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Dr Reddy's Laboratories (NSE:DRREDDY) Degree of Operating Leverage : 0.48 (As of Mar. 2025)


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What is Dr Reddy's Laboratories Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Dr Reddy's Laboratories's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.48. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Dr Reddy's Laboratories's Degree of Operating Leverage or its related term are showing as below:

NSE:DRREDDY's Degree of Operating Leverage is ranked better than
53.38% of 948 companies
in the Drug Manufacturers industry
Industry Median: 0.76 vs NSE:DRREDDY: 0.48

Dr Reddy's Laboratories Degree of Operating Leverage Historical Data

The historical data trend for Dr Reddy's Laboratories's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dr Reddy's Laboratories Degree of Operating Leverage Chart

Dr Reddy's Laboratories Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.08 1.65 5.84 1.43 0.48

Dr Reddy's Laboratories Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.43 0.80 1.11 1.42 0.48

Competitive Comparison of Dr Reddy's Laboratories's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Dr Reddy's Laboratories's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Dr Reddy's Laboratories's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Dr Reddy's Laboratories's Degree of Operating Leverage falls into.


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Dr Reddy's Laboratories Degree of Operating Leverage Calculation

Dr Reddy's Laboratories's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 79624 (Mar. 2025) / 73721 (Mar. 2024) - 1 )/( 325535 (Mar. 2025) / 279164 (Mar. 2024) - 1 )
=0.0801/0.1661
=0.48***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Dr Reddy's Laboratories  (NSE:DRREDDY) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Dr Reddy's Laboratories Degree of Operating Leverage Related Terms

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Dr Reddy's Laboratories Business Description

Address
8-2-337, Road No. 3, Banjara Hills, Hyderabad, TG, IND, 500 034
Dr. Reddy's is one of the largest generic drug manufacturers in the world. It has a significant presence in North America, a region that makes up roughly half of its generics sales, and it services India (about 20% of its generics sales), Russia (10%), and certain European and Latin American countries. Beyond simple generics, Dr. Reddy's also has a solid portfolio of injectables which make up 25% of its North America sales. In branded generic markets like India, Dr. Reddy's has established a compelling presence with its strong brand name and earned a top five spot in key therapeutic areas including oncology and gastroenterology. Dr. Reddy's also has an active pharmaceutical ingredient business that manufactures over 150 APIs and sells in over 75 countries.

Dr Reddy's Laboratories Headlines

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