Dr Reddy’s Share Price: Global Financial Services, Morgan Stanley has revised its outlook on Dr Reddy’s Laboratories, maintaining an ‘Equal Weight’ rating while lowering the target price to Rs 1,259 due to projected earnings downgrades.
Established in 1984, Dr Reddy’s Laboratories is a pharmaceutical company headquartered in Hyderabad, India. It focuses on providing affordable and innovative medicines, including generics, biosimilars, APIs, and OTC products across therapeutic areas like oncology, gastroenterology, and diabetology in over 70 countries.
Dr Reddy’s Share Price: Healthcare stock target cut by Morgan Stanley – Here’s why
Morgan Stanley has maintained an ‘Equal Weight’ rating on Dr Reddy’s Laboratories with a revised target price of Rs 1,259, down from Rs 1,285, citing earnings downgrades.
The outlook remains impacted by the phase-out of gRevlimid and uncertainty surrounding the GLP-1 opportunity.
Margins are projected to stay in the range of 21 per cent to 22.6 per cent over FY27–28. However, a recovery is expected from FY28 onwards, supported by the ramp-up of semaglutide and growth in the biosimilars segment, indicating near-term pressures but a gradual medium-term improvement.
Dr Reddy’s Labs Q3 Results 2026
The large-cap pharma company’s revenue stood at Rs 8,727 crore, a 4.4 per cent year-on-year increase, while declining 0.9 per cent sequentially. Growth during the quarter was driven by the core business, excluding the impact of specific products.
The company’s EBITDA came in at Rs 2,049 crore, with an EBITDA margin of 23.5 per cent.
However, EBITDA declined 11 per cent year-on-year and 13 per cent quarter-on-quarter, reflecting pressure from product-related factors as well as a one-time provision linked to the implementation of new Labour Codes in India.
According to the company’s exchange filing, profit before tax (PBT) stood at Rs 1,543 crore, translating into a PBT margin of 17.7 per cent. PBT declined 18 per cent year-on-year and 16 per cent sequentially.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
