Dr Reddy’s Laboratories reported a better-than-expected profit for the September quarter, as strong demand in the domestic market helped offset weakness in its key US business. The pharmaceutical company’s consolidated net profit fell to Rs 925 crore in the quarter ended September 30, 2026, from Rs 1,347 crore in the same period last year. However, the profit was higher than analysts’ estimate of Rs 749 crore, according to data compiled by LSEG.
Revenue from operations declined 1.6% year-on-year to Rs 8,698 crore during the quarter, mainly due to pricing pressure and rising competition in the US market.
The company’s North American revenue fell around 23% to Rs 2,489 crore as Dr Reddy’s continued to face pressure on sales of lenalidomide, its generic version of Bristol Myers Squibb’s cancer drug Revlimid. Competition has increased after the drug lost exclusivity, putting further pressure on prices.
The company also took a revenue hit of Rs 71 crore following a recall of its generic semaglutide product in Canada. This came after it made provisions of Rs 240 crore in the previous quarter over quality issues related to the drug.
Dr Reddy’s had earlier said that an impurity issue in the active ingredient had forced it to stop production of new batches. Supplies of its generic semaglutide were expected to remain unavailable in India, while supplies in Canada faced disruptions until at least late October.
The domestic market, however, remained a bright spot for the company. Revenue from India rose 17.2% to Rs 1,850 crore, supported by demand for medicines used to treat chronic conditions. The company has also expanded its presence in women’s healthcare through the acquisition of hormone replacement therapy brands.
Dr Reddy’s shares closed marginally lower on Friday. The stock has declined 3.3% so far this year, compared with a 12% rise in the pharmaceutical index.
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