Dr Reddy's Q1FY27 results show revenue decline and margin pressures
after close1 source ↓written by the desknot a recommendation
- decline in revenue
- 5.6%
- for Q1FY27
- ₹8,071 crore
- profit stood
- ₹443 crore
- provision for rejected
- ₹240 crore
- fell
- 46.5%
Dr Reddy's Laboratories reported a 5.6% decline in revenue to ₹8,071 crore for Q1FY27, impacted by operational issues in its semaglutide API business. The net profit stood at ₹443 crore with an EBITDA margin of 12.5%, significantly affected by a ₹240 crore provision for rejected API batches. This decline in margins highlights ongoing challenges in the pharmaceutical sector.
• Gross profit margin fell to 46.5%
• Underlying EBITDA margin would have been 18% without provisions
Traders should monitor the impact of these results on market sentiment.
Not investment advice. For informational purposes only.