Q3 2026 Dr Reddy's Laboratories Ltd Earnings Call Transcript
Key Points
- Dr Reddy's Laboratories Ltd (RDY) reported a 4.4% revenue growth year-over-year, driven by double-digit growth in its underlying base businesses.
- The company achieved a strong performance in its branded businesses, particularly in India and emerging markets, supported by favorable currency exchange rate movements.
- Dr Reddy's Laboratories Ltd (RDY) entered into a strategic collaboration with Immutep for the commercialization of a novel immunotherapy oncology drug, Eftilagimod Alfa, with significant potential regulatory and commercial milestones.
- The integration of the acquired Nicotine Replacement Therapy business is progressing well, with 85% of the business by value now under operational control.
- The company continues to advance its key pipeline programs, including semaglutide and abatacept, and has received marketing authorization for semaglutide injection in India.
- The company faced lower Lenalidomide sales and continued pricing pressure in the US and Europe Generics, impacting overall revenue growth.
- Consolidated gross profit margin decreased by 505 basis points year-over-year, primarily due to lower Lenalidomide sales and price erosion in unbranded generic businesses.
- The SG&A spend increased by 12% year-over-year, driven by ongoing targeted investments and adverse foreign exchange impacts.
- Dr Reddy's Laboratories Ltd (RDY) received a complete response letter from the USFDA for its denosumab biosimilar BLA, indicating regulatory challenges.
- The company's North America Generics business saw a decline of 16% year-over-year, primarily due to reduced Lenalidomide sales and price erosion in key products.
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Good day, everyone, and welcome to the quarter three FY26 earnings call of Dr. Reddy's Laboratories Limited. We appreciate your continued interest in our company. I'm Aishwarya Sitharam, Head of Investor Relations at Dr. Reddy's.
Joining us today are members of the leadership team: Mr. Erez Israeli, our Chief Executive Officer; and Mr. MV Narasimham, MVN, our Chief Financial Officer.
Our quarterly financial results have been published earlier today and are available on our website for your reference. We will start today's call with MVN providing an overview of our financial performance for the quarter. Following that, Erez will share his insights on key business highlights as well as the company's strategic outlook. We will then open the floor for questions.
All commentary and analysis during this call are based on our IFRS consolidated financial statements.
Please note that certain non-GAAP financial measures may also be discussed. Reconciliations to the
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