Dr. Reddy’s Q2 Review — Systematix Maintains 'Hold' Post Inline Results; Strong Performance In Ex -US Markets

Dr. Reddy's Q2 FY26 revenue, Rs 88,051 million, was up 10% YoY and 3% flat QoQ. Ebitda, at Rs 23,511 million, rose 3% YoY and QoQ. Ebitda margin stood at 26.7% and was down by 175 YoY and flat on a QoQ basis..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.Dr. Reddy's Laboratories Ltd.'s Q2 FY26 earnings were inline with our estimates. Revenue and PAT grew 10% and 6% YoY respectively. Ebitda margins declined 170bps on a YoY basis as gross margins were lower 500 bps YoY. Price erosion in North America and lower contribution from PLI incentive led to the gross margin decline. Lower spend on research and development during the quarter aided Ebitda margins. Except North America which declined 13% YoY, other business segments showed strong growth. India, EM, EU and pharmaceutical services and active ingredients grew 13%, 14%, 17% (ex NRT) and 12% respectively. New launches and favourable currency aided the growth. We tweak our forecasts on Dr. Reddy's and retain hold with a target price of Rs 1156 (25x PE on FY27E EPS). Our FY27E estimates assumes 95% erosion in gRevlimid and a $100mn incremental contribution from generic Semaglutide launch in Canada. We also assume continued restraint in operating costs..Click on the attachment to read the full report:.Dr Reddy's Q2 Results: Profit Rises 7% On Sharp Climb In Europe Business.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dr. Reddy’s Q2 Review — Systematix Maintains 'Hold' Post Inline Results; Strong Performance In Ex -US Markets

Except North America which declined 13% YoY, Dr. Reddy's other business segments showed strong growth, adds the brokerage.

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