Dr Reddy’s Laboratories Ltd today reported its earnings for the first quarter of the financial year 2026-27. The pharmaceutical major posted a 68.7 per cent year-on-year (YoY) decline in consolidated profit after tax (PAT) to Rs 443.5 crore for the quarter ended June 2026, compared with Rs 1,417 crore reported in the corresponding quarter of the last financial year. The profit was also well below the ET NOW Poll estimate of Rs 736.9 crore.
Revenue from operations plunged 5.6 per cent year-on-year to Rs 8,070.5 crore, against Rs 8,545.2 crore in the year-ago period. The figure also fell short of the ET Now estimate of Rs 8,220.6 crore.
Operating performance also remained under pressure during the quarter with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) dropping 55.7 per cent YoY to Rs 1,008.8 crore in April-June quarter of FY27 from Rs 2,278 crore a year earlier, missing the ET NOW Poll estimate of Rs 1,397.7 crore.
The company’s EBITDA margin contracted sharply to 12.5 per cent in Q1 FY27, compared with 26.7 pe cent in the same quarter last year, representing a decline of 1,420 basis points. The reported margin also came in below ET NOW estimate expectation of 17 per cent.
