Mumbai–Dr Reddy’s Laboratories reported a 69 percent year-over-year decline in consolidated net profit for the first quarter of fiscal 2027, as lower global generics revenue, weaker North American sales and semaglutide supply disruptions weighed on earnings.
Net profit attributable to the company’s owners fell to Rs 4,435 crore in the April-June quarter from Rs 14,178 crore a year earlier, according to a regulatory filing with the National Stock Exchange.
Revenue from operations declined 5.5 percent to Rs 8,070.5 crore from Rs 8,545.2 crore in the same period last year.
The pharmaceutical company’s operating performance also weakened during the quarter. Earnings before interest, taxes, depreciation and amortization fell 60.4 percent to Rs 861 crore from Rs 2,173 crore a year earlier.
Its EBITDA margin contracted to 10.6 percent from 25.3 percent.
Other income increased to Rs 355 crore from Rs 290 crore in the corresponding quarter of the previous financial year.
Dr Reddy’s said it recorded a provision of Rs 240 crore for inventory and other costs associated with disruptions to semaglutide supplies.
The company said earlier this month that supplies of its generic semaglutide would remain unavailable in India and face continued disruptions in Canada until at least late October. An impurity issue in the active pharmaceutical ingredient forced the company to suspend production of new batches.
Semaglutide, the active ingredient used in the weight-loss drug Wegovy, recently lost patent protection in India, opening the market to domestic generic drugmakers.
The production disruption is expected to delay Dr Reddy’s efforts to expand its presence in the fast-growing semaglutide market.
Revenue from North America, the company’s largest market, fell 35.3 percent from a year earlier to Rs 2,205 crore during the quarter.
Shares of Dr Reddy’s Laboratories closed 2.16 percent lower at Rs 1,179.90 on the NSE on Wednesday following the results. (Source: IANS)
