Business EconomyPosted at: Jan 21 2026 6:36PM

Hyderabad, Jan 21 (UNI) Dr. Reddy’s Laboratories on Wednesday reported a 14 percent year-on-year decline in consolidated net profit for the third quarter ended December 31, 2025, as weaker sales of key drug Lenalidomide and pricing pressure in North America offset growth in India, Europe and emerging markets.
Profit attributable to equity shareholders stood at Rs 12.1 billion, compared with Rs 14.1 billion a year earlier.
The Hyderabad-based pharma giant's revenue rose 4.4% YoY to Rs 87.3 billion, aided by branded business momentum and favourable foreign exchange movements, though it declined 0.9% sequentially.
EBITDA declined 11% YoY to ₹20.5 billion, with margins contracting to 23.5% from 27.5% in the year-ago quarter, reflecting adverse product mix, pricing pressure in generics, and a one-time provision linked to India’s new labour codes.
For the nine months ended December 2025, revenue increased 8% YoY to Rs 260.8 billion, while profit attributable to shareholders remained largely flat at Rs 40.6 billion. North America revenues fell 12% YoY to Rs 29.6 billion in Q3, primarily due to lower Lenalidomide sales and higher price erosion.
Europe grew 20% YoY to Rs 14.5 billion, supported by new product launches and growth in the nicotine replacement therapy (NRT) portfolio. India posted 19% YoY growth at Rs 16.0 billion, driven by innovation products, new brand launches and volume growth.
Emerging Markets surged 32% YoY to Rs 19.0 billion, led by Russia and favourable currency movements. Global Generics revenues rose 7% YoY to Rs 79.1 billion, while the Pharmaceutical Services and Active Ingredients (PSAI) segment declined 2% YoY due to lower API volumes.
Commenting on the performance, G V Prasad, Co-Chairman and Managing Director, said growth during the quarter was supported by branded businesses and forex gains, which helped offset the impact of lower Lenalidomide sales.
He added that the company remains focused on base business growth, pipeline advancement, operational efficiencies and selective inorganic opportunities.
During the quarter, Dr. Reddy’s entered a strategic collaboration with Immutep for commercialisation of oncology drug Eftilagimod Alfa outside major developed markets.
As of December 31, 2025, the company reported a net cash surplus of Rs 30.7 billion and a negative net debt-to-equity ratio of 0.08, reflecting a strong balance sheet.
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