Dr Reddy's Labs Q3 preview: YoY rise in sales, profit expected; updates on niche ANDA filings, new launches to be in focus

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26 Aug, 2025 12:21

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Pharma major Dr Reddy's Laboratories will release its December quarter earnings on January 28. Along with Q3 numbers, investors will focus on updates on niche ANDA filings and launches over the next 12–15 months.

Brokerage firm Kotak Institutional Equities expects the company's US business to increase by $8 million quarter-on-quarter (QoQ) to $255 million, led by the launch of Kuvan.

"We forecast 23 percent YoY growth in India driven by the full quarter impact of Wockhardt portfolio along with COVID-19 portfolio contribution, while we expect Russia to decline 8 percent YoY due to adverse currency impact," Kotak said.

The brokerage firm expects the rest-of-the-world market to grow at 16 percent YoY, and the EU to grow 25 percent YoY. PSAI business may grow 22 percent YoY.

As per the estimates of Kotak, net sales of the company may see a 14.5 percent YoY rise while adjusted PAT can climb 21.7 percent YoY.

EBITDA may rise 22 percent YoY and EBITDA margin can grow 154 bps YoY, Kotak said.

Motilal Oswal expects the company's US sales to grow 22 percent YoY to $275 million on new launches. India revenue may grow 21 percent YoY on better traction in chronic portfolio and addition of Wockhardt portfolio.

Overall, the company's sales may rise 16.6 percent YoY and adjusted PAT can rise 29.2 percent YoY, Motilal said.

The brokerage expects Dr Reddy's Q3 EBITDA to grow 22.4 percent YoY while the EBITDA margin may rise to 24.4 percent against 23.2 percent in the year-ago.

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