Pharma major Dr. Reddy’s Laboratories reported September quarter consolidated net profit declined marginally to ₹1,336.8 crore from the ₹1,341.9 crore a year earlier.
The lower net profit came on a nearly 10% increase in total revenue from operations to ₹8,828.3 crore (₹8,038.2 crore), results prepared as per Indian Accounting Standards (Ind AS) showed. Global generics share in the revenue rose to ₹7,823.5 crore (₹7,163.6 crore) as improved show in Europe, India and Emerging Markets helped offset a decline in revenue in the key North America market.
Share of pharmaceutical services and active ingredients in the total revenue also increased at ₹1,207.9 crore (₹1,119 crore). Inter-segment revenue was lower ₹213.4 crore (₹262.3 crore).
Growth in Q2 was driven by momentum in branded markets and steady contributions from the nicotine replacement therapy (NRT) portfolio, which helped offset the decline in U.S. of Lenalidomide sales,” co-chairman and MD G.V.Prasad said. Lenalidomide is a generic of cancer drug Revlimid.
“We remain focused on strengthening our core business, advancing key pipeline assets, driving productivity and pursuing business development initiatives,” he said in a release.
As per results prepared in accordance with International Financial Reporting Standards (IFRS), Dr. Reddy’s net profit increased to ₹1,426.8 (₹1,341.5 crore) as revenue rose almost 10% to ₹8,805.1 crore (₹8,016.2 crore).
On likely impact of the tariff U.S. has announced on branded pharmaceutical products, CEO Erez Israeli said “at this stage [there] is no impact.” Though formal guidelines were yet to be received, it looks like the tendency is for exemption of generics.
“We don’t have brands in the U.S. therefore not relevant. [However], we need to see what will be the potential impact on biologics,” he said.
To a query around the recent tweaks to the Goods and Services Tax (GST), CFO M.V.Narasimham said while the implementation was smooth, there was an impact on account of the inverted duty structure as Formulations or the finished product attract a 5% levy while the rate on active pharmaceutical ingredients or the raw materials is 18%. “We have given a representation [to the government seeking] a reduction in the rate on API,” he said.
Published – October 24, 2025 10:29 pm IST
