Hyderabad Pharma major Dr Reddy’s Laboratories’ net profit declined 69 per cent at ₹443 crore in the first quarter ended June 30, 2026, compared to ₹1,409 cr in the corresponding quarter of the previous financial year.
The total revenue of the Hyderabad-based company declined 6 per cent to ₹8,070 crore from ₹8,545 crore in the year-ago period.
The lack of lenalidomide sales, an impact of ₹240 crore on account of semaglutide API, and other factors, including elevated freight costs in the wake of the Middle East crisis, impacted the company’s performance, M V Narasimham, Chief Financial Officer, told newspersons at a press conference on Wednesday.
Revenue from North America declined 35 per cent, largely due to a lack of Lenalidomide sales as the company’s agreement with the innovator ended.
During the quarter, the company launched six new products in the region and filed five new Abbreviated New Drug Applications (ANDAs) and one New Drug Application (NDA) with the USFDA. As of June 30, 2026, filings pending USFDA approval were 79, including 24 that may have `First to File’ status.
Revenue from emerging markets grew 31 per cent, mainly on account of new launches across markets, supported by favourable forex and 28 per cent growth in the Russian market.
The business in Europe registered 13 per cent growth. “Revenues from new generic product launches and favourable forex movement were moderated by pricing pressure in generics. NRT revenues declined primarily due to the change in operating model post-integration,’’ the CFO said.
Revenues from new brand launches, including innovative assets and recently acquired portfolios, price increases, and higher sales volumes, resulted in 17 per cent growth in the domestic market.
The immediate focus for Dr Reddy’s is to address the Semaglutide issue and resume supplies. “We understood the Chemistry and the root cause of the API impurity. We should be able to supply by November,’’ Erez Israeli, CEO, Dr Reddy’s said. The impact of ₹240 crore recognised during the first quarter was a one-time impact for the quarter under review.
“I expect Q2 to be without Semaglutide. It will be there in the third and fourth quarters, he added.
On the competition in the market for Semaglutide, M V Ramana said the company was able to reach a number of doctors. “Still, the generics have a cost benefit and can have the market share even if there were more products in the market,” he said.
When asked about the impact of the proposed US tariffs on generics, Erez Israeli, CEO of Dr Reddy’s, said the company would have to raise prices if the tariffs come into force.
Going forward, the company would continue its focus on strengthening its core business and inorganic growth opportunities. The company spent ₹307 crore in the first quarter and lined up ₹1,800 crore investment for the full year ahead.
Published on July 22, 2026
