HSBC has maintained a Hold rating on Dr. Reddy’s Laboratories (DRL) with a target price of ₹1,250. The brokerage noted that Q3FY25 revenue was bolstered by an integrated NRT business and R&D milestone income, resulting in a revenue beat. Operationally, the quarter was in line with expectations.
While the launch of semaglutide in Canada in early 2026 offers some relief, HSBC believes this will not be sufficient to offset the ongoing decline in gRevlimid sales. The brokerage highlighted that long-term growth drivers will take time to scale up significantly.
Q3FY25 Performance:
- Revenue: Up 15.9% YoY at ₹8,358.6 crore.
- Net Profit: Up 2.5% YoY at ₹1,413.3 crore.
- Margins: Declined to 27.5% versus 29.3% YoY
