Lower North America Revenue Impacts Quarterly Earnings
Dr Reddy's Laboratories on Wednesday reported a 14 per cent year on year decline in its consolidated profit after tax for the third quarter ended December 2025, primarily due to weaker sales in the US market.The Hyderabad based drug maker posted a profit after tax of Rs 1,210 crore for the quarter, compared with Rs 1,413 crore in the corresponding period of the previous fiscal year.
Revenue Rises Despite Profit Decline
Despite the drop in profit, the company recorded an increase in revenue during the quarter. Consolidated revenue rose to Rs 8,727 crore in the October to December period, up from Rs 8,357 crore reported in the same quarter last year.Commenting on the performance, G V Prasad said the company’s growth in Q3 FY26 was driven by sustained momentum in its branded businesses, supported by favourable foreign exchange movements. This growth helped offset the impact of lower sales of Lenalidomide during the quarter.
North America Sales Decline
Revenue from North America stood at Rs 2,964 crore in the third quarter, registering a 12 per cent year on year decline. The company attributed this fall mainly to lower Lenalidomide sales along with higher price erosion in certain key products.Strong Growth in India and Other Markets
In contrast, India operations delivered a strong performance. Sales in the domestic market rose 19 per cent year on year to Rs 1,603 crore, compared with Rs 1,346 crore in the same period last year.The company also reported revenue growth across Europe and other emerging markets during the quarter, providing some cushion against the softness seen in the US business.
Semaglutide Launch Plans and Manufacturing Push
During a media interaction, company executives said Dr Reddy’s is planning to introduce a generic version of semaglutide for diabetes and weight management in India in March this year.To support this launch, the company is preparing manufacturing capacity of up to 12 million injectable pens annually through channel partners. It also indicated that a competitive pricing strategy is being planned with a focus on improving affordability.
Share Price Movement
Shares of Dr Reddy’s Laboratories ended Wednesday’s trading session 0.98 per cent lower at Rs 1,155.50 apiece on the BSE.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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