Dr Reddy’s Share Price Jumps Nearly 6% After Q3 Net Profit Falls 14.4% YoY; Should You Buy This Pharma Stock?

Dr Reddy's Laboratories shares jumped nearly 6 percent on Thursday after the pharmaceutical major reported stronger-than-expected results for the third quarter of FY26, prompting brokers to adopt a more positive stance on the stock. Revenue growth exceeded market expectations, led by robust performance in India, Europe and emerging markets, even as the company faced ongoing challenges in its North American business.

Dr Reddy Share Price Today

Shares of Dr Reddy's Laboratories Ltd on National Stock Exchange (NSE) surged sharply on Thursday, 22 January 2026, trading at Rs 1,222.70, up Rs 65.50, or 5.66 percent as of 12:27 pm. The stock opened the day at Rs 1,195, touched an intraday high of Rs 1,225, and recorded a low of Rs 1,187.70 during the session.

Over the past 52 weeks, Dr Reddy's shares have traded as high as Rs 1,379.70, while the lowest level in the same period was Rs 1,020.

Dr Reddy Laboratories Q3 Results: Net Profit Falls 14.4% YoY to Rs 1,209.8 Cr, Revenue Rises 4.4%

The company posted a 14.4 percent year-on-year decline in consolidated net profit to Rs 1,209.8 crore for the December quarter. While profit fell compared with the same period last year, it was higher than Street estimates of around Rs 1,070 crore, providing a positive surprise to investors.

Revenue from operations rose 4.4 percent year-on-year to Rs 8,726.8 crore, driven largely by growth in India and emerging markets. However, continued pressure in the US market weighed on overall performance.

Dr Reddy's reported a 10.8 percent year-on-year decline in EBITDA to Rs 2,049.3 crore, with gross margins contracting to 53.6 percent from 58.7 percent in the previous year. Despite the margin pressure, the company delivered an operating margin of 23 percent, exceeding analyst estimates of around 21 percent.

Should You Buy Dr Reddy's Lab Stock? Check Brokerage's Recommendation

Brokerage houses turned more constructive on the stock following the results. HSBC retained its "buy" rating, setting a target price of Rs 1,435. The brokerage highlighted stronger-than-expected sales growth in India and Russia, along with favorable foreign exchange benefits, as key drivers behind its positive outlook.

HSBC also pointed to regulatory approvals as critical catalysts for Dr Reddy's in the near term. Investors will be closely watching developments around the generic semaglutide approval in Canada and the abatacept biosimilar (IV formulation) in the US, as timely clearances could further boost the stock's performance.

Overall, while challenges remain in North America, strong revenue growth in other markets and positive operating metrics have strengthened investor sentiment toward Dr Reddy's Laboratories.

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