Archive · 23 Jul 2026
Dr Reddy's Labs Stock Plunges 9%
Dr Reddy's Laboratories' stock dropped by 9% because the company's earnings for the first quarter of the fiscal year 2027 were lower than expected.
This was due to several factors, including lower sales of certain drugs, price reductions in the US and Europe, and higher costs related to a drug called semaglutide.
Analysts have mixed opinions about the company's future.
Some think it will grow significantly in the next few years, while others believe the company will continue to struggle without new positive developments.
The stock's price target varies widely among analysts, ranging from Rs 1,040 to Rs 1,740.
Dr Reddy's Laboratories' stock plunged 9% due to a significant earnings miss in Q1FY27.
The revenue miss was driven by lower lenalidomide revenue, price erosion in US and EU generics, and NRT revenue decline.
Ebitda margin was at 13.3%, significantly below expectations, due to semaglutide API-related inventory provision and higher solvent costs.
Analysts have mixed opinions on future growth, with some expecting significant growth from semaglutide, Abatacept, and new launches by FY28.
The stock's price target varies widely among analysts, ranging from Rs 1,040 to Rs 1,740.
- Who
- Dr Reddy's Laboratories Ltd (DRL)
- What
- Stock price plunged 9% due to earnings miss
- When
- Thursday
- Where
- BSE and NYSE
- Why
- Lower lenalidomide revenue, price erosion in generics, and NRT revenue decline
Bullish Analysts
Bearish Analysts
Future Growth Prospects
Bullish Analysts
Expect significant growth from semaglutide, Abatacept, and new launches by FY28.
Bearish Analysts
Near-term earnings visibility is low without positive catalysts; downgrade cycle may continue.
- Stock Price Drop
- 9%
- Revenue Miss
- 9%
- Ebitda Miss
- 31%
- Ebitda Margin
- 13.3%
- Lowest Target Price
- Rs 1,040
- Highest Target Price
- Rs 1,740
- ADR Fall
- 9.39%