Dr Reddy's in focus: The pharma giant is expected to report a muted performance for Q4FY26, with consensus estimates pointing to a sharp year-on-year decline in earnings due to pressure in its key U.S. business and the absence of gRevlimid contribution following patent expiry.

While domestic growth and traction in select international markets may provide some support, overall profitability is likely to remain under strain, with margins compressing significantly amid pricing pressures and portfolio adjustments.

Key Expectations Q4FY26 Dr Reddy's

• US business seen declining QoQ
• Nil contribution from gRevlimid due to patent expiry
• gRevlimid stock adjustment due to the heavy price erosion in Q4FY26

Other Expectations Q4FY26 Dr Reddy's

• India's business is to deliver strong double-digit growth.
• Healthy growth in Russia led by volumes.
• Growth in EU revenues led by traction in the NRT portfolio
• Expect 10 per cent yoy sales growth in RoW in Q4
• Expecting overall decline in DRRD's sales - both YoY and QoQ
• expect consolidated EBITDA, EBITDA margin to decline yoy

Key Monitorables

• Research and Development spending is in the 7-8 per cent range
• Status on GLP-1 approvals: Canada, Brazil (pending)
• Update on biosimilar filings: Abatacept, Denosumab
• India Semaglutide generics
• Market Share growth
• Recieved final approval for generic semaglutide tablets

Q4 Cons YoY: Estimates vs Q4FY25

• Revenue expected to be at Rs 8,248.5 versus Rs 8,506 crore, down 3 per cent YoY
• EBITDA at Rs 1,507 crore versus Rs 2,475 crore, down 39.1 per cent YoY
• EBITDA Margin at 18.3 per cent versus 29.1 per cent, down 1082.7 bps YoY
• PAT at Rs 871.2 crore versus Rs 1,587 crore, down 45.1 per cent YoY

Dr Reddy Q3FY26 Result

The pharma company's net profit for the quarter fell 14 per cent year-on-year and 16 per cent quarter-on-quarter to Rs 1,210 crore, with a PAT margin of 13.9 per cent.

The large-cap pharma company's revenue stood at Rs 8,727 crore, a 4.4 per cent year-on-year increase, while declining 0.9 per cent sequentially. Growth during the quarter was driven by the core business, excluding the impact of specific products.

The company's EBITDA came in at Rs 2,049 crore, with an EBITDA margin of 23.5 per cent. EBITDA declined 11 per cent year-on-year and 13 per cent quarter-on-quarter, reflecting pressure from product-related factors

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