Dr. Reddy’s Laboratories (DRL) saw its stock price jump by 3% after Nomura upgraded its outlook, reaffirming a ‘Buy’ rating and raising the target price to ₹1,575. This upgrade follows a robust Q4 performance, which exceeded market expectations, and a positive forecast for FY26.
For Q4, DRL reported a net profit of ₹1,587.3 crore, marking a 21.4% year-on-year growth and surpassing estimates by over 30%. The company’s revenue stood at ₹8,506 crore, while EBITDA margins improved to 29.1%, all ahead of analysts’ predictions. Notably, DRL’s businesses in North America, Europe, and Russia delivered exceptional results, contributing to a 12% EBITDA beat and a 33% profit-after-tax (PAT) beat.
Looking ahead, DRL has guided for double-digit revenue growth and an EBITDA margin of 25% for FY26. The company plans to drive these gains through strategic launches, portfolio expansion, and scaling in key markets. Nomura views these factors as setting up DRL for continued outperformance, supported by a solid product pipeline and strong execution.
Dr. Reddy’s Laboratories opened at ₹1,155.90, with the day’s high reaching ₹1,204.00 and a low of ₹1,143.90. The stock has been fluctuating within the 52-week range of ₹1,020.00 to ₹1,421.49.
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