Dr Reddy’s Q1 net profit falls 69 pc to Rs 443.5-Cr on lower lenalidomide sales, semaglutide API impact
Hyderabad, July 22 (TNT): Dr. Reddy’s Laboratories Ltd on Wednesday reported a 69 per cent year-on-year decline in consolidated profit after tax (PAT) attributable to equity holders at ₹443.5 crore for the first quarter ended June 30, 2026, primarily due to lower lenalidomide revenues and the impact of a provision related to semaglutide active pharmaceutical ingredient (API).
The Hyderabad-based pharmaceutical Giant posted consolidated revenues of ₹8,070.5 crore, down 5.6 per cent year-on-year but up 7.4 per cent sequentially. EBITDA stood at ₹1,008.8 crore, while profit before tax (PBT) came in at ₹552.6 crore.
The company said the results included an adverse impact of a ₹239.7 crore provision towards inventory and associated costs related to semaglutide API, which reduced gross profit, EBITDA and PBT margins by around three percentage points.
Commenting on the results, Co-Chairman and Managing Director G.V. Prasad said the company’s performance reflected the expected transition beyond lenalidomide revenues along with the unexpected semaglutide API-related impact. However, he said the underlying base business continued to register healthy double-digit growth across key geographies and that the company remained focused on strengthening its core business while building its pipeline in peptides, biosimilars and innovative products for long-term growth.
During the quarter, revenue from the India business grew 17 per cent year-on-year to ₹1,717.7 crore, while Emerging Markets recorded a 31 per cent increase to ₹1,832.8 crore. Europe registered 13 per cent growth to ₹1,444 crore. However, North America revenues declined 35 per cent to ₹2,204.8 crore, largely due to lower lenalidomide sales.
Among key business developments, Dr. Reddy’s launched the first generic Bosutinib Tablets 400 mg in the United States with 180-day exclusivity, introduced generic semaglutide injection in Canada and generic semaglutide tablets in India, and filed a marketing authorisation application for abatacept intravenous with the European Medicines Agency.
The company also said its biologics manufacturing facility at Bachupally, Hyderabad, received a USFDA Form 483 with seven observations following a pre-licence inspection in June 2026, and that responses had been submitted within the stipulated timeline.
It further said certain batches of semaglutide were found to be out of specification due to an API-related issue and corrective measures were being taken to resume supplies.
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