Dr Reddy’s Laboratories’ consolidated net profit declined 36 per cent at ₹925 crore in the September quarter, compared to ₹1,437 crore in the corresponding quarter of the previous financial year.
The total revenue of the Hyderabad-based company declined 1.5 percent at ₹8,671 against ₹8,805 crore in the year-ago period.
“The results were impacted due to ₹240 crore provision towards inventory and associated costs related to Semaglutide active pharmaceutical ingredient (API) related impact,’’ M V Narasimham, Chief Financial Officer, Dr Reddy’s told newspersons in a press conference on Friday.
Growth was also impacted primarily on account of lower lenalidomide revenues in North America. The underlying base business, i.e. excluding lenalidomide in North America, continued to deliver double-digit growth across businesses, excluding Europe and API, further supported by favourable currency movements, he said.
The company, however, was not expecting any continuation of such provisions in the subsequent year quarter of the current fiscal, he added.
Dr Reddy’s plans to relaunch Semaglutide in November are on track, according to Narasimham, as the company is working on resolving API issues. As of now the drug maker received approvals in 10 countries for the product, including those in Latin America apart from Canada and Brazil, he added.
When asked if the company had lost any business opportunity before it could relaunch the product, he said there was still demand in various markets including Canada.
“As we get into the later part of FY27 and FY28, there will be opportunities in more emerging markets. We will also launch in Europe and the US going forward. It is just a start of the product,’’ Narasimham said, adding the revenue potential would continue over the next two financial years. The company will also continue all the product range of Semaglutide.
Erez Israeli, Chief Executive Officer, Dr Reddy’s said during November-March of the current financial year, there could be an opportunity for sale of six to seven million pens of the product.
Certain batches of semaglutide were found to be out of specification due to an issue associated with the active pharmaceutical ingredient (API) used in the product earlier. Appropriate measures are now being taken to ensure product quality and resumption of supplies.
In North America, revenue declined 23 per cent y-o-y largely due to lower lenalidomide sales, During the quarter, it launched six new products and filed five new abbreviated new drug applications (ANDAs) with the USFDA during the quarter, taking the total to 10 for H1FY27.
The company reported growth in revenue in emerging markets (24 per cent), India (17 per cent) while growth in Europe remained muted with only 1 per cent.
Going forward, Dr Reddy’s will continue to focus on further strengthening its core business, on key products including Semaglutide and Abatacept while exploring inorganic growth opportunities, Narasimham said.
Published on October 23, 2026
