Mumbai, Jan 21 Dr Reddy's Laboratories on Wednesday reported a 14 per cent decline in its consolidated net profit for the December quarter (Q3) of FY26.
The drugmaker said its consolidated net profit fell 14 per cent year-on-year (YoY) to Rs 1,209.8 crore in Q3 FY26, compared with Rs 1,413.3 crore in the same quarter last financial year, according to its stock exchange filing.
Revenue from operations during the quarter rose 4.4 per cent to Rs 8,726.8 crore, up from Rs 8,358.6 crore in the year-ago period, supported by growth across most key markets.
On the operating front, EBITDA declined 10.8 per cent year-on-year to Rs 2,049.3 crore.
The company’s gross margins also came under pressure, easing to 53.6 per cent in Q3 FY26 from 58.7 per cent in Q3 FY25 and 54.7 per cent in the previous quarter, according to the company’s filing.
Dr Reddy’s said growth during the quarter was broad-based across geographies, except for its North America Generics business, which saw a decline mainly due to lower sales of Lenalidomide.
The company added that favourable foreign exchange movements helped support overall growth.
Global generics revenue stood at Rs 1,791 crore in Q3 FY26 -- marking a 7 per cent year-on-year increase and a 1 per cent sequential rise.
While North America Generics, the company’s largest revenue contributor, reported a 12 per cent decline, other regions delivered strong growth.
Revenue from Europe rose 20 per cent, India grew 19 per cent, and emerging markets posted a sharp 32 per cent increase.
The Pharmaceutical Services and Active Ingredients (PSAI) segment reported a 2 per cent year-on-year decline in revenue to Rs 800 crore during the quarter.
Spending on research and development stood at Rs 610 crore, down 8 per cent year-on-year, mainly due to lower development spends in biosimilars after the completion of a major portion of investments related to Abatacept.
The company said its R&D focus continues to remain on complex generics, biosimilars, peptides and novel biologics.
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