Dr. Reddy’s Laboratories (NYSE:RDY) Announces Earnings Results, Misses Expectations By $0.03 EPS

Dr. Reddy’s Laboratories (NYSE:RDY) released its quarterly earnings results on Tuesday. The company reported $0.06 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.03), Zacks reports. Dr. Reddy’s Laboratories had a net margin of 12.90% and a return on equity of 12.28%. The firm had revenue of $852.55 million for the quarter, compared to the consensus estimate of $886.58 million.

Here are the key takeaways from Dr. Reddy’s Laboratories’ conference call:

• Dr. Reddy’s reported highest-ever annual revenues in FY2026, and management said the underlying base business delivered double-digit growth for both the quarter and the full year, despite product-specific headwinds and one-time items.
• Quarterly results were hit by several one-offs, including a INR 453 crore lenalidomide shelf-stock adjustment, VAT-related provisions, and impairments tied to discontinued CAR-T and partnered programs, which sharply reduced reported profitability.
• North America was pressured by lenalidomide, but management said the ex-lenalidomide U.S. business should grow double digits in FY2027 as new launches offset erosion in legacy products.
• The company highlighted strong momentum in semaglutide, including regulatory approval in Canada and India launch progress, and said the product could be a major growth driver with pricing generally in the $25-$30 per unit range across many markets.
• Management expects margins to improve in FY2027, guiding for gross margins above 50%, R&D spend of 7%-8% of sales, and a path toward the company’s aspirational 25% EBITDA margin as semaglutide and other launches scale.

Dr. Reddy’s Laboratories Trading Up 4.3%

Shares of RDY stock traded up $0.57 on Thursday, hitting $13.56. The stock had a trading volume of 822,046 shares, compared to its average volume of 2,290,380. Dr. Reddy’s Laboratories has a twelve month low of $12.19 and a twelve month high of $16.17. The firm has a market cap of $11.31 billion, a P/E ratio of 23.35, a PEG ratio of 19.35 and a beta of 0.27. The company has a current ratio of 1.88, a quick ratio of 1.38 and a debt-to-equity ratio of 0.03. The company has a fifty day moving average price of $13.60 and a two-hundred day moving average price of $13.79.

Institutional Investors Weigh In On Dr. Reddy’s Laboratories

Institutional investors have recently added to or reduced their stakes in the stock. Russell Investments Group Ltd. lifted its position in Dr. Reddy’s Laboratories by 803.8% in the 4th quarter. Russell Investments Group Ltd. now owns 3,091 shares of the company’s stock valued at $43,000 after acquiring an additional 2,749 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in Dr. Reddy’s Laboratories by 71.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,100 shares of the company’s stock valued at $47,000 after acquiring an additional 1,294 shares in the last quarter. Public Employees Retirement System of Ohio bought a new stake in Dr. Reddy’s Laboratories in the 4th quarter valued at $66,000. Raymond James Financial Inc. bought a new stake in Dr. Reddy’s Laboratories in the 2nd quarter valued at $67,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank bought a new stake in Dr. Reddy’s Laboratories in the 3rd quarter valued at $78,000. 3.85% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research firms recently weighed in on RDY. Weiss Ratings cut shares of Dr. Reddy’s Laboratories from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday. The Goldman Sachs Group lowered shares of Dr. Reddy’s Laboratories from a “neutral” rating to a “sell” rating in a research report on Thursday, April 23rd. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $16.90.

Dr. Reddy’s Laboratories Company Profile

Dr. Reddy’s Laboratories Ltd. is an India?based multinational pharmaceutical company that develops, manufactures and markets a wide range of pharmaceutical products and services. Established in 1984 by the late Dr. Kallam Anji Reddy, the company has grown into a diversified healthcare enterprise offering generic and proprietary medicines, active pharmaceutical ingredients (APIs), biosimilars and custom research and manufacturing services (CRAMS). Its portfolio spans therapeutic areas such as oncology, cardiovascular care, dermatology, gastroenterology and pain management.

The company’s core activities include the development and commercialization of cost?effective generic treatments for branded drugs that have lost patent protection, along with in?house research into innovative molecule development.