Dr Reddy’s Q2 Results Preview: Muted quarter likely; Revlimid drag may offset India gains

Dr Reddy’s Laboratories is set to announce its Q2 FY26 results on October 25, with Zee Business Research Team expecting modest gains in both revenue and profit. The quarter is likely to reflect steady performance, although regional and product-specific challenges could temper overall growth.

Dr Reddy's Laboratories Q2FY26 results estimates: What to expect

According to Zee Business Research, consolidated revenue is projected at Rs 8,627 crore, up 7.3 per cent from Rs 8,038.2 crore a year ago. EBITDA may inch up to Rs 2,100 crore, reflecting a 1.1 per cent rise, while margins could contract slightly to 24 per cent from 25.8 per cent in Q2FY25. Net profit is expected to reach Rs 1,319 crore, a 5 per cent increase over last year.

The revenue from North America is expected to decline by nearly 15 per cent, majorly due to pricing pressures on Revlimid. Analysts note that this erosion may also weigh on the company’s overall product mix.

In India, growth is likely to remain healthy, potentially rising around 10 per cent, supported by demand in the respiratory and pain management segments. Conversely, challenges in the local market are expected to keep the Russia business subdued.

What will investors watch out for

Investors will closely track the management commentary on multiple fronts, including the recovery path for US generics, the durability of NRT-led growth in Europe, and the integration of the Sanofi vaccine portfolio. Upcoming launches of complex generics such as Gixempra, progress in specialty drug pipelines, and R&D spending trends will also be under scrutiny.

Dr Reddy's Laboratories Q1FY26 highlights

In its Q1 FY26 results, Dr. Reddy's Laboratories reported a 2 per cent year-on-year increase in consolidated net profit, which rose to Rs 1,418 crore, and a 11 per cent year-on-year increase in revenue, reaching Rs 8,545 crore. This revenue growth was driven by its consumer healthcare portfolio (specifically in Nicotine Replacement Therapy) and its branded markets. The pharma company also saw a 11 per cent sequential drop in net profit and flat revenue growth compared to the previous quarter.