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Dr Reddys Laboratories Q2 FY27 Share Price & Earnings Call Analysis

₹1,345.00+0.72% today
Market cap
₹1.12L Cr
P/E
34.85
ROE
11.22%
PEG
-7.78
Price to sales
3.39
Debt to equity
0.20
52W high / low
₹1,376 / ₹1,136
Sales growth (5Y)
12.09%
EBITDA margin
15.47%
Net profit margin
11.78%
Promoter holding
26.63%
Sales (last year)
₹33,228 Cr

Dr. Reddy's Laboratories Ltd is a leading India-based pharmaceutical company which offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical services (CPS), generics, biosimilars and differentiated formulations.

Guidance scorecard · Q2 FY27 call

What Dr Reddys Laboratories Ltd's management guided
and where it ranks in Pharmaceuticals & Biotechnology

#55of 83 in
Pharmaceuticals & Biotechnology
Revenue10–20%MarginsFlatCapexPlannedFundraisingWhat management saidOrder bookWhat management said

RevenueQ1 FY27 call

10–20%
  • Dr. Reddy's expects to supply 6 to 7 million semaglutide pens between Q3 and Q4 of FY27, despite a delay caused by API scale-up validation issues.
  • The original annual target was 12 million pens in the first year of launch; the delay means this target may be missed.
  • Demand remains robust, outstripping supply, with no anticipated decrease, despite competitive pressure.
  • Plans for in-house captive manufacturing remain on track, albeit with a delay of a few months beyond prior timelines.
  • Long-term partnership with OneSource continues, supporting a reliable supply chain for many years.

2 more points from Dr Reddys Laboratories Ltd's call on revenue

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Full Q1 FY27 analysis

MarginsQ1 FY27 call

Flat

See what Dr Reddys Laboratories Ltd said on margins — free account, 30 seconds.

Full Q1 FY27 analysis

CapexQ1 FY27 call

Planned
  • Dr. Reddy's is progressing with plans for captive manufacturing of semaglutide to supplement supply from OneSource.
  • There is no change to these plans despite the current impurity-related manufacturing delays.
  • The in-house facility will require API validation before full-scale production, causing a potential delay of a few months beyond original timelines.

2 more points from Dr Reddys Laboratories Ltd's call on capex

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Full Q1 FY27 analysis

FundraisingQ1 FY27 call

See what Dr Reddys Laboratories Ltd said on fundraising — free account, 30 seconds.

Full Q1 FY27 analysis

Order bookQ1 FY27 call

  • Dr. Reddy's is currently facing a temporary supply halt for semaglutide injection due to an impurity issue detected in scale-up API batches.
  • The company expects to resolve the issue and resume commercial supply by late October to early November 2026.
  • They anticipate supplying approximately 6 to 7 million semaglutide pens between Q3 and Q4 of fiscal year 2027.
  • This supply estimate reflects a shortened selling window compared to the original full-year target of 12 million pens.
  • The firm is committed to a long-term partnership with OneSource for supply alongside their own manufacturing facilities.

2 more points from Dr Reddys Laboratories Ltd's call on the order book

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Full Q1 FY27 analysis
Full Pharmaceuticals & Biotechnology ranking

Ranges are what management guided for revenue growth and margins on the latest earnings call. Not investment advice, and not a forecast of returns.

Potential multibaggers · Q2 FY27

Potential multibaggers in Pharmaceuticals & Biotechnology
on management's own guidance

  1. Strong growth
    2
  2. Strong growth
    1
  3. Strong growth
    3
See all potential multibaggersWhere does Dr Reddys Laboratories Ltd rank?

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Ranks describe management commentary on revenue and margin from the latest earnings call. Not investment advice.

Peers

Pharmaceuticals & Biotechnology companies ranked on guidance

#CompanyRevenue guidedMargin guidedMarket capP/E
140%+Up 2%+₹556 Cr22.1
240%+Up 0–2%₹215 Cr22.2
340%+Flat₹16,144 Cr—
440%+Flat₹6,072 Cr48.0
540%+Flat₹40 Cr—
620–40%Up 2%+₹50,220 Cr43.8

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Financials of Dr Reddys Laboratories Ltd

Quarterly Results, Profit & Loss, Balance Sheet, Cash Flows, and Ratios are shown below as separate sections.

Shareholder Pattern

Dr Reddys Laboratories Ltd

Shareholding breakup across reporting periods.

Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026Sep 2026
Promoters +26.65%26.65%26.65%26.64%26.64%26.64%26.64%26.64%26.64%26.63%26.63%26.63%
FIIs +28.62%29.13%27.68%27.53%26.85%25.75%25.33%24.69%22.34%21.14%20.67%20.30%
DIIs +18.65%18.31%20.72%21.48%22.89%25.63%26.73%27.99%30.44%30.72%31.75%31.87%
Public +25.89%25.73%24.78%24.20%23.46%21.69%21.04%20.45%20.33%21.27%20.76%20.99%
Others +0.18%0.17%0.17%0.16%0.16%0.29%0.26%0.25%0.25%0.24%0.20%0.19%
No. of Shareholders2,57,7942,55,5002,67,6943,10,4034,03,6694,59,6054,51,9294,49,2164,55,2434,49,6654,46,0864,76,681

Financials of Dr Reddys Laboratories Ltd

Quarterly Results

Quarter-by-quarter operating performance

Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026Sep 2026
Sales +6,9037,2377,1147,6968,0388,3818,5288,5728,8288,7537,5468,1008,698
Expenses +4,8945,2145,2835,5665,9626,1086,5306,3986,8186,8667,1647,2406,975
Operating Profit2,0082,0231,8312,1302,0762,2731,9982,1742,0101,8883828601,723
OPM %29%28%26%28%26%27%23%25%23%22%5%11%20%
Other Income +319219201193314154528290330271480356156
Interest35395960768266839194106126125
Depreciation376374368381397471455476505521557537527
Profit before tax1,9171,8291,6051,8831,9171,8742,0051,9051,7451,5432005531,228
Tax %23%24%18%26%30%25%21%26%23%23%-11%21%26%
Net Profit +1,4821,3811,3101,3921,3421,4041,5871,4101,3371,190221436913
EPS in Rs17.7716.5615.7016.6915.0516.9419.0916.9916.1414.502.655.3211.08

Financials of Dr Reddys Laboratories Ltd

Profit & Loss

Annual income statement trend

Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales +15,02315,56814,19614,28115,44817,51719,04821,54524,67028,01132,64433,70033,097
Expenses +11,51511,98311,72411,93012,27015,04015,17317,77818,20020,07824,09727,24728,245
Operating Profit3,5083,5852,4722,3513,1782,4773,8743,7686,4707,9338,5476,4544,853
OPM %23%23%17%16%21%14%20%17%26%28%26%19%15%
Other Income +2602951721553816703355559719091,1191,3721,263
Interest10883637989989796143171283374450
Depreciation7609391,0271,0771,1351,1631,2291,1651,2501,4701,7042,0592,141
Profit before tax2,9002,8591,5541,3502,3361,8862,8843,0616,0487,2017,6805,3933,524
Tax %19%26%19%32%17%-7%32%29%25%23%25%23%
Net Profit +2,3362,1311,2929471,9502,0261,9522,1824,5075,5785,7254,1582,760
EPS in Rs27.4324.9815.5911.4123.4924.3823.4726.2354.1466.8767.7750.2733.55
Dividend Payout %15%16%26%35%17%21%21%23%15%12%12%16%

Financials of Dr Reddys Laboratories Ltd

Balance Sheet

Capital structure and asset base

Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026Sep 2026
Equity Capital85858383838383838383838484
Reserves9,76812,48412,17912,48913,94115,51617,55819,12923,20328,17133,46637,80838,724
Borrowings +4,3143,3524,9185,0713,8382,2103,0313,3841,3472,0024,6777,7347,229
Other Liabilities +4,2904,4084,4744,7064,5575,4145,9157,1497,5768,5239,79710,95111,596
Total Liabilities18,45720,33021,65422,34922,41823,22326,58829,74632,20938,78048,02356,57757,631
Fixed Assets +5,3776,5636,9316,9687,1916,8508,2068,1229,21910,42618,22622,06322,173
CWIP5297723,3243,4702,9341,5351,5651,2931,0301,4192,4661,4601,207
Investments2,2483,8332,1102,2982,5872,6782,2122,6164,9864,9304,0515,2854,502
Other Assets +10,3039,1629,2909,6129,70712,16014,60517,71516,97422,00423,28027,76829,749
Total Assets18,45720,33021,65422,34922,41823,22326,58829,74632,20938,78048,02356,57757,631

Financials of Dr Reddys Laboratories Ltd

Cash Flows

Operating, investing and financing cash movement

Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Cash from Operating Activity +2,5243,2632,1441,8032,8702,9843,5702,8115,8884,5434,6435,674
Cash from Investing Activity +-2,370-1,610-1,890-1,483-769-495-2,255-2,565-4,109-4,034-5,785-6,425
Cash from Financing Activity +-433-1,700-369-444-2,133-2,516-30-242-2,686-3761,891829
Net Cash Flow-280-47-114-124-31-271,2863-90713374978
Free Cash Flow1,0092,0659267132,2482,4122,3231,2384,0091,9081,3272,004
CFO/EBITDA Share of operating profit converting into cash: CFO (before tax) / Operating Profit88%111%110%88%106%149%107%94%108%83%78%109%

Financials of Dr Reddys Laboratories Ltd

Ratios

Working capital efficiency and return ratios

Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days10097981049410595113107105101110
Inventory Days248248282263273230273250232283260228
Days Payable84881041211111001091111081169791
Cash Conversion Cycle264257275246256235259252231271264247
Working Capital Days2634-143965595761841186968
ROCE %22%19%9%8%13%11%16%14%27%27%23%13%

Guidance history

How Dr Reddys Laboratories Ltd's guidance has moved, call by call

CallRevenueMarginsCapexFundraisingOrder book
Q1 FY27 call →10–20%FlatPlanned——
Q3 FY26 call →10–20%Down 0–2%Planned——

What management guided on each call, newest first. Not investment advice, and not a forecast of returns.

66out of 100

Momentum score · price trend

66 out of 100 — Steady

Over the past year its share price has moved roughly in the middle of the stocks we track.

PeriodShare price changeBetter than … of 1,910 stocks
Last 12 months+7.5%67%
Last 6 months+1.7%56%
Last 3 months+17.5%85%
How we calculate it

“Better than 30%” means that over that period the share price did better than 30 out of every 100 stocks we track (1,910 Indian companies worth ₹500 Cr or more, with at least a year of prices).

The score weighs the longer periods more: 40% × 12-month + 40% × 6-month + 20% × 3-month. For Dr Reddys Laboratories Ltd: 0.4 × 67 + 0.4 × 56 + 0.2 × 85 = 66.

Strengthening is 70 and above, Steady 40 to 70, Cooling below 40. Scores are recalculated every night after the market closes.

Full methodology →

This describes only how the share price has moved up to 29 Oct 2026, compared with other stocks. It says nothing about the business, and it is not a prediction, a price target or a recommendation to buy or sell.

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