Dr Reddy’s Q1 Preview: PAT May Rise to Rs 1,659 Cr, Revenue Growth Seen Up to 19%; What Top Brokerages Expect?

Leading pharmaceutical major Dr Reddy's Laboratories is set to announce its Q1FY26 financial results on Wednesday. Market's top analysts foresee a mixed performance characterised by steady domestic demand and stabilisation in U.S. markets, despite potential headwinds.

Dr Reddy's Laboratories Q1 Preview: Expected Net Profit, Revenue

The projected profit after tax (PAT) ranges between Rs 1,399 crore and Rs 1,659 crore, reflecting a year-on-year (YoY) movement between a 2% decline and a 15% increase. Revenue expectations are pegged between Rs 8,491 crore and Rs 9,094 crore, indicating an annual growth of 10-19%.

Dr Reddy's Lab's Q1 Results 2026 Today: What are Top Brokerages' Expectations?

According to Yes Securities, Dr Reddy's is expected to post a PAT of Rs 1,598 crore, showing a 14.8% YoY increase and a marginal 0.3% rise quarter-on-quarter (QoQ). Revenue for the quarter is estimated at Rs 8,616 crore, up 12% YoY and 1% QoQ.

Dr Reddy's EBITDA is projected at Rs 2,229 crore, with a YoY margin contraction of 181 basis points, but a sequential improvement of 154 basis points. The brokerage attributes this performance to steady domestic operations and a reversal of a one-off margin impact seen in the previous quarter. However, they also noted that Revlimid sales in the US may have peaked, resulting in more moderate growth in that market.

Phillip Capital projects a PAT of Rs 1,659 crore for Q1FY26, representing a 14% rise both YoY and QoQ. Revenue is expected to grow by 19% YoY and 7% QoQ to Rs 9,094 crore, supported by the integration of the Nicotinell acquisition and steady growth in US sales, particularly from Revlimid. EBITDA is estimated at Rs 2,591 crore, a 19% YoY increase and a 21% sequential rise, with EBITDA margins seen at approximately 28.5%.

Nuvama Takes Cautious View

Nuvama, on the other hand, takes a more cautious view. It expects PAT to decline by 2% YoY and 12% QoQ to Rs 1,399 crore. Revenue is projected at Rs 8,659 crore, reflecting a 13% YoY and 2% QoQ growth. EBITDA is expected to reach Rs 2,255 crore, up 6% both annually and sequentially.

However, Nuvama anticipates gross and EBITDA margins to contract by about 340 and 130 basis points respectively, due to cost pressures and product mix.

Kotak Equities expects a PAT of Rs 1,477 crore, with a YoY growth of 6.1% and a QoQ increase of 7.3%. Net sales are projected at Rs 8,491 crore, reflecting a 10.3% annual rise, though slightly down 0.4% from the previous quarter.

EBITDA of this top pharma company is forecast at Rs 2,105 crore, down 1.2% YoY but up 1.5% sequentially. The EBITDA margin is expected to come in at around 24.8%, showing a YoY contraction of 289 basis points but a QoQ improvement of 46 basis points.

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