TrueCAGR
Dr. Reddy's Laboratories · Research view

Dr. Reddy's Laboratories Ltd.

NSE: DRREDDYBSE: 500124ISIN INE089A01031Face value ₹1consolidated
₹1,200
−3.99% · 2026-10-01 · 52-wk ₹1,136–₹1,376
Financials to FY2026 · 5 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis

What stands out?

The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.

StrengthConcernWatchContext
WatchTalking point

Debt rising as profit falls

Total debt rose 50.4% while net profit fell 27.4% — worth checking how the balance sheet is being funded.

Importance 76 / 95 · financial health

WatchTalking point

Profit lagging revenue

Revenue grew 3.2% but profit declined 27.4%, so the company kept less of each rupee of revenue as profit.

Revenue growth+3.2%Net profit growth−27.4%

Importance 74 / 95 · growth

WatchTalking point

Sharp margin drop

EBITDA margin dropped 6.4 percentage points in a single year, from 29.5% to 23.2% — worth investigating.

Importance 70 / 95 · anomaly

StrengthTalking point

Book value compounding

Net worth compounded at 18.8% a year over 4 years (₹19,212 → ₹38,231).

Importance 57 / 95 · financial health

Section 03 · The company

Who is this company?

Classified by the exchange under Healthcare › Healthcare › Pharmaceuticals & Biotechnology › Pharmaceuticals.

Market cap
₹1.00 L cr
FY2026 revenue
₹33,700 cr
FY2026 net profit
₹4,158 cr
Net worth
₹38,231 cr
Total debt
₹6,294 cr
EPS (basic)
₹50.41
Listed
NSE · BSE
Reporting
Ind-ASApr–Mar

Peer set used on this page: 12 pharmaceuticals.

Section 04 · Business performance

Is the business growing?

Revenue & net profit — FY22 to FY26₹ crore · consolidated
₹'000 cr010203040036REVENUENET PROFIT22k2,183FY2225k4,507FY2328k5,578FY2433k5,725FY2534k4,158FY26
RevenueNet profit
Watch

Revenue grew 3.2% but profit declined 27.4%, so the company kept less of each rupee of revenue as profit.

Rule PROFIT_SLOWER_THAN_REVENUE

Revenue growth per year
+11.8%over 4 years
Revenue growth
+3.2%vs last year
Net profit growth
−27.4%vs last year
Change in net profit since FY22
+90%

Over 4 years profit compounded at 17.5% a year while revenue compounded at 11.8% a year — though FY2023 saw a one-off step-change of 107% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.

Net profit fell 27.4% year on year (FY2025 → FY2026).

Revenue has compounded at 11.8% a year over 4 years (₹21,545 → ₹33,700) — steady rather than rapid.

Section 05 · Recent activity

What changed recently?

Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.

Concern

Q1 FY27 net profit was ₹436 cr, down 69.1% from ₹1,410 cr a year earlier.

Rule QTR_PROFIT_GROWTH_YOY

Watch

Q1 FY27 net profit declined 69.1% while revenue declined 5.5% vs the same quarter last year — a gap of 63.6 percentage points.

Rule QTR_PROFIT_VS_REVENUE_GROWTH

Concern

Q1 FY27 EBIT was ₹678 cr, down 65.9% from ₹1,988 cr a year earlier.

Rule QTR_OPERATING_PERFORMANCE_CHANGE_YOY

A. Quarterly results

Latest quarters — Q2 '25 to Q1 '27₹ crore · consolidated
₹'000 cr02579012REVENUENET PROFIT8k1,342Q2 '258k1,404Q3 '259k1,587Q4 '259k1,410Q1 '269k1,337Q2 '269k1,190Q3 '268k221Q4 '268k436Q1 '27
RevenueNet profit
QuarterRevenueYoYNet profitYoYNet margin
Q2 FY258,038—1,342—16.7%
Q3 FY258,381+15.8%1,404+1.7%16.8%
Q4 FY258,528+19.9%1,587+21.1%18.6%
Q1 FY268,572+11.4%1,410+1.3%16.4%
Q2 FY268,828+9.8%1,337−0.4%15.1%
Q3 FY268,753+4.4%1,190−15.3%13.6%
Q4 FY267,546−11.5%221−86.1%2.9%
Q1 FY278,100−5.5%436−69.1%5.4%

B. TTM snapshot

Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters

Revenue
₹33,228 crTTM
EBITDA
₹6,563 crTTM
EBIT
₹4,443 crTTM
PBT
₹4,027 crTTM
Net profit
₹3,183 crTTM

C. Corporate actions

10 Jul 2026DividendFinal Dividend - Rs. - 8.0000 — ₹8.00/share
10 Jul 2025DividendFinal Dividend - Rs. - 8.0000 — ₹8.00/share
28 Oct 2024Stock splitStock Split From Rs.5/- to Rs.1/- — 5:1
16 Jul 2024DividendFinal Dividend - Rs. - 40.0000 — ₹40.00/share
11 Jul 2023DividendFinal Dividend - Rs. - 40.0000 — ₹40.00/share
11 Jul 2022DividendFinal Dividend - Rs. - 30.0000 — ₹30.00/share
9 Jul 2021DividendFinal Dividend - Rs. - 25.0000 — ₹25.00/share
13 Jul 2020DividendFinal Dividend - Rs. - 25.0000 — ₹25.00/share
15 Jul 2019DividendFinal Dividend - Rs. - 20.0000 — ₹20.00/share
16 Jul 2018DividendFinal Dividend - Rs. - 20.0000 — ₹20.00/share
17 Jul 2017DividendDividend - Rs. - 20.0000 — ₹20.00/share
18 Jul 2016DividendDividend - Rs. - 20.0000 — ₹20.00/share
10 Jul 2015DividendFinal Dividend - Rs. - 20.0000 — ₹20.00/share
11 Jul 2014DividendFinal Dividend - Rs. - 18.0000 — ₹18.00/share
12 Jul 2013DividendFinal Dividend - Rs. - 15.0000 — ₹15.00/share
28 Jun 2012DividendFinal Dividend - Rs. - 13.7500 — ₹13.75/share
30 Jun 2011DividendFinal Dividend - Rs. - 11.2500 — ₹11.25/share
17 Mar 2011Scheme of arrangementScheme of Arrangement
2 Jul 2010DividendDividend - Rs. - 11.2500 — ₹11.25/share
3 Jul 2009DividendDividend - Rs. - 6.2500 — ₹6.25/share
4 Jul 2008DividendDividend - Rs. - 3.7500 — ₹3.75/share
6 Jul 2007DividendDividend - Rs. - 3.7500 — ₹3.75/share
8 Nov 2001DividendInterim Dividend - Rs. - 5.0000 — ₹5.00/share
10 Oct 2001Otherother
18 Jun 2001DividendDividend - Rs. - 4.0000 — ₹4.00/share
Section 06 · Business performance

Is it becoming more profitable?

Margins — FY22 to FY26% of revenue · consolidated
0%5%10%15%20%25%30%35%23.2%11.9%FY22FY23FY24FY25FY26
EBITDA marginNet margin
Concern

ROE declined from 18.4% to 11.5% year on year.

Rule ROE_DETERIORATED_YOY

EBITDA margin now
23.2%
5-year range
19.7–31.5%
ROE FY2026
11.5%
ROCE FY2026
13.9%

EBITDA margin has ranged from 19.7% to 31.5% over 4 years and sits at 23.2% now.

Section 07 · Financial health

Is financial health improving?

Net worth — FY22 to FY26₹ crore · consolidated
₹'000 cr013274019kFY2223kFY2328kFY2434kFY2538kFY26
Net worth (shareholders' funds)
Watch

Total debt rose 50.4% while net profit fell 27.4% — worth checking how the balance sheet is being funded.

Rule DEBT_UP_EARNINGS_DOWN

Operating cash flow vs net profit₹ crore · FY22–FY26
0k2k4k6k3k2kFY226k5kFY235k6kFY245k6kFY256k4kFY26
Operating cash flowNet profit
Total debt
₹6,294 cr
Operating cash flow ÷ net profit
1.36×FY2026
Free cash flow
₹3,374 cr
Current ratio
1.80×

Net worth compounded at 18.8% a year over 4 years (₹19,212 → ₹38,231).

Free cash flow has been positive in 5 of the last 5 years.

Section 08 · Relative position

How does it compare with peers?

Ranked against 12 pharmaceuticals (FY2026, consolidated).

Revenue growth

DRREDDY · 11th of 12 · set median 14.8%

GLENMARK27.5%LUPIN23.1%LAURUSLABS22.7%TORNTPHARM21.4%MANKIND17.0%ZYDUSLIFE16.8%DIVISLAB12.8%SUNPHARMA11.2%BIOCON10.9%AUROPHARMA6.1%DRREDDY3.2%CIPLA2.2%

EBITDA margin

DRREDDY · 10th of 12 · set median 28.7%

DIVISLAB37.4%SUNPHARMA33.7%ZYDUSLIFE33.1%LUPIN33.1%TORNTPHARM31.9%GLENMARK29.6%MANKIND27.8%LAURUSLABS26.9%CIPLA24.0%DRREDDY23.2%BIOCON22.4%AUROPHARMA21.8%

Return on equity

DRREDDY · 10th of 12 · set median 14.4%

LUPIN26.9%ZYDUSLIFE18.3%LAURUSLABS17.7%TORNTPHARM17.0%DIVISLAB16.2%SUNPHARMA14.7%GLENMARK14.1%MANKIND12.5%CIPLA11.7%DRREDDY11.5%AUROPHARMA9.9%BIOCON1.1%

P/E ratio

DRREDDY · 4th of 12 · set median 36.3×

LUPIN16.7×ZYDUSLIFE25.1×AUROPHARMA26.2×DRREDDY31.5×CIPLA32.4×SUNPHARMA35.8×GLENMARK36.7×MANKIND50.5×TORNTPHARM74.8×DIVISLAB84.2×LAURUSLABS98.5×BIOCON144.4×
Context

Trades at 2.62× book — 44% below the pharmaceuticals median of 4.65×.

Rule PB_BELOW_PEERS

P / E
31.5×TTM to Jun 26
P / B
2.6×latest book
P / S
3.0×TTM sales
Earnings yield
3.2%TTM to Jun 26

On the trailing twelve months. Last full year: P/E 24.1× · P/S 2.9× · ROE 11.5%. TTM and full-year profit and EBITDA differ by more than 15% — a one-off in a recent quarter is moving the trailing figure; weigh it against the full year.

Section 09 · The stock

How has the stock performed?

Adjusted close — 2020-01 to 2026-10₹ per share · split / bonus adjusted
0k₹1,2002020202120222023202420252026
Context

Over 4 years profit compounded at 17.5% a year while the stock returned 2.4% a year — but FY2022 profit (₹2,183) was well below the through-cycle level (~₹4,507), so this rate is inflated by the recovery from a low base.

Rule STOCK_LAGGED_EARNINGS · recovery

Business vs stock — 5-year compound annual rate
Net profit17.5%/yrShare price2.4%/yr
1-year return
−3.6%
3-year return
+7.4%
5-year return
+21.1%
From 52-wk high
−12.8%
Section 10 · Technical data

What does the technical data say?

Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.

vs 50-day avg
Above₹1,178
vs 200-day avg
Below₹1,249
RSI (14)
52.7neutral
MACD histogram
6.9
From 52-wk high
−12.8%
From 52-wk low
+5.7%
30-day volatility
20.8%ann.
6-month return
−4.7%
RSI (14) · 0–10052.7 — neutral
0305070100OVERSOLDOVERBOUGHT52.7
Section 11 · Open questions

What should I investigate further?

Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.

  • Watch
    Debt rising as profit falls
    Total debt rose 50.4% while net profit fell 27.4% — worth checking how the balance sheet is being funded.
    DEBT_UP_EARNINGS_DOWN · conviction 76
  • Watch
    Profit lagging revenue
    Revenue grew 3.2% but profit declined 27.4%, so the company kept less of each rupee of revenue as profit.
    PROFIT_SLOWER_THAN_REVENUE · conviction 74
  • Watch
    Sharp margin drop
    EBITDA margin dropped 6.4 percentage points in a single year, from 29.5% to 23.2% — worth investigating.
    MARGIN_SHARP_DROP · conviction 70
  • Concern
    Returns declining
    ROE declined from 18.4% to 11.5% year on year.
    ROE_DETERIORATED_YOY · conviction 48
  • Concern
    Profit fell
    Net profit fell 27.4% year on year (FY2025 → FY2026).
    PROFIT_DECLINED_YOY · conviction 47
Data coverage is complete — 5 years of financials (FY2022–FY2026), full P&L, balance sheet and cash-flow statement, sector metrics fully mapped.
Section 12 · Reference

The numbers

The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.

Income & balance sheet — ₹ crore, consolidated
MetricFY22FY23FY24FY25FY26
Revenue21,54524,67028,01132,64433,700
Total income22,03025,72528,90533,74135,059
EBITDA4,2527,4058,8279,6447,812
Profit before tax2,9916,0127,1867,6585,379
Net profit2,1834,5075,5785,7254,158
EPS (₹)131.6271.5335.267.950.4
Net worth19,21223,28628,25533,92738,231
Total debt3,2831,3471,6524,1856,294
Operating cash flow2,8115,8874,5434,6435,674
Free cash flow1,3824,7633,0091,9443,374
Key ratios — consolidated
RatioFY22FY23FY24FY25FY26
Growth
Revenue growth YoY—14.513.516.53.2
Profit growth YoY—106.523.82.6-27.4
Profitability
EBITDA margin %19.730.031.529.523.2
Net margin %9.917.519.317.011.9
Return on equity %11.421.221.618.411.5
Return on capital %13.726.127.023.313.9
Leverage & cash
Debt to equity0.170.060.060.120.16
Cash flow ÷ profit1.291.310.810.811.36
Current ratio1.852.412.591.921.80
Financials: BSE Integrated Filing inline XBRL (SEBI taxonomy), normalised to standard metric keys. Prices: NSE end-of-day, raw OHLC preserved; a corporate-action factor produces the adjusted series. The insight engine writes factual observations from fixed rules — it does not make recommendations. Not investment advice.