1. Opening Hook
So while global pharma peers were busy flexing blockbuster launches, Dr. Reddy’s decided to quietly jog. Not sprint. Just… jog. 🏃♂️
Q3 FY26 arrived with modest top-line growth, respectable profitability, and a reminder that Lenalidomide isn’t immortal. The Street expected fireworks; management brought sparklers—useful, controlled, and slightly underwhelming.
But before you roll your eyes, remember this: beneath the calm exterior lies a stacked biosimilar pipeline, Europe finally behaving, and Emerging Markets partying like it’s 2021. Add FDA inspections, vaccines, semaglutide dreams, and a CRL for drama—suddenly, the call isn’t boring anymore.
Read on. The real story hides between “steady profitability” and “product-specific headwinds.”
2. At a Glance
- Revenue up 4.4% YoY – Growth showed up late and blamed Lenalidomide traffic.
- EBITDA margin at 23.5% – Down from last year; inflation clearly didn’t get the cost-control memo.
- PAT up 14% YoY – Profits behaved better than revenues, small mercies.
- RoCE at 20.4% – Still solid, even if the trend line squints downward.
- Net cash ₹3,069 Cr – Balance sheet flexing quietly in the corner.
- Gross margins down to 53.6% – APIs and product mix playing spoilsport
- again.
3. Management’s Key Commentary
“We delivered double-digit growth in our base business excluding Lenalidomide.”
(Translation: Please stop judging us by one drug 😏)
“North America performance moderated due to pricing pressure.”
(US generics doing what US generics always do 😐)
“Emerging Markets saw strong growth aided by forex and launches.”
(When in doubt, thank the dollar 💵)
“Europe integration of NRT is progressing well, with 85% value integrated.”
(The acquisition is no longer a spreadsheet, it’s real now 👍)
“Semaglutide received DCGI approval in India.”
(Yes, we know—everyone’s watching this one 👀)
“We remain committed to quality and compliance.”
(FDA, please be kind 🙏)
4. Numbers Decoded
Metric | Q3 FY26 | YoY Trend
---------------------------------------------------------
Revenue | ₹8,727 Cr | +4.4%
EBITDA | ₹2,049 Cr