Dr Reddy’s Laboratories (DRL) reported a 14 per cent year-on-year decline in consolidated net profit to Rs 1,210 crore in the December quarter of FY26, hit by lower sales of cancer drug Lenalidomide in the North American market.
How did Dr Reddy’s perform on revenue and profit in Q3FY26?
The firm’s revenue from operations rose to Rs 8,727 crore in Q3FY26, a 4.4 per cent year-on-year increase from Rs 8,357 crore recorded in the same quarter last year.
This comes even as the drugmaker has been witnessing a continuous drop in revenue from its North American market, which contributed 37 per cent to DRL’s overall revenue in the nine-month period of FY26.
The results were announced after market hours. DRL’s stock fell 0.98 per cent to close at Rs 1,155.50 apiece on the BSE.
Why did North America revenues decline during the quarter?
In the October–December period of FY26, DRL recorded a 12 per cent year-on-year drop in revenue from North America to Rs 2,964 crore from Rs 3,383 crore, due to continued price erosion in Lenalidomide.
How did other geographies and segments perform?
In contrast, revenue from India rose 19 per cent year-on-year to Rs 1,603 crore from Rs 1,346 crore, driven by new product launches and favourable foreign exchange movements.
DRL’s pharmaceutical services and active ingredients (PSAI) segment, however, witnessed a 2 per cent year-on-year decline in revenue due to an adverse product mix impacting gross margins.
What did the management say about Q3 performance?
DRL co-chairman and managing director G V Prasad said the firm’s growth in Q3FY26 was supported by continued momentum in its branded businesses, aided by favourable forex, which offset the impact of lower Lenalidomide sales.
“We continue to focus on disciplined execution of our strategic priorities of base business growth, pipeline advancement, operational efficiencies and select inorganic opportunities to create long-term value for our stakeholders,” he added.
What are Dr Reddy’s plans for semaglutide manufacturing and rollout?
The company is also preparing for a major global rollout of semaglutide beginning in 2026, targeting launches across 87 countries in a phased manner, including India and Canada.
With the molecule’s patent set to expire in India on March 21 this year, the firm has already received authorisation from the Central Drugs Standard Control Organisation (CDSCO) to manufacture and market semaglutide injections in the country.
“We have the capacity to manufacture the molecule ourselves, with some components being made by contract manufacturing organisations,” DRL chief executive officer Erez Israeli told reporters at a post-results conference.
The company is looking to produce 12 million pens annually through partnerships and its in-house facility in Visakhapatnam, with the potential to scale up to 50 million units later.
What is the pricing and international launch strategy for semaglutide?
Commenting on pricing, M V Ramanna, chief executive officer for branded markets (India and emerging markets), said DRL will adopt competitive pricing to ensure adoption of the product.
He added that the company will subsequently onboard partners who will be supplied with its semaglutide variant.
The firm also hopes to secure authorisation from Canadian authorities in time to launch the drug there first. DRL had earlier received a notice of non-compliance from Health Canada for its semaglutide injection variant.
 "Dr Reddy's Q3 PAT down 14% Y-o-Y on low Lenalidomide sales in US")
