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Dr Reddy’s Laboratories, third largest Indian pharma major after Sun Pharmaceutical and Aurobindo Pharma, has posted net profit of Rs. 1,337 crore during the second quarter ended September 2025 against Rs. 1,342 crore in the corresponding period of last year mainly due to lower sales in North America, adverse market conditions and certain technical challenges in product development. Its sales increased only by 9.5 per cent to Rs. 8,639 crore from Rs. 7,886 crore. EBDITA improved by 3.1 per cent to Rs. 2,351 crore from Rs. 2,280 crore. EPS, of face value of Rs. 1 per share, worked out to Rs. 16.18 as compared to Rs. 15.08 in the last period.
Commenting on the results, co-chairman & managing director, G V Prasad, said: "Growth in Q2 was driven by momentum in branded markets and steady contributions from the Nicotine Replacement Therapy (NRTJ portfolio, which helped offset the decline in US lenalidomide sales. We remain focused on strengthening our core business, advancing key pipeline assets, driving productivity and pursuing business development initiatives."
DRL’s global generics sales moved up by 9.2 per cent to Rs. 7,823 crore during the second quarter ended September 2025 from Rs. 7,164 crore in the similar period of last year and that of pharma services &active ingredients (PSAI) improved marginally by 1.5 per cent to Rs. 1,208 crore. Sales in North America declined by 13.1 per cent to Rs. 3,241 crore from Rs. 3,728 crore. However, its sales in Europe moved up smartly by 138 per cent to Rs. 1,376 crore from Rs. 577 crore. Its domestic sales went up by 13 per cent to Rs. 1,578 crore from Rs. 1,397 crore. Similarly, sales in Emerging Markets increased by 14 per cent to Rs. 1,655 crore from Rs. 1,455 crore. Its sales in Russia jumped by 28 per cent to Rs. 873 crore. It is taking necessary steps to overcome problem of uncertainties relating to the escalation of conflict between Russia and Ukraine.
R&D expenditure declined by 15 per cent to Rs. 620 crore from Rs. 727 crore. DRL has launched 7 new products in US and it filed 5 new ANDA. Total 73 ANDA are pending for approvals. In India, DRL launched 11 new products and in Europe it launched 8 new products. It also filed 37 DMFs in global market. In US, its IND application for COYA 302 has been accepted by US FDA. It launched sacubitril valsartan tablets, generic version of Entresto indicated for heart failure management. It also launched authorised generic of partnered product, fluorouracil cream indicated for topical treatment of multiple actinic or solar keratoses of face & anterior scalp
The company has discontinued development of conjugated estrogen at its site in Middleburgh, New York which incurred net loss of Rs. 93 crore and impacted its bottom line heavily by Rs. 93 crore and Rs. 55 crore from impairment loss for property, plant and equipment. In September 2025, DRL had acquired the Stugeron brand from Janssen Phannaceutica NV (an affiliate of Johnson & Johnson) for a consideration of Rs. 4,464 million ($50.5 million).The portfolio acquired includes Stugeron Forte and Stugeron Plus, across 18 markets in the Asia-Pacific and Europe, Middle East, and Africa regions, with India and Vietnam as the key markets.
For the first half ended September 2025, DRL sales increased by 9.6 per cent to Rs. 16,905 crore from Rs. 15,425 crore. Its income from license fee increased to Rs. 445 crore from Rs. 263 crore other operating income to Rs. 50 crore from Rs. 46 crore. Thus, total revenue moved up by 10.6 per cent to Rs. 17,400 crore from Rs. 15,734 crore. Its net profit remained stagnant at Rs. 2,747 crore as against Rs. 2,734 crore in the similar half of last year. It revenue for full year ended March 2025 stood at Rs. 32,644 crore and Net profit at Rs. 5,724 crore.
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