Revenue growth has shifted from a 95.3% peak in 2025Q2 to a 10.3% contraction in 2026Q4, while gross margins have simultaneously eroded from 60.4% to 44.8% over the same period.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 |
|---|
| Sales/Revenue | 353.47B | 325.54B | 279.16B | 245.88B | 214.39B | 2.56B | 174.6B | 153.85B | 142.03B | 140.81B | 154.71B | 148.19B | 132.17B | 116.27B | 96.74B | 74.69B | 70.28B | 69.44B | 50.01B | 65.25B | 24.33B | 19.47B | 20.12B | 18.02B | 16.6B | 10.94B |
| Revenue Growth % | 8.58% | 16.61% | 13.54% | 14.69% | 8288.76% | -98.54% | 13.49% | 8.32% | 0.87% | -8.98% | 4.4% | 12.12% | 13.68% | 20.19% | 29.51% | 6.28% | 1.2% | 38.87% | -23.36% | 168.19% | 24.95% | -3.24% | 11.69% | 8.51% | 51.85% | - |
| Cost of Goods Sold | 166.95B | 135.11B | 115.56B | 106.54B | 100.55B | 1.26B | 80.59B | 70.42B | 65.72B | 62.45B | 62.43B | 62.79B | 56.37B | 55.69B | 43.43B | 34.43B | 33.94B | 32.94B | 24.6B | 34.3B | 12.45B | 9.39B | 9.37B | 7.82B | 6.86B | 5.72B |
| COGS % of Revenue | 47.23% | 41.5% | 41.39% | 43.33% | 46.9% | 49.22% | 46.16% | 45.77% | 46.28% | 44.35% | 40.35% | 42.37% | 42.65% | 47.9% | 44.9% | 46.1% | 48.29% | 47.44% | 49.19% | 52.57% | 51.17% | 48.2% | 46.54% | 43.38% | 41.32% | 52.26% |
| Gross Profit | 186.52B | 190.43B | 163.61B | 139.34B | 113.84B | 1.3B | 94.01B | 83.43B | 76.3B | 78.36B | 92.28B | 85.4B | 75.8B | 60.58B | 53.3B | 40.26B | 36.34B | 36.5B | 25.41B | 30.95B | 11.88B | 10.09B | 10.76B | 10.2B | 9.74B | 5.22B |
| Gross Margin % | 52.77% | 58.5% | 58.61% | 56.67% | 53.1% | 50.78% | 53.84% | 54.23% | 53.72% | 55.65% | 59.65% | 57.63% | 57.35% | 52.1% | 55.1% | 53.9% | 51.71% | 52.56% | 50.81% | 47.43% | 48.83% | 51.8% | 53.46% | 56.62% | 58.68% | 47.74% |
| Gross Profit Growth % | -2.05% | 16.39% | 17.41% | 22.4% | 8671.79% | -98.62% | 12.68% | 9.34% | -2.62% | -15.09% | 8.05% | 12.67% | 25.13% | 13.65% | 32.39% | 10.8% | -0.44% | 43.66% | -17.9% | 160.51% | 17.79% | -6.25% | 5.46% | 4.71% | 86.65% | - |
| Operating Expenses | 137.65B | 118.58B | 95.88B | 82.2B | 84.36B | 866.36M | 78.02B | 62.54B | 64.39B | 64.86B | 62.66B | 59.12B | 49.77B | 38.78B | 34.01B | 27.64B | 25.73B | 25.31B | 22.05B | 19.7B | 10.43B | 10.45B | 8.67B | 6.86B | 4.68B | 3.73B |
| OpEx % of Revenue | 38.94% | 36.43% | 34.34% | 33.43% | 39.35% | 33.9% | 44.68% | 40.65% | 45.33% | 46.06% | 40.5% | 39.89% | 37.66% | 33.35% | 35.16% | 37% | 36.61% | 36.45% | 44.1% | 30.19% | 42.89% | 53.68% | 43.1% | 38.1% | 28.2% | 34.15% |
| Selling, General & Admin | 112.34B | 93.87B | 77.2B | 68.03B | 62.08B | 659.9M | 0 | 48.89B | 46.91B | 46.37B | 45.7B | 42.59B | 38.78B | 33.58B | 28.87B | 23.69B | 22.5B | 21.02B | 15.18B | 14.08B | 8.05B | 6.81B | 6.58B | 5.01B | 3.66B | 2.81B |
| SG&A % of Revenue | 31.78% | 28.84% | 27.65% | 27.67% | 28.96% | 25.82% | - | 31.78% | 33.03% | 32.93% | 29.54% | 28.74% | 29.34% | 28.89% | 29.84% | 31.72% | 32.02% | 30.27% | 30.35% | 21.59% | 33.09% | 34.98% | 32.68% | 27.78% | 22.06% | 25.69% |
| Research & Development | 25.31B | 27.38B | 22.87B | 19.38B | 17.48B | 208.37M | 15.41B | 15.61B | 18.27B | 19.55B | 17.83B | 17.45B | 12.4B | 7.67B | 5.91B | 5.06B | 3.79B | 4.04B | 3.53B | 2.47B | 2.16B | 2.8B | 2B | 1.37B | 740.85M | 506.99M |
| R&D % of Revenue | 7.16% | 8.41% | 8.19% | 7.88% | 8.15% | 8.15% | 8.83% | 10.14% | 12.86% | 13.88% | 11.53% | 11.77% | 9.38% | 6.6% | 6.11% | 6.77% | 5.4% | 5.81% | 7.07% | 3.78% | 8.87% | 14.4% | 9.92% | 7.61% | 4.46% | 4.64% |
| Other Operating Expenses | 0 | -2.67B | -4.2B | -5.21B | 4.8B | 1.91M | 62.61B | -691M | -843M | -1.15B | -986M | -1.06B | -1.36B | -2.34B | -784M | -1.11B | -569M | 254M | 3.34B | 3.14B | 226.45M | 838.82M | 100.65M | 488.15M | 278.38M | 418.71M |
| Operating Income | 48.87B | 71.84B | 67.73B | 57.14B | 29.48B | 431.44M | 15.99B | 20.89B | 11.92B | 13.5B | 29.62B | 26.29B | 26.03B | 21.11B | 18.25B | 12.63B | 2.01B | -2.83B | 3.36B | 11.25B | 1.45B | -366.46M | 2.08B | 3.34B | 5.06B | 1.49B |
| Operating Margin % | 13.83% | 22.07% | 24.26% | 23.24% | 13.75% | 16.88% | 9.16% | 13.58% | 8.39% | 9.59% | 19.15% | 17.74% | 19.7% | 18.16% | 18.87% | 16.91% | 2.86% | -4.08% | 6.71% | 17.24% | 5.94% | -1.88% | 10.36% | 18.52% | 30.48% | 13.59% |
| Operating Income Growth % | -31.98% | 6.07% | 18.52% | 93.87% | 6732% | -97.3% | -23.43% | 75.28% | -11.71% | -54.43% | 12.68% | 0.98% | 23.3% | 15.67% | 44.54% | 528.88% | 170.85% | -184.4% | -70.16% | 678.25% | 494.5% | -117.58% | -37.52% | -34.06% | 240.61% | - |
| EBITDA | 70.55B | 88.9B | 82.57B | 69.78B | 41.3B | 603.81M | 28.46B | 33.08B | 23.63B | 24.77B | 39.87B | 34.39B | 33.14B | 26.66B | 23.46B | 16.78B | 6.17B | 980M | 9.56B | 14.27B | 3.02B | 942.84M | 3.22B | 4.35B | 6.01B | 2.38B |
| EBITDA Margin % | 19.96% | 27.31% | 29.58% | 28.38% | 19.26% | 23.63% | 16.3% | 21.5% | 16.64% | 17.59% | 25.77% | 23.2% | 25.07% | 22.93% | 24.26% | 22.46% | 8.78% | 1.41% | 19.12% | 21.87% | 12.4% | 4.84% | 15.98% | 24.15% | 36.17% | 21.75% |
| EBITDA Growth % | -20.64% | 7.67% | 18.33% | 68.96% | 6739.88% | -97.88% | -13.95% | 40% | -4.63% | -37.86% | 15.95% | 3.77% | 24.29% | 13.62% | 39.87% | 171.98% | 529.39% | -89.75% | -32.98% | 372.96% | 219.97% | -70.68% | -26.1% | -27.54% | 152.52% | - |
| D&A (Non-Cash Add-back) | 21.68B | 17.06B | 14.84B | 12.64B | 11.82B | 172.37M | 12.47B | 12.19B | 11.71B | 11.28B | 10.25B | 8.1B | 7.11B | 5.55B | 5.21B | 4.15B | 4.16B | 3.81B | 6.2B | 3.02B | 1.57B | 1.31B | 1.13B | 1.01B | 945.26M | 892.6M |
| EBIT | 48.87B | 79.61B | 73.58B | 61.8B | 33.26B | 362.4M | 29.31B | 23.33B | 15.13B | 15.29B | 27.97B | 29.25B | 27.88B | 22.69B | 19.53B | 12.68B | 2.42B | -2.33B | 3.94B | 11.25B | 1.45B | -289.13M | 2.08B | 3.34B | 5.06B | 1.49B |
| Net Interest Income | 4.35B | -152M | 567M | -248M | 7M | -144M | -1.27M | -119M | -248M | -76M | 573M | -31M | -189M | -118M | -690M | -127M | -123M | -1.19B | 521M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 8.28B | 2.68B | 2.28B | 1.18B | 965M | 826M | 12.59M | 770M | 540M | 558M | 1.4B | 1.06B | 1.08B | 900M | 377M | 173M | 369M | 482M | 1.6B | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 3.93B | 2.83B | 1.71B | 1.43B | 958M | 970M | 13.86M | 889M | 788M | 634M | 826M | 1.09B | 1.27B | 1.02B | 1.07B | 362M | 372M | 1.67B | 1.08B | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 8.81B | 4.94B | 4.14B | 3.22B | 2.82B | -75.64M | 2.04B | 1.55B | 2.42B | 1.16B | -2.48B | 1.88B | 574M | 1.41B | 214M | -186M | -7.99B | -15.44B | -493.72M | -725.88M | 446.53M | 107.4M | 465.35M | 572.9M | 9.11M | -426.12M |
| Pretax Income | 57.68B | 76.78B | 71.87B | 60.37B | 32.3B | 355.8M | 18.03B | 22.44B | 14.34B | 14.65B | 27.14B | 28.16B | 26.61B | 21.68B | 18.47B | 12.44B | 2.05B | -4B | 3.44B | 10.53B | 1.89B | 107.03M | 2.55B | 3.92B | 5.07B | 1.06B |
| Pretax Margin % | 16.32% | 23.59% | 25.74% | 24.55% | 15.07% | 13.92% | 10.33% | 14.59% | 10.1% | 10.41% | 17.54% | 19% | 20.13% | 18.64% | 19.09% | 16.66% | 2.92% | -5.75% | 6.88% | 16.13% | 7.78% | 0.55% | 12.65% | 21.75% | 30.53% | 9.69% |
| Income Tax | 13B | 19.54B | 16.19B | 15.3B | 8.73B | 123.59M | -1.47B | 3.65B | 4.54B | 2.61B | 7.13B | 5.98B | 5.09B | 4.9B | 4.2B | 1.4B | 985M | 1.17B | -1.23B | 1.18B | 259.07M | -94.28M | 69.41M | 396.92M | 153.68M | 320.24M |
| Effective Tax Rate % | 22.53% | 25.45% | 22.52% | 25.34% | 27.03% | 34.74% | -8.13% | 16.25% | 31.62% | 17.84% | 26.26% | 21.25% | 19.15% | 22.6% | 22.77% | 11.28% | 47.98% | -29.33% | -35.76% | 11.21% | 13.69% | -88.09% | 2.73% | 10.13% | 3.03% | 30.22% |
| Net Income | 45.09B | 56.54B | 55.68B | 45.07B | 23.57B | 232.21M | 19.5B | 18.8B | 9.81B | 12.04B | 20.01B | 22.18B | 21.51B | 16.78B | 14.26B | 11.04B | 1.07B | -5.17B | 4.68B | 9.35B | 1.63B | 211.27M | 2.48B | 3.52B | 4.92B | 739.28M |
| Net Margin % | 12.76% | 17.37% | 19.95% | 18.33% | 10.99% | 9.09% | 11.17% | 12.22% | 6.9% | 8.55% | 12.94% | 14.97% | 16.28% | 14.43% | 14.74% | 14.78% | 1.52% | -7.44% | 9.35% | 14.33% | 6.71% | 1.08% | 12.32% | 19.55% | 29.6% | 6.76% |
| Net Income Growth % | -20.26% | 1.54% | 23.56% | 91.22% | 10049.5% | -98.81% | 3.74% | 91.67% | -18.55% | -39.84% | -9.77% | 3.1% | 28.22% | 17.63% | 29.18% | 933.71% | 120.67% | -210.47% | -49.96% | 472.48% | 672.98% | -91.48% | -29.6% | -28.35% | 564.92% | - |
| Net Income (Continuing) | 44.68B | 57.24B | 55.68B | 45.07B | 23.57B | 232.21M | 19.5B | 18.8B | 9.81B | 12.04B | 20.01B | 22.18B | 21.51B | 16.78B | 14.26B | 11.04B | 1.07B | -5.17B | 3.84B | 9.35B | 1.63B | 211.27M | 2.48B | 3.52B | 4.92B | 739.28M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 3.33B | 3.78B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 192M | 0 | 0 | 0 | 0 | 0 | 10.5M | 0 | 0 | 0 | 0 | 0 | 15.92M |
| EPS (Diluted) | 53.92 | 67.77 | 66.80 | 54.17 | 28.34 | 20.73 | 117.40 | 113.09 | 59.01 | 72.09 | 116.98 | 129.75 | 126.04 | 98.44 | 83.81 | 64.95 | 6.30 | -30.70 | 22.80 | 58.21 | 10.62 | 1.38 | 15.78 | 23.05 | 32.27 | 5.85 |
| EPS Growth % | -20.44% | 1.45% | 23.32% | 91.14% | 36.71% | -82.34% | 3.81% | 91.65% | -18.14% | -38.37% | -9.84% | 2.94% | 28.04% | 17.46% | 29.04% | 930.95% | 120.52% | -234.65% | -60.83% | 448.12% | 669.57% | -91.25% | -31.54% | -28.57% | 451.62% | - |
| EPS (Basic) | 53.92 | 67.85 | 66.80 | 54.29 | 28.42 | 20.79 | 117.63 | 113.28 | 59.13 | 72.24 | 117.34 | 130.22 | 126.52 | 98.82 | 84.16 | 65.28 | 6.33 | -30.70 | 22.88 | 58.46 | 10.64 | 1.38 | 15.79 | 23.05 | 32.33 | 5.85 |
| Diluted Shares Outstanding | 833.26M | 834.3M | 833.54M | 831.91M | 831.69M | 831.58M | 830.41M | 830.98M | 830.93M | 834.99M | 855.36M | 854.67M | 853.48M | 852.16M | 850.89M | 849.83M | 848.08M | 841.75M | 843.45M | 796.28M | 767.02M | 765.6M | 765.5M | 765.17M | 761.5M | 631.78M |
| Basic Shares Outstanding | 832.4M | 833.31M | 833.54M | 830.17M | 829.41M | 829.22M | 828.79M | 829.58M | 829.19M | 833.24M | 852.74M | 851.57M | 850.22M | 848.89M | 847.35M | 845.64M | 843.53M | 841.75M | 840.38M | 792.76M | 765.47M | 765.19M | 765.14M | 765.16M | 760.28M | 631.78M |
| Dividend Payout Ratio | 15.54% | 11.78% | 11.94% | 11.05% | 17.59% | 1785.9% | 20.08% | 21.29% | 40.71% | 28.16% | 20.52% | 13.83% | 13.88% | 16.18% | 15.54% | 27.74% | 115.45% | - | 15.76% | 4.69% | 26.79% | 204.3% | 17.44% | 5.42% | 11.41% | 18.13% |
US Generic Pricing Erosion
As indicated by the most recent quarterly filings, RDY's revenue growth has shifted from a peak of 95.3% in 2025Q2 to a contraction of 10.3% in 2026Q4, highlighting the inherent volatility of relying on limited-competition generic launches to drive top-line expansion in mature markets.
The sharp reversal in revenue trajectory suggests that the company is struggling to maintain the momentum generated by previous blockbuster launches. Investors should monitor whether this decline reflects a structural exhaustion of the current pipeline or merely a temporary gap between high-value product cycles.
According to the provided income statement data, gross margins have deteriorated significantly from a high of 60.4% in 2025Q1 to 44.8% in 2026Q4, suggesting that the company is facing intensified pricing competition within its core generic portfolio that is eroding its historical cost-shielding advantages.
The rapid contraction in gross margin implies that the company's vertical integration may no longer be sufficient to offset aggressive price erosion in the North American market. This trend warrants further investigation into whether the current product mix is shifting toward lower-margin commoditized offerings.
Based on reported figures, operating margins plummeted to 0.6% in 2026Q4 from a peak of 23.4% in 2025Q1, demonstrating that the company's fixed cost structure is failing to scale efficiently as revenue growth turns negative and competitive pressures intensify across key therapeutic segments.
The collapse in operating income suggests that SG&A and R&D expenses have become disproportionately burdensome relative to the current revenue base. Management's ability to rationalize these costs will be critical to stabilizing profitability in the coming quarters.
As reported in financial statements, the 86% year-over-year decline in EPS for 2026Q4 highlights a precarious earnings profile, where the reliance on non-recurring gains or specific patent-related windfalls may be masking the underlying deterioration of the company's core operational profitability and long-term competitive positioning.
Short-sellers would likely focus on the volatility of net income, which appears disconnected from the steady R&D investment levels. This discrepancy suggests that the company's earnings quality may be lower than headline figures imply, necessitating a closer look at the sustainability of its current generic launch strategy.
Quick answers to the most common questions about buying RDY stock.
For fiscal year 2026, Dr. Reddy's Laboratories Limited (RDY) reported total revenue of $353.47B. This represents a 3132.4% increase compared to $10.94B in 2001.
Dr. Reddy's Laboratories Limited (RDY) is profitable, generating $45.09B in net income for the fiscal year ending 2026 with a net profit margin of 12.8%.
Dr. Reddy's Laboratories Limited (RDY) reported an operating income of $48.87B, resulting in an operating profit margin of 13.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Dr. Reddy's Laboratories Limited (RDY) generated $186.52B in gross profit for the year, representing a gross profit margin of 52.8%. This demonstrates the company's core pricing power and production efficiency.