Q1 FY27 preview: Dr Reddy’s likely to face pressure on earnings
AI Summary
Dr Reddy’s Laboratories is expected to report significant earnings pressure for Q1 FY26, with analysts predicting a 35% decline in EBITDA and a 40% drop in net profit due to ongoing pricing pressures in the US market and erosion in its North American portfolio. Despite a slight increase in net profit in Q1 FY25, the company faces challenges ahead, particularly with the generic Revlimid not providing the anticipated revenue boost.
Dr Reddy’s Laboratories (DRL) is expected to face considerable earnings pressure in the first quarter of the current fiscal ended June 30, 2026.
The company will announce its first quarter numbers on July 22, 2026.
Analysts foresee a possibility of about 35 per cent decline in EBITDA and about 40 per cent dip in the net profit on account of continued pricing pressure in the US market, among others including lack of revenue push from the generic Revlimid and erosion in the base portfolio in the North American market.
The drug-maker’s consolidated net profit increased marginally by 1 per cent at ₹1,409 crore in the first quarter that ended June 30, 2025, compared to ₹1,392 crore in the year-ago period on account of price erosion in North America.
The revenue, however, increased 11 per cent from ₹7,672 crore in Q1 FY25 to ₹8,545 crore in Q1 FY26.
Original Article
Published on Hindu BusinessLine