Dr Reddy's Q4 results: Profit rises 22% to ₹1,594 crore on record revenue

Dr Reddy's posts highest-ever quarterly revenue and profit in Q4 FY25 with strong growth in generics, PSAI and NRT acquisition; FY25 PAT up 2 per cent at ₹5,654 crore

Hyderabad-based Dr Reddy’s Laboratories (DRL) posted a 22 per cent year-on-year (Y-o-Y) rise in consolidated profit after tax (PAT) for the fourth quarter of 2024-25 at ₹1,593.9 crore.

 

Revenues for the period were up 20 per cent to ₹8,506 crore.

 

Earnings before interest, taxes, depreciation and amortisation (Ebitda) for the quarter stood at ₹2,474.9 crore, or 29 per cent of revenues.

 

DRL stock was up 0.67 per cent on the BSE during the day.

 

This was the highest ever quarterly revenues and profits during the fourth quarter.

 

Sequentially, revenues were up 2 per cent while PAT rose 13 per cent.

 

 

Gross margins for the quarter came in at 55.6 per cent, lower by around 300 basis points (bps) from Q3FY25 and Q4FY24.

 

For the full year, PAT was ₹5,654.4 crore, up 2 per cent as its revenue went up by 17 per cent to ₹32,553.5 crore.

 

Ebitda for the year came in at ₹9,213.3 crore or 28.3 per cent of revenues.

 

The company said that underlying revenue growth, excluding the nicotine replacement therapy (NRT) business, was 12 per cent Y-o-Y. 

 

DRL acquired Haleon's global NRT business outside the US that was completed last year.

 

“The performance was driven by contributions from the acquired NRT business, complemented by steady growth across our core businesses — global generics and pharmaceutical services and active ingredients (PSAI),” it said.

 

Capital expenditure (capex) for the full financial year (FY25) was ₹2,699 crore, up from ₹1,517 crore in FY24. R&D expenses for the quarter were 8.5 per cent of revenues, down from 9.7 per cent in Q4FY24. 

 

Co-chairman and managing director (MD), GV Prasad said, “We achieved double-digit growth across our businesses, driven by successful product launches, increased revenues from key products in the US and integration of the acquired NRT business. We will continue to strengthen and grow our core businesses through portfolio management and operational excellence, while pursuing strategic partnerships and inorganic growth opportunities.”

 

Global generics business surged by 23 per cent during the quarter, with North America growing 9 per cent. European generics business did well at ₹1,275 crore, up 145 per cent, including revenues from the NRT business of ₹597.1 crore for Q4FY25.

 

The company said underlying growth for Europe, excluding the NRT business, is 30 per cent Y-o-Y.  

 

The company said that the price erosion was stable for mature products in the US and DRL grew by 3.9 per cent there versus a generic market growth of 3.8 per cent.

 

It divested the Shreveport manufacturing facility, Louisiana (US), during the quarter.

 

DRL CEO Erez Israeli told reporters that it is open to having a manufacturing footprint in the US, but there is nothing concrete at the moment.

 

The generics businesses in India and emerging markets have grown by 16 per cent each.

 

The PSAI business surged 16 per cent during the quarter. It launched 23 brands in India during FY25 and also participated in the Centre’s Jan Aushadhi Program with one of its products.