Dr Reddys Laboratories Ltd logo

Dr Reddys Laboratories Ltd

DRREDDY NSE

Key Fundamentals

MidcapPharmaceuticalsHealthcare
Market Cap
₹98,892 Cr
Volatility
Moderate
P/E Ratio
30.53
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

Insights

Beta

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

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50 extracted metrics + investor summaries across FY15–FY26.

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Tapetide Score

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

Technical Indicators

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
3.90% ↘
Net Income Growth
-27.38% ↘
Cash Flow Change
22.20% ↗
ROE
-35.57% ↘
ROCE
-36.29% ↘
EBITDA Margin (Avg.)
-22.04% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 5d ago
AI opinion · based on fundamentals
Risk medium

Dr Reddy's Laboratories commands a market cap of ₹98,917 Cr at a PE of 31.4x, but faces a sharp TTM profit decline of -43% and negative TTM sales growth of -1%. The company has delivered a respectable 5-year compounded sales CAGR of 12% and profit CAGR of 15%, though recent momentum has deteriorated significantly with last-year ROE falling to 11% versus a 5-year average of 16%.

Bull Case 7
  • Strong 5-year compounded sales CAGR of 12%, indicating sustained top-line growth over the medium term
  • 5-year compounded profit CAGR of 15%, demonstrating ability to grow earnings faster than revenue over the longer horizon
  • Working capital efficiency has improved meaningfully from 85.1 days to 67.8 days, freeing up cash for operations and investment
  • Consistent ROE averaging 15-16% over 3, 5, and 10-year periods reflects a durable competitive moat in the generics and specialty pharma space
  • 10-year compounded sales CAGR of 8% shows long-term secular growth trajectory in line with global healthcare demand
  • Price-to-book of 2.63x is relatively moderate for a large-cap pharma company, suggesting the balance sheet is not excessively stretched in market valuation
  • 3-year compounded sales CAGR of 11% indicates that the recent slowdown is a more recent phenomenon rather than a prolonged structural issue
Bear Case 8
  • TTM compounded profit has declined -43%, signalling a severe earnings deterioration in the most recent period
  • TTM sales growth has turned negative at -1%, raising concerns about top-line stagnation or pricing pressure
  • Last-year ROE has dropped to 11% from a 3-year average of 16%, indicating declining return efficiency on shareholder equity
  • Dividend payout has been low at only 13.2% of profits over the last 3 years, offering limited income return to shareholders at a yield of just 0.67%
  • PE of 31.4x appears elevated given the current negative profit growth trajectory, implying the stock may be priced for a recovery that is not yet visible
  • 1-year stock CAGR of -4% and 3-year CAGR of just 1% show the market has already been de-rating the stock amid earnings weakness
  • 3-year compounded profit CAGR of -4% shows that profit erosion is not limited to just the latest quarter but extends over a multi-year window
  • 10-year stock CAGR of only 7% suggests limited long-term wealth creation relative to broader market returns for Indian equities

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

AI News Digest

Anthropic anthropic claude-opus-4.6 20h ago
Headwinds 2
  • Q1FY27 net profit plunges 69% Jul 22

    Net profit fell 69% YoY to ₹4,435 million in Q1FY27, dragged by a ₹2,397 million provision related to semaglutide API issues. Revenue declined 5.6% YoY to ₹80,705 million.

  • Semaglutide API cost impact Jul 22

    EBITDA fell 56% YoY to ₹1,009 Cr in Q1FY27 as semaglutide API costs weighed heavily on margins, compressing profitability despite stable operations elsewhere.

Positives 2
  • US FDA nod for rituximab biosimilar Aug 1

    Dr. Reddy's secured US FDA approval for its rituximab biosimilar, a key oncology drug. Fresenius Kabi will exclusively commercialize the product in the US market.

  • AGM approves ₹8 dividend Jul 23

    Shareholders approved a ₹8 per share dividend and appointed Deloitte as statutory auditor for five years at the 42nd AGM on July 23, 2026.

Neutral 1
  • Q1FY27 revenue dips 6% YoY Jul 22

    Q1FY27 consolidated revenue fell 6% YoY to ₹8,071 Cr. While the decline is notable, it overlaps with the profit drop story and reflects the same semaglutide API headwind.

TL;DR: Dr. Reddy's had a tough Q1FY27 with a 69% profit drop driven by a one-time semaglutide API provision, significantly denting near-term earnings. On the positive side, the US FDA approval for rituximab biosimilar opens a meaningful oncology revenue stream via Fresenius Kabi. Shareholder returns remain intact with an ₹8 dividend. The key question going forward is whether the semaglutide API issue is truly one-off or signals recurring cost pressure — if contained, the trend should improve from here.

Quarterly Results

  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

  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

  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

  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

  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%

Shareholding Pattern

As of Jun 2026
FIIs 32.07%
DIIs 31.74%
Promoters 26.64%
Public 7.42%
Others 2.13%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
26.74%
26.73%
26.72%
26.72%
26.72%
26.71%
26.71%
26.70%
26.70%
26.69%
26.66%
26.65%
26.65%
26.65%
26.64%
26.64%
26.64%
26.64%
26.64%
26.64%
26.63%
26.64%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
42.21%
0.00%
44.49%
42.27%
41.75%
40.08%
37.29%
36.36%
35.52%
33.20%
33.08%
32.07%
DIIs
14.25%
15.08%
20.92%
21.95%
24.46%
24.95%
24.47%
23.38%
23.05%
21.99%
21.04%
16.21%
18.31%
20.73%
21.48%
22.90%
25.62%
26.74%
27.98%
30.44%
30.72%
31.74%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
8.31%
7.76%
8.14%
8.27%
8.37%
8.22%
8.06%
7.84%
7.59%
7.51%
7.91%
8.44%
8.25%
8.07%
8.07%
8.07%
8.20%
8.04%
7.56%
7.65%
7.57%
7.42%
Others
50.70%
50.43%
44.22%
43.07%
40.45%
40.12%
40.76%
42.08%
42.66%
43.80%
2.18%
48.69%
2.30%
2.29%
2.06%
2.30%
2.25%
2.22%
2.30%
2.07%
1.99%
2.13%
No. of Shareholders
2,21,107
2,23,309
2,55,720
2,42,376
2,63,803
2,55,300
2,59,271
2,46,788
2,32,715
2,46,769
2,43,445
2,57,794
2,55,500
2,67,694
3,10,403
4,03,669
4,59,605
4,51,929
4,49,216
4,55,243
4,49,665
4,46,086

Documents

Frequently Asked Questions about Dr Reddys Laboratories Ltd

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 is listed on the Indian stock exchanges. It is listed on NSE: DRREDDY and BSE: 500124. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Dr Reddys Laboratories Ltd belong to?
Dr Reddys Laboratories Ltd operates in the Healthcare sector within the Pharmaceuticals industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Dr Reddys Laboratories Ltd?
Dr Reddys Laboratories Ltd has a market capitalisation of approximately ₹98891.59 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Dr Reddys Laboratories Ltd?
The Price-to-Earnings (PE) ratio of Dr Reddys Laboratories Ltd is 30.53. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Dr Reddys Laboratories Ltd?
Over the past 52 weeks, Dr Reddys Laboratories Ltd has traded between a low of ₹1,101 and a high of ₹1,414.9. This range helps investors understand the stock's price volatility and recent trading levels.
Does Dr Reddys Laboratories Ltd pay dividends?
Yes, Dr Reddys Laboratories Ltd has a dividend yield of 0.67%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Dr Reddys Laboratories Ltd?
Dr Reddys Laboratories Ltd has a Return on Equity (ROE) of 10.87%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Dr Reddys Laboratories Ltd on Tapetide?
On Tapetide, you can view Dr Reddys Laboratories Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

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

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