Dr. Reddy’s Laboratories reported a steady set of earnings for the third quarter of FY26, with profit after tax attributable to equity holders rising to Rs 1,210 crore, supported by stable operating margins and growth in India and emerging markets.
The pharmaceutical major’s consolidated revenue stood at Rs 8,726.8 crore in Q3 FY26, registering a 4.4% year-on-year increase, although revenue declined marginally by 0.9% on a sequential basis.
Margin performance and operating costs
Gross margin for the quarter came in at 53.6%, compared with 58.7% in Q3 FY25 and 54.7% in Q2 FY26. EBITDA stood at Rs 2,049.3 crore, translating into an EBITDA margin of 23.5% for the quarter.
Profit before tax was reported at Rs 1,542.9 crore, accounting for 17.7% of revenues, while profit after tax stood at Rs 1,209.8 crore, or 13.9% of total revenue.
SG&A expenses increased to Rs 2,691.8 crore, up 12% year on year and 2% quarter on quarter. R&D expenditure was reported at Rs 614.9 crore, representing 7% of quarterly revenues.
Segment-wise performance
Global Generics revenue stood at Rs 7,911.3 crore in Q3 FY26, up 7% year on year and 1% sequentially. Within this segment, India posted strong growth, with revenue rising 19% YoY to Rs 1,603.2 crore.
Emerging markets revenue increased 32% year on year to Rs 1,896.1 crore and rose 15% sequentially, reflecting broad-based demand. Europe revenues grew 20% YoY to Rs 1,447.6 crore.
North America revenue declined 12% year on year to Rs 2,964.4 crore and fell 9% sequentially. Pharmaceutical Services and Active Ingredients (PSAI) revenue stood at Rs 801.8 crore, down 2% YoY and 15% QoQ.
Overall performance
Total revenue for the quarter stood at Rs 8,726.8 crore, compared with Rs 8,358.6 crore in Q3 FY25 and Rs 8,805.1 crore in Q2 FY26.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
