Dr Reddy's Posts 86% YoY Decline in Q4 Profit to ₹220 Crore, Recommends Final Dividend of ₹8

Dr Reddy's Labs Reports 86.2% YoY Fall in Net Profit for Q4FY26

Dr Reddy's Laboratories, a prominent pharma major, reported a sharp decline in its consolidated net profit for the March quarter of the financial year 2026 (Q4FY26). The company's net profit fell by 86.2% year-on-year (YoY) to ₹220.1 crore.

This significant drop in profit is a stark contrast to the same quarter of the previous financial year, where the company's profit stood at ₹1,593.9 crore. On a quarter-on-quarter (QoQ) basis, Dr Reddy's profit fell nearly 82% from ₹1,209.8 crore in Q3FY26.

| Comparison of Profit (₹ in Crore) | | --- | --- | --- | | Q4FY25 | Q3FY26 | Q4FY26 | | 1,593.9 | 1,209.8 | 220.1 |

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The pharma company's revenue for the quarter also experienced a decline, dropping 11.64% YoY and nearly 14% QoQ to ₹7,516.2 crore. In Q4FY25, Dr Reddy's revenue was ₹8,506 crore, while in Q3FY26, it was ₹8,726.80 crore.

For the full financial year 2026, Dr Reddy's profit fell 24.22% YoY to ₹4,285 crore, while revenue climbed 3.2% YoY to ₹33,593.3 crore. The company cited several factors that impacted its Q4FY26 results, including a shelf stock adjustment (SSA) related to lenalidomide of ₹453 crore, impairment of CAR-T assets and Eftilagimod Alfa totalling ₹227.7 crore, and provisions related to VAT liability of ₹114.1 crore.

Additionally, FY26 includes the adverse impact of VAT liability provision of ₹69.5 crore and the New Labour Codes of ₹117 crore.

The company's board has recommended a final dividend of ₹8 per share of face value of ₹1 each for FY26, subject to approval of shareholders at the ensuing Annual General Meeting on 23 July 2026. The record date for determining the members eligible to receive the dividend has been fixed as 10 July 2026.

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