Dr Reddy’s Q4 results 2026: Pharma major Dr Reddy’s Laboratories on Tuesday, 12 May, reported a sharp 86.2% year-on-year (YoY) fall in its consolidated net profit to ₹220.1 crore for the March quarter of the financial year 2026 (Q4FY26). In the same quarter of the previous financial year, the company’s profit was ₹1,593.9 crore.
Sequentially, or on a quarter-on-quarter (QoQ) basis, Dr Reddy’s profit fell nearly 82% from ₹1,209.8 crore in Q3FY26.
The pharma company’s revenue for the quarter dropped 11.64% YoY and nearly 14% QoQ to ₹7,516.2 crore. In Q4FY25, Dr Reddy’s revenue was ₹8,506 crore, while in Q3FY26, it was ₹8,726.80 crore.
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Dr Reddy’s reported an 86.2% year-on-year fall in consolidated net profit to ₹220.1 crore for Q4 FY26. Revenue for the quarter dropped 11.64% YoY to ₹7,516.2 crore.
The sharp decline in profit was impacted by a shelf stock adjustment related to lenalidomide, impairment of CAR-T assets and Eftilagimod Alfa, and provisions for VAT liability. Reduced sales of Lenalidomide and price erosion in North America and Europe Generics also contributed.
Dr Reddy’s board recommended a final dividend of ₹8 per share for the financial year 2026, subject to shareholder approval at the AGM on July 23, 2026.
Dr Reddy’s revenue for Q4 FY26 fell 11.64% year-on-year to ₹7,516.2 crore. Excluding a one-time shelf stock adjustment, consolidated revenues stood at ₹7,970 crore, down 6.3% YoY.
For the full financial year 2026, Dr Reddy’s profit fell 24.22% year-on-year to ₹4,285 crore, while revenue climbed 3.2% year-on-year to ₹33,593.3 crore.
EBITDA declined 60% YoY and 52% QoQ to ₹980 crore for the March quarter.
Gross margin in Q4FY26 declined 1,074 basis points YoY and 881 basis points QoQ to 44.8% on account of reduced sales of Lenalidomide, price erosion in North America and Europe Generics, and a one-time SSA impact indicated earlier.
For the full financial year 2026, Dr Reddy’s profit fell 24.22% YoY to ₹4,285 crore, while revenue climbed 3.2% YoY to ₹33,593.3 crore.
The company said its Q4FY26 results were impacted by a shelf stock adjustment (SSA) related to lenalidomide of ₹453 crore, impairment of CAR-T assets and Eftilagimod Alfa totalling ₹227.7 crore, and provisions related to VAT liability of ₹114.1 crore.
Additionally, FY26 includes the adverse impact of VAT liability provision of ₹69.5 crore and the New Labour Codes of ₹117 crore.
“Our performance this year reflects the impact of lower lenalidomide sales and several one-offs. The resilience of our branded businesses and currency tailwinds helped partially mitigate this impact,” said G V Prasad, Co-Chairman & MD, Dr Reddy’s Labs.
“We remain focused on strengthening our base business and improving margins through cost efficiencies and portfolio optimisation. In parallel, we continue to build long-term franchises in biosimilars, consumer health and innovation to deliver sustainable value,” said Prasad.
Meanwhile, the company’s board recommended a final dividend of ₹8 per share of face value of ₹1 each for FY26, subject to approval of shareholders at the ensuing Annual General Meeting on 23 July 2026. The record date for determining the members eligible to receive the dividend has been fixed as 10 July 2026.
The company’s revenue mix from the North American market fell 51% YoY and 41% QoQ in Q4. Global generics saw a 13% YoY decline in Q4. Revenue mix from the pharmaceutical services and active ingredients (PSAI) saw a 5% YoY decline.
“Growth was broad-based across key markets, except for North America, which declined primarily on account of lower Lenalidomide sales and a one-time Shelf Stock Adjustment (SSA) of ₹450 crore related to the product. Favourable foreign exchange rate movements further supported overall growth,” said the company.
As per the company, excluding the one-time SSA, its consolidated revenues stood at ₹7,970 crore in Q4FY26, down 6.3% Yo Y and 8.7% QoQ and ₹34,050 crore in FY26, up 4.6% YoY.
Dr Reddy’s Laboratories share price ended 0.75% lower at ₹1,270.10 on the BSE on Tuesday, 12 May.
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