Dr. Reddy’s Laboratories (NYSE:RDY) Releases Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Dr. Reddy’s Laboratories (NYSE:RDY) announced its quarterly earnings data on Tuesday. The company reported $0.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.03), Zacks reports. Dr. Reddy’s Laboratories had a net margin of 12.90% and a return on equity of 12.28%. The business had revenue of $852.55 million for the quarter, compared to analysts’ expectations of $886.58 million.

Here are the key takeaways from Dr. Reddy’s Laboratories’ conference call:

• Dr. Reddy’s reported highest-ever annual revenues in FY2026, and management said the underlying base business delivered double-digit growth for both the quarter and the full year, despite product-specific headwinds and one-time items.
• Quarterly results were hit by several one-offs, including a INR 453 crore lenalidomide shelf-stock adjustment, VAT-related provisions, and impairments tied to discontinued CAR-T and partnered programs, which sharply reduced reported profitability.
• North America was pressured by lenalidomide, but management said the ex-lenalidomide U.S. business should grow double digits in FY2027 as new launches offset erosion in legacy products.
• The company highlighted strong momentum in semaglutide, including regulatory approval in Canada and India launch progress, and said the product could be a major growth driver with pricing generally in the $25-$30 per unit range across many markets.
• Management expects margins to improve in FY2027, guiding for gross margins above 50%, R&D spend of 7%-8% of sales, and a path toward the company’s aspirational 25% EBITDA margin as semaglutide and other launches scale.

Dr. Reddy’s Laboratories Trading Up 4.4%

Shares of NYSE:RDY traded up $0.57 during midday trading on Thursday, reaching $13.56. 297,564 shares of the company’s stock were exchanged, compared to its average volume of 2,284,801. The firm’s 50 day simple moving average is $13.60 and its two-hundred day simple moving average is $13.79. Dr. Reddy’s Laboratories has a fifty-two week low of $12.19 and a fifty-two week high of $16.17. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.88 and a quick ratio of 1.38. The stock has a market cap of $11.32 billion, a price-to-earnings ratio of 23.26, a P/E/G ratio of 19.35 and a beta of 0.27.

Institutional Investors Weigh In On Dr. Reddy’s Laboratories

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Russell Investments Group Ltd. boosted its position in shares of Dr. Reddy’s Laboratories by 803.8% during the 4th quarter. Russell Investments Group Ltd. now owns 3,091 shares of the company’s stock worth $43,000 after purchasing an additional 2,749 shares during the period. EverSource Wealth Advisors LLC boosted its position in shares of Dr. Reddy’s Laboratories by 71.7% during the second quarter. EverSource Wealth Advisors LLC now owns 3,100 shares of the company’s stock worth $47,000 after buying an additional 1,294 shares during the period. Public Employees Retirement System of Ohio acquired a new stake in shares of Dr. Reddy’s Laboratories in the fourth quarter valued at $66,000. Raymond James Financial Inc. purchased a new stake in shares of Dr. Reddy’s Laboratories in the 2nd quarter valued at $67,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank acquired a new position in Dr. Reddy’s Laboratories in the 3rd quarter valued at about $78,000. 3.85% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

RDY has been the subject of several recent research reports. The Goldman Sachs Group cut Dr. Reddy’s Laboratories from a “neutral” rating to a “sell” rating in a report on Thursday, April 23rd. Weiss Ratings downgraded Dr. Reddy’s Laboratories from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $16.90.

Dr. Reddy’s Laboratories Company Profile

Dr. Reddy’s Laboratories Ltd. is an India‐based multinational pharmaceutical company that develops, manufactures and markets a wide range of pharmaceutical products and services. Established in 1984 by the late Dr. Kallam Anji Reddy, the company has grown into a diversified healthcare enterprise offering generic and proprietary medicines, active pharmaceutical ingredients (APIs), biosimilars and custom research and manufacturing services (CRAMS). Its portfolio spans therapeutic areas such as oncology, cardiovascular care, dermatology, gastroenterology and pain management.

The company’s core activities include the development and commercialization of cost‐effective generic treatments for branded drugs that have lost patent protection, along with in‐house research into innovative molecule development.