Dr Reddy’s Laboratories Q4 FY26 Results: PAT Rs 221 Crore Down 86 Percent YoY on One-Off Charges and Lower US Sales

Click Here – Get Free Investment Predictions

The board of Dr Reddy’s Laboratories recommended a final dividend of Rs 8 per equity share of face value Re 1 each for FY26, representing an 800 percent payout on face value. The record date for determining eligible shareholders for the dividend was fixed as July 10, 2026. Co-Chairman and Managing Director G V Prasad commented that the company’s performance in FY26 reflects the impact of lower lenalidomide sales and several one-off charges, adding that the resilience of branded businesses and currency tailwinds helped partially mitigate the impact.

Dr Reddy’s Q4 FY26 Key Financial Highlights

The following table summarises key Dr Reddy’s Q4 FY26 and FY26 full-year consolidated financial highlights as reported in the regulatory filing on 12 May 2026.

Parameter	Q4 FY26	Q4 FY25 / FY26 Full Year
Net Profit (PAT)	Rs 221.3 crore	Rs 1,586.7 crore (Q4 FY25)
PAT Change YoY	-86.05%	FY26 Full Year PAT: Rs 4,157.6 crore
Revenue from Operations	Rs 7,546.4 crore	Rs 8,528.4 crore (Q4 FY25)
Revenue Change YoY	-11.51%	FY26 Revenue: Rs 33,700.2 crore (+3%)
EBITDA Margin	~5.09%	~23.49% (Q4 FY25)
North America Generics Revenue	Rs 1,756.2 crore	Rs 3,558.6 crore (Q4 FY25), -51%
Lenalidomide SSA Charge	Rs 453 crore	One-time revenue reduction
CAR-T Impairment	Rs 135 crore net	One-time charge
FY25 Full Year PAT	Rs 4,157.6 crore	Rs 5,725.2 crore (FY25)
Dividend	Rs 8 per share	Record date: July 10, 2026
NSE Ticker	DRREDDY	Sector: Pharmaceuticals

Screen the best stocks on the Univest Screener.

Why Did Dr Reddy’s Q4 FY26 Profit Fall 86 Percent

Investors closely monitoring Dr Reddy’s Q4 FY26 results should track live data and analyst revisions following this quarterly performance.

Dr Reddy’s Q4 FY26 profit decline was driven by a convergence of multiple one-off charges and structural headwinds. The primary driver was a shelf stock adjustment (SSA) of Rs 453 crore related to lenalidomide, a key generic oncology product, taken as a direct reduction in revenue. This adjustment significantly depressed both the revenue and profitability figures for the quarter. Excluding this SSA, adjusted revenue for Q4 FY26 would have stood at Rs 7,969 crore, reflecting a more moderate 6 percent year-on-year decline.

The second major impact came from the discontinuation of CAR-T therapy R&D programs. During Q4 FY26, Dr Reddy’s Q4 FY26 management decided to discontinue certain R&D programs associated with the Chimeric Antigen Receptor T-cell (CAR-T) therapy portfolio in light of current development status and clinical trial outcomes, resulting in a net impairment charge of Rs 135 crore in the Global Generic segment. Additionally, Dr Reddy’s recognised an impairment of Rs 93 crore on account of discontinuation of a late-stage lung cancer trial by partner Immutep following an interim futility analysis. North America generics revenue declined a steep 51 percent to Rs 1,756.2 crore from Rs 3,558.6 crore in Q4 FY25, reflectin

Investors closely monitoring Dr Reddy’s Q4 FY26 results should track live data and analyst revisions following this quarterly performance.

g the combined impact of lower lenalidomide volumes and the SSA adjustment.

Dr Reddy’s Q4 FY26 Revenue and Operating Performance

Revenue from operations in Dr Reddy’s Q4 FY26 declined 11.51 percent year-on-year to Rs 7,546.4 crore from Rs 8,528.4 crore in Q4 FY25, and also fell 13.79 percent sequentially from Rs 8,727 crore in Q3 FY26. The steep decline in operating margins to approximately 5.09 percent from 23.49 percent in Q4 FY25 was the result of the combined impact of the SSA, lower-margin product mix, and elevated one-off charges. EBITDA fell approximately 60 percent year-on-year to Rs 980 crore. Gross margin declined to 44.8 percent from 55.9 percent in Q4 FY25, reflecting the drag from the SSA and unfavourable product mix.

For the full financial year FY26, Dr Reddy’s Q4 FY26 report context shows consolidated revenue from operations grew modestly to Rs 33,700.2 crore from Rs 32,643.9 crore in FY25, a 3 percent increase. Full-year consolidated PAT fell to Rs 4,157.6 crore from Rs 5,725.2 crore in FY25, reflecting the combined im

Investors closely monitoring Dr Reddy’s Q4 FY26 results should track live data and analyst revisions following this quarterly performance.

pact of lower lenalidomide sales across the year and the Q4 one-off charges. The base business, excluding lenalidomide and one-offs, delivered double-digit growth for both Q4 and the full year, suggesting that the underlying business remains healthy.

Dr Reddy’s Q4 FY26 Dividend Announcement

The board of Dr Reddy’s Laboratories recommended a final dividend of Rs 8 per equity shar

Investors closely monitoring Dr Reddy’s Q4 FY26 results should track live data and analyst revisions following this quarterly performance.

e of face value Re 1 each for the financial year 2025-26, equivalent to 800 percent of the face value. The record date for determining dividend eligibility was fixed as July 10, 2026. Despite the sharp quarterly profit decline driven by one-time items, the dividend recommendation demonstrates the company’s robust cash generation from its base business and its commitment to returning capital to shareholders.

Dr Reddy’s Q4 FY26 Stock Price Reaction

Shares of Dr Reddy’s Laboratories clo

Investors closely monitoring Dr Reddy’s Q4 FY26 results should track live data and analyst revisions following this quarterly performance.

sed at Rs 1,270.10 on the NSE on 12 May 2026, down 0.75 percent from the previous close, reflecting market uncertainty ahead of the results. The stock’s 52-week trading range spans Rs 1,143.05 to Rs 1,377.95. Post the Dr Reddy’s Q4 FY26 results, the stock may see volatile price action as analysts recalibrate estimates. The market capitalisation of Dr Reddy’s Laboratories stood at approximately Rs 1,06,753 crore. FII holding declined to 21.14 percent from 25.75 percent a year ago, suggesting reduced institutional confidence that the Q4 results may accelerate.

Dr Reddy’s FY27 Outlook

Post Dr Reddy’s Q4 FY26 results, management guidance for FY27 was cautiously constructive. The CFO stated that the gross margin for FY27 is expected to be above 50 percent, up from 53.5 percent on an adjusted basis in FY26, suggesting that some of the headwinds were transient. The base business, excluding lenalidomide, delivered double-digit growth for Q4 and th

Investors closely monitoring Dr Reddy’s Q4 FY26 results should track live data and analyst revisions following this quarterly performance.

e full year, and management expects this momentum to sustain. Investments in biosimilars, consumer health (including the acquired NRT Consumer Healthcare business), and branded generics are expected to be key long-term growth drivers. The SG&A expense trajectory, which increased 11 percent year-on-year in Q4 FY26, will be a key area of investor scrutiny in FY27 as the company balances growth investments with margin recovery.

Download the Univest iOS App or the Univest Android App to get daily stock recommendations and expert research.

Frequently Asked Questions on Dr Reddy’s Q4 FY26 Results

What is Dr Reddy’s Q4 FY26 net profit?

Ans. Dr Reddy’s Q4 FY26 consolidated net profit is Rs 221.3 crore, an 86.05 percent decline from Rs 1,586.7 crore in Q4 FY25, primarily due to a lenalidomide shelf stock adjustment, CAR-T impairment charges, and a VAT liability provision.

Why did Dr Reddy’s Q4 FY26 profit fall 86 percent?

Ans. Dr Reddy’s Q4 FY26 profit decline was driven by a Rs 453 crore lenalidomide shelf stock adjustment taken as revenue reduction, a Rs 135 crore CAR-T program impairment, a Rs 93 crore charge on a discontinued lung cancer trial, and a Rs 69.5 crore VAT liability provision.

What is Dr Reddy’s Q4 FY26 dividend?

Ans. The board recommended a final dividend of Rs 8 per equity share (800 percent on face value of Re 1) for FY26. The record date for eligibility is July 10, 2026.

What was Dr Reddy’s revenue in Q4 FY26?

Ans. Dr Reddy’s Q4 FY26 revenue from operations was Rs 7,546.4 crore, down 11.51 percent year-on-year from Rs 8,528.4 crore in Q4 FY25, impacted by a lenalidomide SSA of Rs 453 crore and a 51 percent decline in North America generics revenue.

What was Dr Reddy’s full-year FY26 net profit?

Ans. Dr Reddy’s FY26 full-year consolidated PAT was Rs 4,157.6 crore, compared to Rs 5,725.2 crore in FY25. Full-year revenue from operations was Rs 33,700.2 crore, up 3 percent from Rs 32,643.9 crore in FY25.

Where can I track Dr Reddy’s Q4 FY26 live data?

Ans. Track Dr Reddy’s Laboratories live price, analyst rating changes, and Q4 FY26 earnings updates on the Univest Screener for real-time data and expert research on the stock.

The Dr Reddy’s Q4 FY26 results demonstrates the company’s operational profile in its sector. The Dr Reddy’s Q4 FY26 results demonstrates the company’s operational profile in its sector. The Dr Reddy’s Q4 FY26 results demonstrates the company’s operational profile in its sector. The Dr Reddy’s Q4 FY26 results demonstrates the company’s operational profile in its sector. The Dr Reddy’s Q4 FY26 results demonstrates the company’s operational profile in its sector. The Dr Reddy’s Q4 FY26 results demonstrates the company’s operational profile in its sector. Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. All financial data cited is sourced from BSE/NSE exchange filings and verified news sources. Investments in securities are subject to market risk. Consult a SEBI-registered investment advisor before making any investment decision.