Dr Reddy’s Laboratories Share Price Jumps 3% Post Q1 Earnings — Here’s What Drove the Rise

Market Performance

Dr Reddy’s Laboratories witnessed a notable upswing in its share price during early trade on July 24.

• Share Price Movement: The stock climbed 3%, reaching ₹1,288.
• Recent Trend: Despite the Q1 boost, the stock is down 10% YTD.

Main News

Dr Reddy’s Laboratories released its financial results for Q1FY26, registering steady growth across key metrics. The company saw positive momentum despite challenging market conditions and pressure on U.S. sales.

Company Details

Dr Reddy’s Laboratories is one of India’s leading pharmaceutical companies with a significant presence in global generics, biosimilars, and active pharmaceutical ingredients (API).

• Focus Areas: Generic drugs, biosimilars, and proprietary products.
• Key Markets: India, the U.S., Canada, and over 85 other countries.

Financial Performance Highlights (Q1 FY26)

Revenue

• Total Revenue: ₹8,545 crore
• Year-on-Year Growth: 11.4%
• Previous Year (Q1 FY25): ₹7,672.7 crore

EBITDA

• EBITDA: ₹2,278 crore
• YoY Growth: 5%

EBITDA Margins

• Current Margin: 26.7%
• Previous Year Margin: 28.2%
• Change: Down by 1.5 percentage points

Net Profit

• Q1 Net Profit: ₹1,418 crore
• YoY Growth: 2%

Key Developments

• Revlimid (Lenalidomide): A major profit contributor over the last two years, is now in decline.
  • Q2FY26 will be the last quarter of significant contribution.
  • Revenue from this drug is expected to fall sharply due to increased competition.
• Semaglutide Launch Plans:
  • Targeted for January 2026 in Canada.
  • Planned rollout in 87 global markets through FY26–27.
  • Pen capacity secured via partners: 10–12 million units.
  • Vizag plant to begin production in FY28.
• Global Expansion: Continued focus on expanding the GLP-1 agonist pipeline.

Summary of the Article

Dr Reddy’s Laboratories share price saw a 3% rise on July 24, closing at ₹1,288, following the release of its Q1FY26 results. The company posted an 11.4% rise in revenue and a 2% growth in net profit, reflecting stable financial performance.

Although margins narrowed slightly and the blockbuster drug Revlimid is entering a declining phase, Dr Reddy's is pivoting towards Semaglutide as a future growth driver, with large-scale rollouts expected across major markets.

The pharmaceutical giant continues to build momentum despite headwinds, and the latest quarterly results highlight its resilience and evolving strategy.