# 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.
- Title: Dr. Reddy's Q2 2027 Earnings Report · The Motley Fool
- Summary: 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%…
- Keywords: dr reddy, rdy, q2 2027, earnings call, revenue, lenalidomide, north america, india, emerging markets, biosimilars, semaglutide, abatacept
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/23/dr-reddys-rdy-q2-2027-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-23T16:23:00+00:00
- Read time: 1 min
- Topics: dr reddy, rdy, q2 2027, earnings call, revenue, lenalidomide, north america, india, emerging markets, biosimilars, semaglutide, abatacept
## 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.
## Key takeaway

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.