DR REDDY'S LABORATORIES : 4QFY26 first take: US disappointment drives EBITDA miss

研报英文原文证据摘录

DR REDDY'S LABORATORIES : 4QFY26 first take: US disappointment drives EBITDA miss

EQUITIES

PHARMACEUTICALS

DR REDDY'S LABORATORIES NEUTRALPRICE* INR1,280  TARGET PRICE INR1,320 (UPSIDE 3%)

DR REDDY'S LABORATORIES ADR NEUTRALPRICE* USD13.1  TARGET PRICE USD14.2 (UPSIDE 8%)

FLASH NOTE

4QFY26 first take: US disappointment drives EBITDA miss

12 MAY 2026 Securities Research Report Production time: 14:46* (London time)

Research Analyst & Publishing Entities

Tausif Shaikh BNP Paribas Securities India Private Limited +91 22 6196 4037 tausif.shaikh@asia.bnpparibas.com

BNPP view:

DRRD reported a poor 4QFY26 with EBITDA missing our estimates and consensus by 17%/22%. While reported

revenue declined 12% y-y, revenue adjusted for Shelf Stock Adjustment (SSA) related to gRevlimid declined 6% y-y

and was in line with our expectation. Gross margin declined 760bp y-y to 48% due to a declining market share and

price erosion in gRevlimid. India business continues to deliver well with 20% y-y growth (c17% organic growth).

Domestic secondary sales grew at 12% y-y vs IPM growth of 10%. Europe and Emerging markets delivered double-

digit growth led by contribution from acquired assets.

DRRD’s 4QFY26 performance was clearly a disappointment and US faltered due to loss of revenue from gRevlimid.

We believe US business to remain under pressure in the near-term led by absence of new products, with Abatacept

being the only notable product which is expected to launch in FY28. While DRRD has received Semaglutide approval

in Canada, we believe the revenue will not be sufficient to offset the US business.

Earnings Call is scheduled today at 7:30 PM (IST) and commentary on US business outlook for FY27 and margin

trajectory would be closely watched.

. Result summary: