Quick Note - Dr Reddy's Laboratories (DRRD IN) (Buy) - 4QFY26 in line; outlook comforting

研报英文原文证据摘录

Quick Note - Dr Reddy's Laboratories (DRRD IN) (Buy) - 4QFY26 in line; outlook comforting

Global Markets Research

Dr Reddy's Laboratories REDY.NS DRRD IN 12 May 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

Rating4QFY26 in line; outlook comforting Remains Buy

Target price INR 1,600 RemainsQuick Note

Closing price INR 1,270 12 May 20264QFY26 results: Adjusted for one-off items, we estimate sales were 1% ahead of our

estimate and EBITDA was 3% below our estimate

4QFY26 results were the first quarter without contribution from gRevlimid. Thus, it is a

material clearing event as the Street had been anxious on business performance as the Research Analysts

significant contribution from gRevlimid declined. The financial performance as reported India Pharmaceuticals

and after adjusting for one-time expenses and income is presented in Fig.2. As detailed, Saion Mukherjee - NFASL

we estimate that sales were 1% ahead of our estimate and EBITDA was 3% lower than saion.mukherjee@nomura.com

our estimate. The results were supported by strong growth in ex-US businesses. India +91 22 403 74184

organic growth was strong at 17% y-y, in our view (vs 20% y-y reported growth). EM ex- Kushal Chovatia - NFASL

Russia/CIS recorded 47% growth y-y in INR terms. Russia constant-currency growth kushal.chovatia@nomura.com

slowed down a bit after 20%+ growth in 3QFY26 to 8% growth in 4QFY26. North America +91 22 403 74013

Generics revenues were at USD251mn excluding shelf-stock adjustments related to

gRevlimid. The NAG quarterly revenue run-rate has been at a level similar to where it was

before the launch of gRevlimid in 2QFY23, indicating price erosion in key products over

the past three years.

Outlook: The company expects double-digit revenue growth to sustain across all markets

excluding NAG.