Dr. Reddy's Laboratories Limited
- Open
- 12.67
- Day high
- 12.74
- Day low
- 12.51
- Prev close
- 12.60
- Volume
- 2.0M
- Mkt cap
- $10.4B
- P/E (TTM)
- 23.4
- EPS (TTM)
- $0.54
- P/B
- 2.7
- P/S
- 3.0
- Yield
- 1.24%
- Per share
- $0.16
Dr. Reddy's Laboratories Limited (RDY) is a Healthcare company listed on NYSE. The stock is down 14% over the past year.
Dr. Reddy's Laboratories Limited (RDY) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
RDY earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 12, 2026 | $0.09 | $0.06 | -33.3% | $789M | -11.0% |
| Jan 21, 2026 | $0.16 | $0.16 | +0.0% | $971M | +3.7% |
| Oct 24, 2025 | $0.18 | $0.19 | +5.6% | $992M | +5.0% |
| Jul 23, 2025 | $0.18 | $0.20 | +11.1% | $997M | -2.2% |
| May 9, 2025 | $0.20 | $0.22 | +10.0% | $995M | +0.8% |
| Jul 27, 2024 | $0.22 | $0.20 | -9.1% | $921M | -0.1% |
| Jun 12, 2024 | — | $0.20 | — | $869M | — |
| Oct 27, 2023 | $0.18 | $0.21 | +16.7% | $827M | +1.4% |
| Jul 26, 2023 | $0.14 | $0.21 | +50.0% | $821M | +5.6% |
| Jun 13, 2023 | — | $0.18 | — | $832M | — |
| Oct 28, 2022 | $0.12 | $0.16 | +33.3% | $773M | +11.2% |
| Jul 28, 2022 | $0.12 | $0.18 | +50.0% | $660M | -2.8% |
Dr. Reddy's Laboratories Limited company profile
Overview
Dr. Reddy's Laboratories Limited (NYSE:RDY) is an Indian multinational pharmaceutical company founded in 1984 and headquartered in Hyderabad, India. The company has evolved from a small startup into one of India's largest pharmaceutical companies, going public on the New York Stock Exchange in 2001. Dr. Reddy's operates as an integrated pharmaceutical company with a global presence, manufacturing and marketing generic drugs, active pharmaceutical ingredients, and developing proprietary products across multiple therapeutic areas including cardiovascular, gastrointestinal, oncology, and diabetes treatments.
Business
Dr. Reddy's operates in the pharmaceutical industry, specifically focusing on generic drug manufacturing and distribution. The pharmaceutical industry is divided into two main segments: branded/innovator drugs (developed by companies that invest heavily in research and hold patents) and generic drugs (copies of branded drugs that can be manufactured once patents expire). Generic drugs must demonstrate bioequivalence to the original branded drug, meaning they deliver the same amount of active ingredient to the bloodstream at the same rate, but are sold at significantly lower prices. The company operates through four primary business segments: 1. Global Generics (approximately 60% of revenue): This segment manufactures and markets prescription and over-the-counter finished pharmaceutical products. These are sold either under the company's own brand names or as generic versions that are therapeutically equivalent to branded formulations. The segment also includes a growing biologics business, which involves manufacturing biosimilar drugs - complex generic versions of biologic medicines derived from living organisms. 2. Pharmaceutical Services and Active Ingredients (PSAI) (approximately 12% of revenue): This segment produces active pharmaceutical ingredients (APIs) - the actual drug compounds that provide therapeutic effects in finished medicines. APIs are the core chemical components that pharmaceutical companies purchase to manufacture their final drug products. This segment also provides contract research services and manufactures steroids according to specific customer requirements. 3. Proprietary Products (approximately 25% of revenue): This segment focuses on research and development of differentiated formulations and includes the company's operations in India and emerging markets where they sell both generic and branded generic products. 4. Others (approximately 3% of revenue): This smaller segment engages in developing therapies in oncology and inflammation, representing the company's innovation-focused initiatives.
Revenue model
Dr. Reddy's generates revenue through multiple business models across its different segments. The primary revenue model is product sales of manufactured pharmaceutical products to distributors, pharmacies, hospitals, and healthcare systems worldwide. In the generics business, the company competes primarily on price and quality, as generic drugs are commoditized products where the lowest-cost, reliable supplier typically wins market share. The company's customers vary by segment: in North America and Europe, primary customers are large pharmacy chains, wholesalers, and hospital systems that purchase generic drugs in bulk. In emerging markets and India, customers include distributors, smaller pharmacies, and healthcare providers. For the PSAI segment, customers are other pharmaceutical companies that purchase APIs to manufacture their own finished drug products. Several factors significantly impact Dr. Reddy's margins and profitability. Regulatory approval timing is crucial, as being among the first companies to launch a generic version of a newly off-patent drug can command premium pricing before competition intensifies. Manufacturing scale and efficiency directly affect cost structure, as pharmaceutical manufacturing involves high fixed costs that benefit from volume production. Raw material costs, particularly for APIs and intermediates, can fluctuate based on global supply chains and commodity prices. Currency fluctuations significantly impact the company since it generates revenue in multiple currencies while having substantial costs in Indian rupees. Competitive intensity varies by product and market - products with fewer generic competitors maintain higher margins, while highly competitive products face continuous price pressure. Finally, regulatory compliance costs represent a significant ongoing expense, as pharmaceutical companies must maintain expensive quality systems and regularly undergo inspections by agencies like the US FDA.
Competitive moat
Dr. Reddy's operates in a moderately competitive industry with limited but meaningful barriers to entry. The company's primary moat stems from regulatory expertise and manufacturing capabilities. Pharmaceutical manufacturing requires substantial upfront capital investment, specialized technical knowledge, and the ability to navigate complex regulatory requirements across multiple jurisdictions. The company has built significant expertise in gaining regulatory approvals from stringent agencies like the US FDA and European Medicines Agency, which represents a meaningful barrier for new entrants. The company's established supply chain relationships and distribution networks across global markets provide some competitive advantage, particularly in emerging markets where local relationships and market knowledge are valuable. Additionally, Dr. Reddy's has developed manufacturing scale advantages that allow it to produce drugs at competitive costs, though this advantage is not insurmountable for well-funded competitors. However, the generic pharmaceutical industry is inherently challenging from a moat perspective. Generic drugs are commoditized products where differentiation is limited, and pricing power erodes quickly as more competitors enter each product market. The company faces constant pressure from new generic entrants, particularly from other Indian and Chinese manufacturers who can often produce at lower costs. Large multinational pharmaceutical companies also increasingly compete in generics through their own divisions or acquisitions. The biosimilar business offers potentially stronger moats due to higher complexity and regulatory barriers, but this segment is still developing and faces competition from both innovator companies and other biosimilar manufacturers. Overall, Dr. Reddy's moat is modest and primarily defensive, relying on operational efficiency and regulatory capabilities rather than strong pricing power or market dominance.
Risks & safety
Dr. Reddy's demonstrates a solid financial position with moderate margin of safety considerations: • Strong liquidity position: Current ratio of 1.92 and quick ratio of 1.37 indicate adequate short-term liquidity, though cash position is relatively modest at $144 million • Low debt burden: Debt-to-equity ratio of 0.16 represents conservative financial leverage with minimal solvency risk • Positive cash generation: Operating cash flow of $77 million in Q3, though free cash flow turned slightly negative at -$26 million due to capital investments • Reasonable valuation metrics: P/E ratio of 19.9 and EV/EBITDA of 12.0 suggest moderate valuation levels for a pharmaceutical company • Profitability metrics: EBITDA margins around 27-28% demonstrate strong operational efficiency, though ROE of 4.4% is relatively modest • Other considerations: The company operates in multiple currencies creating foreign exchange risk, and faces ongoing regulatory compliance costs and competitive pricing pressure in core generic markets
Recent development
Over the past few years, Dr. Reddy's has pursued several strategic initiatives to diversify its revenue base and reduce dependence on traditional generic drugs. The company has significantly expanded its biosimilar portfolio, with multiple products in development targeting launches beginning in 2027. Key biosimilar products include rituximab (which received European marketing authorization), denosumab (filed in US and Europe), and abatacept, representing a major strategic shift toward more complex, higher-barrier products. The company has also made strategic moves into consumer healthcare and adjacent markets. Notable acquisitions include the Nicotinell nicotine replacement therapy portfolio and MenoLabs women's health supplements in the US. Dr. Reddy's formed a joint venture with Nestlé for nutraceuticals in India and entered partnerships with Sanofi for vaccine distribution and Bayer for heart failure medications. A particularly significant development is the company's preparation for GLP-1 generic products, specifically semaglutide (the active ingredient in popular diabetes and weight-loss drugs). Dr. Reddy's is developing both the API and finished dosage forms in-house, with launches planned across emerging markets starting in 2026-2028. This represents a major opportunity given the massive and growing GLP-1 market. The company has also expanded its presence in digital therapeutics, launching products like Nerivio for migraine treatment across multiple markets. Additionally, Dr. Reddy's has strengthened its position in key growth markets, particularly Europe where it achieved 142% year-over-year growth in Q3 2025, and continues to invest heavily in R&D with approximately 8-9% of revenues dedicated to research and development activities.
RDY company profile · for informational purposes only — not investment advice.
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