Dr Reddy’s Q4 profit falls 86 per cent on weak North America sales

Dr Reddy’s Laboratories reported an 86 per cent decline in consolidated profit after tax for the March quarter at Rs 221.3 crore, mainly due to lower generics sales in North America. The company, however, recorded growth in India and European generics businesses

New Delhi: Drugmaker Dr Reddy’s Laboratories Ltd on Tuesday reported an 86 per cent decline in consolidated profit after tax at Rs 221.3 crore in the fourth quarter ended March 31, 2026, hit by lower generics sales in North America.

The company had posted a profit after tax of Rs 1,586.7 crore in the corresponding quarter of the previous financial year, Dr Reddy’s Laboratories Ltd said in a regulatory filing.

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Consolidated total revenue from operations in the fourth quarter stood at Rs 7,546.4 crore as against Rs 8,528.4 crore in the same period a year ago, it added.

Revenue from generic drugs in North America during the quarter declined 51 per cent to Rs 1,756.2 crore from Rs 3,558.6 crore in the year-ago period.

On the other hand, generics revenue in India grew 20 per cent to Rs 1,566.3 crore from Rs 1,304.7 crore in the corresponding period a year ago, the company said.

Similarly, generics revenue in Europe grew 14 per cent to Rs 1,452 crore from Rs 1,275 crore in the year-ago period.

Total expenses in the fourth quarter rose to Rs 7,826.7 crore from Rs 7,050.8 crore in the corresponding period a year ago, the company said.

For FY26, consolidated profit after tax stood at Rs 4,157.6 crore as against Rs 5,725.2 crore in FY25.

Consolidated total revenue from operations in FY26 stood at Rs 33,700.2 crore compared with Rs 32,643.9 crore in FY25, the company said.

Commenting on the performance, Dr Reddy’s Laboratories Co-Chairman and Managing Director GV Prasad said, “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.”

He further said, “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.”

Dr Reddy’s said its board has recommended a final dividend of Rs 8 per equity share of face value of Re 1 each for the financial year 2025-26, subject to shareholders’ approval at the ensuing annual general meeting.