Dr Reddy shares: Shares of pharma main Dr Reddy’s Laboratories swung between good points and losses in morning offers on the BSE on Wednesday, 13 Could, a day after reporting a 86% year-on-year (YoY) drop in its March-quarter (Q4FY26) revenue.
Dr Reddy’s Laboratories share worth opened at ₹1,220.20 towards its earlier shut of ₹1,270.10 and climbed 2.6% to an intraday excessive of ₹1,303.55. The inventory, nonetheless, erased all good points later and declined as a lot as 4% to hit an intraday low of ₹1,220.20.
Dr Reddy’s Q4FY26 consolidated web revenue dropped 86% YoY to ₹220 crore. Even sequentially, or on a quarter-on-quarter (QoQ) foundation, the revenue fell by practically by 82%.
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Dr Reddy’s Laboratories reported an 86% year-on-year decline in its March-quarter revenue primarily on account of decrease Lenalidomide gross sales within the US, worth erosion in North America and Europe Generics, and a one-time Shelf Inventory Adjustment (SSA) of ₹450 crore associated to the product. Impairments from CAR-T property and discontinued licensed merchandise additionally contributed.
Dr Reddy’s Laboratories has acquired regulatory approval for generic semaglutide in Canada and is making ready for its launch. The corporate additionally launched a generic semaglutide injection in India and plans to introduce oral semaglutide tablets quickly, aiming to broaden its portfolio on this space.
Analysts spotlight Dr Reddy’s capacity to seize market share within the international generic semaglutide alternative and the well timed approval of biosimilar abatacept within the US and Europe as key catalysts for development revival. Administration additionally indicated that Semaglutide and Abatacept are anticipated to uplift margins.
Brokerage corporations have combined views, with some sustaining an ‘add’ score however trimming worth targets, whereas others have a ‘impartial’ or ‘brief’ view. Considerations embody muted base enterprise efficiency and potential downward revisions to estimates, although future catalysts like semaglutide and abatacept are famous.
In Q4FY26, Dr Reddy’s Laboratories’ income dropped 11.64% YoY to ₹7,516.2 crore, and EBITDA declined 60% YoY to ₹980 crore. This efficiency was impacted by components together with decrease Lenalidomide gross sales and a one-time SSA.
Income for the quarter dropped 11.64% YoY and practically 14% QoQ to ₹7,516.2 crore. EBITDA declined 60% YoY and 52% QoQ to ₹980 crore for the March quarter, whereas gross margin in Q4FY26 declined 1,074 foundation factors YoY and 881 foundation factors QoQ to 44.8%.
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Brokerage corporations have largely maintained their views on the inventory however trimmed their estimates, discounting decrease margins for the bottom enterprise.
Brokerage agency ICICI Securities maintained an “add” view on the inventory, whereas lowering the goal worth to ₹1,365 from ₹1,435 earlier. ICICI additionally reduce its FY27-28E EPS estimates by practically 5% to consider decrease margins for the bottom enterprise.
“Administration has maintained its ex-Revlimid income development and margin steering for the close to time period, whereas higher traction in international generic semaglutide gross sales might scale its EBITDA margin again to 25%. DR Reddy’s capacity to seize market share within the international generic semaglutide alternative and the well timed approval of biosimilar abatacept within the US and Europe are the 2 essential catalysts for development revival off the excessive base of Revlimid,” ICICI Securities mentioned.
Brokerage agency Motilal Oswal has a impartial view on the inventory with a goal worth of ₹1,195, suggesting a 6% draw back potential.
Motilal identified that Dr Reddy’s earnings decelerated in FY25 and FY26 after recording a sturdy present throughout FY20-25. It expects the earnings to additional decline in FY27 on account of a decrease tempo of area of interest launches.
“Sure area of interest merchandise like b-abatacept are underneath regulatory course of, which could revive FY28 earnings, topic to well timed approval,” mentioned Motilal Oswal.
Equirus Securities has a “brief” view on the inventory with a goal worth of ₹1,091, because the brokerage agency expects downward revisions to Road estimates, given the muted base enterprise efficiency.
“DR Reddy’s This autumn EBITDAM at 14.8% was muted and mirrored that its underlying enterprise has been weak over the past three years, however it was utterly masked by the gRevlimid contribution. DRRD indicated that margins for the underlying enterprise are anticipated to stay range-bound, whereas Semaglutide and Abatacept are anticipated to uplift margins going ahead. We’re constructing in 19% and 20% margins in FY27E and FY28E, respectively,” Equirus mentioned.
“Close to-to-mid-term catalysts seem totally factored into present valuations. We reiterate ‘brief’ with a March 2027 goal worth of ₹1,091, set at 21 occasions P/E,” mentioned Equirus.
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