Dr Reddy's LaboratoriesFRA:RDDA +3.33%82 EBITDA Margin % is 11.48% as of Mar. 2026, which is 48% below its 10-year median of 22.14. GuruFocus rates FRA:RDDA with a GF Score™ of 82/100 and a GF Value™ of €13.16 (Fairly Valued). The stock has 5 warning signs investors should review. Among 955 Drug Manufacturers companies, Dr Reddy's Laboratories ranks better than 76.23% on this metric.
Dr Reddy's Laboratories (FRA:RDDA) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Dr Reddy's Laboratories EBITDA Margin % Related Terms
Dr Reddy's Laboratories EBITDA Margin % Historical Data
* 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Dr Reddy's Laboratories's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's EBITDA Margin % falls into.
* 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.
Dr Reddy's Laboratories (FRA:RDDA) has a EBITDA Margin % of 11.48% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Dr Reddy's Laboratories and its competitors. This is 48% below median its historical median of 22.14. Over the past decade, Dr Reddy's Laboratories' EBITDA Margin % has ranged from 18.03 to 31.67. According to the industry distribution chart, Dr Reddy's Laboratories ranks #227 out of 955 companies in the Drug Manufacturers industry, placing it in the top 23.8%.
Is Dr Reddy's Laboratories' EBITDA Margin % too high?
Dr Reddy's Laboratories' current EBITDA Margin % of 11.48% is 48% below median its 10-year median of 22.14. Over the past 10 years, this metric has ranged from a low of 18.03 to a high of 31.67. The Drug Manufacturers industry median EBITDA Margin % is 12.39. Dr Reddy's Laboratories' value of 11.48% is 7.3% below this industry median. Based on the distribution chart, Dr Reddy's Laboratories ranks #227 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Dr Reddy's Laboratories has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dr Reddy's Laboratories' EBITDA Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #227 out of 955 companies for EBITDA Margin %. This places Dr Reddy's Laboratories in the top 24% of its industry — outperforming the majority of peers. The industry median EBITDA Margin % is 12.39. Dr Reddy's Laboratories' value of 11.48% is 7.3% below this benchmark. Historically, Dr Reddy's Laboratories' own EBITDA Margin % has ranged from 18.03 to 31.67 over the past decade. While the company's 10-year median is 22.14 vs. the industry median of 12.39, Dr Reddy's Laboratories has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBITDA Margin % for a Drug Manufacturers company?
The median EBITDA Margin % among Drug Manufacturers companies is 12.39, based on 955 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dr Reddy's Laboratories's current EBITDA Margin % of 11.48% is 7.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Dr Reddy's Laboratories and its competitors. For the Drug Manufacturers industry, the median EBITDA Margin % is 12.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dr Reddy's Laboratories's current EBITDA Margin % is 11.48%, which is 48% below median its own 10-year median of 22.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dr Reddy's Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Dr Reddy's Laboratories (FRA:RDDA) is currently considered Fairly Valued. The stock's GF Value™ is €13.16, compared to a current price of €12.40 — trading 5.8% below its estimated fair value. The current EBITDA Margin % is 11.48%, which is 48% below median its 10-year median of 22.14 and 7.3% below the Drug Manufacturers industry median of 12.39. Dr Reddy's Laboratories' overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Dr Reddy's Laboratories (FRA:RDDA), the current EBITDA Margin % is 11.48% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dr Reddy's Laboratories (FRA:RDDA) Overvalued in 2026?
Based on GuruFocus' analysis, Dr Reddy's Laboratories stock appears to be undervalued.
The current stock price of €12.40 is trading 5.8% below its estimated GF Value™ of €13.16.
GuruFocus considers Dr Reddy's Laboratories to be Fairly Valued.
Key valuation signals for FRA:RDDA:
EBITDA Margin %: 11.48% (48% below median its 10-year median of 22.14)
GF Value™: €13.16 vs. price of €12.40 (5.8% below fair value)
Industry Position: 7.3% below the Drug Manufacturers median (#227 of 955)
No single metric tells the full story. See the FRA:RDDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 40% of its generics sales, with other key markets being India (20%) and Europe (20%). 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.
82GF Score
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