Analyst Consensus ?
ConsensusHold12 ratings
Bullish650.0%
Neutral433.3%
Bearish216.7%
Dr. Reddy's Laboratories Limited · RDY · FY2026 Q1 · Calendar Q3 2025
Dr. Reddy’s Q1 FY26: Growth Holds, U.S. Generics Remain Under Pressure
The quarter supports a measured version of the growth thesis: revenue growth, above-target EBITDA margin, consumer-health expansion, and a broad pipeline are constructive, but U.S. generic pricing pressure and below-consensus scorecard results temper the outlook.
Reported Before market openNYSEHealthcare
$11.00B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$0.20
Consensus $0.21
EPS surprise
-6.7%
Reported versus consensus
Reported revenue
$997.5M
Consensus $1.02B
Revenue surprise
-2.2%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
+1.3%
Event window
SPY move
+0.9%
Same window
Abnormal move
+0.5%
Stock minus SPY
Volume
1.5×
Versus trailing sessions
Subsequent drift
-3.2%
Up to 20 sessions
RDYSPY benchmark
Ask FN2 about RDY FY2026 Q1
Transcript, numbers and history already loaded
Why did RDY rise 1.3% after missing EPS estimates in FY2026 Q1?What changed in RDY's guidance and outlook in FY2026 Q1?Give me the bull and bear case for RDY after FY2026 Q1 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
The current analysis adds evidence of continued double-digit growth and a 27% EBITDA margin, while emphasizing that U.S. generic price erosion—particularly in lenalidomide—remains a constraint. The pipeline focus broadened around semaglutide, abatacept, and the Alvotech pembrolizumab collaboration, with guidance sentiment maintained.
Guidance delta
Maintained; the supplied analysis reports no change in guidance sentiment.
Key takeaways
- Management analysis describes 11% year-over-year revenue growth and a 27% EBITDA margin, above the 25% target.
- U.S. generics faced price erosion, especially in lenalidomide, while management maintained its guidance stance.
- Semaglutide, abatacept, and additional biosimilars remain central to the growth pipeline.
Management priorities
- Advance semaglutide and biosimilar launches and filings.
- Expand peptide, API, and pen capacity while keeping capex stable.
- Integrate and expand consumer-health businesses, including NRT and the Nestle nutraceutical joint venture.
Follow RDY with an agent that reads every filing, transcript, and price print. Free to start.
Try FN2 freeEarnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$13.21Current
$14.8Low
$14.8Average
$14.8High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 24, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Citigroup | Buy | Sell | Upgrade | Sep 29, 2026 |
| HSBC | Buy | Hold | Upgrade | Jun 5, 2025 |
| Barclays | Overweight | Overweight | Maintain | Nov 6, 2024 |
| CLSA | Outperform | Buy | Maintain | Jan 28, 2020 |
| Bank of America | Neutral | Buy | Downgrade | Nov 4, 2019 |
| B of A Securities | Neutral | Buy | Downgrade | Nov 4, 2019 |
| Credit Suisse | Outperform | Underperform | Upgrade | Sep 4, 2019 |
| Morgan Stanley | Equal Weight | Overweight | Downgrade | May 20, 2019 |
| Jefferies | Underperform | Underperform | Maintain | Nov 1, 2017 |
| Goldman Sachs | Neutral | Neutral | Maintain | May 2, 2016 |
| Deutsche Bank | Sell | Sell | Maintain | Dec 2, 2015 |
| Anand Rathi | Buy | Hold | Upgrade | Jun 28, 2012 |
Named analyst price targets
Upside is calculated against the persisted current price $13.21. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| BNP Paribas | Tausif Shaikh | $14.8 | $12.48 | +12.0% | Oct 12, 2026 |
Track every rating change on RDY the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationDr. Reddy's Laboratories Limited, alongside its associated companies, functions as a holistic pharmaceutical entity with a global footprint. Its business operations are divided into several key divisions. The Global Generics segment is responsible for the manufacturing and sale of both prescription and over-the-counter finished pharmaceutical products. These offerings are available either under a proprietary brand or as generic formulations that are therapeutically identical to their branded equivalents. This segment also includes the company's biologics ventures. The Pharmaceutical Services and Active Ingredients (PSAI) division focuses on producing and distributing active pharmaceutical ingredients (APIs) and chemical intermediates, which serve as crucial building blocks for final drug products.…
Historical context
All RDY earningsHealthcare peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| DGX Quest Diagnostics Incorporated | FY2026 Q3 · Calendar Q4 2026 | +4.5% | +1.8% | Quest Diagnostics: growth broadens, but PAMA remains a headwind |
| ARGX argenx SE | FY2026 Q3 · Calendar Q4 2026 | — | -1.6% | argenx: VYVGART momentum and a broader late-stage pipeline |
| MEDP Medpace Holdings, Inc. | FY2026 Q3 · Calendar Q4 2026 | +9.0% | -1.3% | Medpace: Record awards lift backlog as 2026 outlook improves |
| MOH Molina Healthcare, Inc. | FY2026 Q3 · Calendar Q4 2026 | +12.7% | +0.8% | Molina reaffirms 2026 outlook as Florida contract scales |
Latest beats and misses
Who reports nextBeat on EPS
- FCNCAFY2026 Q3 · October 23, 2026+19.9% EPS+8.2% move
- FCNCNFY2026 Q3 · October 23, 2026+19.9% EPS+0.2% move
- FCNCOFY2026 Q3 · October 23, 2026+19.9% EPS+1.0% move
- FCNCPFY2026 Q3 · October 23, 2026+19.9% EPS+1.0% move
- RDYFY2027 Q2 · October 23, 2026+24.0% EPS-0.2% move
- SLBFY2026 Q3 · October 23, 2026+3.7% EPS+7.1% move
Missed on EPS
- INFYFY2027 Q2 · October 23, 2026-4.8% EPS-6.6% move
- BBDFY2026 Q3 · October 22, 2026-7.7% EPS+3.0% move
- SNAFY2026 Q3 · October 22, 2026-5.9% EPS-3.4% move
- SPOTFY2026 Q3 · October 22, 2026-11.6% EPS+11.1% move
- VRSNFY2026 Q3 · October 22, 2026-2.0% EPS-0.9% move
- HBANMFY2026 Q3 · October 22, 2026-5.3% EPS+0.5% move
Get the RDY recap when the next report posts
One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.
Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:55.686058+00:00
- Polygon adjusted daily market bars · 2026-10-24T13:10:43.012578+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-24T13:10:43.009269+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-24. For educational purposes only; not investment advice.