Dr. Reddy’s Laboratories (NYSE:RDY) Posts Earnings Results, Meets Estimates

Dr. Reddy’s Laboratories (NYSE:RDY) posted its quarterly earnings results on Wednesday. The company reported $0.16 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.16, Zacks reports. Dr. Reddy’s Laboratories had a net margin of 17.14% and a return on equity of 17.13%.

Here are the key takeaways from Dr. Reddy’s Laboratories’ conference call:

• Company reported a resilient Q3 with 4.4% revenue growth, reported EBITDA margin of 23.5% (24.8% adjusted for a one‑time new labor‑code provision) and a net cash surplus of $342 million, though gross margins were hit by lower lenalidomide sales and generic price erosion.
• Semaglutide cleared India approval and is targeted for an India launch on March 21, with a Canada review response submitted (goal date by May) and filings planned across ~80 markets, supporting a potentially material new revenue stream.
• Biologics pipeline progress includes a December BLA filing for the IV presentation of Abatacept and planned global launches (Europe/US/Japan/Canada), positioning the company to commercialize a high‑value biosimilar if approvals proceed on schedule.
• Regulatory and manufacturing headwinds remain: US FDA issued a Form 483 (five observations) at one Srikakulam facility and a post‑application action letter for Bachupally (rituximab), while partner‑related CRLs (e.g., Ustekinumab/Denosumab via partners) introduce timing uncertainty for some biosimilar launches.
• Branded franchises and M&A are accelerating growth — India and emerging markets delivered double‑digit expansion, the acquired nicotine‑replacement therapy business is 85% integrated and outperforming expectations, and management continues targeted BD to augment organic growth.

Dr. Reddy’s Laboratories Price Performance

NYSE:RDY traded up $0.34 during trading hours on Wednesday, reaching $13.28. The stock had a trading volume of 724,865 shares, compared to its average volume of 1,390,666. The stock has a market capitalization of $11.08 billion, a PE ratio of 16.38, a PEG ratio of 6.36 and a beta of 0.37. Dr. Reddy’s Laboratories has a 52 week low of $12.26 and a 52 week high of $16.17. The company has a 50 day moving average price of $13.85 and a two-hundred day moving average price of $14.11. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.35 and a current ratio of 1.85.

Analysts Set New Price Targets

Separately, Weiss Ratings cut Dr. Reddy’s Laboratories from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $16.90.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. EverSource Wealth Advisors LLC grew its holdings in shares of Dr. Reddy’s Laboratories by 71.7% in the second quarter. EverSource Wealth Advisors LLC now owns 3,100 shares of the company’s stock worth $47,000 after purchasing an additional 1,294 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in Dr. Reddy’s Laboratories in the 2nd quarter valued at about $67,000. Zurcher Kantonalbank Zurich Cantonalbank bought a new position in Dr. Reddy’s Laboratories in the 3rd quarter worth about $78,000. Van ECK Associates Corp increased its position in shares of Dr. Reddy’s Laboratories by 25.2% during the third quarter. Van ECK Associates Corp now owns 9,355 shares of the company’s stock worth $131,000 after acquiring an additional 1,881 shares during the period. Finally, Osaic Holdings Inc. raised its stake in shares of Dr. Reddy’s Laboratories by 1,105.3% during the second quarter. Osaic Holdings Inc. now owns 11,390 shares of the company’s stock valued at $158,000 after acquiring an additional 10,445 shares in the last quarter. Institutional investors own 3.85% of the company’s stock.

About Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories Ltd. is an India‐based multinational pharmaceutical company that develops, manufactures and markets a wide range of pharmaceutical products and services. Established in 1984 by the late Dr. Kallam Anji Reddy, the company has grown into a diversified healthcare enterprise offering generic and proprietary medicines, active pharmaceutical ingredients (APIs), biosimilars and custom research and manufacturing services (CRAMS). Its portfolio spans therapeutic areas such as oncology, cardiovascular care, dermatology, gastroenterology and pain management.

The company’s core activities include the development and commercialization of cost‐effective generic treatments for branded drugs that have lost patent protection, along with in‐house research into innovative molecule development.