Dr Reddys Laboratories logo

Dr Reddys Laboratories

DRREDDY NSE

Key Fundamentals

MidcapPharmaceuticalsHealthcare
Market Cap
1.0L Cr
Volatility
Moderate
P/E Ratio
31.24
EBITDA
₹7,812 Cr
Return on Equity
10.87%
Debt to Equity
0.2
Book Value
₹456.14
EPS
₹333.59
52W High
₹1,414.9
52W Low
₹1,101

Tapetide Score

Data-driven rating, 0–100. How it works →

Key Insights

Strengths

1
  • Company's working capital requirements have reduced from 85.1 days to 67.8 days

Weaknesses

1
  • Dividend payout has been low at 13.2% of profits over last 3 years

Growth Rate

Revenue Growth
3.9% lower than 3Y
Net Income Growth
-27.38% lower than 3Y
Cash Flow Change
22.2% lower than 3Y
ROE
-35.57% lower than 3Y
ROCE
-36.29% higher than 3Y
EBITDA Margin (Avg.)
-22.04% higher than 3Y

AI Analysis — Bull vs Bear

6d ago
AI opinion · based on fundamentals
Risk medium

Dr Reddy's Laboratories has a market capitalisation of about ₹1,00,411 crore and trades at a P/E of 31.5 and a P/B of 2.63. Its long-term record includes 12% 5-year sales CAGR, 15% 5-year profit CAGR and 16% 3- and 5-year average ROE. Recent results are much weaker: TTM profit is down 43%, ROE fell to 11% last year, and reported FY26 consolidated net profit dropped about 26% to roughly ₹4,158-4,247 crore (depending on the reported measure), mainly because generic lenalidomide sales fell and North America revenue declined 22%.

Bull Case 8
  • Sales have compounded at 11% over 3 years and 12% over 5 years. FY26 total revenue from operations still rose to about ₹33,700 crore from ₹32,644 crore, even as North America lost ground.
  • Working capital days fell from 85.1 to 67.8, which points to better collections and inventory management and should support cash generation.
  • ROE has held at a steady 16% over 3 and 5 years and 15% over 10 years. That suggests a durable return profile beyond any single product cycle.
  • Profit grew at a 15% CAGR over 5 years, ahead of 12% sales growth over the same period. The company has shown it can expand margins in favourable cycles.
  • Much of the Q4 FY26 profit drop came from one-off items: a ₹453 crore lenalidomide shelf-stock adjustment, ₹227.7 crore of impairments on CAR-T and Eftilagimod Alfa assets, and a ₹114.1 crore VAT provision. Together these total about ₹795 crore, so underlying earnings were stronger than the reported ₹221 crore.
  • Global generics revenue grew about 3% in FY26 to roughly ₹29,903 crore despite a 22% fall in North America. That points to offsetting growth in other markets such as Europe, India and emerging markets.
  • P/B of 2.63 is modest for a large-cap Indian pharma company with a 10-year average ROE of 15%.
  • The latest reported quarter's net profit of about ₹435.6 crore was up about 97% QoQ from ₹221.3 crore. That suggests some sequential recovery from the Q4 FY26 low.
Bear Case 8
  • TTM profit fell 43%, and 3-year profit CAGR is -4% even though sales grew 11% over the same period. Margin pressure has been sharp.
  • Q4 FY26 consolidated net profit fell about 86% YoY to ₹221 crore from ₹1,587 crore, and quarterly revenue dropped about 12% to ₹7,546 crore.
  • North America revenue fell 22% in FY26 as generic lenalidomide (Revlimid) sales wound down and prices eroded on key products. The company's largest profit pool is under structural pressure.
  • The latest reported quarter's net profit of about ₹435.6 crore was still down about 69% YoY, so the earnings reset has continued beyond one quarter.
  • Last year's ROE of 11% is well below the 16% 3- and 5-year average, a sign of weaker capital efficiency.
  • At a P/E of 31.5, the valuation is demanding for a company with a -1% TTM sales trend and -43% TTM profit growth.
  • The stock has returned -4% over 1 year, 3% CAGR over 3 years and 5% over 5 years. Share-price performance has lagged the underlying 5-year profit CAGR of 15%.
  • Dividend payout has averaged a low 13.2% of profits over 3 years, and the dividend yield is 0.67%. Shareholders get limited income support.

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

1d ago
Positives 1
  • Exclusive Qdenga dengue vaccine deal Sep 18

    Dr. Reddy's signed an exclusive agreement with Takeda to distribute Qdenga, India's first approved dengue vaccine, in the private market. Availability is expected in H1 2027.

Neutral 2
  • Nomura group meet in Hyderabad Sep 21

    Dr Reddy's will hold an in-person group meeting with Nomura on September 25, 2026, in Hyderabad, from 11:00 am to 2:00 pm. The company disclosed the meeting under SEBI norms.

  • ICICI Securities, BofA investor meetings Sep 10

    Dr Reddy's scheduled analyst and institutional investor meetings for September 17 and 24, 2026. These include an in-person group meet with ICICI Securities and a virtual session with Bank of America.

TL;DR: Recent news on Dr Reddy's is mildly positive. The main development is the exclusive Takeda Qdenga deal, which adds a vaccine to its India portfolio and gives it a first-mover position in dengue prevention. These articles mention no headwinds, but revenue from the deal won't start until H1 2027, so it won't help near-term earnings. The busy run of investor meetings with Nomura, ICICI Securities and BofA in late September 2026 points to active outreach, and investors will watch for updates on the US generics pipeline and pricing from these sessions and the upcoming quarterly results.

Quarterly Results

Particulars Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
6,758
6,903
7,237
7,114
7,696
8,038
8,381
8,528
8,572
8,828
8,753
7,546
8,100
Expenses
4,696
4,894
5,214
5,283
5,566
5,962
6,108
6,530
6,398
6,818
6,866
7,164
7,240
Operating Profit
2,062
2,008
2,023
1,831
2,130
2,076
2,273
1,998
2,174
2,010
1,888
382
860
OPM %
31%
29%
28%
26%
28%
26%
27%
23%
25%
23%
22%
5%
11%
Other Income
178
319
219
201
193
314
154
528
290
330
271
480
356
Interest
37
35
39
59
60
76
82
66
83
91
94
106
126
Depreciation
353
376
374
368
381
397
471
455
476
505
521
557
537
PBT
1,850
1,917
1,829
1,605
1,883
1,917
1,874
2,005
1,905
1,745
1,543
200
553
Tax %
24%
23%
24%
18%
26%
30%
25%
21%
26%
23%
23%
-11%
21%
Net Profit
1,405
1,482
1,381
1,310
1,392
1,342
1,404
1,587
1,410
1,337
1,190
221
436
EPS in Rs
16.87
17.77
16.56
15.7
16.69
15.05
16.94
19.09
16.99
16.14
14.5
2.65
5.32
Figures in ₹ Crores

Profit & Loss

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
15,023
15,568
14,196
14,281
15,448
17,517
19,048
21,545
24,670
28,011
32,644
33,700
33,228
Expenses
11,515
11,983
11,724
11,930
12,270
15,040
15,173
17,778
18,200
20,078
24,097
27,247
28,088
Operating Profit
3,508
3,585
2,472
2,351
3,178
2,477
3,874
3,768
6,470
7,933
8,547
6,454
5,140
OPM %
23%
23%
17%
16%
21%
14%
20%
17%
26%
28%
26%
19%
15%
Other Income
260
295
172
155
381
670
335
555
971
909
1,119
1,372
1,437
Interest
108
83
63
79
89
98
97
96
143
171
283
374
416
Depreciation
760
939
1,027
1,077
1,135
1,163
1,229
1,165
1,250
1,470
1,704
2,059
2,119
PBT
2,900
2,859
1,554
1,350
2,336
1,886
2,884
3,061
6,048
7,201
7,680
5,393
4,041
Tax %
19%
26%
19%
32%
17%
-7%
32%
29%
25%
23%
25%
23%
—
Net Profit
2,336
2,131
1,292
947
1,950
2,026
1,952
2,182
4,507
5,578
5,725
4,158
3,183
EPS in Rs
27.43
24.98
15.59
11.41
23.49
24.38
23.47
26.23
54.14
66.87
67.77
50.27
38.61
Div. Payout %
15%
16%
26%
35%
17%
21%
21%
23%
15%
12%
12%
16%
—
Figures in ₹ Crores

Balance Sheet

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
85
85
83
83
83
83
83
83
83
83
83
84
Reserves
9,768
12,484
12,179
12,489
13,941
15,516
17,558
19,129
23,203
28,171
33,466
37,808
Borrowings
4,314
3,352
4,918
5,071
3,838
2,210
3,031
3,384
1,347
2,002
4,677
7,734
Other Liabilities
4,290
4,408
4,474
4,706
4,557
5,414
5,915
7,149
7,576
8,523
9,797
10,951
Total Liabilities
18,457
20,330
21,654
22,349
22,418
23,223
26,588
29,746
32,209
38,780
48,023
56,577
Fixed Assets
5,377
6,563
6,931
6,968
7,191
6,850
8,206
8,122
9,219
10,426
18,226
22,063
CWIP
529
772
3,324
3,470
2,934
1,535
1,565
1,293
1,030
1,419
2,466
1,460
Investments
2,248
3,833
2,110
2,298
2,587
2,678
2,212
2,616
4,986
4,930
4,051
5,285
Other Assets
10,303
9,162
9,290
9,612
9,707
12,160
14,605
17,715
16,974
22,004
23,280
27,768
Total Assets
18,457
20,330
21,654
22,349
22,418
23,223
26,588
29,746
32,209
38,780
48,023
56,577
Figures in ₹ Crores

Cash Flow

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
2,524
3,263
2,144
1,803
2,870
2,984
3,570
2,811
5,888
4,543
4,643
5,674
Investing
-2,370
-1,610
-1,890
-1,483
-769
-495
-2,255
-2,565
-4,109
-4,034
-5,785
-6,425
Financing
-433
-1,700
-369
-444
-2,133
-2,516
-30
-242
-2,686
-376
1,891
829
Net Cash Flow
-280
-47
-114
-124
-31
-27
1,286
3
-907
133
749
78
Free Cash Flow
1,009
2,065
926
713
2,248
2,412
2,323
1,238
4,009
1,908
1,327
2,004
CFO/OP
88
111
110
88
106
149
107
94
108
83
78
109
Figures in ₹ Crores

Ratios

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
100
97
98
104
94
105
95
113
107
105
101
110
Inventory Days
248
248
282
263
273
230
273
250
232
283
260
228
Days Payable
84
88
104
121
111
100
109
111
108
116
97
91
Cash Conversion Cycle
264
257
275
246
256
235
259
252
231
271
264
247
Working Capital Days
26
34
-14
39
65
59
57
61
84
118
69
68
ROCE %
22%
19%
9%
8%
13%
11%
16%
14%
27%
27%
23%
13%

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

Log in to view Dr Reddys Laboratories insights

70 extracted metrics + investor summaries across FY09–FY27.

Log in — free

Shareholding Pattern

FIIs32.07%DIIs31.74%Others2.13%Public7.42%Promot.26.64%As ofJun 2026

Documents

Frequently Asked Questions about Dr Reddys Laboratories

What does Dr Reddys Laboratories Ltd do?
Dr. Reddy's Laboratories Ltd is a leading India-based pharmaceutical company which offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical services (CPS), generics, biosimilars and differentiated formulations.
Where is Dr Reddys Laboratories Ltd (DRREDDY) listed?
Dr Reddys Laboratories Ltd trades as DRREDDY on the NSE and under code 500124 on the BSE.
Which sector does Dr Reddys Laboratories Ltd belong to?
Dr Reddys Laboratories Ltd is classified under the Healthcare sector, in the Pharmaceuticals industry.
What is the market capitalisation of Dr Reddys Laboratories Ltd?
Dr Reddys Laboratories Ltd has a market capitalisation of ₹1,02,449 Cr, which places it in the Large Cap band.
What is the PE ratio of Dr Reddys Laboratories Ltd?
Dr Reddys Laboratories Ltd trades at a PE ratio of 31.24, on earnings per share of ₹333.59, against a book value of ₹456.14 per share.
What is the 52-week high and low of Dr Reddys Laboratories Ltd?
Over the last 52 weeks Dr Reddys Laboratories Ltd has traded between ₹1,101 and ₹1,414.9.
Does Dr Reddys Laboratories Ltd pay dividends?
Dr Reddys Laboratories Ltd has a dividend yield of 0.65%.
What is the Return on Equity (ROE) of Dr Reddys Laboratories Ltd?
Dr Reddys Laboratories Ltd reported a return on equity of 10.87%. Its debt-to-equity ratio is 0.20.

Company Information

Dr. Reddy's Laboratories Ltd is a leading India-based pharmaceutical company which offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical services (CPS), generics, biosimilars and differentiated formulations.

Website drreddys.com
CEO Mr. Gunupati Venkateswara Prasad B.E.
Employees 27,811
Listed 2003-05-30
Face Value ₹ 1
Issued Size 83,46,30,355

For AI agents and developers

Reading this as an AI agent, LLM or automated pipeline? Every page on Tapetide is also published as clean Markdown — no navigation, no scripts, just the data. Fetch https://tapetide.com/stocks/DRREDDY.md for Dr Reddys Laboratories Ltd: company profile, latest price, key fundamentals, the Tapetide Score, growth rates, quarterly and annual financial statements, shareholding pattern, technical indicators, analyst ratings and exchange filings.

Append .md to any Tapetide URL for the same treatment. A full index of what we publish is at /llms.txt and /llms-full.txt. For live, structured queries instead of documents, use our MCP server.

Explore More

More in Healthcare → FII DII Data Stock Screener Nifty 50 Heatmap F&O Ban List