Nomura has upgraded its outlook on Dr. Reddy’s Laboratories, reaffirming a ‘Buy’ rating and raising the target price to ₹1,575, following a stronger-than-expected Q4 performance and optimistic FY26 guidance.
DRL reported a net profit of ₹1,587.3 crore, up 21.4% YoY, beating estimates by over 30%. Revenue stood at ₹8,506 crore, while EBITDA margins improved to 29.1%, all ahead of expectations. Nomura highlighted that North America, Europe, and Russia businesses outperformed, helping the company deliver a 12% beat on EBITDA and 33% beat on PAT.
Importantly, DRL has guided for double-digit revenue growth and 25% EBITDA margin for FY26, supported by upcoming launches, portfolio expansion, and scale leverage in key geographies. Nomura views this as a strong setup for outperformance, backed by a healthy pipeline and improved execution.
