Dr Reddy’s earnings fell 36% year over year to ₹925 crore in the second quarter ended September 30, 2026. The Hyderabad-based pharmaceutical company reported revenue of ₹8,671 crore, down 1.5%, and said a ₹239 crore provision for semaglutide-related inventory and associated costs affected the results announced on October 23.
Key Takeaways
- Profit attributable to shareholders fell much faster than revenue in the September quarter.
- The company identified a ₹239 crore provision tied to semaglutide active pharmaceutical ingredient inventory and associated costs.
- Operating profit and basic earnings per share also declined from their year-earlier levels.
Table of Contents
- Dr Reddy’s earnings decline outpaces revenue fall
- Semaglutide provision weighs on the result
- Conclusion
Dr Reddy’s earnings decline outpaces revenue fall
The company’s quarterly financial statements show that the ₹925 crore headline figure represents profit attributable to equity holders of the parent company, compared with ₹1,437.2 crore a year earlier. Total profit for the period, including non-controlling interests, was a separate measure of ₹913.4 crore.
Revenue was ₹8,670.8 crore before rounding, compared with ₹8,805.1 crore in the September 2025 quarter. The much sharper decline in shareholder profit shows that the earnings setback extended beyond the modest reduction in sales.
The operating figures also weakened. Cost of revenues rose despite lower sales, reducing gross profit, while selling, general and administrative expenses increased. Lower research and development spending did not offset those pressures.
| Item | Details |
|---|---|
| Gross profit | ₹4,520.4 crore, versus ₹4,814.0 crore a year earlier. |
| Operating profit | ₹1,268.3 crore, versus ₹1,751.3 crore a year earlier. |
| Research and development expenses | ₹523.5 crore, versus ₹620.2 crore a year earlier. |
| Basic earnings per share | ₹11.11, versus ₹17.26 a year earlier. |
Semaglutide provision weighs on the result
Dr Reddy’s said the quarter included a ₹239 crore provision toward inventory and associated costs related to semaglutide active pharmaceutical ingredient, or API. The company identified this charge as an impact on the reported results.
The provision should not be treated as a complete explanation of the year-over-year profit decline. The disclosed amount alone does not establish an after-tax earnings adjustment, and simply adding it back to shareholder profit would not produce a verified adjusted-profit figure.
The results therefore present two distinct developments: a specific semaglutide-related charge and a broader deterioration in reported operating earnings.
Conclusion
Dr Reddy’s September-quarter results show a substantially larger decline in earnings than in revenue. The semaglutide-related provision is a material disclosed charge, but the weaker operating figures remain important when assessing the quarter.
Read More News
Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
