Analyst Consensus ?
ConsensusHold12 ratings
Bullish650.0%
Neutral433.3%
Bearish216.7%
Dr. Reddy's Laboratories Limited · RDY · FY2026 Q3 · Calendar Q1 2026
Dr. Reddy’s Q3 FY26: Core Growth, Pipeline Progress, Regulatory Risks
The quarter provides partial support for a growth-and-demand thesis: core branded and consumer-health businesses grew at double-digit rates, but total revenue growth was modest and the outlook remains dependent on pipeline execution, regulatory progress and margin discipline.
Reported Before market openNYSEHealthcare
$11.00B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$0.16
Consensus $0.16
EPS surprise
0.0%
Reported versus consensus
Reported revenue
$951.6M
Consensus $927.7M
Revenue surprise
+2.6%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
+0.2%
Event window
SPY move
-2.0%
Same window
Abnormal move
+2.2%
Stock minus SPY
Volume
2.1×
Versus trailing sessions
Subsequent drift
+11.4%
Up to 20 sessions
RDYSPY benchmark
Ask FN2 about RDY FY2026 Q3
Transcript, numbers and history already loaded
Why did RDY rise 0.2% after beating EPS estimates in FY2026 Q3?What changed in RDY's guidance and outlook in FY2026 Q3?Give me the bull and bear case for RDY after FY2026 Q3 earnings.
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Transcript intelligence
What changed
Compared with the prior quarter, revenue growth moderated to 4.4% year over year, while management emphasized double-digit growth in the core businesses. The current analysis also highlights 85% NRT integration, India’s semaglutide launch, the Immutep collaboration and a reported 23.5% EBITDA margin.
Guidance delta
Guidance was maintained; management is targeting an EBITDA margin of around 25% going forward.
Key takeaways
- Revenue rose 4.4% year over year, while core branded and consumer-health businesses grew at double-digit rates.
- Reported EBITDA margin was 23.5%; the margin was 24.8% after excluding a one-time labor-law provision.
- Semaglutide launched in India, while Canadian and other-market approvals remain pending; biosimilar programs face regulatory hurdles.
- NRT integration was 85% complete, with management targeting completion by fiscal year-end.
Management priorities
- Deliver double-digit growth in branded and consumer-health franchises.
- Complete integration of the NRT business by fiscal year-end.
- Advance semaglutide, abatacept, denosumab and rituximab commercialization and approvals.
- Scale Aurigene’s CDMO business toward the stated $100 million-plus revenue ambition over the next two to three years.
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Estimate
Beat
Miss
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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
- RITM-PDFY2026 Q3 · October 23, 2026+10.2% EPS— move
- FIXFY2026 Q3 · October 22, 2026+8.2% EPS-8.5% move
- DECKFY2027 Q2 · October 22, 2026+13.4% EPS-0.2% move
- OMCFY2026 Q3 · October 22, 2026+2.2% EPS+2.6% move
- SSNCFY2026 Q3 · October 22, 2026+0.6% EPS+2.8% move
- BEFY2026 Q3 · October 22, 2026+36.0% EPS-8.7% move
Missed on EPS
- 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
- HBANPFY2026 Q3 · October 22, 2026-5.3% EPS0.0% move
Get the RDY recap when the next report posts
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-10-24T02:10:42.816328+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-24T02:10:42.813581+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.