Dr Reddy’s Labs Q4 net profit plunges 86%

Hyderabad: Lower lenalidomide sales (Revlimid) in the North America markets dragged Dr Reddy’s Labs’ consolidated net profit by 86% for the fourth quarter ended March 31, 2026, to nearly Rs 221 crore as against Rs 1,587 crore in the corresponding quarter of last financial year. This was on a nearly 12% drop in consolidated revenues for Q4FY26 at Rs 7,516 crore as compared to Rs 8,506 crore in the same quarter of FY25.

Global generics revenues fell 13% to Rs 6,580 crore during the quarter from Rs 7,537 crore, led by a 51% crash in North America revenues to Rs 1,756 crore from Rs 3,557 crore in Q4FY25. Revenues from Emerging Markets, India and Europe, however, surged 29%, 20% and 14%, respectively. Revenues from the pharmaceutical services and active ingredients (PSAI) segment too fell 5% during the quarter.

The impact of lenalidomide and several one-offs also proved to be a dampener for the company’s performance for financial year 2025-26. The company posted a 26% drop in consolidated net profit for FY26 at Rs 4,247 crore as compared to Rs 5,725 crore in FY25. Revenues from global generics during the fiscal rose a marginal 3% to Rs 29,903 crore from Rs 28,955 crore in FY25 despite a 22% fall in North America revenues.

Dr Reddy’s co-chairman and managing director GV Prasad said the FY26 performance reflects the impact of lower lenalidomide sales and several one-offs. “The resilience of our branded businesses and currency tailwinds helped partially mitigate this impact.” He said the company remains focused on strengthening its base business and improving margins through cost efficiencies and portfolio optimisation even as it continues to build long-term franchises in biosimilars, consumer health and innovation.