Dr. Reddy's Laboratories Q2 Earnings Call Highlights

Dr. Reddy's Laboratories (RDY) reported Q2 2027 earnings with revenue down 8.8% to $903.9M, operating profit down 71.6% to $132.2M, and net income down 40.4% to $96.4M. Cash from operations fell 67.4% to $55.2M. The stock dropped 2.69% in morning trading. Institutional investors showed mixed activity, with some adding and others reducing their positions.

Dr. Reddy's reported Q2 2027 earnings with a 52.1% gross margin increase sequentially but a 254 basis point year-over-year decline due to lower Lenalidomide sales. EBITDA margin was 20.6%, and profit after tax was ₹9.25 crores. The company highlighted double-digit growth in North America and emerging markets, new product launches, and strategic partnerships. Operating working capital increased to $1.53 billion, with a net cash surplus of ₹2.5 thousand crores.

Dr. Reddy’s Laboratories reported fiscal Q2 2027 revenues of ₹8,671 crores, down 1.5% YoY but up 7% sequentially. EBITDA margin was 20.6%, with profit after tax at ₹925 crores. North America sales declined 23% YoY due to lenalidomide, but other regions showed growth. The company announced strategic partnerships and product developments, including a dengue vaccine and biosimilars. Shares rose 0.45% to $13.29 post-results.

Dr. Reddy's Laboratories reported a 36% drop in Q2 profit to INR 9,134 million, or INR 11.10 per share, from the prior year. Revenue declined to INR 86,708 million, driven by lower lenalidomide sales in North America. Pre-market trading showed a 0.76% increase to $13.32 on the NYSE.

Dr. Reddy’s Laboratories said the US FDA inspected its Hyderabad formulations facility FTO-3 (Bachupally) from Aug 6-14, 2026 and issued a Form 483 listing four observations. The company must prepare and implement a remediation plan within the US FDA’s timeline. Investors may watch for updates on corrective actions and closure.

Dr. Reddy’s Laboratories (RDY) said it launched the first U.S. generic sugammadex injection, in 200 mg/2 mL and 500 mg/5 mL single-dose vials. It is used to reverse neuromuscular blockade from rocuronium and vecuronium in adults and children 2+. The branded product Bridion had about $1.6B U.S. sales (12 months ended May 2026, IQVIA).