Dr Reddy Laboratories : . Reddy’s Q4 & Full Year FY26 Financial Results

Press Release

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DR. REDDY'S LABORATORIES LTD.

8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India.

Dr. Reddy's Q4 & Full Year FY26 Financial Results

Hyderabad, India, May 12, 2026: Dr. Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter and year ended March 31, 2026. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).

Particulars	Q4FY26	FY26
Revenues1	₹ 75,162 Mn [Down: 11.6% YoY; 13.9% QoQ]	₹ 335,933 Mn [Up: 3.2% YoY]
Gross Margin2	44.8% [Q4FY25: 55.6%; Q3FY26: 53.6%]	52.8% [FY25: 58.5%]
EBITDA3	₹ 9,807 Mn [13.0% of Revenues]	₹ 76,595 Mn [22.8% of Revenues]
Profit before Tax4	₹ 1,991 Mn [2.6% of Revenues]	₹ 54,817 Mn [16.3% of Revenues]
Profit after Tax	₹ 2,201 Mn	₹ 42,850 Mn
attributable to Equity Holders	[2.9% of Revenues]	[12.8% of Revenues]

Notes: The results include the adverse impact of a Shelf Stock Adjustment ('SSA') related to lenalidomide of ₹ 4,530 Mn, impairment of CAR-T assets and Eftilagimod Alfa of a total of ₹2,277 Mn, provisions related to VAT liability of ₹1,141 Mn in Q4FY26. In addition to the above, FY26 includes adverse impact of VAT liability provision of ₹695 Mn and New Labour Codes of ₹ 1,170 Mn. The above items impacted :

• Revenue growth by 5.3% YoY and 5.2% QoQ in Q4FY26 and 1.4% in FY26.

• Gross Margin by 3.2% in Q4FY26 and 0.7% in FY26.

• EBITDA Margin by 6.5% in Q4FY26 and 1.9% in FY26.

• PBT Margin by 9.9% in Q4FY26 and 2.7% in FY26.

Commenting on the results, Co-Chairman & MD, G V Prasad said: "Our performance this year reflects the impact of lower lenalidomide sales and several one-offs. The resilience of our branded businesses and currency tailwinds helped partially mitigate this impact. We remain focused on strengthening our base business and improving margins, through cost efficiencies and portfolio optimization. In parallel, we continue to build long-term franchises in biosimilars, consumer health and innovation to deliver sustainable value."

All amounts in millions, except EPS All US dollar amounts based on convenience translation rate of 1 USD = ₹93.83

Dr. Reddy's Laboratories Limited & Subsidiaries Revenue Mix by Segment for the quarter

Particulars	Q4FY26	Q4FY25	YoY Gr %	Q3FY26	QoQ Gr%
	(₹)	(₹)		(₹)
Global Generics	65,802	75,365	(13)	79,113	(17)
North America	17,562	35,586	(51)	29,644	(41)
Emerging Markets	18,057	13,981	29	18,961	(5)
India	15,663	13,047	20	16,032	(2)
Europe	14,520	12,750	14	14,476	0.3
Pharmaceutical Services and Active Ingredients (PSAI)	9,124	9,563	(5)	8,018	14
Others	236	132	79	137	73
Total	75,162	85,060	(12)	87,268	(14)

Revenue Mix by Segment for the year

Particulars	FY26	FY25	YoY Gr%
	(₹)	(₹)
Global Generics	299,033	289,552	3
North America	113,737	1,45,164	(22)
Emerging Markets	67,608	54,772	23
India	62,186	53,734	16
Europe	55,501	35,882	55^
PSAI	34,774	33,846	3
Others	2,127	2,137	(0)
Total	335,933	325,535	3

^Excluding acquired Consumer Healthcare business in Nicotine Replacement Therapy (NRT) sales; revenue growth is at 14% YoY.

Q4FY26 Revenue Mix FY26 Revenue Mix

12%

1%

23%

19%

24%

21%

10%

0%

17%

34%

19%

20%

North America Emerging Markets India Europe PSAI Others

Consolidated Income Statement for the quarter

Particulars	Q4FY26		Q4FY25		YoY Gr %	Q3FY26		QoQ Gr%
	($)	(₹)	($)	(₹)		($)	(₹)
Revenues	801	75,162	907	85,060	(12)	930	87,268	(14)
Cost of Revenues	442	41,471	403	37,797	10	431	40,462	2
Gross Profit	359	33,691	504	47,263	(29)	499	46,806	(28)
% of Revenues		44.8%		55.6%			53.6%
Selling, General & Administrative Expenses	296	27,762	256	24,055	15	287	26,918	3
% of Revenues		36.9%		28.3%			30.8%
Research & Development Expenses	58	5,463	77	7,258	(25)	66	6,149	(11)
% of Revenues		7.3%		8.5%			7.0%
Impairment of Non-Current Assets, net	28	2,586	8	768	237	3	271	854
Other (Income)/Expense, net	(37)	(3,445)	(26)	(2,465)	40	(8)	(770)	347
Results from Operating Activities	14	1,325	188	17,647	(92)	152	14,238	(91)
Finance (Income)/Expense, net	(7)	(620)	(25)	(2,352)	(74)	(12)	(1,168)	(47)
Share of Profit of Equity Investees, net of tax	(0)	(46)	(1)	(55)	(16)	(0)	(23)	100
Profit before Income Tax	21	1,991	214	20,054	(90)	164	15,429	(87)
% of Revenues		2.6%		23.6%			17.7%
Income Tax Expense/(Benefit)	(2)	(214)	45	4,181	(105)	38	3,533	(106)
Profit for the Period	23	2,205	169	15,873	(86)	127	11,896	(81)
% of Revenues		2.9%		18.7%			13.6%
Attributable to Equity holders of the Parent Co.	23	2,201	170	15,939	(86)	128	12,098	(82)
% of Revenues		2.9%		18.7%			13.9%
Attributable to Non-controlling interests	0.04	3	(1)	(66)	(105)	(1)	(202)	(102)
Diluted Earnings per Share (EPS)	0.03	2.64	0.18	16.94	(84)	0.15	14.51	(82)

Earnings before Interest, Tax, Depreciation & Amortization (EBITDA) Computation for the quarter

Particulars	Q4FY26		Q4FY25		Q3FY26
	($)	(₹)	($)	(₹)	($)	(₹)
Profit before Income Tax	21	1,991	214	20,054	164	15,429
Interest (Income) / Expense, net*	(4)	(346)	(7)	(627)	(4)	(422)
Depreciation	37	3,459	28	2,636	34	3,178
Amortization	23	2,117	20	1,919	22	2,037
Impairment	28	2,586	8	768	3	271
EBITDA	105	9,807	264	24,749	218	20,493
% of Revenues		13.0%		29.1%		23.5%

*Includes income from Investment

Consolidated Income Statement for the year

Particulars	FY26		FY25		YoY Gr%
	($)	(₹)	($)	(₹)
Revenues	3,580	335,933	3,469	325,535	3
Cost of Revenues	1,691	158,669	1,440	135,107	17
Gross Profit	1,889	177,264	2,030	190,428	(7)
% of Revenues		52.8%		58.5%
Selling, General & Administrative Expenses	1,138	106,763	1,000	93,870	14
% of Revenues		31.8%		28.8%
Research & Development Expenses	256	24,058	292	27,380	(12)
% of Revenues		7.2%		8.4%
Impairment of Non-Current Assets, net	38	3,519	18	1,693	108
Other (Income)/Expense, net	(81)	(7,627)	(46)	(4,358)	75
Results from Operating Activities	539	50,551	766	71,843	(30)
Finance (Income)/Expense, net	(44)	(4,132)	(50)	(4,724)	(13)
Share of Profit of Equity Investees, net of tax	(1)	(134)	(2)	(217)	(38)
Profit before Income Tax	584	54,817	818	76,784	(29)
% of Revenues		16.3%		23.6%
Income Tax Expense	132	12,351	208	19,539	(37)
Profit for the Period	453	42,466	610	57,245	(26)
% of Revenues		12.6%		17.6%
Attributable to Equity holders of the Parent Co.	457	42,850	603	56,544	(24)
% of Revenues		12.8%		17.4%
Attributable to Non-controlling interests	(4)	(384)	7	701	(155)
Diluted Earnings per Share (EPS)	0.55	51.42	0.72	67.78	(24)

EBITDA Computation for the year

Particulars	FY26		FY25
	($)	(₹)	($)	(₹)
Profit before Income Tax	584	54,817	818	76,784
Interest (Income) / Expense, net*	(25)	(2,347)	(36)	(3,402)
Depreciation	135	12,621	112	10,505
Amortization	85	7,985	70	6,553
Impairment	38	3,520	18	1,693
EBITDA	816	76,595	982	92,133
% of Revenues		22.8%		28.3%

*Includes income from Investment

Key Balance Sheet Items

Particulars	As on 31st Mar 2026		As on 31st Dec 2025		As on 31st Mar 2025
	($)	(₹)	($)	(₹)	($)	(₹)
Cash and Cash Equivalents and Other Investments	1,050	98,509	929	87,191	728	68,299
Trade Receivables	1,079	101,219	1,100	103,206	964	90,420
Inventories	816	76,531	842	79,009	758	71,085
Property, Plant, and Equipment	1,236	115,930	1,231	115,544	1,042	97,761
Goodwill and Other Intangible Assets	1,257	117,952	1,223	114,727	1,158	108,613
Loans and Borrowings (Current & Non-Current)	824	77,341	722	67,732	498	46,766
Trade Payables	356	33,411	435	40,796	379	35,523
Equity	4,055	380,457	4,005	375,756	3,593	337,166

Key Business Highlights for Q4FY26

• Received the Notice of Compliance from Pharmaceutical Drugs Directorate for generic Semaglutide injection in Canada, indicated for treatment of Type 2 diabetes.

• Launched generic Semaglutide Injection in India for treatment of Type 2 diabetes, under the brand name 'Obeda®' on Day 1 of market formation post loss of exclusivity.

• Received marketing authorization for generic Semaglutide tablets in India for treatment of Type 2 diabetes from Drugs Controller General of India (DCGI), following the recommendation of Subject Expert Committee (SEC) under Central Drugs Standard Control Organization (CDSCO).

• Forayed into Hormone Replacement Therapy in India with acquisition of Progynova® and related assets.

• Acceptance for review by United States Food and Drug Administration (USFDA) of the Biologics License Application (BLA) for the Intravenous (IV) presentation of our abatacept biosimilar in the US.

• Integration of 95% of acquired Consumer Healthcare business in Nicotine Replacement Therapy (NRT) business by value completed as of March 2026.

• First-to-market launch of Olopatadine Hydrochloride Ophthalmic Solution USP, 0.7% (OTC) in the US.

• Launched Tegoprazan in Russia, following a successful launch in India.

  ESG Highlights for Q4FY26

• Named by BusinessWorld among India's Top 5 Most Sustainable Companies, ranking first in the Indian healthcare and pharmaceutical industry for 2024-25.

• Recognized in the 'Leadership Category' of the 2025 Indian Corporate Governance Scorecard for the third consecutive year, jointly by Institutional Investor Advisory Services (IiAS), the International Finance Corporation (IFC) and the Bombay Stock Exchange (BSE).

  Other Updates for Q4FY26

• Received 'VAI' classification, following a GMP and a PAI conducted by the USFDA in December 2025 at formulations manufacturing facility, FTO-SEZ PU01, in Srikakulam, Andhra Pradesh, India.

• Divested two non-core brands in India.

• Discontinuation of trial of licensed novel drug candidate, Eftilagimod alfa, by partner, Immutep, following a planned interim futility analysis.

• Discontinuation of certain R&D programs in CAR-T therapy, as part of portfolio rationalization.

• The Board has recommended a dividend payment of Rs. 8 per equity share of face value Re. 1/- each (800% of face value) for year ended March 31, 2026, subject to shareholder approval.