Dr. Reddy's Laboratories Limited(RDY)Earnings, Financials & Key Ratios
RDY•NYSE
$15.38
27.0× P/E·Price updated Jun 27, 2026
SectorHealthcareIndustrySpecialty & Generic PharmaSub-IndustryLarge-scale generic drug manufacturers
AboutDr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company worldwide. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), Proprietary Products, and Others segments. The company's Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosages with therapeutic equivalence to branded formulations. This segment also engages in the biologics business. The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. This segment also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids in accordance with the specific customer requirements. Its Proprietary Products segment focuses on the research and development of differentiated formulations. The Others segment engages in developing therapies in the fields of oncology and inflammation. The therapeutic categories primarily include gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, and nephrology. The company has a collaboration, license, and option agreement with Curis, Inc. to discover, develop, and commercialize small molecule antagonists for immuno-oncology and precision oncology targets. Dr. Reddy's Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.Show more
- Revenue$353.47B+8.6%
- EBITDA$70.55B-20.6%
- Net Income$45.09B-20.3%
- EPS (Diluted)53.92-20.4%
- Gross Margin52.77%-9.8%
- EBITDA Margin19.96%-26.9%
- Operating Margin13.83%-37.4%
- Net Margin12.76%-26.6%
- ROE12.7%-30.6%
RDY Price & Volume
Dr. Reddy's Laboratories Limited (RDY) stock price & volume — 10-year historical chart
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Margin Compression Challenges Dr. Reddy's Operational Scaling
Investment Thesis • Updated 2026Q4
VerdictNegative
Growth:Decelerating
Profitability:Strained
Financial Position:Healthy
Cash Flow:Mixed
Primary Risk:US Generic Pricing Erosion
"Dr. Reddy's Laboratories is currently navigating a difficult transition from high-growth generic launches to a more capital-intensive, asset-heavy manufacturing model. While the company maintains a conservative debt-to-equity ratio of 0.20, the sharp decline in operating margins to 0.6% in 2026Q4 suggests that the current cost structure is struggling to absorb the impact of intensified pricing competition. Investors should monitor whether the significant increase in net PPE to $113.6B can eventually drive sustainable returns or if the current reliance on non-recurring gains will continue to obscure underlying operational volatility."
Verdict Logic
the 86% year-over-year decline in EPS for 2026Q4 and the collapse of operating margins to 0.6% indicate that the company's core profitability is currently under significant structural pressure.
RDY Growth Metrics
Dr. Reddy's Laboratories Limited (RDY) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years8.61%
5 Years168.02%
3 Years12.86%
TTM3.55%
Profit CAGR
10 Years8.46%
5 Years186.84%
3 Years0.01%
TTM-24.16%
EPS CAGR
10 Years-7.45%
5 Years21.07%
3 Years-0.15%
TTM-24.06%
Return on Capital
10 Years18.47%
5 Years23.19%
3 Years20.13%
Last Year12.76%
RDY Recent Earnings
Dr. Reddy's Laboratories Limited (RDY) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 2/12 qtrs (18%)●Beat Revenue 6/12 qtrs (67%)
Q2 2026Latest
May 13, 2026Metric
Actual
Est
EPS
$0.06-33.3%
$0.09
Rev
—
$870M
Q2 2026
May 12, 2026Metric
Actual
Est
EPS
$0.06-33.3%
$0.09
Rev
$789M-11.0%
$887M
Q2 2026
May 11, 2026Metric
Actual
Est
EPS
$0.06-33.3%
$0.09
Rev
$786M-11.4%
$887M
Q1 2026
Jan 21, 2026Metric
Actual
Est
EPS
$0.16+0.0%
$0.16
Rev
$952M+2.6%
$928M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 13, 2026 | $0.06vs $0.09-33.3% | —vs $870M |
| Q2 2026 | May 12, 2026 | $0.06vs $0.09-33.3% | $789Mvs $887M-11.0% |
| Q2 2026 | May 11, 2026 | $0.06vs $0.09-33.3% | $786Mvs $887M-11.4% |
| Q1 2026 | Jan 21, 2026 | $0.16vs $0.16+0.0% | $952Mvs $928M+2.6% |
Based on last 12 quarters of dataView full earnings history →
Peers Comparison
Key metrics vs top competitors for Dr. Reddy's Laboratories Limited (RDY)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $15.38 | $12.8B | 26.96 | 8.58% | 12.76% | 12.7% | 0.58% | |
| $66.50 | $9.09B | 18.17 | 11.05% | 2.72% | 12.87% | — | |
| $9.95 | $1.38B | -0.97 | -2.75% | -43.5% | -50.65% | — | |
| $17.23 | $5.5B | 78.32 | 8.05% | 4.02% | — | — | |
| $33.21 | $38.67B | 27.68 | 4.31% | 9.02% | 20.69% | — | |
| $16.33 | $19.02B | -5.44 | -2.98% | -2.04% | -1.97% | — |
Compare RDY vs Peers
Dr. Reddy's Laboratories Limited (RDY) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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RDY Frequently Asked Questions
Dr. Reddy's Laboratories Limited (RDY) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Dr. Reddy's Laboratories Limited's revenue?
Dr. Reddy's Laboratories Limited (RDY) reported $337.10B in revenue for fiscal year 2026. This represents a 2983% increase from $10.94B in 2001.
How fast is Dr. Reddy's Laboratories Limited growing?
Dr. Reddy's Laboratories Limited (RDY) grew revenue by 8.6% over the past year. This is steady growth.
Is RDY profitable?
Yes, Dr. Reddy's Laboratories Limited (RDY) is profitable, generating $42.88B in net income for fiscal year 2026 (12.8% net margin).
Dividend & Returns
Does RDY pay dividends?
Yes, Dr. Reddy's Laboratories Limited (RDY) pays a dividend with a yield of 0.58%. This makes it attractive for income-focused investors.
What is RDY's return on equity?
Dr. Reddy's Laboratories Limited (RDY) has a return on equity (ROE) of 12.7%. This is reasonable for most industries.
What is Dr. Reddy's Laboratories Limited's free cash flow?
Dr. Reddy's Laboratories Limited (RDY) generated $24.26B in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.