Dr. Reddy’s Laboratories on May 9 posted a 22% year-on-year rise in net profit for the fourth quarter of FY25, driven by robust growth in its global generics business and contributions from its recently acquired nicotine replacement therapy (NRT) portfolio, thus beating estimates.
A Moneycontrol poll of brokerages had expected Dr Reddy's to post a net profit of Rs 1,035 crore and revenue from operations at Rs 7,058 crore.
Consolidated revenue for the quarter rose 20% to Rs 8,501 crore, while the net profit reached ₹1594 crore.
EBITDA for Q4 rose 32% YoY to Rs 2,470 crore, with margins improving to 29.1%.
R&D spend for FY25 was Rs 2,740 crore, or 8.4% of revenue, supporting biosimilars, complex generics, and oncology assets.
For the full fiscal year, revenue climbed 17% to Rs 32,554 crore, with net profit up 2% at Rs 5,654 crore.
The company has a net cash of Rs 2,454 crore.
Along with the Q4 results, the company announced a final dividend of Rs 8 per share.
“We achieved double-digit growth across our businesses, driven by successful product launches, increased revenues from key products in the U.S., and the integration of the acquired NRT business,” said G.V. Prasad, Co-Chairman and Managing Director. “We will continue to strengthen and grow our core businesses through portfolio management and operational excellence.”
The global generics segment saw Q4 revenue rose 23% YoY to Rs 7,540 crore, with FY25 revenue up 18% to Rs 28,960 crore. Excluding NRT, underlying growth was 13%.
North America revenue grew 9% YoY to Rs 3,560 crore, supported by seven new product launches.
FY25 revenue rose 12%. With 76 generic filings pending USFDA approval—including 20 with potential first-to-file status—Dr. Reddy’s said is poised for continued growth in the U.S. generics market.
The Q4 revenue for Europe surged 145% YoY to Rs 1,280 crore, including NRT sales. Excluding NRT, growth was 30%.
India revenue rose 16% YoY to Rs 1,300 crore, driven by new launches and price increases.
Emerging Markets saw revenue growth of 16% YoY to Rs 1,400 crore, led by Russia and CIS countries.
The pharmaceutical services and active ingredients (PSAI) revenue rose 16% YoY to Rs 960 crore.
Dr. Reddy’s expanded its biosimilars pipeline through partnerships with Shanghai Henlius and Bio-Thera, and received regulatory approvals for multiple biosimilars in the U.S. and UK. It also participated in India’s Jan Aushadi program to improve access to affordable medicines.
The company completed the divestment of its Shreveport, Louisiana facility and received a Voluntary Action Initiated (VAI) classification from the U.S. FDA for its Hyderabad API plant.
On May 9, Dr Reddy's Labs shares on BSE closed nearly 1% higher at Rs 1,158 apiece. The 52-week low of the stock is Rs 1,020 and 52-week high is Rs 1,421. The market capitalisation of the stock is Rs 96,267 crore.
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