{"id":14905,"date":"2025-10-24T23:28:18","date_gmt":"2025-10-24T17:58:18","guid":{"rendered":"https:\/\/www.torusdigital.com\/toruscope\/?p=14905"},"modified":"2025-12-05T11:45:36","modified_gmt":"2025-12-05T06:15:36","slug":"dr-reddys-laboratories-q2-fy26-results-profit-up-14-revenue-climbs-nearly-10","status":"publish","type":"post","link":"https:\/\/www.torusdigital.com\/toruscope\/quarterly-results\/dr-reddys-laboratories-q2-fy26-results-profit-up-14-revenue-climbs-nearly-10\/","title":{"rendered":"Dr Reddy\u2019s Laboratories Q2 FY26 Results: Profit Up 14%, Revenue Climbs Nearly 10%"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_section el_id=&#8221;blog-inner-layout&#8221;][vc_row overlay_dotted=&#8221;&#8221;][vc_column el_class=&#8221;blog_primary&#8221;][vc_row_inner][vc_column_inner][vc_column_text css=&#8221;&#8221;]Hyderabad-based pharmaceutical major <a href=\"https:\/\/www.torusdigital.com\/stocks\/dr-reddys-laboratories-ltd-share-price\">Dr Reddys Laboratories Ltd<\/a> has posted a robust performance for the second quarter of FY26 on October 24, 2025, underscoring steady growth across core markets despite pricing pressures in North America.<\/p>\n<p>The company reported a consolidated net profit of \u20b91,437.2 crore, marking a 14% year-on-year (YoY) increase from \u20b91,255.3 crore in the same period last year. Sequentially, profit remained largely unchanged. Revenue from operations stood at \u20b98,805.1 crore, up 9.8% YoY, compared to \u20b98,016.2 crore in Q2 FY25, driven by broad-based growth across India, Europe, and emerging markets.<\/p>\n<p>Earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at \u20b92,351.1 crore, reflecting a 3% YoY growth, with an <a href=\"https:\/\/www.torusdigital.com\/toruscope\/stocks\/what-is-ev-ebitda\/\">EBITDA<\/a> margin of 26.7%. The company\u2019s <a href=\"https:\/\/www.torusdigital.com\/toruscope\/stocks\/what-is-earnings-per-share-and-how-to-calculate-it\/\">earnings per share (EPS)<\/a> for the quarter stood at \u20b917.26.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Segment-Wise_Performance_Highlights\"><\/span><strong>Segment-Wise Performance Highlights<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Dr Reddy\u2019s reported mixed regional trends during the quarter, reflecting resilience in key markets and challenges in others.<\/p>\n<ul>\n<li><strong>North America:<\/strong> \u20b93,240 crore, down 13% YoY, primarily due to pricing pressure and lower Lenalidomide sales.<\/li>\n<li><strong>Europe:<\/strong> \u20b91,380 crore, up 138% YoY, supported by strong performance from the Nicotine Replacement Therapy (NRT) portfolio. Excluding NRT, growth was still a healthy 17% YoY.<\/li>\n<li><strong>India:<\/strong> \u20b91,580 crore, up 13% YoY, driven by price increases, new brand launches, and higher sales volumes.<\/li>\n<li><strong>Emerging Markets:<\/strong> \u20b91,650 crore, up 14% YoY, with robust contributions from Russia and CIS regions.<\/li>\n<\/ul>\n<p>The Pharmaceutical Services and Active Ingredients (PSAI) division reported revenues of \u20b9940 crore, a 12% YoY increase, aided by higher API sales and favourable foreign exchange movement.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Operational_and_Financial_Strength\"><\/span><strong>Operational and Financial Strength<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>During the quarter, Dr Reddy\u2019s launched seven new products and filed five new ANDAs with the USFDA, taking total pending approvals to 75 filings, including 73 ANDAs and two NDAs.<\/p>\n<p>The company maintained a healthy balance sheet with a net cash surplus of \u20b92,750 crore and a net debt-to-equity ratio of -0.08 as of 30 September 2025. Free cash flow for the quarter stood at \u20b9580 crore, following acquisition-related payouts, while capital expenditure amounted to \u20b9510 crore.<\/p>\n<p>Dr Reddy\u2019s also reported an annualised return on capital employed (RoCE) of 21.9%, reflecting strong operational efficiency and prudent financial management.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Outlook\"><\/span><strong>Outlook<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Looking ahead, the company aims to continue expanding its global footprint, focusing on innovation-led growth, cost optimisation, and leveraging its strong consumer healthcare portfolio for long-term value creation.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Dr Reddy\u2019s Laboratories\u2019 Q2 FY26 results highlight the company\u2019s ability to sustain growth amid challenging global market conditions. With revenue nearing \u20b98,800 crore and profit rising by 14%, the quarter underscores the strength of its diversified portfolio and operational discipline. Strategic focus on branded markets, R&amp;D investments, and productivity enhancement positions Dr Reddy\u2019s for continued growth in the evolving global pharmaceutical landscape.<\/p>\n<p>To stay updated with daily\u202f<a href=\"https:\/\/www.torusdigital.com\/toruscope\/quarterly-results\/\"><span data-ccp-charstyle=\"normaltextrun\">financial results<\/span><\/a><span data-ccp-charstyle=\"normaltextrun\">, market insights, and developments, make sure to follow Torus Digital!\u202f<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner el_id=&#8221;share_rating&#8221;][vc_column_inner width=&#8221;1\/2&#8243;][vc_column_text css=&#8221;&#8221;]<\/p>\n<h6>Rate this article<\/h6>\n<!-- FeedbackWP Plugin --><div  class=\"rmp-widgets-container rmp-wp-plugin rmp-main-container js-rmp-widgets-container 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<\/div>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][\/vc_section]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"[vc_section el_id=&#8221;blog-inner-layout&#8221;][vc_row overlay_dotted=&#8221;&#8221;][vc_column el_class=&#8221;blog_primary&#8221;][vc_row_inner][vc_column_inner][vc_column_text css=&#8221;&#8221;]Hyderabad-based pharmaceutical major Dr Reddys Laboratories Ltd has posted a robust performance for the second quarter of FY26 on October 24, 2025, underscoring steady growth across core markets despite pricing pressures in North America. The company reported a consolidated net profit of \u20b91,437.2 crore, marking a 14% year-on-year (YoY) increase from","protected":false},"author":1,"featured_media":13457,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sitemap_exclude":false,"_sitemap_priority":"","_sitemap_frequency":"","footnotes":""},"categories":[281],"tags":[],"class_list":["post-14905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-quarterly-results"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Dr Reddy\u2019s Q2 FY26 Results: Net Profit Rises 14% YoY, Revenue Grows Nearly 10%<\/title>\n<meta name=\"description\" content=\"Dr Reddy\u2019s Laboratories reports strong Q2 FY26 results with a 14% rise in profit to \u20b91,437 crore and revenue growth of nearly 10% to \u20b98,805 crore. 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