1. Opening Hook
January 2026 and Revlimid has officially gone from cash cow to nostalgic memory. Dr. Reddy’s showed up to the earnings call saying, “Relax, base business is fine,” while margins quietly packed their bags. Forex helped, Labour Codes didn’t, and the US generics business looked like it skipped leg day—sorry, no gym references, just skipped effort.
Management sounded confident, pipelines sounded exciting, and investors sounded… cautiously optimistic. Semaglutide is the new shiny object, India is suddenly behaving like a startup, and Europe is the long-term rebound story nobody argued with.
But here’s the fun part: the numbers don’t scream panic, they whisper transition. And transitions are where narratives get expensive—or rewarding.
Stick around. The interesting bits show up after Revlimid exits stage left.
2. At a Glance
- Revenue up 4.4% – Growth survived Revlimid’s funeral, barely.
- EBITDA margin 23.5% – Labour Codes sent margins a legal notice.
- Adjusted EBITDA 24.8% – Management says “ignore that one-time thing.”
- PAT down 14% – Profits didn’t like the new normal.
- India up 19% – Domestic business decided to carry the group project.
- Emerging Markets up 32% – Forex + launches = instant confidence.
- Net cash ₹3,069 Cr – Balance sheet still sleeping comfortably.
3. Management’s Key Commentary
“Our base business excluding Lenalidomide delivered double-digit growth.”
(Translation: Please stop asking about Revlimid
now. 😏)
“EBITDA margin was about 25% adjusted for one-time provisions.”
(Translation: Adjustments are doing heavy emotional lifting.)
“India business grew 17–18% organically.”
(Translation: Not M&A smoke, real demand fire.)
“Semaglutide launch in India is on March 21.”
(Translation: CEO birthday + product launch = internal milestone. 🎂)
“Canada launch could happen anytime between February and May.”
(Translation: Regulatory roulette is spinning.)
“Denosumab CRL relates to partner facility, not us.”
(Translation: It’s complicated, but not our fault.)
“Abatacept is progressing well, especially in the US.”
(Translation: Please focus on the future biologics, thanks.)
4. Numbers Decoded
| Metric | Q3 FY26 | Decoded Meaning |
|---|---|---|
| Revenue | ₹8,727 Cr | Growth lives, but on life support |
| Gross Margin | 53.6% | Revlimid exit = reality check |
| EBITDA | ₹2,049 Cr | Down YoY, adjusted optimism applied |
| PAT | ₹1,210 Cr | Transition tax fully paid |
| R&D Spend | 7% | Old molecule ends, new ones queue up |
| SG&A | 31% of sales | Brand-building isn’t cheap |
Bottom
