect of exchange rate changes on cash and cash equivalents | 372 | (6 | ) | |||||
| Cash and cash equivalents at the beginning of the period(1) | 14,593 | 7,107 | ||||||
| Cash and cash equivalents at the end of the period(2) | 9,906 | 11,285 | ||||||
*FVTPL (fair value through profit or loss)
(1)Adjusted for bank-overdraft of Rs.61 million for the year ended 31 March 2025.
(2)Adjusted for bank-overdraft of Rs.45 million for the half year ended 30 September 2024.
| 10 | The Company received an anonymous complaint in September 2020, alleging that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S. anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On July 6, 2021 the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC. The Company has continued to engage with the SEC and DOJ, including through submissions and presentations regarding the initial complaint and additional complaints relating to other markets, and in relation to its Global Compliance Framework, which includes enhancement initiatives undertaken by the Company, and the Company is complying with its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions and can also lead to civil and criminal sanctions under relevant laws, the outcomes, including liabilities, are not reasonably ascertainable at this time. |
| 11 | The Company considered the uncertainties relating to the escalation of conflict in the middle east, and duration of military conflict between Russia and Ukraine, in assessing the recoverability of receivables, goodwill, intangible assets, investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of approval of these financial results. Based on its judgments, estimates and assumptions, the Company expects to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue to closely monitor any material changes to future economic conditions. |
 |
By order of the Board | |
| For Dr. Reddy’s Laboratories Limited | ||
 | ||
| Place: Hyderabad | G V Prasad | |
| Date: 24 October 2025 | Co-Chairman & Managing Director |
Exhibit 99.3
| CONTACT | ||
|
DR. REDDY’S LABORATORIES LTD. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India. |
Investor relationS | Media relationS |
| Richa Periwal | richaperiwal@drreddys.com | |
| AISHWARYA SITHARAM | PRIYA K | |
| aishwaryasitharam@drreddys.com | priyak@drreddys.com | |
Dr. Reddy’s Q2 & H1FY26 Financial Results
Hyderabad, India, October 24, 2025: Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter and six months ended September 30, 2025. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).
| Q2FY26 | H1FY26 | |||
| Revenues | ₹ 88,051 Mn [Up: 9.8% YoY; 3% QoQ] |
₹ 173,503 Mn [Up: 10.6% YoY] | ||
| Gross Margin | 54.7% [Q2FY25: 59.6%; Q1FY26: 56.9%] |
55.8% [H1FY25: 60.0%] | ||
| SG&A Expenses | ₹ 26,436 Mn [Up: 15% YoY; 3% QoQ] |
₹ 52,083 Mn [Up: 14% YoY] | ||
| R&D Expenses | ₹ 6,202 Mn [7.0% of Revenues] |
₹ 12,446 Mn [7.2% of Revenues] | ||
| EBITDA | ₹ 23,511 Mn [26.7% of Revenues] |
₹ 46,295 Mn [26.7% of Revenues] | ||
| Profit before Tax | ₹ 18,350 Mn [Down: 4% YoY; 4% QoQ] |
₹ 37,397 Mn [Down: 2% YoY] | ||
| Profit after Tax attributable to Equity Holders | ₹ 14,372 Mn [Up: 14% YoY; 1% QoQ] |
₹ 28,549 Mn [Up: 8% YoY] |
Commenting on the results, Co-Chairman & MD, G V Prasad said: “Growth in Q2 was driven by momentum in branded markets and steady contributions from the Nicotine Replacement Therapy (NRT) portfolio, which helped offset the decline in U.S. Lenalidomide sales. We remain focused on strengthening our core business, advancing key pipeline assets, driving productivity and pursuing business development initiatives.”
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| All amounts in millions, except EPS | All US dollar amounts based on convenience translation rate of 1 USD = ₹88.78 |
Dr. Reddy’s Laboratories Limited & Subsidiaries
Revenue Mix by Segment for the quarter
| Particulars | Q2FY26 | Q2FY25 | YoY | Q1FY26 | QoQ | |||||||||||||||
| (₹) | (₹) | Gr % | (₹) | Gr% | ||||||||||||||||
| Global Generics | 78,498 | 71,576 | 10 | 75,620 | 4 | |||||||||||||||
| North America | 32,408 | 37,281 | (13 | ) | 34,123 | (5 | ) | |||||||||||||
| Europe | 13,762 | 5,770 | 138 | ^ | 12,744 | 8 | ^ | |||||||||||||
| India | 15,780 | 13,971 | 13 | 14,711 | 7 | |||||||||||||||
| Emerging Markets | 16,548 | 14,554 | 14 | 14,042 | 18 | |||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 9,450 | 8,407 | 12 | 8,181 | 16 | |||||||||||||||
| Others | 103 | 179 | (42 | ) | 1,651 | (94 | ) | |||||||||||||
| Total | 88,051 | 80,162 | 10 | 85,452 | 3 | |||||||||||||||
^Excluding acquired Consumer Healthcare business in Nicotine Replacement Therapy (NRT) sales; revenue growth is at 17% YoY and 12% QoQ.
Revenue Mix by Segment for the half year
| Particulars | H1FY26 | H1FY25 | YoY | |||||||||
| (₹) | (₹) | Gr% | ||||||||||
| Global Generics | 154,118 | 140,434 | 10 | |||||||||
| North America | 66,531 | 75,743 | (12 | ) | ||||||||
| Europe | 26,506 | 11,035 | 140 | ^ | ||||||||
| India | 30,491 | 27,223 | 12 | |||||||||
| Emerging Markets | 30,590 | 26,433 | 16 | |||||||||
| PSAI | 17,631 | 16,064 | 10 | |||||||||
| Others | 1,754 | 391 | 349 | |||||||||
| Total | 173,503 | 156,889 | 11 | |||||||||
^Excluding NRT sales; revenue growth is at 16% YoY.
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2
Consolidated Income Statement for the quarter
| Particulars | Q2FY26 | Q2FY25 | YoY | Q1FY26 | QoQ | |||||||||||||||||||||||||||
| ($) | (₹) | ($) | (₹) | Gr% | ($) | (₹) | Gr% | |||||||||||||||||||||||||
| Revenues | 992 | 88,051 | 903 | 80,162 | 9.8 | 963 | 85,452 | 3 | ||||||||||||||||||||||||
| Cost of Revenues | 450 | 39,911 | 365 | 32,393 | 23 | 415 | 36,825 | 8 | ||||||||||||||||||||||||
| Gross Profit | 542 | 48,140 | 538 | 47,769 | 1 | 548 | 48,627 | (1 | ) | |||||||||||||||||||||||
| % of Revenues | 54.7 | % | 59.6 | % | 56.9 | % | ||||||||||||||||||||||||||
| Selling, General & Administrative Expenses | 298 | 26,436 | 259 | 23,007 | 15 | 289 | 25,647 | 3 | ||||||||||||||||||||||||
| % of Revenues | 30.0 | % | 28.7 | % | 30.0 | % | ||||||||||||||||||||||||||
| Research & Development Expenses | 70 | 6,202 | 82 | 7,271 | (15 | ) | 70 | 6,244 | (1 | ) | ||||||||||||||||||||||
| % of Revenues | 7.0 | % | 9.1 | % | 7.3 | % | ||||||||||||||||||||||||||
| Impairment of Non-Current Assets, net | 7 | 662 | 10 | 924 | (28 | ) | 0 | 0 | NA | |||||||||||||||||||||||
| Other (Income)/Expense, net | (30 | ) | (2,673 | ) | (11 | ) | (984 | ) | 172 | (8 | ) | (739 | ) | 262 | ||||||||||||||||||
| Results from Operating Activities | 197 | 17,513 | 198 | 17,551 | (0 | ) | 197 | 17,475 | 0 | |||||||||||||||||||||||
| Finance (Income)/Expense, net | (9 | ) | (774 | ) | (18 | ) | (1,555 | ) | (50 | ) | (18 | ) | (1,570 | ) | (51 | ) | ||||||||||||||||
| Share of Profit of Equity Investees, net of tax | (1 | ) | (63 | ) | (1 | ) | (61 | ) | 3 | (0 | ) | (2 | ) | 3050 | ||||||||||||||||||
| Profit before Income Tax | 207 | 18,350 | 216 | 19,167 | (4 | ) | 215 | 19,047 | (4 | ) | ||||||||||||||||||||||
| % of Revenues | 20.8 | % | 23.9 | % | 22.3 | % | ||||||||||||||||||||||||||
| Income Tax Expense | 46 | 4,082 | 65 | 5,752 | (29 | ) | 56 | 4,951 | (18 | ) | ||||||||||||||||||||||
| Profit for the Period | 161 | 14,268 | 151 | 13,415 | 6 | 159 | 14,096 | 1 | ||||||||||||||||||||||||
| % of Revenues | 16.2 | % | 16.7 | % | 16.5 | % | ||||||||||||||||||||||||||
| Attributable to Equity holders of the Parent Co. | 162 | 14,372 | 141 | 12,553 | 14 | 160 | 14,178 | 1 | ||||||||||||||||||||||||
| Attributable to Non-controlling interests | (1 | ) | (104 | ) | 10 | 862 | (112 | ) | (1 | ) | (82 | ) | 27 | |||||||||||||||||||
| Diluted Earnings per Share (EPS) | 0.19 | 17.25 | 0.17 | 15.05 | 15 | 0.19 | 17.02 | 1 | ||||||||||||||||||||||||
Earnings before Interest, Tax, Depreciation & Amortization (EBITDA) Computation for the quarter
| Particulars | Q2FY26 | Q2FY25 | Q1FY26 | |||||||||||||||||||||
| ($) | (₹) | ($) | (₹) | ($) | (₹) | |||||||||||||||||||
| Profit before Income Tax | 207 | 18,350 | 216 | 19,167 | 215 | 19,047 | ||||||||||||||||||
| Interest (Income) / Expense, net* | (6 | ) | (552 | ) | (14 | ) | (1,262 | ) | (12 | ) | (1,028 | ) | ||||||||||||
| Depreciation | 35 | 3,091 | 30 | 2,629 | 33 | 2,894 | ||||||||||||||||||
| Amortization | 22 | 1,960 | 15 | 1,346 | 21 | 1,871 | ||||||||||||||||||
| Impairment | 7 | 662 | 10 | 924 | (0 | ) | (0 | ) | ||||||||||||||||
| EBITDA | 265 | 23,511 | 257 | 22,803 | 257 | 22,784 | ||||||||||||||||||
| % of Revenues | 26.7 | % | 28.4 | % | 26.7 | % | ||||||||||||||||||
*Includes income from Investment
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3
Consolidated Income Statement for the half year
| Particulars | H1FY26 | H1FY25 | YoY | |||||||||||||||||
| ($) | (₹) | ($) | (₹) | Gr% | ||||||||||||||||
| Revenues | 1,954 | 173,503 | 1,767 | 156,889 | 11 | |||||||||||||||
| Cost of Revenues | 864 | 76,736 | 707 | 62,776 | 22 | |||||||||||||||
| Gross Profit | 1,090 | 96,767 | 1,060 | 94,113 | 3 | |||||||||||||||
| % of Revenues | 55.8 | % | 60.0 | % | ||||||||||||||||
| Selling, General & Administrative Expenses | 587 | 52,083 | 515 | 45,698 | 14 | |||||||||||||||
| % of Revenues | 30.0 | % | 29.1 | % | ||||||||||||||||
| Research & Development Expenses | 140 | 12,446 | 152 | 13,464 | (8 | ) | ||||||||||||||
| % of Revenues | 7.2 | % | 8.6 | % | ||||||||||||||||
| Impairment of Non-Current Assets, net | 7 | 662 | 10 | 929 | (29 | ) | ||||||||||||||
| Other (Income)/Expense, net | (38 | ) | (3,412 | ) | (16 | ) | (1,454 | ) | 135 | |||||||||||
| Results from Operating Activities | 394 | 34,988 | 400 | 35,476 | (1 | ) | ||||||||||||||
| Finance (Income)/Expense, net | (26 | ) | (2,344 | ) | (27 | ) | (2,392 | ) | (2 | ) | ||||||||||
| Share of Profit of Equity Investees, net of tax | (1 | ) | (65 | ) | (1 | ) | (120 | ) | (46 | ) | ||||||||||
| Profit before Income Tax | 421 | 37,397 | 428 | 37,988 | (2 | ) | ||||||||||||||
| % of Revenues | 21.6 | % | 24.2 | % | ||||||||||||||||
| Income Tax Expense | 102 | 9,033 | 120 | 10,653 | (15 | ) | ||||||||||||||
| Profit for the Period | 319 | 28,364 | 308 | 27,335 | 4 | |||||||||||||||
| % of Revenues | 16.3 | % | 17.4 | % | ||||||||||||||||
| Attributable to Equity holders of the Parent Co. | 322 | 28,549 | 298 | 26,473 | 8 | |||||||||||||||
| Attributable to Non-controlling interests | (2 | ) | (185 | ) | 10 | 862 | (122 | ) | ||||||||||||
| Diluted Earnings per Share (EPS) | 0.39 | 34.26 | 0.36 | 31.74 | 8 | |||||||||||||||
EBITDA Computation for the half year
| Particulars | H1FY26 | H1FY25 | ||||||||||||||
| ($) | (₹) | ($) | (₹) | |||||||||||||
| Profit before Income Tax | 421 | 37,397 | 428 | 37,988 | ||||||||||||
| Interest (Income) / Expense, net* | (18 | ) | (1,580 | ) | (26 | ) | (2,300 | ) | ||||||||
| Depreciation | 67 | 5,985 | 58 | 5,137 | ||||||||||||
| Amortization | 43 | 3,831 | 30 | 2,648 | ||||||||||||
| Impairment | 7 | 662 | 10 | 929 | ||||||||||||
| EBITDA | 521 | 46,295 | 500 | 44,402 | ||||||||||||
| % of Revenues | 26.7 | % | 28.3 | % | ||||||||||||
*Includes income from Investment
Key Balance Sheet Items
| Particulars | As on 30th Sep 2025 | As on 30th Jun 2025 | As on 30th Sep 2024 | |||||||||||||||||||||
| ($) | (₹) | ($) | (₹) | ($) | (₹) | |||||||||||||||||||
| Cash and Cash Equivalents and Other Investments | 838 | 74,393 | 824 | 73,169 | 724 | 64,274 | ||||||||||||||||||
| Trade Receivables | 1,101 | 97,738 | 1,072 | 95,137 | 951 | 84,398 | ||||||||||||||||||
| Inventories | 854 | 75,821 | 852 | 75,600 | 811 | 72,039 | ||||||||||||||||||
| Property, Plant, and Equipment | 1,261 | 111,981 | 1,158 | 102,784 | 976 | 86,693 | ||||||||||||||||||
| Goodwill and Other Intangible Assets | 1,276 | 113,240 | 1,212 | 107,572 | 1,170 | 103,842 | ||||||||||||||||||
| Loans and Borrowings (Current & Non-Current) | 659 | 58,539 | 548 | 48,644 | 547 | 48,540 | ||||||||||||||||||
| Trade Payables | 453 | 40,248 | 422 | 37,457 | 403 | 35,776 | ||||||||||||||||||
| Equity | 4,078 | 362,082 | 3,985 | 353,755 | 3,484 | 309,283 | ||||||||||||||||||
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4
Key Business Highlights for Q2FY26
| · | Acquired the STUGERON® portfolio, including leading local brands across 18 markets in the Asia-Pacific (APAC) and Europe, Middle East, and Africa (EMEA) regions, with India and Vietnam as key markets for $50.5 million. |
| · | Launched Linaclotide, a novel drug for Chronic Constipation management in adults, in India under the brand name, ‘Colozo®’. |
| · | Launched Tegoprazan, a partnered, patented molecule indicated for acid-related gastrointestinal diseases, in India under the brand name, ‘PCAB®.’ |
| · | Partnered with Unitaid, the Clinton Health Access Initiative (CHAI), and Wits RHI to make HIV prevention tool, Lenacapavir, affordable in 120 low- and middle-income countries. |
| · | The Subject Expert Committee (SEC) under Central Drugs Standard Control Organization (CDSCO) recommended grant of permission to manufacture and market Semaglutide injection in India. |
| · | Received a positive opinion from European Medicines Agency’s (EMA’s) Committee for Medicinal Products for Human Use (CHMP) recommending marketing authorisation for denosumab biosimilar candidate. |
| · | Received acceptance of Investigational New Drug (IND) application for COYA 302, a partnered novel drug for the treatment of patients with ALS. |
| · | Two-thirds of NRT business integrated, including Canada, Australia and select key Western European markets. |
| · | Launched Sacubitril Valsartan tablets, generic version of Entresto® indicated for heart failure management in the US. |
| · | Launched partnered product, fluorouracil cream, as an authorized generic of Extrovis AG’s CARAC® in the US. |
| · | Launched Skorolox, first INN loxoprofen in Russia for treatment of acute upper respiratory tract infections and indicated for musculoskeletal & postoperative pain. |
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5
ESG Highlights for Q2FY26
| · | Retained MSCI ESG Rating of A for the 2nd consecutive year. |
| · | Improved ESG Risk Rating from Morningstar Sustainalytics' from 23.6 to 18.4, representing a lower ESG risk profile. |
| · | Received ‘Diamond Standard’ certification from TÜV SÜD South Asia for achieving 99.9% of waste diversion from landfills. |
| · | Formulations facility at Srikakulam, FTO-11, became India’s first pharmaceutical facility to receive a ‘Leadership in Energy and Environmental Design (LEED) Platinum certification’ for existing buildings from the US Green Building Council. |
Other Updates for Q2FY26
| · | Received a Form 483 with seven observations for formulations manufacturing facility, FTO-11, in Srikakulam, Andhra Pradesh, post a GMP and a Pre-Approval Inspection (PAI) conducted by the United States Food & Drug Administration (USFDA) in July 2025. The USFDA has classified the inspection outcome as 'Voluntary Action Indicated (VAI)' in October 2025. |
| · | Received ‘VAI’ as inspection outcome, following GMP inspection conducted by the USFDA in May 2025 at API facility, CTO-5, in Miryalaguda, Telangana, India. |
| · | Received ‘VAI’ as inspection outcome, following GMP inspection conducted by the USFDA in May 2025 at API facility in Middleburgh, New York. |
| · | Received a Form 483 with five observations for biologics facility, in Bachupally, Hyderabad, post a PAI conducted by the USFDA in September 2025, pursuant to the inspection conducted in October 2023. |
| · | Received a Form 483 with seven observations for API facility, in Mirfield, UK, post a GMP inspection conducted by the USFDA in September 2025. |
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6
Revenue Analysis
| · | Q2FY26 consolidated revenues at ₹88.1 billion, growth of 9.8% YoY and 3% QoQ. |
H1FY26 consolidated revenues at ₹173.5 billion, growth of 11% YoY.
Growth was broad-based across key markets, except for North America Generics, which witnessed higher price erosion in select products and lower lenalidomide sales. The acquired Consumer Healthcare portfolio in Nicotine Replacement Therapy (NRT) also contributed positively to overall performance.
Global Generics (GG)
| · | Q2FY26 revenues at ₹78.5 billion, growth of 10% YoY and 4% QoQ. |
H1FY26 revenues at ₹154.1 billion, growth of 10% YoY.
North America
| · | Q2FY26 revenues at ₹32.4 billion, decline of 13% YoY and 5% QoQ. |
H1FY26 revenues at ₹66.5 billion, decline of 12% YoY.
The decline was primarily due to increased price erosion in certain key products including Lenalidomide, partly offset by favourable forex and contribution from new products launches.
| · | During the quarter, we launched seven new products, while a total of 12 new products were launched during H1FY26. |
| · | We filed five new Abbreviated New Drug Applications (ANDAs) with the USFDA during the quarter, taking the total to six for H1FY26. |
| · | As of September 30, 2025, filings pending approval from USFDA were 75 including: |
| o | 73 ANDAs (45 are Paragraph IV applications, and 22 may have a ‘First to File’ status) and |
| o | Two New Drug Applications (NDAs) filed under Section 505(b)(2). |
Europe
| · | Q2FY26 revenues at ₹13.8 billion, growth of 138% YoY and 8% QoQ. Excluding NRT business; growth of 17% YoY and 12% QoQ. |
H1FY26 revenues at ₹26.5 billion, growth of 140% YoY.
The YoY growth in Europe was largely driven by revenues from the acquired NRT portfolio, new product launches, increase in volumes for existing products and favourable forex movement partly offset by ongoing price erosion. On a sequential basis, growth was pre-dominantly volume driven.
| - | Q2FY26 NRT revenues at ₹7.0 billion, growth of 5% QoQ. |
H1FY26 NRT revenues at ₹13.7 billion.
| - | Q2FY26 Germany revenues at ₹4.0 billion, growth of 23% YoY and 26% QoQ. |
H1FY26 Germany revenues at ₹7.1 billion, growth of 19% YoY.
| - | Q2FY26 UK revenues at ₹1.6 billion, decline of 4% YoY and 10% QoQ. |
H1FY26 UK revenues at ₹3.3 billion, growth of 3% YoY.
| - | Q2FY26 Rest of Europe revenues at ₹1.2 billion, growth of 35% YoY and 6% QoQ. |
H1FY26 Rest of Europe revenues at ₹2.4 billion, growth of 32% YoY.
| · | During the quarter, we launched eight new products in the region, taking the total to 21 for H1FY26. |
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7
India
| · | Q2FY26 revenues at ₹15.8 billion, growth of 13% YoY and 7% QoQ. |
H1FY26 revenues at ₹30.5 billion, growth of 12% YoY.
Growth for the quarter was driven by price increases, new launches and higher volumes.
| · | As per IQVIA, our IPM rank was at 10 on a Moving Quarterly Total (MQT) and Moving Annual Total (MAT) basis. We moved to the 9th position in the Indian Pharmaceutical Market (IPM) in September. |
| · | During the quarter, we launched 11 new brands, taking the total to 16 for H1FY26. |
Emerging Markets
| · | Q2FY26 revenues at ₹16.5 billion, growth of 14% YoY and 18% QoQ. |
H1FY26 revenues at ₹30.6 billion, growth of 16% YoY.
YoY growth was largely driven by new product launches across markets, aided by favourable forex. QoQ growth was primarily on account of volume growth.
| - | Q2FY26 Russia revenues at ₹8.7 billion, growth of 28% YoY and 24% QoQ. |
H1FY26 Russia revenues at ₹15.8 billion, growth of 28% YoY.
YoY growth was due to higher volumes of existing products, price increase in certain brands and favorable forex. QoQ gains primarily reflects higher sales volumes.
| - | Q2FY26 Other Commonwealth of Independent States (CIS) countries and Romania revenues at ₹2.3 billion, growth of 9% YoY and 20% QoQ. |
H1FY26 CIS and Romania revenues at ₹4.3 billion, growth of 6% YoY.
YoY growth for the quarter was on account of new launches and favourable forex while QoQ growth benefitted from higher sales volumes and new product launches.
| - | Q2FY26 Rest of World (RoW) revenues at ₹5.5 billion, decline of 2% YoY and growth of 9% QoQ. |
| - | H1FY26 RoW revenues at ₹10.5 billion, growth of 5% YoY. |
While YoY decline for the quarter was largely on account of pricing pressure, QoQ growth was primarily due to higher sales volumes from existing products and new product launches.
| · | During Q2FY26, we launched 24 new products across countries, taking the total to 50 for H1FY26. |
Pharmaceutical Services and Active Ingredients (PSAI)
| · | Q2FY26 revenues at ₹9.4 billion, growth of 12% YoY and 16% QoQ. |
H1FY26 revenues at ₹17.6 billion, growth of 10% YoY.
YoY growth during the quarter was driven by launch of new API products and favourable forex, while QoQ growth was on account of higher API sales volumes and growth in the services business.
| · | During the quarter, we filed 37 Drug Master Files (DMFs) globally, taking the total to 49 for H1FY26. |
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8
Income Statement Highlights:
Gross Margin
| · | Q2FY26 at 54.7% (GG: 59.1%, PSAI: 18.0%), a decline of 492 basis points (bps) YoY and 223 bps QoQ. |
H1FY26 at 55.8% (GG: 60.0%, PSAI: 15.8%), a decline of 421 bps YoY.
The YoY decline for the quarter was primarily driven by reduced sales of Lenalidomide, product-specific price erosion in North America Generics (NAG) and one-time inventory provisions linked to discontinued pipeline products affected by technical challenges and regulatory delays. Additionally, lower operating leverage in the Pharmaceutical Services and Active Ingredients (PSAI) segment contributed to the decline.
Selling, General & Administrative (SG&A) Expenses
| · | Q2FY26 at ₹26.4 billion, increase of 15% YoY and 3% QoQ. |
As % to Revenues – Q2FY26: 30.0% | Q2FY25: 28.7% | Q1FY26: 30.0%.
H1FY26 revenues at ₹52.1 billion, increase of 14% YoY.
As % to Revenues – H1FY26: 30.0% | H1FY25: 29.1%.
The YoY increase was driven by focused investments in consumer healthcare business - NRT and branded markets. One-time expenses including potential VAT liability of ₹ 0.7 billion in one of our subsidiaries and charges associated with discontinuation of a pipeline product also contributed to the increase. Excluding the one-off associated with VAT liability, SG&A was 29.2% of revenues for the quarter and 29.6% of revenues for H1FY26.
Research & Development (R&D) Expenses
| · | Q2FY26 at ₹6.2 billion, decrease of 15% YoY and 1% QoQ. |
As % to Revenues – Q2FY26: 7.0% | Q2FY25: 9.1% | Q1FY26: 7.3%.
H1FY26 revenues at ₹12.4 billion, decrease of 8% YoY.
As % to Revenues – H1FY26: 7.2% | H1FY25: 8.6%.
R&D expenditure was lower due to reduced investment in Biosimilars following the completion of major funding for Abatacept biosimilar candidate. The R&D spends were directed towards complex generics, biosimilars, APIs and novel biologics with a focus on oncology, peptides and injectables.
Impairment
| · | Q2FY26 at ₹0.7 billion compared to ₹0.9 billion in Q2FY25. |
H1FY26 at ₹0.7 billion compared to ₹0.9 billion in H1FY25.
The impairment charge during the quarter includes a one-time charge ₹0.5 billion related to property, plant and equipment at the Middleburgh facility following the discontinuation of a pipeline product and remaining charge pertains to product-related intangible assets impacted by unfavorable market conditions.
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9
Other Operating Income/Expense
| · | Q2FY26 income at ₹2.7 billion compared to ₹1.0 billion in Q2FY25. |
H1FY26 income at ₹3.4 billion compared to ₹1.5 billion in H1FY25.
This includes product related settlement income from the United States and a one-time reversal of ₹0.9 billion in liabilities associated with the discontinuation of a pipeline product.
Net Finance Income/Expense
| · | Q2FY26 income at ₹0.8 billion compared to ₹1.6 billion in Q2FY25. |
H1FY26 income at ₹2.3 billion compared to ₹2.4 billion in H1FY25.
Profit before Tax (PBT)
| · | Q2FY26 at ₹18.4 billion, decline of 4% YoY and QoQ. |
As % to Revenues – Q2FY26: 20.8% | Q2FY25: 23.9% | Q1FY26: 22.3%.
H1FY26 at ₹37.4 billion, decline of 2% YoY.
As % to Revenues – H1FY26: 21.6% | H1FY25: 24.2%.
Adjusted for the one-off related to VAT provision mentioned earlier, PBT as a % to Revenues – Q2FY26: 21.6% | H1FY26: 22.0%.
Income Tax
| · | Q2FY26 at ₹4.1 billion. As % to PBT – Q2FY26: 22.2% | Q2FY25: 30.0% | Q1FY26: 26.0%. |
H1FY26 at ₹9.0 billion. As % to PBT – H1FY26: 24.2% | H1FY25: 28.0%.
The ETR was lower in Q2FY26 due to a favourable jurisdictional mix. The ETR in corresponding quarter in previous period is higher due to reversal of previously recognized deferred tax asset on indexation of land, consequent to amendments made to the Finance Act (No.2) 2024 of the Income Tax Act, 1961.
Profit attributable to Equity Holders of Parent Company
| · | Q2FY26 at ₹14.4 billion, growth of 14% YoY and 1% QoQ. |
As % to Revenues – Q2FY26: 16.3% | Q2FY25: 15.7% | Q1FY26: 16.6%.
H1FY26 at ₹28.5 billion, growth of 8% YoY.
As % to Revenues – H1FY26: 16.5% | H1FY25: 16.9%.
Diluted Earnings per Share (EPS)
| · | Q2FY26 is ₹17.25. |
H1FY26 is ₹34.26.
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10
Other Financial Highlights:
EBITDA
| · | Q2FY26 at ₹23.5 billion, growth of 3% YoY and QoQ. |
As % to Revenues – Q2FY26: 26.7% | Q2FY25: 28.4% | Q1FY26: 26.7%.
Adjusted for the one-offs related to VAT provision, EBITDA as a % to Revenues – Q2FY26: 27.5% | H1FY26: 27.1%.
Others:
| · | Operating Working Capital: As on 30th September 2025 at ₹133.3 billion. |
| · | Capital Expenditure: Q2FY26 at ₹5.1 billion. |
| · | Free Cash Flow: Q2FY26 at ₹5.8 billion (post-acquisition related payout). |
| · | Net Cash Surplus: As on 30th September 2025 at ₹27.5 billion |
| · | Net Debt to Equity: As on 30th September 2025 is (0.08) |
| · | Annualized Return on Capital Employed (RoCE): Q2FY26 stood at 21.9% |
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11
About key metrics and non-GAAP Financial Measures
This press release contains non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K. Such non-GAAP financial measures are measures of our historical performance, financial position or cash flows that are adjusted to exclude or include amounts from the most directly comparable financial measure calculated and presented in accordance with IFRS.
The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS. Our non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. These measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.
We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.
For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please refer to "Reconciliation of GAAP to Non-GAAP Results" table in this press release.
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12
All amounts in millions, except EPS
Reconciliation of GAAP Measures to Non-GAAP Measures
Operating Working Capital
| Particulars | As on 30th Sep 2025 | |||
| (₹) | ||||
| Inventories | 75,821 | |||
| Trade Receivables | 97,738 | |||
| Less: | ||||
| Trade Payables | (40,248 | ) | ||
| Operating Working Capital | 133,311 | |||
Free Cash Flow
| Particulars | Three months ended 30th Sep 2025 | |||
| (₹) | ||||
| Net cash generated from operating activities | 21,230 | |||
| Less: | ||||
| Taxes | (5,658 | ) | ||
| Investments in Property, Plant & Equipment | (5,112 | ) | ||
| Free Cash Flow before Acquisitions | 10,460 | |||
| Less: | ||||
| Acquisition related pay-outs | (4,670 | ) | ||
| Free Cash Flow | 5,790 | |||
Net Cash Surplus and Debt to Equity
| Particulars | As on 30th Sep.2025 | |||
| (₹) | ||||
| Cash and Cash Equivalents | 9,906 | |||
| Investments | 64,487 | |||
| Short-term Borrowings | (41,155 | ) | ||
| Long-term Borrowings (Current & Non-current) | (17,384 | ) | ||
| Less: | ||||
| Restricted Cash Balance – Unclaimed Dividend and others | 355 | |||
| Lease liabilities (Included in Short-term and Long-term Borrowings) | (13,585 | ) | ||
| Equity Investments (Included in Investments) | 1,576 | |||
| Net Cash Surplus | 27,508 | |||
| Equity | 362,082 | |||
| Net Debt/Equity | (0.08 | ) | ||
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13
Computation of RoCE
| Particulars | As on 30th Sep 2025 | |||
| (₹) | ||||
| Profit before Tax | 18,350 | |||
| Less: | ||||
| Interest and Investment Income (Excluding forex gain/loss) | (552 | ) | ||
| Earnings Before Interest and taxes [A] | 17,798 | |||
| Average Capital Employed [B] | 327,347 | |||
| Annualised Return on Capital Employed (A/B) (Ratio) | 21.9 | % | ||
Computation of Capital Employed:
| Particulars | As on | |||||||
| Sep 30, 2025 | Mar 31, 2025 | |||||||
| Property Plant and Equipment | 111,981 | 97,761 | ||||||
| Intangibles | 100,942 | 96,803 | ||||||
| Goodwill | 12,298 | 11,810 | ||||||
| Investment in Equity Accounted Associates | 5,184 | 4,811 | ||||||
| Other Current Assets | 36,032 | 30,142 | ||||||
| Other Non-Current Assets | 1,072 | 972 | ||||||
| Inventories | 75,821 | 71,085 | ||||||
| Trade Receivables | 97,738 | 90,420 | ||||||
| Derivative Financial Instruments | (2,722 | ) | (729 | ) | ||||
| Less: | ||||||||
| Other Liabilities | 49,124 | 48,788 | ||||||
| Provisions | 6,721 | 6,324 | ||||||
| Trade payables | 40,248 | 35,523 | ||||||
| Operating Capital Employed | 342,253 | 312,440 | ||||||
| Average Capital Employed | 327,347 | |||||||
Computation of EBITDA
Refer page no. 3 & 4.
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14
Earnings Call Details
The management of the Company will host an Earnings call to discuss the Company’s financial performance and answer any questions from the participants.
Date: Friday, October 24, 2025
Time: 19:30 pm IST | 10:00 am ET
Conference Joining Information
| Pre-register with the below link and join |
| https://drreddys.zoom.us/webinar/register/WN_UsxFnaCVRaiV-KhZsVDuFQ |
Audio Link and Transcript will be available on the Company’s website: www.drreddys.com
About Dr. Reddy’s: Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is a global pharmaceutical company headquartered in Hyderabad, India. Established in 1984, we are committed to providing access to affordable and innovative medicines. Driven by our purpose of ‘Good Health Can’t Wait’, we offer a portfolio of products and services including APIs, generics, branded generics, biosimilars and OTC. Our major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Our major markets include – USA, India, Russia & CIS countries, China, Brazil, and Europe. As a company with a history of deep science that has led to several industry firsts, we continue to plan and invest in businesses of the future. As an early adopter of sustainability and ESG actions, we released our first Sustainability Report in 2004. Our current ESG goals aim to set the bar high in environmental stewardship; access and affordability for patients; diversity; and governance.
For more information, log on to: www.drreddys.com.
Disclaimer: This press release may include statements of future expectations and other forward-looking statements that are based on the management’s current views and assumptions and involve known or unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to without limitation, (i) general economic conditions such as performance of financial markets, credit defaults , currency exchange rates , interest rates, persistency levels and frequency / severity of insured loss events (ii) mortality and morbidity levels and trends, (iii) changing levels of competition and general competitive factors, (iv) changes in laws and regulations and in the policies of central banks and/or governments, (v) the impact of acquisitions or reorganization , including related integration issues, and (vi) the susceptibility of our industry and the markets addressed by our, and our customers’, products and services to economic downturns as a result of natural disasters, epidemics, pandemics or other widespread illness, including coronavirus (or COVID-19), and (vii) other risks and uncertainties identified in our public filings with the Securities and Exchange Commission, including those listed under the "Risk Factors" and "Forward-Looking Statements" sections of our Annual Report on Form 20-F for the year ended March 31, 2025, our quarterly financial statements filed in Form 6-K with the US SEC for the quarter ended June 30, 2025 and our other filings with US SEC. The company assumes no obligation to update any information contained herein.
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15
Exhibit 99.4
S.R. Batliboi & Associates LLP Chartered Accountants |
THE SKYVIEW 10 |
| 18th Floor, "NORTH LOBBY" | |
| Survey No. 83/1, Raidurgam | |
| Hyderabad - 500 032, India | |
| Tel : +91 40 6141 6000 |
Independent Auditor’s Review Report on the Quarterly and Year to Date Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
Review Report to
The Board of Directors
Dr. Reddy’s Laboratories Limited
| 1. | We have reviewed the accompanying “Statement of Unaudited Consolidated Financial Results for the Quarter and Half Year ended 30 September 2025” (“the “Statement”) of Dr. Reddy’s Laboratories Limited (the “Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), its associates and joint ventures attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”). |
| 2. | The Holding Company’s Management is responsible for the preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) “Interim Financial Reporting” prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Statement has been approved by the Holding Company’s Board of Directors. Our responsibility is to express a conclusion on the Statement based on our review. |
| 3. | We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. |
We also performed procedures in accordance with the Master Circular issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable.
| 4. | The Statement includes the results of the following entities: |
Holding Company:
Dr. Reddy’s Laboratories Limited
Subsidiaries
| 1. | Aurigene Discovery Technologies (Malaysia) Sdn. Bhd. |
| 2. | Aurigene Oncology Limited (Formerly, Aurigene Discovery Technologies Limited) |
| 3. | Aurigene Pharmaceutical Services Limited |
| 4. | beta Institut gemeinnützige GmbH |
| 5. | betapharm Arzneimittel GmbH |
| 6. | Cheminor Investments Limited |
| 7. | Dr. Reddy’s Farmaceutica Do Brasil Ltda. |
| 8. | Dr. Reddy’s Laboratories (EU) Limited |
| 9. | Dr. Reddy’s Laboratories (Proprietary) Limited |
| 10. | Dr. Reddy’s Laboratories (UK) Limited |
| 11. | Dr. Reddy’s Laboratories Canada, Inc. |
| 12. | Dr. Reddy’s Laboratories Chile SPA. |
| 13. | Dr. Reddy’s Laboratories Inc. |
S.R. Batliboi & Associates LLP, a Limited Liability
Partnership with LLP Identity No. AAB-4295
Regd. Office : 22, Camac Street, Block 'B', 3rd Floor, Kolkata-700 016
S.R. Batliboi & Associates LLP Chartered Accountants |
|
| 14. | Dr. Reddy’s Laboratories Japan KK |
| 15. | Dr. Reddy’s Laboratories Kazakhstan LLP |
| 16. | Dr. Reddy’s Laboratories Malaysia Sdn. Bhd. |
| 17. | Dr. Reddy’s Laboratories New York, LLC |
| 18. | Dr. Reddy’s Laboratories Philippines Inc. |
| 19. | Dr. Reddy’s Laboratories Romania Srl |
| 20. | Dr. Reddy’s Laboratories SA |
| 21. | Dr. Reddy’s Laboratories Taiwan Limited |
| 22. | Dr. Reddy’s Laboratories (Thailand) Limited |
| 23. | Dr. Reddy’s Laboratories LLC, Ukraine |
| 24. | Dr. Reddy’s New Zealand Limited. |
| 25. | Dr. Reddy’s Srl |
| 26. | Dr. Reddy’s Bio-Sciences Limited |
| 27. | Dr. Reddy’s Laboratories (Australia) Pty. Limited |
| 28. | Dr. Reddy’s Laboratories SAS |
| 29. | Dr. Reddy’s Netherlands B.V. (Formally Dr. Reddy’s Research and Development B.V.) |
| 30. | Dr. Reddy’s (Beijing) Pharmaceutical Co. Limited |
| 31. | DRL Impex Limited |
| 32. | Dr. Reddy’s Formulations Limited |
| 33. | Idea2Enterprises (India) Pvt. Limited |
| 34. | Imperial Owners and Land Possessions Private Limited (Formerly, Imperial Credit Private Limited, till August 05, 2025) |
| 35. | Industrias Quimicas Falcon de Mexico, S.A. de CV |
| 36. | Lacock Holdings Limited |
| 37. | Dr. Reddy’s Laboratories LLC, Russia |
| 38. | Promius Pharma LLC |
| 39. | Reddy Holding GmbH |
| 40. | Reddy Netherlands B.V. |
| 41. | Reddy Pharma Iberia SAU |
| 42. | Reddy Pharma Italia S.R.L. |
| 43. | Reddy Pharma SAS |
| 44. | Svaas Wellness Limited |
| 45. | Nimbus Health GmbH |
| 46. | Dr. Reddy’s Laboratories Jamaica Limited |
| 47. | Dr. Reddy’s and Nestle Health Science Limited (Formerly, Dr. Reddy’s Nutraceuticals Limited) |
| 48. | Northstar Switzerland SARL |
| 49. | North Star OpCo Limited |
| 50. | North Star Sweden AB |
| 51. | Dr. Reddy's Denmark ApS |
| 52. | Dr. Reddy's Finland Oy (Effective from December 20, 2024) |
| 53. | Dr. Reddy's Laboratories (Vietnam) Company Limited (incorporated on May 09, 2025) |
Associates
| 1. | O2 Renewable Energy IX Private Limited |
| 2. | Clean Renewable Energy KK 2A Private Limited |
Joint Venture
| 1. | DRES Energy Private Limited |
| 2. | Kunshan Rotam Reddy Pharmaceutical Co. Limited (including Kunshan Rotam Reddy Medicine Company Limited) |
S.R. Batliboi & Associates LLP Chartered Accountants |
|
Other Consolidating Entities
| 1. | Dr. Reddy's Employees ESOS Trust |
| 2. | Cheminor Employees Welfare Trust |
| 3. | Dr. Reddy's Research Foundation |
| 5. | Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ('Ind AS’) specified under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement. |
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm registration number: 101049W/E300004
 |
|
| per Shankar Srinivasan |
Partner
Membership No.: 213271
udin: 25213271BMISWQ2517
Place: Hyderabad
Date: October 24, 2025
 |
Dr. Reddy's Laboratories Ltd. |
| 8-2-337, Road No. 3, Banjara Hills | |
Hyderabad – 500 034, Telangana, India | |
| CIN: L85195TG1984PLC004507 | |
| Tel: + 91 40 4900 2900 | |
| Fax: + 91 40 4900 2999 | |
| Email: mail@drreddys.com | |
| Web: www.drreddys.com |
DR. REDDY'S LABORATORIES LIMITED
STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2025
| All amounts in Indian Rupees millions | ||||||||||||||||||||||||||||
| Quarter ended | Half year ended | Year ended | ||||||||||||||||||||||||||
| Sl. No. | Particulars | 30.09.2025 | 30.06.2025 | 30.09.2024 | 30.09.2025 | 30.09.2024 | 31.03.2025 | |||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||||
| 1 | Revenue from operations | |||||||||||||||||||||||||||
| a) Sales | 86,386 | 82,666 | 78,859 | 169,052 | 154,255 | 316,320 | ||||||||||||||||||||||
| b) License fees and service income | 1,663 | 2,786 | 1,302 | 4,449 | 2,633 | 9,215 | ||||||||||||||||||||||
| c) Other operating income | 234 | 269 | 221 | 503 | 455 | 904 | ||||||||||||||||||||||
| Total revenue from operations | 88,283 | 85,721 | 80,382 | 174,004 | 157,343 | 326,439 | ||||||||||||||||||||||
| 2 | Other income | 3,239 | 2,903 | 3,075 | 6,142 | 4,747 | 10,973 | |||||||||||||||||||||
| 3 | Total income (1 + 2) | 91,522 | 88,624 | 83,457 | 180,146 | 162,090 | 337,412 | |||||||||||||||||||||
| 4 | Expenses | |||||||||||||||||||||||||||
| a) Cost of materials consumed | 14,413 | 20,358 | 12,872 | 34,771 | 25,144 | 56,835 | ||||||||||||||||||||||
| b) Purchase of stock-in-trade | 17,459 | 12,159 | 12,828 | 29,618 | 26,629 | 48,411 | ||||||||||||||||||||||
| c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | (635 | ) | (4,442 | ) | (2,033 | ) | (5,077 | ) | (6,289 | ) | (5,447 | ) | ||||||||||||||||
| d) Employee benefits expense | 14,521 | 15,035 | 13,992 | 29,556 | 28,129 | 55,800 | ||||||||||||||||||||||
| e) Depreciation and amortisation expense | 5,046 | 4,761 | 3,970 | 9,807 | 7,776 | 17,037 | ||||||||||||||||||||||
| f) Impairment of non-current assets, net | 673 | - | 924 | 673 | 929 | 1,693 | ||||||||||||||||||||||
| g) Finance costs | 907 | 830 | 757 | 1,737 | 1,355 | 2,829 | ||||||||||||||||||||||
| h) Other expenses | 21,753 | 20,875 | 21,034 | 42,628 | 40,537 | 83,676 | ||||||||||||||||||||||
| Total expenses | 74,137 | 69,576 | 64,344 | 143,713 | 124,210 | 260,834 | ||||||||||||||||||||||
| 5 | Profit before tax and before share of equity accounted investees(3 - 4) | 17,385 | 19,048 | 19,113 | 36,433 | 37,880 | 76,578 | |||||||||||||||||||||
| 6 | Share of profit of equity accounted investees, net of tax | 63 | 2 | 61 | 65 | 120 | 217 | |||||||||||||||||||||
| 7 | Profit before tax (5+6) | 17,448 | 19,050 | 19,174 | 36,498 | 38,000 | 76,795 | |||||||||||||||||||||
| 8 | Tax expense/(benefit): | |||||||||||||||||||||||||||
| a) Current tax | 1,847 | 10,261 | 7,713 | 12,108 | 12,928 | 22,581 | ||||||||||||||||||||||
| b) Deferred tax | 2,233 | (5,310 | ) | (1,958 | ) | (3,077 | ) | (2,271 | ) | (3,038 | ) | |||||||||||||||||
| 9 | Net profit after taxes and share of profit of associates (7 - 8) | 13,368 | 14,099 | 13,419 | 27,467 | 27,343 | 57,252 | |||||||||||||||||||||
| 10 | Net profit after taxes attributable to | |||||||||||||||||||||||||||
| a) Equity shareholders of the parent company | 13,471 | 14,181 | 12,557 | 27,652 | 26,481 | 56,551 | ||||||||||||||||||||||
| b) Non-controlling interests | (103 | ) | (82 | ) | 862 | (185 | ) | 862 | 701 | |||||||||||||||||||
| 11 | Other comprehensive income/(loss) | |||||||||||||||||||||||||||
| a) (i) Items that will not be reclassified subsequently to profit or loss | (14 | ) | 5 | (33 | ) | (9 | ) | (124 | ) | (293 | ) | |||||||||||||||||
| (ii) Income tax relating to items that will not be reclassified to profit or loss | - | - | - | - | - | 24 | ||||||||||||||||||||||
| b) (i) Items that will be reclassified subsequently to profit or loss | 862 | 2,077 | 2,978 | 2,939 | 3,093 | 2,376 | ||||||||||||||||||||||
| (ii) Income tax relating to items that will be reclassified to profit or loss | 270 | (33 | ) | 16 | 237 | 10 | (58 | ) | ||||||||||||||||||||
| Total other comprehensive income/(loss) | 1,118 | 2,049 | 2,961 | 3,167 | 2,979 | 2,049 | ||||||||||||||||||||||
| 12 | Total comprehensive income (9 + 11) | 14,486 | 16,148 | 16,380 | 30,634 | 30,322 | 59,301 | |||||||||||||||||||||
| 13 | Total comprehensive income attributable to | |||||||||||||||||||||||||||
| a) Equity shareholders of the parent company | 14,589 | 16,230 | 15,518 | 30,819 | 29,460 | 58,600 | ||||||||||||||||||||||
| b) Non-controlling interest | (103 | ) | (82 | ) | 862 | (185 | ) | 862 | 701 | |||||||||||||||||||
| 14 | Paid-up equity share capital (face value Re. 1/- each) | 835 | 835 | 834 | 835 | 834 | 834 | |||||||||||||||||||||
| 15 | Other equity | 334,662 | ||||||||||||||||||||||||||
| 16 | Earnings per equity share attributable to equity shareholders of parent (face value Re. 1/- each) | |||||||||||||||||||||||||||
| Basic | 16.18 | 17.04 | 15.08 | 33.22 | 31.80 | 67.89 | ||||||||||||||||||||||
| Diluted | 16.17 | 17.02 | 15.05 | 33.19 | 31.75 | 67.79 | ||||||||||||||||||||||
| (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | ||||||||||||||||||||||||
See accompanying notes to the financial results
| |
 |
DR. REDDY'S LABORATORIES LIMITED
| Segment information | All amounts in Indian Rupees millions | |||||||||||||||||||||||||
| Quarter ended | Half year ended | Year ended | ||||||||||||||||||||||||
| Sl. No. | Particulars | 30.09.2025 | 30.06.2025 | 30.09.2024 | 30.09.2025 | 30.09.2024 | 31.03.2025 | |||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
| Segment wise revenue and results: | ||||||||||||||||||||||||||
| 1 | Segment revenue : | |||||||||||||||||||||||||
| a) Global Generics | 78,235 | 75,732 | 71,636 | 153,967 | 140,565 | 289,810 | ||||||||||||||||||||
| b) Pharmaceutical Services and Active Ingredients | 12,079 | 9,874 | 11,190 | 21,953 | 21,662 | 43,868 | ||||||||||||||||||||
| c) Others | 103 | 1,643 | 179 | 1,746 | 391 | 2,150 | ||||||||||||||||||||
| Total | 90,417 | 87,249 | 83,005 | 177,666 | 162,618 | 335,828 | ||||||||||||||||||||
| Less: Inter-segment revenue | 2,134 | 1,528 | 2,623 | 3,662 | 5,275 | 9,389 | ||||||||||||||||||||
| Total revenue from operations | 88,283 | 85,721 | 80,382 | 174,004 | 157,343 | 326,439 | ||||||||||||||||||||
| 2 | Segment results: | |||||||||||||||||||||||||
| Gross profit from each segment | ||||||||||||||||||||||||||
| a) Global Generics | 46,431 | 46,086 | 45,162 | 92,517 | 89,680 | 179,606 | ||||||||||||||||||||
| b) Pharmaceutical Services and Active Ingredients | 1,706 | 1,087 | 2,521 | 2,793 | 4,293 | 9,178 | ||||||||||||||||||||
| c) Others | 5 | 1,459 | 89 | 1,464 | 147 | 1,665 | ||||||||||||||||||||
| Total | 48,142 | 48,632 | 47,772 | 96,774 | 94,120 | 190,449 | ||||||||||||||||||||
| Less: Selling and other un-allocable expenditure/(income), net | 30,694 | 29,582 | 28,598 | 60,276 | 56,120 | 113,654 | ||||||||||||||||||||
| Total profit before tax | 17,448 | 19,050 | 19,174 | 36,498 | 38,000 | 76,795 | ||||||||||||||||||||
Global Generics includes operations of Biologics business. Inter-segment revenue represents sale from Pharmaceutical Services and Active Ingredients to Global Generics and Others at cost.
Segmental capital employed
As certain assets of the Company including manufacturing facilities, development facilities and treasury assets and liabilities are often deployed interchangeably across segments, it is impractical to allocate these assets and liabilities to each segment. Hence, the details for capital employed have not been disclosed in the above table.
Notes: -
| 1 | The above statement of unaudited consolidated financial results of Dr. Reddy's Laboratories Limited ("the Company"), together with its subsidiaries (collectively, the "Company"), joint ventures and associates, have been prepared in accordance with the Indian Accounting Standards ("Ind AS") prescribed under section 133 of Companies Act,2013 ("the Act") read with relevant rules issues thereunder, other accounting principles generally accepted in India and guidelines issues by the Securities and Exchange Board of India ("SEBI") were reviewed and recommended by Audit Committee and approved by the Board of Directors at their meetings held on 24 October 2025. The Statutory Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon. |
| 2 | During the quarter and six months period ended 30 September, 2025, consequent to certain technical challenges in product development, the Company decided to discontinue development of conjugated estrogen at its site in Middleburgh, New York. |
Consequent to discontinuance of development, the Company recorded the following financial impacts, resulting in a net loss of Rs.934 million in the income statement.
- Impairment loss of the entire carrying value of Rs.545 million for property, plant and equipment;
- Inventory related provisions of Rs.260 million;
- Other development program related wind down costs of Rs.129 million;
This transaction pertains to the Company’s Global Generics segment.
| 3 | "Impairment of non-current assets, net" for the year ended 31 March 2025 primarily includes: |
a. Impairment of intangibles pertaining to acquisition from Mayne:
-an amount of Rs.907 million towards Haloette® (a generic equivalent to Nuvaring®), a product-related intangible, due to constraints on procurement of the underlying product from its contract manufacturer, resulting in a lower recoverable value compared to the carrying value.
-an amount of Rs.270 million pertaining to impairment of certain product related intangibles, due to adverse market conditions resulting in lower recoverable value compared to the carrying value.
b. Other impairments:
-an impairment loss of Rs. 288 million consequent to adverse market conditions with respect to certain product related intangibles forming part of the Company’s global generic business in India and Europe.
The above impairment charge pertains to the Company’s Global Generics segment.
| 4 | Other income for the three months and six months ended 30 September 2025 includes Rs. 748 million representing payment for avoided litigation costs pursuant to settlement of product related litigations, by the Company in the United States. |
| 5 | In September 2025, the Company had acquired the STUGERON brand from Janssen Pharmaceutica NV ( an affiliate of Johnson & Johnson) for a consideration of Rs.4,464 million ($50.5 million).The portfolio acquired includes STUGERON® FORTE and STUGERON® PLUS, across 18 markets in the Asia-Pacific and Europe, Middle East, and Africa regions, with India and Vietnam as the key markets. |
| 6 | Pursuant to the amendment in The Finance Act 2024, resulting in withdrawal of indexation benefit on long-term capital gain, the company has written off Deferred Tax Asset amounting to Rs. 473 million, created in earlier period on land, during the quarter and half year ended 30 September 2024. |
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DR. REDDY'S LABORATORIES LIMITED
| 7 | The Company considered the uncertainties relating to the escalation of conflict in the middle east, and duration of military conflict between Russia and Ukraine, in assessing the recoverability of receivables, goodwill, intangible assets, investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of approval of these financial results. Based on its judgments, estimates and assumptions, including sensitivity analysis, the Company expects to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue to closely monitor any material changes to future economic conditions. |
| 8 | During the six months ended 30 September, 2025, the Company received a Field Tax Audit Report from the Federal Tax service authority for one of its foreign subsidiaries for the period from January 2020 to December 2022. The report classified that certain services would be subject to value-added tax (VAT). The Company filed objections, and a revised report was issued on 15 September, 2025. The Company submitted further objections, stating that the specified services should not be subject to VAT on 06 October, 2025 and is awaiting the final tax assessment. |
Based on its best estimate, the Company has recorded a provision of Rs.695 million under “Other expenses”, and believes that the likelihood of any further liability that may arise on account of this is not probable.
| 9 | The Company received an anonymous complaint in September 2020, alleging that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S. anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On July 6, 2021 the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC. |
The Company has continued to engage with the SEC and DOJ, including through submissions and presentations regarding the initial complaint and additional complaints relating to other markets, and in relation to its Global Compliance Framework, which includes enhancement initiatives undertaken by the Company, and the Company is complying with its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions and can also lead to civil and criminal sanctions under relevant laws, the outcomes, including liabilities, are not reasonably ascertainable at this time.
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| |
|
DR. REDDY'S LABORATORIES LIMITED
| 10 | Consolidated Balance Sheet |
| All amounts in Indian Rupees millions | ||||||||
| Particulars | As at | |||||||
| 30.09.2025 | 31.03.2025 | |||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Property, plant and equipment | 91,192 | 72,984 | ||||||
| Capital work-in-progress | 19,968 | 23,994 | ||||||
| Goodwill | 14,039 | 13,139 | ||||||
| Other intangible assets | 100,942 | 96,141 | ||||||
| Intangible assets under development | - | 662 | ||||||
| Investment in equity accounted investees | 5,183 | 4,811 | ||||||
| Financial assets | ||||||||
| Investments | 2,614 | 2,393 | ||||||
| Other financial assets | 2,992 | 8,875 | ||||||
| Deferred tax assets, net | 22,552 | 18,325 | ||||||
| Tax assets, net | 3,712 | 1,821 | ||||||
| Other non-current assets | 980 | 940 | ||||||
| Total non-current assets | 264,174 | 244,085 | ||||||
| Current assets | ||||||||
| Inventories | 75,822 | 71,085 | ||||||
| Financial assets | ||||||||
| Investments | 39,216 | 33,307 | ||||||
| Trade receivables | 97,754 | 90,420 | ||||||
| Derivative financial instruments | 114 | 557 | ||||||
| Cash and cash equivalents | 9,906 | 14,654 | ||||||
| Other bank balances | 10,558 | 9,948 | ||||||
| Other financial assets | 14,289 | 3,142 | ||||||
| Other current assets | 31,899 | 27,068 | ||||||
| Total current assets | 279,558 | 250,181 | ||||||
| TOTAL ASSETS | 543,732 | 494,266 | ||||||
| EQUITY AND LIABILITIES | ||||||||
| Equity | ||||||||
| Equity share capital | 835 | 834 | ||||||
| Other equity | 359,305 | 334,662 | ||||||
| Equity attributable to equity shareholders of the parent company | 360,140 | 335,496 | ||||||
| Non-Controlling interests | 3,593 | 3,778 | ||||||
| Total equity | 363,733 | 339,274 | ||||||
| Liabilities | ||||||||
| Non-current liabilities | ||||||||
| Financial liabilities | ||||||||
| Borrowings | - | 3,800 | ||||||
| Lease liabilities | 11,638 | 4,064 | ||||||
| Other financial liabilities | 497 | 198 | ||||||
| Provisions | 401 | 298 | ||||||
| Deferred tax liabilities, net | 14,788 | 14,038 | ||||||
| Other non-current liabilities | 1,634 | 2,256 | ||||||
| Total non-current liabilities | 28,958 | 24,654 | ||||||
| Current liabilities | ||||||||
| Financial liabilities | ||||||||
| Borrowings | 44,956 | 38,045 | ||||||
| Lease liabilities | 1,946 | 857 | ||||||
| Trade payables | ||||||||
| Total outstanding dues of micro enterprises and small enterprises | 348 | 210 | ||||||
| Total outstanding dues of creditors other than micro enterprises and small enterprises | 34,975 | 26,268 | ||||||
| Derivative financial instruments | 2,836 | 1,286 | ||||||
| Other financial liabilities | 38,029 | 39,698 | ||||||
| Other current liabilities | 12,814 | 13,190 | ||||||
| Liabilities for current tax, net | 7,627 | 3,028 | ||||||
| Provisions | 7,510 | 7,756 | ||||||
| Total current liabilities | 151,041 | 130,338 | ||||||
| TOTAL EQUITY AND LIABILITIES | 543,732 | 494,266 | ||||||
| |
|
DR. REDDY'S LABORATORIES LIMITED
| 11 | Consolidated statement of cashflows |
| All amounts in Indian Rupees millions | ||||||||
| Particulars | Half year ended | |||||||
| 30.09.2025 | 30.09.2024 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash flows from/(used in) operating activities : | ||||||||
| Profit before tax | 36,498 | 38,000 | ||||||
| Adjustments for: | ||||||||
| Fair value changes and profit on sale of financial instruments measured at FVTPL*, net | (1,277 | ) | (2,245 | ) | ||||
| Depreciation and amortisation expense | 9,807 | 7,776 | ||||||
| Impairment of non-current assets,net | 673 | 929 | ||||||
| Allowance for credit losses (on trade receivables and other advances) | 679 | 96 | ||||||
| Profit on sale/disposal of assets, net | (268 | ) | (447 | ) | ||||
| Share of profit of equity accounted investees | (65 | ) | (120 | ) | ||||
| Unrealized exchange (gain)/loss, net | (509 | ) | 504 | |||||
| Interest income | (2,040 | ) | (1,409 | ) | ||||
| Finance costs | 1,737 | 1,355 | ||||||
| Equity settled share-based payment expense | 212 | 208 | ||||||
| Inventories write-down | 3,450 | 2,844 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables | (7,689 | ) | (4,182 | ) | ||||
| Inventories | (8,186 | ) | (11,330 | ) | ||||
| Trade and other payables | 8,846 | 4,062 | ||||||
| Other assets and other liabilities, net | (2,820 | ) | (9,474 | ) | ||||
| Cash generated from operations | 39,049 | 26,565 | ||||||
| Income tax paid, net | (8,845 | ) | (8,754 | ) | ||||
| Net cash generated from operating activities | 30,204 | 17,811 | ||||||
| Cash flows (used in)/from investing activities : | ||||||||
| Purchase of property, plant and equipment | (12,086 | ) | (12,646 | ) | ||||
| Proceeds from sale of property, plant and equipment | 143 | 411 | ||||||
| Purchase of other intangible assets | (8,198 | ) | (1,687 | ) | ||||
| Proceeds from sale of other intangible assets | 239 | 419 | ||||||
| Investment in equity accounted investees | (51 | ) | (317 | ) | ||||
| Payment for acquisition of businesses | - | (51,441 | ) | |||||
| Purchase of investments (including bank deposits) | (102,831 | ) | (138,326 | ) | ||||
| Proceeds from sale of investments (including bank deposits) | 93,290 | 162,988 | ||||||
| Interest and dividend received | 759 | 1,280 | ||||||
| Net cash (used in)/from investing activities | (28,737 | ) | (39,319 | ) | ||||
| Cash flows (used in) financing activities : | ||||||||
| Proceeds from issuance of equity shares (including treasury shares) | 288 | 157 | ||||||
| Proceeds/(Repayment) of short-term borrowings, net | 2,675 | 27,556 | ||||||
| Proceeds from issuance of equity shares in subsidiary to non-controlling interest | - | 7,056 | ||||||
| Payment of principal portion of lease liabilities | (565 | ) | (735 | ) | ||||
| Dividend paid | (6,659 | ) | (6,662 | ) | ||||
| Interest paid | (2,265 | ) | (1,681 | ) | ||||
| Net cash from/(used in) financing activities | (6,526 | ) | 25,691 | |||||
| Net increase/(decrease) in cash and cash equivalents | (5,059 | ) | 4,183 | |||||
| Effect of exchange rate changes on cash and cash equivalents | 372 | (6 | ) | |||||
| Cash and cash equivalents at the beginning of the period (1) | 14,593 | 7,107 | ||||||
| Cash and cash equivalents at the end of the period (2) | 9,906 | 11,285 | ||||||
| * | Rounded off to million |
| ** | FVTPL (fair value through profit or loss) |
| (1) | Adjusted for bank overdraft of Rs.61 for the year ended March 31, 2025 |
| (2) | Adjusted for bank-overdraft of Rs.45 for the six months ended September 30, 2024 |
| By order of the Board | |
| For Dr. Reddy’s Laboratories Limited | |
| Place: Hyderabad | G V Prasad |
| Date: 24 October 2025 | Co-Chairman & Managing Director |
 |
|
|
Exhibit 99.5
 |
THE SKYVIEW 10 |
| 18th Floor, "NORTH LOBBY" | |
| Survey No 83/1, Raidurgam | |
| Hyderabad - 500 032, India | |
| Tel : +91 40 6141 6000 |
Independent Auditor’s Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
Review Report to
The Board of Directors
Dr. Reddy’s Laboratories Limited
| 1. | We have reviewed the accompanying “Statement of Unaudited Standalone Financial Results for the Quarter and Half Year ended 30 September 2025” (the “Statement”) of Dr. Reddy’s Laboratories Limited (the “Company”) attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”). |
| 2. | The Company’s Management is responsible for the preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) “Interim Financial Reporting” prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Statement has been approved by the Company’s Board of Directors. Our responsibility is to express a conclusion on the Statement based on our review. |
| 3. | We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. |
| 4. | Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement. |
For S.R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants
ICAI Firm registration number: 101049W/E300004
|
per Shankar Srinivasan Partner Membership No.: 213271
UDIN: 25213271BMISWR5998 |
 |
Place: Hyderabad
Date: October 24, 2025
S.R. Batliboi & Associates LLP, a Limited Liability
Partnership with LLP Identity No. AAB-4295
Regd. Office : 22, Camac Street, Block 'B', 3rd Floor, Kolkata-700 016
 |
Dr. Reddy's Laboratories Ltd. |
| 8-2-337, Road No. 3, Banjara Hills, | |
| Hyderabad -500 034, Telangana, | |
| India. | |
| CIN : L85195TG1984PLC004507 | |
| Tel : +91 40 4900 2900 | |
| Fax : +91 40 4900 2999 | |
| Email : mail@drreddys.com | |
| www.drreddys.com |
DR. REDDY'S LABORATORIES LIMITED
STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2025
| All amounts in Indian Rupees millions | ||||||||||||||||||||||||||
| Quarter ended | Half year ended | Year ended | ||||||||||||||||||||||||
| Sl. No. | Particulars | 30.09.2025 | 30.06.2025 | 30.09.2024 | 30.09.2025 | 30.09.2024 | 31.03.2025 | |||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
| 1 | Revenue from operations | |||||||||||||||||||||||||
| a) Sales | 45,587 | 77,520 | 58,534 | 123,107 | 116,610 | 218,448 | ||||||||||||||||||||
| b) License fees and service income | 442 | 367 | 8,254 | 809 | 8,417 | 12,020 | ||||||||||||||||||||
| c) Other operating income | 157 | 208 | 175 | 365 | 348 | 686 | ||||||||||||||||||||
| Total revenue from operations | 46,186 | 78,095 | 66,963 | 124,281 | 125,375 | 231,154 | ||||||||||||||||||||
| 2 | Other income | 3,642 | 3,983 | 2,076 | 7,625 | 3,935 | 10,034 | |||||||||||||||||||
| Total income (1 + 2) | 49,828 | 82,078 | 69,039 | 131,906 | 129,310 | 241,188 | ||||||||||||||||||||
| 3 | Expenses | |||||||||||||||||||||||||
| a) Cost of materials consumed | 10,090 | 11,355 | 9,343 | 21,445 | 18,454 | 37,997 | ||||||||||||||||||||
| b) Purchase of stock-in-trade | 7,238 | 6,638 | 6,565 | 13,876 | 13,968 | 24,399 | ||||||||||||||||||||
| c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | (23 | ) | (2,129 | ) | (930 | ) | (2,152 | ) | (2,191 | ) | (1,739 | ) | ||||||||||||||
| d) Employee benefits expense | 8,679 | 8,873 | 8,401 | 17,552 | 16,960 | 32,875 | ||||||||||||||||||||
| e) Depreciation and amortisation expense | 2,948 | 2,798 | 2,600 | 5,746 | 5,098 | 10,394 | ||||||||||||||||||||
| f) Impairment of non current assets, net | 37 | - | - | 37 | - | 1,036 | ||||||||||||||||||||
| g) Finance costs | 334 | 192 | 284 | 526 | 355 | 1,099 | ||||||||||||||||||||
| h) Other expenses | 15,362 | 14,988 | 16,368 | 30,350 | 31,119 | 62,768 | ||||||||||||||||||||
| Total expenses | 44,665 | 42,715 | 42,631 | 87,380 | 83,763 | 168,829 | ||||||||||||||||||||
| 4 | Profit before tax (1 + 2 - 3) | 5,163 | 39,363 | 26,408 | 44,526 | 45,547 | 72,359 | |||||||||||||||||||
| 5 | Tax expense | |||||||||||||||||||||||||
| a) Current tax | 777 | 9,417 | 7,033 | 10,194 | 11,699 | 17,905 | ||||||||||||||||||||
| b) Deferred tax | 513 | 334 | 554 | 847 | 855 | 960 | ||||||||||||||||||||
| 6 | Net profit for the period / year (4 - 5) | 3,873 | 29,612 | 18,821 | 33,485 | 32,993 | 53,494 | |||||||||||||||||||
| 7 | Other comprehensive income / (loss) | |||||||||||||||||||||||||
| a) (i) Items that will not be reclassified to profit or loss | - | - | - | - | - | (103 | ) | |||||||||||||||||||
| (ii) Income tax relating to items that will not be reclassified to profit or loss | - | - | - | - | - | 26 | ||||||||||||||||||||
| b) (i) Items that will be reclassified to profit or loss | (1,186 | ) | 248 | (88 | ) | (938 | ) | (33 | ) | 234 | ||||||||||||||||
| (ii) Income tax relating to items that will be reclassified to profit or loss | 299 | (63 | ) | 22 | 236 | 8 | (59 | ) | ||||||||||||||||||
| Total other comprehensive income / (loss) | (887 | ) | 185 | (66 | ) | (702 | ) | (25 | ) | 98 | ||||||||||||||||
| 8 | Total comprehensive income (6 + 7) | 2,986 | 29,797 | 18,755 | 32,783 | 32,968 | 53,592 | |||||||||||||||||||
| 9 | Paid-up equity share capital (face value Re. 1/- each) | 835 | 835 | 834 | 835 | 834 | 834 | |||||||||||||||||||
| 10 | Other equity | 287,732 | ||||||||||||||||||||||||
| 11 | Earnings per equity share (face value Re. 1/- each) | |||||||||||||||||||||||||
| Basic | 4.65 | 35.59 | 22.60 | 40.23 | 39.62 | 64.22 | ||||||||||||||||||||
| Diluted | 4.65 | 35.54 | 22.56 | 40.19 | 39.55 | 64.13 | ||||||||||||||||||||
| (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | ||||||||||||||||||||||
See accompanying notes to the financial results.
 |
 |
DR. REDDY'S LABORATORIES LIMITED
| Segment information | All amounts in Indian Rupees millions |
| Quarter ended | Half year ended | Year ended | ||||||||||||||||||||||||
| Sl. No. | Particulars | 30.09.2025 | 30.06.2025 | 30.09.2024 | 30.09.2025 | 30.09.2024 | 31.03.2025 | |||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
| Segment wise revenue and results | ||||||||||||||||||||||||||
| 1 | Segment revenue | |||||||||||||||||||||||||
| a) Global Generics | 40,170 | 72,241 | 61,467 | 112,411 | 113,914 | 204,602 | ||||||||||||||||||||
| b) Pharmaceutical Services and Active Ingredients | 8,040 | 7,103 | 7,972 | 15,143 | 16,492 | 33,904 | ||||||||||||||||||||
| c) Others | 20 | 257 | 23 | 277 | 84 | 1,410 | ||||||||||||||||||||
| Total | 48,230 | 79,601 | 69,462 | 127,831 | 130,490 | 239,916 | ||||||||||||||||||||
| Less: Inter-segment revenue | 2,044 | 1,506 | 2,499 | 3,550 | 5,115 | 8,762 | ||||||||||||||||||||
| Total revenue from operations | 46,186 | 78,095 | 66,963 | 124,281 | 125,375 | 231,154 | ||||||||||||||||||||
| 2 | Segment results | |||||||||||||||||||||||||
| Profit / (loss) before tax and interest from each segment | ||||||||||||||||||||||||||
| a) Global Generics | 5,976 | 38,387 | 26,800 | 44,363 | 46,467 | 69,966 | ||||||||||||||||||||
| b) Pharmaceutical Services and Active Ingredients | 65 | (221 | ) | (146 | ) | (156 | ) | (216 | ) | 353 | ||||||||||||||||
| c) Others | 48 | 226 | 20 | 274 | 117 | 1,419 | ||||||||||||||||||||
| Total | 6,089 | 38,392 | 26,674 | 44,481 | 46,368 | 71,738 | ||||||||||||||||||||
| Less: (i) Finance costs | 334 | 192 | 284 | 526 | 355 | 1,099 | ||||||||||||||||||||
| (ii) Other un-allocable (income) / expenditure, net | 592 | (1,163 | ) | (18 | ) | (571 | ) | 466 | (1,720 | ) | ||||||||||||||||
| Total profit before tax | 5,163 | 39,363 | 26,408 | 44,526 | 45,547 | 72,359 | ||||||||||||||||||||
Global Generics includes operations of Biologics business. Inter-segment revenue represents sale from Pharmaceutical Services and Active Ingredients to Global Generics at cost.
Segmental capital employed
As certain assets of the Company including manufacturing facilities, development facilities and treasury assets and liabilities are often deployed interchangeably across segments, it is impractical to allocate these assets and liabilities to each segment. Hence, the details for capital employed have not been disclosed in the above table.
Notes:
| 1 | The above statement of unaudited standalone financial results of Dr. Reddy's Laboratories Limited ("the Company"), which have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') prescribed under Section 133 of the Companies Act, 2013 ("the Act'') read with relevant rules issued thereunder, other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India ("SEBI'') were reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meetings held on 24 October 2025. The Statutory Auditors have carried out a limited review on the unaudited standalone financial results and issued unmodified report thereon. |
| 2 | "License fees and service income" for the half year ended 30 September 2024 and year ended 31 March 2025 includes: |
a. an amount of Rs. 8,113 million (excluding GST) received as a consideration towards transfer of its nutraceutical and vitamins, minerals, herbals, and supplements portfolio to Dr. Reddy's and Nestlé Health Science Limited (the “Nutraceuticals subsidiary”) as part of the definitive agreement. This transaction pertains to Company’s Global Generics segment.
| 3 | "License fees and service income" for the year ended 31 March 2025 includes: . |
a. an amount of Rs.1,266 million received as a milestone payment upon U.S.FDA approval of DFD 29, in accordance with the license and collaboration agreement dated 29 June 2021 with Journey Medical Corporation. This transaction pertains to the Company’s Others segment.
| 4 | In September 2025, the Company had acquired the STUGERON brand from Janssen Pharmaceutica NV ( an affiliate of Johnson & Johnson) for a consideration of Rs.4,464 million ($50.5 million).The portfolio acquired includes STUGERON® FORTE and STUGERON® PLUS, across 18 markets in the Asia-Pacific and Europe, Middle East, and Africa regions, with India and Vietnam as the key markets. |
| 5 | During the six months ended September 30, 2025, the Company received a Field Tax Audit Report from the Federal Tax service authority for one of its foreign subsidiaries for the period from January 2020 to December 2022. The report classified that certain services would be subject to value-added tax (VAT). The Company filed objections, and a revised report was issued on September 15, 2025. The Company submitted further objections, stating that the specified services should not be subject to VAT on October 6, 2025 and is awaiting the final tax assessment. |
Based on its best estimate, the Company has recorded a provision of Rs.695 under “Other expenses”, and believes that the likelihood of any further liability that may arise on account of this is not probable.
| 6 | Pursuant to the amendment in The Finance Act 2024, resulting in withdrawal of indexation benefit on long-term capital gain, the company has written off Deferred Tax Asset amounting to Rs. 464 million, created in earlier period on land, during the quarter and half year ended 30 September 2024. |
| 7 | The Company received an anonymous complaint in September 2020, alleging that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S. anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On July 6, 2021 the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC. |
The Company has continued to engage with the SEC and DOJ, including through submissions and presentations regarding the initial complaint and additional complaints relating to other markets, and in relation to its Global Compliance Framework, which includes enhancement initiatives undertaken by the Company, and the Company is complying with its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions and can also lead to civil and criminal sanctions under relevant laws, the outcomes, including liabilities, are not reasonably ascertainable at this time.
| 8 | The Company considered the uncertainties relating to the escalation of conflict in the middle east, and duration of military conflict between Russia and Ukraine, in assessing the recoverability of receivables, goodwill, intangible assets, investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of approval of these financial results. Based on its judgments, estimates and assumptions, the Company expects to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue to closely monitor any material changes to future economic conditions. |
|
|
DR. REDDY'S LABORATORIES LIMITED
| 9 | Balance sheet |
| All amounts in Indian Rupees millions | ||||||||
| Particulars | As at | As at | ||||||
| 30.09.2025 | 31.03.2025 | |||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Property, plant and equipment | 70,082 | 58,654 | ||||||
| Capital work-in-progress | 17,061 | 21,564 | ||||||
| Goodwill | 853 | 853 | ||||||
| Other intangible assets | 26,769 | 22,817 | ||||||
| Intangible assets under development | 430 | 404 | ||||||
| Financial assets | ||||||||
| Investments | 111,463 | 103,105 | ||||||
| Loans | 14 | 14 | ||||||
| Other financial assets | 2,652 | 8,562 | ||||||
| Tax assets, net | 1,947 | 1,244 | ||||||
| Other non-current assets | 726 | 662 | ||||||
| Total non-current assets | 231,997 | 217,879 | ||||||
| Current assets | ||||||||
| Inventories | 48,616 | 45,758 | ||||||
| Financial assets | ||||||||
| Investments | 32,696 | 28,830 | ||||||
| Trade receivables | 66,352 | 59,590 | ||||||
| Derivative financial instruments | 65 | 539 | ||||||
| Cash and cash equivalents | 1,491 | 3,197 | ||||||
| Other bank balances | 8,923 | 6,571 | ||||||
| Other financial assets | 12,435 | 910 | ||||||
| Other current assets | 23,331 | 19,635 | ||||||
| Total current assets | 193,909 | 165,030 | ||||||
| TOTAL ASSETS | 425,906 | 382,909 | ||||||
| EQUITY AND LIABILITIES | ||||||||
| Equity | ||||||||
| Equity share capital | 835 | 834 | ||||||
| Other equity | 314,291 | 287,732 | ||||||
| Total Equity | 315,126 | 288,566 | ||||||
| Liabilities | ||||||||
| Non-current liabilities | ||||||||
| Financial liabilities | ||||||||
| Lease liabilities | 2,584 | 765 | ||||||
| Provisions | 123 | 54 | ||||||
| Deferred tax liabilities, net | 5,765 | 5,154 | ||||||
| Other non-current liabilities | 1,440 | 1,852 | ||||||
| Total non-current liabilities | 9,912 | 7,825 | ||||||
| Current liabilities | ||||||||
| Financial liabilities | ||||||||
| Borrowings | 36,626 | 33,855 | ||||||
| Lease liabilities | 577 | 309 | ||||||
| Trade payables | ||||||||
| Total outstanding dues of micro enterprises and small enterprises | 332 | 210 | ||||||
| Total outstanding dues of creditors other than micro enterprises and small enterprises | 25,006 | 19,721 | ||||||
| Derivative financial instruments | 2,798 | 1,273 | ||||||
| Other financial liabilities | 20,837 | 19,955 | ||||||
| Other current liabilities | 6,877 | 7,006 | ||||||
| Liabilities for current tax, net | 4,991 | 794 | ||||||
| Provisions | 2,824 | 3,395 | ||||||
| Total current liabilities | 100,868 | 86,518 | ||||||
| TOTAL EQUITY AND LIABILITIES | 425,906 | 382,909 | ||||||
|
|
DR. REDDY'S LABORATORIES LIMITED
| 10 | Statement of cashflows |
| All amounts in Indian Rupees millions | ||||||||
| Particulars | Half year ended | |||||||
| 30.09.2025 | 30.09.2024 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash flows from/(used in) operating activities : | ||||||||
| Profit before tax | 44,526 | 45,547 | ||||||
| Adjustments for: | ||||||||
| Fair value changes and profit on sale of financial instruments measured at FVTPL*, net | (1,097 | ) | (1,988 | ) | ||||
| Depreciation and amortisation expense | 5,746 | 5,098 | ||||||
| Impairment of non current assets, net | 37 | - | ||||||
| Allowance for credit losses (on trade receivables and other advances) | 143 | 87 | ||||||
| Profit on sale or de-recognition of non-current assets, net | 15 | (4 | ) | |||||
| Unrealized exchange (gain)/loss, net | (1,593 | ) | (117 | ) | ||||
| Interest income | (3,905 | ) | (1,718 | ) | ||||
| Finance costs | 526 | 355 | ||||||
| Equity settled share-based payment expense | 197 | 189 | ||||||
| Inventories write-down | 2,419 | 1,635 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables | (6,890 | ) | (13,354 | ) | ||||
| Inventories | (5,277 | ) | (7,125 | ) | ||||
| Trade payables | 5,407 | 1,410 | ||||||
| Other assets and other liabilities, net | (3,857 | ) | (2,100 | ) | ||||
| Cash generated from operations | 36,397 | 27,915 | ||||||
| Income taxes paid, net | (5,981 | ) | (6,166 | ) | ||||
| Net cash generated from operating activities | 30,416 | 21,749 | ||||||
| Cash flows from/(used in) investing activities : | ||||||||
| Purchase of property, plant and equipment | (9,936 | ) | (10,204 | ) | ||||
| Proceeds from sale of property, plant and equipment | 86 | 194 | ||||||
| Purchase of other intangible assets | (5,141 | ) | (577 | ) | ||||
| Proceeds from sale of other intangible assets | - | 104 | ||||||
| Purchase of investments (including bank deposits) | (92,649 | ) | (113,202 | ) | ||||
| Proceeds from sale of investments (including bank deposits) | 83,797 | 143,644 | ||||||
| Equity investments in subsidiary/associates | (5,705 | ) | (67,601 | ) | ||||
| Interest income received | 2,438 | 1,619 | ||||||
| Loans and advances repaid/(given) by/to subsidiaries | - | 602 | ||||||
| Net cash used in investing activities | (27,110 | ) | (45,421 | ) | ||||
| Cash flows from/(used in) financing activities : | ||||||||
| Proceeds from issuance of equity shares (including treasury shares) | 288 | 157 | ||||||
| Proceeds/(Repayment of) from short-term loans and borrowings, net | 2,718 | 29,985 | ||||||
| Payment of principal portion of lease liabilities | (219 | ) | (140 | ) | ||||
| Dividend paid | (6,659 | ) | (6,662 | ) | ||||
| Interest paid | (1,035 | ) | (683 | ) | ||||
| Net cash from/(used in) financing activities | (4,907 | ) | 22,657 | |||||
| Net decrease in cash and cash equivalents | (1,601 | ) | (1,015 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (105 | ) | (16 | ) | ||||
| Cash and cash equivalents at the beginning of the period | 3,197 | 2,014 | ||||||
| Cash and cash equivalents at the end of the period | 1,491 | 983 | ||||||
* FVTPL ( Fair value through profit or loss)
| By order of the Board | |
| For Dr. Reddy’s Laboratories Limited | |
| |
|
| Place: Hyderabad | G V Prasad |
| Date: 24 October 2025 | Co-Chairman & Managing Director |