Generic drugmaker Dr. Reddy’s Laboratories reported September quarter consolidated net profit declined more than 31% to ₹913.2 crore compared to ₹1,336.8 crore a year earlier on lower global generics revenue, particularly a sharp dip in the mainstay North America market.
Revenue from operations for the Hyderabad-based multinational stood at ₹8,697.8 crore, down from ₹8,828.3 crore a year earlier, according to results prepared under Indian Accounting Standards (Ind AS). Global generics, which account for 90% of total revenue, contributed ₹7,796.5 crore during the quarter, compared with ₹7,823.5 crore in the corresponding period last year.
In a presentation prepared as per International Financial Reporting Standards (IFRS), CFO M V Narasimham said generics revenue from North America were 23% lower at ₹2489 crore (₹3240.8 crore). The decline was largely due to lower generic cancer drug lenalidomide sales. Price erosion, a major factor in the key market, was stable and company launched six new products, he said.
In Europe, the growth was muted with revenues from new generic product launches and favourable currency movements partially offset by pricing pressure in generics. The company did well in the Emerging and India markets.
Dr. Reddy’s, which in July had halted commercial supplies of its generic semaglutide due to an issue associated with the active pharmaceutical ingredient (API) used in the product, said appropriate measures are being taken to ensure product quality and resumption of supplies.
CEO Erez Israeli said the relaunch in Canada was likely in November. Besides that the plan is to launch in nine more markets and the company is estimating 6-7 million Semaglutide pen sales during the third and fourth quarter of this fiscal.
On the impact because of the West Asia crisis, Mr.Narasimham said it would have been around 100bps on EBITDA and felt across key starting materials, solvents and freight.
Published - October 23, 2026 09:43 pm IST