Dr. Reddy's Laboratories Q4 Results: Profit Rises 22%, Beats Estimates

Dr Reddy's Laboratories Ltd.'s consolidated net profit rose 22% in the fourth quarter of fiscal 2025, beating analysts' estimates.

The pharmaceutical company posted a bottom line of Rs 1,593 crore in the quarter ended March 2025, according to an exchange filing on Friday. That compares with the Rs 1,459-crore estimate that analysts tracked by Bloomberg had projected.

While Ebitda margin was under pressure, contracting by 210 basis points, the impact on the drug-maker's bottom line was offset by higher other income, and a lower tax outgo.

• Revenue up 20% to Rs 8,528 crore versus Rs 7,113.8 crore (Bloomberg estimate: Rs 8,359.7 crore).

• Ebitda rises 13.3% to Rs 2,074.7 crore versus Rs 1,831 crore (Estimate: Rs 2,268.6 crore).

• Margin at 24.3% versus 26.4% (Bloomberg estimate: 27.1%).

• Net profit up 21.9% to Rs 1,593 crore versus Rs 1,307 crore (Bloomberg estimate: Rs 1,459 crore).

Excluding the NRT business, underlying growth was 12% YoY and 2% QoQ.

Revenue from global generics grew 23% year-on-year and saw a growth of 2% quarter-on-quarter. Underlying growth, excluding NRT, business is 13% year-on-year.

Q4 FY25 revenue was at Rs 3,560 crore, a growth of 9% and a QoQ growth of 5%.

FY25 revenue at Rs 14,520 crore, a YoY growth of 12%. The YoY growth was primarily driven by new product launches, increased volumes of select key products, partially offset by price erosion in certain products

Q4 FY25 revenue at Rs 1,280 crore, a YoY growth of 145% and a QoQ growth of 5%. This includes revenues from the acquired NRT business. Underlying growth, excluding NRT business, is 30% YoY and 12% QoQ

FY25 revenue at Rs 3,590 crore, a YoY growth of 75%. Underlying YoY growth, excluding NRT business, is 16%

The growth in Europe was primarily on account of revenues from the acquired NRT business, momentum in the base business volumes and new product launches, partly offset by price erosion.

Q4 FY25 revenue at Rs 1,300 crore, a YoY growth of 16% and a QoQ decline of 3%. FY25 revenue at Rs 5,370 crore, a YoY growth of 16%.

Growth was driven by revenues from the vaccine portfolio in-licensed from Sanofi India, successful new product launches and price increases, partially offset by lower volumes.

Q4 FY25 revenue at Rs 1,400 crore, a YoY growth of 16% and a QoQ decline of 3%.

YoY growth is largely attributable to new product launches across various countries and higher volumes for existing products. QoQ decline is largely due to lower volumes.

Q4 FY25 revenue at Rs 960 crore, a growth of 16% YoY. FY25 revenue at Rs 3,380 crore, with a growth of 14% YoY.

Growth was due to increase in API volumes, new launches of API products, partially offset by lower prices.

"We achieved double-digit growth across our businesses, driven by successful product launches, increased revenues from key products in the US and the integration of the acquired NRT business," Managing Director GV Prasad said. "We will continue to strengthen and grow our core businesses through portfolio management and operational excellence while pursuing strategic partnerships and inorganic growth opportunities."

Shares of Dr. Reddy's closed 0.67% higher at Rs 1,156.4 apiece on the BSE, compared to a 1.1% fall in the benchmark Sensex