Dr Reddy’s Q4 Results: Pharma major declares 800% dividend despite 86% plunge in profit to Rs 220 crore

Dr Reddy's Q4FY26 Results: The pharmaceutical major Dr. Reddy's Laboratories reported a sharp decline in its fourth-quarter earnings for FY26, as multiple one-time charges significantly impacted profitability during the period.

The company posted a consolidated net profit of Rs 220 crore for the March quarter, down 86.2 per cent from Rs 1,593 crore reported in the corresponding quarter last year.

One-time adjustments drag earnings

The steep fall in profit was primarily due to a major Shelf Stock Adjustment (SSA) related to lenalidomide amounting to Rs 4,530 crore.

In addition, the company also recorded impairment charges related to CAR-T assets and Eftilagimod Alfa totalling Rs 27 crore.

Dr Reddy’s further made provisions of Rs 14 crore towards VAT-related liabilities during the quarter.

The combined impact of these exceptional items weighed heavily on the company’s bottom line despite continued business operations across key markets.

Dr Reddy's announces final dividend

Alongside the quarterly results, Dr Reddy’s Laboratories announced a final dividend of Rs 8 per equity share with a face value of Re 1 for the financial year 2025-26.

The proposed dividend is subject to shareholder approval at the company’s upcoming Annual General Meeting (AGM).

Key dividend dates
Dividend amount: Rs 8 per equity share
Record date: July 10, 2026
Ex-dividend date: July 10, 2026

The dividend announcement comes even as the company reported pressure on quarterly profitability due to exceptional adjustments.