Dr. Reddy’s Laboratories reported that consolidated “profit for the period” fell 36% to ₹9.13 billion in the September quarter, as North American sales weakness outweighed growth in India and emerging markets.
The unaudited results, released Oct. 23 and prepared under International Financial Reporting Standards, cover the quarter ended Sept. 30. Revenue declined 1.5% to ₹86,708 million from ₹88,051 million in the year-earlier period, the company said.
North America was the largest regional setback in Global Generics: revenue there dropped 23% to ₹24,890 million, or 29% in U.S. dollar terms. The company attributed the decline to lower prices and sales volumes for some existing products. India revenue grew 17% to ₹18,508 million and emerging markets climbed 24% to ₹20,595 million; Europe increased 1% to ₹13,935 million. Despite those gains, Global Generics revenue slipped 1% to ₹77,927 million.
Revenue from Pharmaceutical Services and Active Ingredients (PSAI) fell 12% to ₹8,310 million. The company said the decline largely reflected fewer sales of some established products. Overall gross margin narrowed to 52.1% from 54.7%. Global Generics’ margin decreased to 56.2% from 59.1%, which the company attributed to price erosion and a less favorable product mix. PSAI’s margin fell to 11.8% from 18% as manufacturing overheads rose.
Profit after tax attributable to parent-company equity holders was ₹9,250 million, down 36% from ₹14,372 million. The company’s separately reported “profit for the period” was ₹9,134 million, compared with ₹14,268 million a year earlier. EBITDA totaled ₹17,828 million, or 20.6% of revenue.
Co-Chairman and Managing Director G V Prasad said the company achieved “double-digit base business growth” and an EBITDA margin above 20% during the quarter. He said management would focus on its core businesses, productivity and strategic growth platforms.
Revenue rose 7.4% from the previous quarter, the company said. The first quarter of fiscal 2027 included a ₹2,397 million provision for semaglutide inventory and related costs. An earlier company filing said the board would consider the results on Oct. 23; EconoTimes had reported the planned review ahead of the announcement.
