Archive · 23 Jul 2026
Dr Reddy's Q1FY27: Net Profit Declines 69% YoY
Dr Reddy's Laboratories reported its financial results for the first quarter of the fiscal year 2027.
The company's net profit decreased by 69% compared to the same period last year, mainly due to provisions of ₹239.7 crore for semaglutide API.
However, there was a significant improvement in net profit and revenue compared to the previous quarter.
The company's revenue from operations also saw a slight decline year-on-year but increased sequentially.
The decline in net profit was primarily due to increased competition and price erosion in the North American market, particularly for key molecules like Revlimid.
Despite this, the domestic market in India showed resilience with an 11% growth in revenue.
The company's R&D expenses increased to support its biosimilars and complex generics pipeline.
The company is optimistic about growth opportunities in emerging markets and plans for new launches in regions like Latin America and North America.
Dr Reddy's Q1FY27 net profit declined 69% YoY to ₹443.5 crore due to semaglutide provisions.
Sequential net profit surged 97% from Q4FY26, and revenue increased 7.3%.
Consolidated revenue from operations was ₹8,070.5 crore, down 5.5% YoY.
North American generics revenue declined 7% YoY, while domestic India revenue grew 11% YoY.
R&D expenses increased to ₹610 crore, supporting biosimilars and complex generics pipeline.
- Who
- Dr Reddy's Laboratories
- What
- Reported Q1FY27 financial results with a significant decline in net profit.
- When
- Quarter ended June 30, 2026
- Where
- Global operations with a focus on North America and India
- Why
- Impacted by provisions for semaglutide API and market conditions.
Negative Impact of Semaglutide Provisions
Sequential Growth in Profit and Revenue
Financial Performance
Negative Impact of Semaglutide Provisions
Net profit declined 69% YoY due to Rs 239 crore provisions for semaglutide API.
Sequential Growth in Profit and Revenue
Net profit surged 97% sequentially, and revenue increased 7.3% from Q4FY26.
- Net Profit (Q1FY27)
- ₹443.5 crore
- Net Profit (Q1FY26)
- ₹1,417.8 crore
- Revenue (Q1FY27)
- ₹8,070.5 crore
- Revenue (Q1FY26)
- ₹8,545.2 crore
- Semaglutide Provisions
- ₹239.7 crore
- EBITDA Margin Decline
- 3%
- R&D Expenses (Q1FY27)
- ₹610 crore
- North American Generics Revenue Decline
- 7% YoY
- Domestic India Revenue Growth
- 11% YoY
- US Revenue Decline
- 35% YoY
- Net Cash Surplus
- ₹3,058 crore
Sources
Dr Reddy’s Q1FY27: Net Profit declines 69% YoY, impacted by Rs 239 crore semaglutide provisions
Dr Reddy’s Q1 FY27 Results: Net Profit Drops 8% to ₹1,290 Crore as US Revenues Decline
Dr Reddy's Q1 FY27 Consolidated Profit Declines 69% To ₹443.5 Crore, Revenues Dip 6%
Dr Reddy's Q1 net profit plunges 69 pc to Rs 4,435 crore
Dr Reddy’s reports muted Q1FY27 results, net profit drops 69%
One-time API charge drags Dr Reddy’s Q1 net down 69%
Dr Reddy's Shares Sink Nearly 9%, Q1 Profit Slumps 69.2% And Stock Hits 52-Week Low After Earnings Miss
