From The Motley Fool · Motley Fool Transcribing · · 2m
Dr. Reddy's Q2 2027 Earnings Report
Dr. Reddy's reports slight revenue drop as North American sales decline but shows strong growth in India and emerging markets.
In brief
Dr. Reddy's reports slight revenue drop as North American sales decline but shows strong growth in India and emerging markets. Dr. Reddy's reported a 1.5% year-over-year revenue decline in Q2 2027, driven by lower North American Lenalidomide sales, while India and emerging markets grew at double-digit rates…
Q2 2027 Revenue
Dr. Reddy's reported consolidated revenue of $905 million, a 1.5% decline year over year.
North America Revenue
North America revenue declined 29% year over year to $264 million, driven by Lenalidomide sales.
Emerging Markets Growth
Emerging markets revenue grew 84% year over year to ₹2,059 crore, driven by new product launches.
India Revenue
India revenue grew 17.8% sequentially to ₹1.85 thousand crores, outperforming the market.
Europe Revenue
Europe revenue declined 6% year over year to €127 million due to price erosion.
PSAI Revenue
PSAI revenue declined 19% year over year to $88 million, impacted by low API volume.
Gross Margin
Gross margin decreased 254 basis points year over year to 52.1% due to Lenalidomide sales.
SG&A Spend
SG&A spend increased 6% year over year to ₹2,810 crore, driven by personnel costs.
R&D Spend
R&D spend declined 16% year over year to ₹524 crore, reflecting lower generic development.
Net Profit
Net profit reached ₹925 crore with a 10.7% margin on total revenues.
Diluted EPS
Diluted EPS was ₹11.1 for the second quarter of the fiscal year.
Net Cash Surplus
Net cash surplus stood at $261 million, providing liquidity for growth opportunities.
CapEx Guidance
CapEx guidance is ₹1.6 thousand crores to ₹1.7 thousand crores for capacity expansion.
CDMO Revenue
CDMO revenue exceeded $100 million, representing trailing 12-month performance.
Emerging Markets Launches
27 new products launched across multiple countries in the second quarter.
India Market Rank
India market rank improved to eighth, outperforming the Indian pharmaceutical market.
What it means
Dr. Reddy's reported a 1.5% year-over-year revenue decline in Q2 2027, driven by lower North American Lenalidomide sales, while India and emerging markets grew at double-digit rates.
