Dr Reddy’s Q1 FY27 profit declines 69% as revenues dip, semaglutide API provision impacts margins

Mumbai: Dr Reddy's Laboratories Ltd on Wednesday reported a 69 per cent decline in its consolidated net profit to ₹443.5 crore for the quarter ended 30 June 2026, compared to ₹1,417.8 crore in the corresponding quarter last year. Consolidated revenues for the quarter also decreased by 6 per cent to ₹8,070.5 crore from ₹8,545.2 crore year-on-year.Financial PerformanceConsolidated total income for Q1 FY27 stood at ₹8,454.5 crore, a 5.6 per cent decline from ₹8,916.3 crore in Q1 FY26. Total expenses, however, increased by 13.6 per cent to ₹7,902 crore from ₹6,957.6 crore in the year-ago period.Segmental RevenueGlobal Generics revenues decreased by 5 per cent year-on-year to ₹7,199.3 crore, while Pharmaceutical Services and Active Ingredients (PSAI) revenues grew by 4 per cent to ₹851.9 crore. Revenues from North America declined by 35 per cent to ₹2,204.8 crore.Dr Reddy's Quality Issue Prompts Torrent Pharma Recall Of Select Semaglutide Injection Batches Key AppointmentsThe company announced the appointment of Sridevi Khambhampaty as Global Head of Biologics and Senior Management Personnel, effective 22 July 2026. She will also be a member of the Management Council.Auditor AppointmentDeloitte Haskins & Sells, LLP was approved as the Independent Registered Public Accounting Firm for auditing the financial statements for inclusion in the company's Annual Report on Form 20-F and reviewing interim financial statements to be filed with the U.S. Securities and Exchange Commission on Form 6-K.Semaglutide ImpactThe company noted an adverse impact of ₹239.7 crore provision towards inventory and associated costs related to semaglutide's active pharmaceutical ingredient (API), which resulted in a decrease in gross profit, EBITDA, and PBT margins by approximately 3 per cent.Board Meeting DetailsThe Board Meeting commenced at 2:30 p.m. IST and concluded at 4:03 p.m. IST on 22 July 2026.Disclaimer: This report is based on the company's filed financial results (standalone or consolidated, as applicable) and is intended solely for informational purposes. It does not constitute investment advice or a recommendation to buy, sell or hold any security.

Dr Reddy’s attributed the weak quarterly performance to lower lenalidomide revenues and an unexpected setback related to semaglutide API