Dr. Reddy's Laboratories Ltd. share price target

Revenue: For Q1FY26, the revenue increased by 11.4% YoY (+0.5% QoQ) to INR 85,721 Mn, below our estimates by 3.0%, led by weakness in North America, which was partially offset by higher momentum across Europe and the Emerging markets.

We maintain our HOLD recommendation on with a target price of Rs 1,360/share, implying an upside potential of 9% from the CMP.

Dr. Reddy's (DRRD) Q1FY26 EBITDA adjusted for licensing income was in line with our estimate. The base business margins and US sales ex of gRevlimid continued to remain weak. We have scale up base business margins from the current level of 15-16% to +21-22% in FY27E. Our FY26 and FY27E EPS broadly remain unchanged. DRRD have been investing cash flow from gRevlimid to build pipeline across peptides, biosimilars and GLP products; benefits of that may take some time. Further thin US pipeline in near term and competition in...

Dr Reddy’s Labs (DRRD) reported sales in line with our estimates in 1QFY26, while EBITDA/PAT came in higher than expected, primarily led by higher outlicensing income and lower R&D expenses.

*over or under performance to benchmark index Dr. Reddy's Laboratories (Dr. Reddy's) is an Indian pharmaceuticals company that manufactures and markets more than 190 medications, 180+ active pharmaceutical...

Dr. Reddy's (DRRD) Q4FY25 EBITDA was below our estimate. The base business margins and US sales ex of gRevlimid continued to remain weak. We have scale up base business margins from current level of 16% to +20% in FY27E. Our FY27E EPS stands cut by 4-5%. DRRD have been investing cash flow from gRevlimid to build pipeline across peptides, biosimilars and GLP products; benefits of that may take some time. Further thin US pipeline in near term and...

North America sales missed our estimates and reported US$ 395mn in 3QFY25 vs US$ 445mn in 2QFY25 impacted by gRevlimid

We maintain our BUY recommendation on the stock.

DRRD delivered in-line sales (adj. for NRT acquisition and milestone income) and marginally better operational performance in 3QFy25. Revenue/EBITDA YoY growth was moderate due to lower off-take of g-Revlimid and PSAI business, which was offset to some extent by healthy performance in the Russia market

Adjusted for the milestone payment received from Journey Medical Corp, 3QFY25 EBITDA for Dr Reddy’s was below street/our estimates. The PAT miss was higher on account of lower other income.

Adjusted for multiple one-offs, Dr Reddy’s’ 2QFY25 PAT was in line with our and street estimates. EBITDA was marginally ahead, aided by a sales beat in Russia and other emerging markets, and lower SG&A.

Revenue/EBITDA earnings above our and street estimates. APAT ~46% above estimates. Estimates adjusted for JV and impairment cost

Dr. Reddy’s Laboratories’ (DRL) Q2FY25 performance, adjusted for acquisition-related expenses (INR 561mn) and impairment charge of gNuvaring (INR 924mn), was ahead of our expectations

we upgrade our recommendation on DR. RD to BUY from HOLD, with a target price of Rs 1,535/share and an upside potential of 20% from the CMP.

Dr Reddy’s Lab (DRRD) delivered in-line 2QFY25 performance. DRRD exhibited robust YoY growth in North America (NA), Russia, and ROW markets and a healthy scale-up in the pharmaceutical services and active ingredients segment.

We have HOLD rating on the stock