Q1 miss for Dr Reddy's, but analysts remain hopeful for future prospects

Despite missing Q1 expectations, Dr Reddy's continues to see growth in key markets like Europe and India, while managing costs to offset challenges in the US

In the April-June quarter (Q1) of FY26, Dr Reddy’s (DRL) US sales fell 4 per cent quarter-on-quarter (QoQ) to $400 million due to erosion in gRevlimid earnings caused by pricing pressure. On a positive note, DRL posted double-digit growth in most ex-US markets, but overall revenue disappointed. The absence of meaningful abbreviated new drug application (ANDA) approvals for DRL, as well as impending tariffs (since it has no US-based formulations facility), remain concerns. 

DRL’s Q1 FY26 revenue grew 11 per cent year-on-year (YoY) to Rs 8,570 crore, and Europe sales jumped 1.4x YoY to Rs 1,270 crore (15 per cent