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

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

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 4.1%

Shares of NYSE RDY opened at $12.96 on Thursday. Dr. Reddy’s Laboratories has a 1-year low of $12.19 and a 1-year high of $16.17. The company has a 50-day moving average of $13.60 and a two-hundred day moving average of $13.79. The company has a market cap of $10.82 billion, a PE ratio of 22.35, a P/E/G 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.

Institutional Trading of Dr. Reddy’s Laboratories

A number of hedge funds and other institutional investors have recently modified their holdings of RDY. Russell Investments Group Ltd. lifted its holdings in Dr. Reddy’s Laboratories by 803.8% during the 4th quarter. Russell Investments Group Ltd. now owns 3,091 shares of the company’s stock worth $43,000 after buying an additional 2,749 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of 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 buying an additional 1,294 shares during the period. Public Employees Retirement System of Ohio bought a new stake in shares of Dr. Reddy’s Laboratories during the fourth quarter worth $66,000. Raymond James Financial Inc. acquired a new position in shares of Dr. Reddy’s Laboratories during the second quarter valued at $67,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank acquired a new position in shares of Dr. Reddy’s Laboratories during the third quarter valued at $78,000. Institutional investors and hedge funds own 3.85% of the company’s stock.

Wall Street Analyst Weigh In

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