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Dr. Reddy's Laboratories (DRREDDY) INR

Dr. Reddy's Laboratories is an integrated pharmaceutical company that develops, manufactures, and sells generic and branded finished dosage forms, active pharmaceutical ingredients, and biologics. It also provides contract research services and works on differentiated formulations in areas like oncology and inflammation.

At a glance: strengths & risks
✓Low leverage (0.7x EBITDA)✗Revenue declining (-6% y/y, Q1 2026)✗Profit falling (-69% y/y, Q1 2026)✗Margins compressing (25%→10%, Q1 2026)

Sector: Pharmaceuticals

IN_DRREDDY

Price chart

1 145 INRDay 0.17%

Key metrics

Net debt (table and EV/EBITDA): |short-term borrowings| + |long-term borrowings| + |other financial liabilities| when extracted + |non-controlling interest| when extracted − |cash and equivalents|; amounts in millions of the reporting currency.

Market

Price
1 145 INR · 0.17%
Market cap
953.7 bn INR

Growth

Δ revenue y/y
-5.6%
Δ EBITDA y/y
-61.1%

Multiples

P/E (LTM)
28.8x
3y avg: 20.6x
P/B (FY)
2.5x
P/E (ann.)
53.8x
EV/EBITDA (LTM)
17.4x
3y avg: 13.5x
EV/EBITDA (ann.)
29.8x

Cash return

Dividend yield
0.7%
FCF yield (LTM)
-1.4%

Value creation

fundamental value/yr, % of market cap
Value created / year
-28.8%
↓ details

Liquidity

Daily turnover (listing)
2.1 bln INR

Shares: connector/market_inputs

Amounts: USD (converted) · As reported
Converted modes use NBK / ECB-linked rates: balance sheet date for BS items, period average for P&L and cash flow (see filing row evidence). As reported keeps each row in its filing currency.

Financial results

Monetary columns are in B INR, one decimal; scale (K/M/B/T) keeps values readable. For the period (default) shows P&L and cash flow for that row’s reporting window: quarterly amounts when the feed uses quarter-duration facts (typical US 10-Q revenue and income), quarterly cash flows after stripping YTD where only cumulative tags exist, and an implied Q4 on 31 Dec FY rows (P&L: FY minus Q1–Q3; operating / investing cash flow: FY 12m minus 9M YTD to 30 Sep when sourced from SEC builder evidence) so they match 10-Q scale. Some issuers still use cumulative YTD minus the prior row in the same calendar year. As reported shows values stored on each row (e.g. full-year on FY). Balance sheet is always as reported. Source JSON may use millions etc.; conversion uses amounts_unit per row.

DatePeriodStatusRevenueB INROperating profitB INRD&AB INREBITDAB INRNet profitB INROperating CFB INRCapex + M&AB INRAssetsB INREquityB INRROE (annualized)Net debtB INRSource
2026-06-30Q2 2026 (3M)PARTIAL80.7
y/y -5.6%
3.0
y/y -82.0%
5.4
y/y 12.7%
8.4
y/y -61.1%
4.4
y/y -68.7%
-0.9-3.7575.3
y/y 10.7%
383.4
y/y 9.5%
4.7%46.5Yahoo Finance
2026-03-31Q1 2026 (3M)OK75.2
y/y -11.6%
1.1
y/y -93.8%
5.6
y/y 22.4%
6.7
y/y -69.6%
2.2
y/y -86.2%
15.6-10.8579.3
y/y 17.5%
377.1
y/y 13.1%
11.4%47.6Yahoo Finance
2025-12-31Q4 2025 (3M)OK87.3
y/y 4.4%
14.3
y/y -23.4%
5.2
y/y 10.5%
19.5
y/y -16.6%
12.1
y/y -14.4%
10.9-7.3562.9
y/y 17.0%
372.4
y/y 15.8%
4.4%35.4Yahoo Finance
2025-09-30Q3 2025 (3M)PARTIAL88.1
y/y 9.8%
17.9
y/y -1.0%
5.1
y/y 27.1%
22.9
y/y 4.1%
14.4
y/y 14.5%
15.6-10.1542.0
y/y 16.3%
358.5
y/y 15.9%
16.2%35.0Yahoo Finance
2025-06-30Q2 2025 (3M)OK85.5
y/y 11.4%
16.8
y/y -6.0%
4.8
y/y 25.1%
21.6
y/y -0.5%
14.2
y/y 1.9%
14.6-10.1519.5
y/y 25.1%
350.1
y/y 18.8%
16.6%33.2Yahoo Finance
2025-03-31Q1 2025 (3M)OK85.1
y/y —
17.3
y/y —
4.6
y/y —
21.9
y/y —
15.9
y/y —
22.0-14.6493.0
y/y 27.2%
333.4
y/y 18.8%
17.3%27.2Yahoo Finance
2024-12-31Q4 2024 (3M)OK83.6
y/y 15.9%
18.7
y/y 10.7%
4.7
y/y 25.2%
23.4
y/y 13.3%
14.1
y/y 2.5%
6.6-7.2481.1
y/y 29.0%
321.6
y/y 20.1%
6.0%33.2stockanalysis.com
2024-09-30Q3 2024 (3M)OK80.2
y/y 16.5%
18.0
y/y 9.4%
4.0
y/y 4.9%
22.0
y/y 8.5%
12.6
y/y -15.2%
9.3-7.5466.0
y/y 34.3%
309.3
y/y 22.2%
16.6%32.5stockanalysis.com
2024-06-30Q2 2024 (3M)OK76.7
y/y —
17.9
y/y —
3.8
y/y —
21.7
y/y —
13.9
y/y —
8.5-5.1415.3
y/y —
294.6
y/y —
19.4%22.1stockanalysis.com
2024-03-31FY 2024 (12M)OK—
y/y 13.5%
—
y/y 10.6%
—
y/y 17.5%
—
y/y 11.8%
—
y/y 23.6%
——387.5
y/y 20.4%
280.6
y/y 21.5%
20.3%9.4Yahoo Finance
2023-12-31Q4 2023 (3M)OK72.1
y/y —
16.9
y/y —
3.8
y/y —
20.7
y/y —
13.8
y/y —
4.7-3.8372.8
y/y —
267.9
y/y —
7.1%8.6stockanalysis.com
2023-09-30Q3 2023 (3M)OK68.8
y/y —
16.5
y/y —
3.8
y/y —
20.3
y/y —
14.8
y/y —
17.9-3.7347.0
y/y —
253.1
y/y —
24.5%-3.9stockanalysis.com
2023-03-31FY 2023 (12M)PARTIAL245.9
y/y —
59.1
y/y —
12.6
y/y —
71.7
y/y —
45.1
y/y —
58.9-18.9321.9
y/y —
231.0
y/y —
—5.4Yahoo Finance

Revenue & EBITDA

RevenueEBITDA

Quarterly values (INR mln)

020 00040 00060 00080 0002024 q12024 q22024 q32024 q42025 q12025 q22025 q32025 q42026 q12026 q2

Year-over-year change

-75%-50%-25%0%25%2024 q12024 q22024 q32024 q42025 q12025 q22025 q32025 q42026 q12026 q2

Cash flow

FCF (INR mln)

-15 000-10 000-5 00005 00010 0002024 q12024 q22024 q32024 q42025 q12025 q22025 q32025 q42026 q12026 q2

Net debt / cash (INR mln)

010 00020 00030 00040 00050 0002024 q22024 q32024 q42025 q12025 q22025 q32025 q42026 q12026 q22026 q4

Profit and cash

Profit is cash-backed
In a typical year of 2022–2026 operating cash flow came to 1.19x of reported net profit; after capex, 0.43x.
year20222023202420252026
cash flow / profit1.19x1.31x0.82x0.82x1.32x
accruals, % of assets—-4.3%2.6%2.1%-2.4%
Last twelve months (to 2026-06-30): 1.24x of profit came back as operating cash flow.
net debt / EBITDA 0.7x · capex 1.7x of depreciation
Read from the reported annual statements: cash flow / profit is the median of the yearly operating cash flow over net profit for the years shown; accruals are (profit − operating cash flow) / assets, the classic gap between what was booked and what was collected. A gap can be growth in working capital, capitalised costs, revaluations or profit from associates — the panel points at it, the statements explain it. Not investment advice.

Research & reviews

Our earnings breakdowns and investment notes on this issuer.

All research →

Fundamental value creation

Value the company creates per year, as a % of market cap

Value created per year: -28.8%

How this was calculated
1. EBITDA growth (latest quarter YoY, annualised)
[EBITDA latest qtr − EBITDA year-ago qtr] × annualisation X (2026-06-30 vs 2025-06-30)
= (8 405 − 21 607) × 6.81
-18 344
2. Current EV/EBITDA (LTM)
(Market cap + Net debt) ÷ EBITDA (LTM)
= (953 727 + 46 484) ÷ 57 271
17.5x
3. Target multiple
(Current EV/EBITDA + 11) ÷ 2
= (17.5 + 11) ÷ 2
14.2x
4. Cash flow (balance method, LTM)
Net-debt reduction + dividends + buybacks − equity issuance
= -13 307 + 0 + 0 − 0
-13 307
5. Value created per year
(EBITDA growth × Target multiple + Cash flow − Dilution) ÷ Market cap
= (-18 344 × 14.2 + -13 307) ÷ 953 727
-28.8%

Amounts in millions of the reporting currency. EBITDA growth is the latest quarter vs the same quarter a year ago, annualised.

Caveats:

  • dividends/buybacks not in data - balance cash flow uses net-debt change only
  • EBITDA growth from 3-yr FY trend, min of avg & latest YoY (anomalous latest-period delta)

Revenue growth & acceleration

Growth decelerating ▼
Last-year revenue growth +3% vs +17% the year before — a -13.4 pp move. 3-year CAGR +11%.
revenue growth by year: 2024 +14% · 2025 +17% · 2026 +3%
The growth-acceleration signal behind the GARP+acceleration strategy — it favours companies whose revenue growth is speeding up and flags those slowing down (the second derivative of growth).

Peer comparison

Group: Pharmaceuticals. Each peer is shown as it trades and re-priced onto this company's market (India) by the ratio of our coverage medians.

CompanyMarketCap, $bnEV/EBITDAEV/EBITDA, adjusted
LupinIndia10.010.7x10.7x
Aurobindo PharmaIndia10.113.3x13.3x
Kalbe FarmaIndonesia2.04.2x18.3x
CiplaIndia11.520.3x20.3x
Sun Pharmaceutical IndustriesIndia46.425.9x25.9x
Group median13.3x18.3x
Group average14.9x17.7x
This companyIndia10.017.4x17.4x

Group median 13.3x as traded, 18.3x adjusted; this company 17.4x — a 5% discount.

Group average 14.9x as traded, 17.7x adjusted; against the average this company is at a 2% discount.

At the adjusted group median the market cap would be +5% versus today.

The gap and the implied upside are measured against the median: one richly priced peer moves an average, not a median. The market adjustment uses our coverage medians (US 23.0x, Russia 3.9x, South Africa 5.4x, Kazakhstan 7.7x, India 18.1x, Indonesia 4.2x); it is about where a name is listed, not what it does. Peer multiples come from the nightly rebuild of 2026-09-15; the company's own is live.

Dividends

Paid (completed)

DatePer shareDetailsStatusSource
2026-07-108 INREx-dividend: 8 INR per sharePaidYahoo Finance (ex-div)
2025-07-108 INREx-dividend: 8 INR per sharePaidYahoo Finance (ex-div)
2024-07-168 INREx-dividend: 8 INR per sharePaidYahoo Finance (ex-div)
2023-07-118 INREx-dividend: 8 INR per sharePaidYahoo Finance (ex-div)
2022-07-116 INREx-dividend: 6 INR per sharePaidYahoo Finance (ex-div)

KASE: status follows wording in the news headline (paid vs intends to pay). Yahoo: amounts are cash dividends per share on ex-dividend dates (UTC calendar date). stockscope.uz (UZ): amounts are per share in UZS by publication date (not necessarily ex-div).

Reporting forms detected in loaded periods: ✓ ✓ ✓ (Balance sheet / Profit or loss (P&L) / Cash flows)

Financial results, valuation multiples (P/E, P/B, EV/EBITDA), profitability and dividend yield of Dr. Reddy's Laboratories (DRREDDY) — from primary filings.

Frequently asked questions

What is Dr. Reddy's Laboratories (DRREDDY)'s P/E ratio?
Dr. Reddy's Laboratories (DRREDDY) trades at a P/E of 28.8x (price to trailing 12-month earnings).
What is Dr. Reddy's Laboratories (DRREDDY)'s EV/EBITDA?
Dr. Reddy's Laboratories (DRREDDY) trades at 17.4x EV/EBITDA.
What is Dr. Reddy's Laboratories (DRREDDY)'s P/B ratio?
Dr. Reddy's Laboratories (DRREDDY) trades at a P/B of 2.5x.
What is Dr. Reddy's Laboratories (DRREDDY)'s dividend yield?
Dr. Reddy's Laboratories (DRREDDY)'s trailing 12-month dividend yield is 0.7%.
What is Dr. Reddy's Laboratories (DRREDDY)'s return on equity (ROE)?
Dr. Reddy's Laboratories (DRREDDY)'s ROE is 4.7%.
What is Dr. Reddy's Laboratories (DRREDDY)'s market capitalization?
Dr. Reddy's Laboratories (DRREDDY)'s market cap is 953.7 bn INR.

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