Dr. Reddy's Laboratories is navigating a sharp profitability reversal, with gross margins contracting from 60.4% in 2025Q1 to 46.5% in 2027Q1 and operating income collapsing to $3.0B, reflecting severe US generic pricing pressure and regulatory overhang. The c...
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Revenue growth decelerated sharply to -5.0% in 2027Q1, while gross margin compressed from 60.4% in 2025Q1 to 46.5%, and operating margin fell to 3.7%, signaling severe pricing pressure and negative operating leverage.
Analyst consensus projects a bullish share price target of Rs 1,800-2,000 for 2026, indicating significant upside potential.
Trading at 18x P/E with a market cap of Rs 96,000 Cr, the stock presents a compelling valuation case for long-term investors.
As a global player with diverse offerings including generics and APIs, Dr. Reddy's benefits from a wide market reach and product diversification.
Trailing total returns as of 10/2/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 22, 2026 | $0.06-34.7% vs $0.09 | — vs $851M |
Q3 2026 Jul 21, 2026 | $0.06-34.7% vs $0.09 | $836M-1.7% vs $851M |
Q2 2026 May 13, 2026 | $0.06-33.3% vs $0.09 | — vs $870M |
Q2 2026 May 12, 2026 | $0.06-33.3% vs $0.09 | $789M-11.0% vs $887M |
Dr Reddy's Laboratories said on Friday it signed a deal with Takeda Pharmaceutical Company for the promotion and distribution of the Qdenga dengue vaccine in India.
Arrowstreet Capital Limited Partnership purchased a new position in Dr. Reddy's Laboratories Ltd (NYSE: RDY) in the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 102,643 shares of the company's stock, valued at approximately $1,422,000. A number of other hedge funds have
HYDERABAD, India & PRINCETON, N.J.--(BUSINESS WIRE)---- $RDY #Bridion--Dr. Reddy's Laboratories today announced launch of Sugammadex Injection of Single-Dose Vials, a generic equivalent of Bridion®, in the United States.
U.S. President Donald Trump's plan to impose tariffs on generic drugs will lead to patients in the U.S. paying higher prices, warned the CEO of Indian pharmaceutical company Dr Reddy's. Manufacturing of generic drugs in India leads to a significant decrease in the cost of medicine to the United States.
Benchmark RDY against direct peers instead of judging its metrics in isolation.
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 |
|---|---|---|---|---|---|---|---|
| $12.25 | $10.2B | 21.81 | 8.58% | 12.76% | 12.7% | 0.72% | |
| $74.54 | $10.19B | 20.37 | 11.05% | 2.81% | 14.72% | — | |
| $14.02 | $1.94B | -1.36 | -2.75% | -41.85% | -55.97% | — | |
| $20.07 | $6.41B | 91.23 | 8.05% | 5.05% | — | — | |
| $39.31 | $46.43B | 32.76 | 4.31% | 4.08% | 9.06% | — | |
| $17.46 | $20.33B | -5.82 | -2.98% | -2.79% | -2.79% | — |
Dr. Reddy's Laboratories Limited (RDY) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Dr. Reddy's Laboratories Limited (RDY) stock FAQ — growth, dividends, profitability & financials explained
Dr. Reddy's Laboratories Limited (RDY) reported $332.83B in revenue for fiscal year 2026. This represents a 2944% increase from $10.94B in 2001.
Dr. Reddy's Laboratories Limited (RDY) grew revenue by 8.6% over the past year. This is steady growth.
Yes, Dr. Reddy's Laboratories Limited (RDY) is profitable, generating $33.17B in net income for fiscal year 2026 (12.8% net margin).
Yes, Dr. Reddy's Laboratories Limited (RDY) pays a dividend with a yield of 0.72%. This makes it attractive for income-focused investors.
Dr. Reddy's Laboratories Limited (RDY) has a return on equity (ROE) of 12.7%. This is reasonable for most industries.
Dr. Reddy's Laboratories Limited (RDY) generated $15.15B in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
