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Business Upturn
5 days ago
- Business
- Business Upturn
Dr. Reddy's shares jump over 3% following Q1 results – Should you buy, hold or sell? Know More
By Aditya Bhagchandani Published on July 24, 2025, 09:37 IST Shares of Dr. Reddy's Laboratories surged 3.06% to Rs 1,285.60 on Wednesday after the company reported its Q1 FY26 financial results. The stock touched an intraday high of Rs 1,287.90 and now commands a market capitalization of Rs 1.07 lakh crore. For the quarter ended June 30, 2025, the pharmaceutical major posted a consolidated net profit of Rs 1,418 crore, up 2% year-on-year. Revenue from operations stood at Rs 8,545 crore, reflecting an 11% YoY increase, primarily driven by contributions from the acquired Nicotine Replacement Therapy (NRT) portfolio and steady performance in branded markets. However, profit declined 11% quarter-on-quarter, while revenue remained flat sequentially. EBITDA for the quarter was Rs 2,280 crore, marking a 5% YoY increase, though EBITDA margin slipped 530 basis points to 56.9%, largely due to pricing pressure in the US generics segment and lower operating leverage. The Global Generics segment recorded Rs 7,560 crore in revenue, up 10% YoY, but remained unchanged QoQ. Revenue from North America declined 11% YoY to Rs 3,410 crore amid price erosion in key generics like Lenalidomide. Meanwhile, India revenue grew 11% YoY to Rs 1,470 crore, aided by new launches and pricing strategies. European business saw a sharp 142% YoY jump to Rs 1,270 crore, driven by the NRT acquisition and product launches. Brokerages offered a cautious outlook on Dr. Reddy's Laboratories following its Q1 FY26 results, primarily due to concerns over the US generics business. CLSA and Jefferies both retained their 'Underperform' ratings, with target prices of Rs 1,120 and Rs 1,100 respectively. CLSA noted that while overall earnings were in line with expectations, the US base business is expected to remain flat or grow in low single digits year-on-year, with Revlimid sales likely tapering off from Q3FY26. Jefferies flagged a miss in Q1 estimates due to a sharper-than-expected decline in US sales, driven by lower revenues from gRevlimid and sustained pressure in the base portfolio. Elevated SG&A and R&D spending also weighed on margins. However, it highlighted upcoming launches such as gOzempic in Canada and the US filing for Abatacept as key triggers to watch. Meanwhile, Morgan Stanley maintained an 'Equal-weight' rating with a target price of Rs 1,298, acknowledging steady growth in most markets but citing generic price erosion and reduced operating leverage as drag factors on margin. Dr. Reddy's Q1 YoY Comparison Table (in Rs crore): Metric Q1 FY26 Q1 FY25 YoY % Change Revenue from Operations 8,545 7,700 11% Net Profit 1,418 1,390 2% EBITDA 2,280 2,170 5% EBITDA Margin (%) 56.9% 62.2% -530 bps Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Economic Times
5 days ago
- Business
- Economic Times
Dr. Reddy's Laboratories shares in focus as Q1 net profit jumps 2% YoY. Should you invest?
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Dr. Reddy's Laboratories are likely to be closely tracked on Thursday, July 24, after the pharmaceutical giant posted a marginal 2% year-on-year (YoY) increase in consolidated net profit to Rs 1,418 crore for the first quarter ended June. The modest profit growth comes despite a challenging pricing environment in the generics company's revenue from operations stood at Rs 8,545 crore, registering a healthy 11% YoY growth. However, on a sequential basis, net profit declined by 11% and revenue remained revenue growth during the quarter was broad-based and supported by strong contributions from the recently acquired consumer healthcare portfolio in Nicotine Replacement Therapy (NRT), as well as sustained momentum in branded rose 5% YoY to Rs 2,280 crore during the reporting quarter. Nevertheless, operating margins took a hit, declining 530 basis points to 56.9%. The margin compression was attributed to heightened price erosion in the generics segment and reduced operating leverage. A favourable product mix partly offset the company reported its Q1 results, domestic brokerage firm Nuvama has maintained a 'buy' rating on Dr. Reddy's Laboratories with a target price of Rs 1, the company's quarterly results fell short of expectations, Nuvama noted that new growth drivers are emerging. Progress on semaglutide in Canada remains on track, and the company is planning to file for abatacept in the US.A key positive surprise came from the Contract Development and Manufacturing Organization (CDMO) business, which is expected to contribute $100 million in FY26 and is targeting $300 million by FY30, Nuvama the management has reaffirmed its 25% margin guidance, supported by ongoing cost optimization efforts.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
5 days ago
- Business
- Time of India
Dr. Reddy's Laboratories shares in focus as Q1 net profit jumps 2% YoY. Should you invest?
Shares of Dr. Reddy's Laboratories are likely to be closely tracked on Thursday, July 24, after the pharmaceutical giant posted a marginal 2% year-on-year (YoY) increase in consolidated net profit to Rs 1,418 crore for the first quarter ended June. The modest profit growth comes despite a challenging pricing environment in the generics segment. The company's revenue from operations stood at Rs 8,545 crore, registering a healthy 11% YoY growth. However, on a sequential basis, net profit declined by 11% and revenue remained flat. Explore courses from Top Institutes in Please select course: Select a Course Category Artificial Intelligence Healthcare healthcare Project Management MCA Operations Management Data Science CXO Degree Data Science Public Policy MBA others Others Leadership Management Finance PGDM Digital Marketing Data Analytics Design Thinking Product Management Technology Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details The revenue growth during the quarter was broad-based and supported by strong contributions from the recently acquired consumer healthcare portfolio in Nicotine Replacement Therapy (NRT), as well as sustained momentum in branded markets. EBITDA rose 5% YoY to Rs 2,280 crore during the reporting quarter. Nevertheless, operating margins took a hit, declining 530 basis points to 56.9%. The margin compression was attributed to heightened price erosion in the generics segment and reduced operating leverage. A favourable product mix partly offset this. After the company reported its Q1 results, domestic brokerage firm Nuvama has maintained a 'buy' rating on Dr. Reddy's Laboratories with a target price of Rs 1,486. Live Events While the company's quarterly results fell short of expectations, Nuvama noted that new growth drivers are emerging. Progress on semaglutide in Canada remains on track, and the company is planning to file for abatacept in the US. A key positive surprise came from the Contract Development and Manufacturing Organization (CDMO) business, which is expected to contribute $100 million in FY26 and is targeting $300 million by FY30, Nuvama added. Additionally, the management has reaffirmed its 25% margin guidance, supported by ongoing cost optimization efforts. Also read: Mukul Agrawal adds 7 new stocks to portfolio; picks include recently listed stock. Check details ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Yahoo
6 days ago
- Business
- Yahoo
Dr. Reddy's Laboratories (RDY) and Alvotech Enter Into a Collaboration and License Agreement
Dr. Reddy's Laboratories Limited (NYSE:RDY) is one of the Best Indian Stocks to Buy for Next 5 Years. Dr. Reddy's Laboratories Limited (NYSE:RDY) and Alvotech announced that they have entered into a collaboration and license agreement to co-develop, manufacture, and commercialize a biosimilar candidate to Keytruda® (pembrolizumab) for the global markets. Just to provide a brief overview, Keytruda® (pembrolizumab) is indicated for treating numerous cancer types. A worker at a biopharmaceutical facility packaging an active pharmaceutical ingredient. This collaboration combines Dr. Reddy's Laboratories Limited (NYSE:RDY)'s and Alvotech's proven capabilities in biosimilars, which will help speed up the development process and extend the global reach for the biosimilar candidate. Dr. Reddy's Laboratories Limited (NYSE:RDY)'s top management believes that the collaboration reflects its ability to develop and manufacture high-quality and affordable treatment options. Furthermore, oncology remains a top focus therapy area, and this collaboration is expected to further enhance its capabilities in oncology, with pembrolizumab representing one of the most critical therapies in immuno-oncology. Dr. Reddy's Laboratories Limited (NYSE:RDY) reported its financial results for the quarter and year ended March 31, 2025. It saw double-digit growth across its businesses, thanks to the successful product launches, higher revenues from key products in the US, and the integration of the acquired NRT business. Its FY 2025 consolidated revenues came in at INR325.5 billion, reflecting YoY growth of 17%. Its underlying revenue growth, excluding NRT business, stood at 12% YoY. Headquartered in Hyderabad, India, Dr. Reddy's Laboratories Limited (NYSE:RDY) operates as an integrated pharmaceutical company. While we acknowledge the potential of RDY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Mint
6 days ago
- Business
- Mint
Dr. Reddy's US generics business drags Q1 earnings, eyes weight-loss drug launch in 87 countries
Dr Reddy's Laboratories Ltd's US generics business slumped in the June quarter as it faced price erosion in key products like gRevlimid used to treat cancer. US generics revenue declined 11% year-on-year and 4% sequentially to ₹ 3,412 crore in the first quarter of FY26, according to earnings announced on Wednesday. The business accounts for 40%, the highest among all segments, of its top line. The base business remains stable despite the price erosion, the company's management said in a post-earnings press conference. 'This time, as we knew, we are in the last year of lenalidomide or Revlimid [exclusivity], so this actually was very predictable,' said chief executive officer Erez Israeli. He added that the timing of procurement of key products, as well as the lack of new launches during the quarter, added to the drag in US earnings. The company posted an overall revenue from operations of ₹ 8,545 crore in Q1, up 11% over a year earlier. Its profit after tax rose 2% year-on-year to ₹ 1,418 crore. Both the metrics missed estimates. A Bloomberg poll had pegged its revenue to be ₹ 8,690 crore and profit after tax at ₹ 1,513 crore. The company posted an Ebitda of ₹ 2,278 crore, up 5% on-year, with its margins contracting to 26.7% in Q1 from 28.2% a year earlier. Ebitda is earnings before interest, tax, depreciation and amortization, a measure of operational profitability. The company's revenues in other key markets recorded healthy growth. Its Europe business grew 142% on-year to ₹ 1,274 crore, driven by its nicotine replacement therapy (NRT) portfolio acquired from Haleon last year. The India business grew 11% on-year to ₹ 1,471 crore on the back of new product launches and price increases. The company plans to launch weight-loss drug semaglutide in 87 countries next year, including those where patents are expiring and emerging markets where there are no patents, Israeli said. The drug goes off patent in several countries starting 2026. Semaglutide is a GLP-1 (Glucagon-like peptide-1), a class of medications indicated for the treatment of type-2 diabetes and obesity. 'We have some countries where there is no patent. And in others, we need to wait for the patent expiration…We are absolutely planning to launch day one in each one of these markets,' Israeli said. 'The biggest markets that will be ready for a launch will be Canada, India, Brazil, and Turkey.' The drugmaker is currently embroiled in a patent dispute with innovator Novo Nordisk in India. Semaglutide goes off patent in India in March 2026. Dr Reddy's has completed submissions of relevant regulatory filings in each of the countries where it plans to launch and is 'expecting approvals prior to the launch date', said Israeli. The company expects sales of semaglutide and other GLP-1s to be huge growth drivers. 'The sales of the product itself is big and can come to hundreds of millions of dollars…it depends on the price and market share we are getting [but] the beauty of this product is that we believe that once the price will go down, significantly more patients will use this product for both type-2 diabetes as well as weight loss,' he said. 'We believe this is a group (GLP-1s) with a lot of potential, and again, the sizes can be hundreds of millions of dollars; and therefore significant in the growth of the company in the next year,' he added. Through the next decade, the company plans to roll out 26 GLP-1 products including semaglutide, tirzepatide and others as they go off patent. Dr Reddy's shares closed 0.65% higher at ₹ 1,248.00 on Wednesday on NSE, compared with a 0.63% rise in Nifty 50, before the company announced its results.
