Dr Reddy’s Q4 Results Preview: Revenue May Fall 10%, Profit Likely Muted as Weak US Sales & Revlimid Hit

Pharma major Dr. Reddy's Laboratories is set to announce its financial results for the fourth quarter and full financial year FY26 following a board meeting scheduled on Tuesday. The company will release its performance update to the exchanges after market hours, along with detailed disclosures on revenue, margins, and segment performance.

Dr. Reddy's Q4 Results Today: Check Time of Earnings Call & Expectations

The results will be announced on May 12, 2026, and the company has also scheduled an earnings conference call at 7:30 PM IST, where management is expected to address analysts and investors on quarterly performance and outlook.

Dr. Reddy's Q4 Preview: Muted Performance Expected; North America Business Likely to Drag Revenue Amid Pricing Pressure

Market expectations indicate a muted performance for Dr. Reddy's Laboratories in the fourth quarter, largely on account of persistent pressure in its North America operations. According to estimates from Kotak Institutional Equities, consolidated sales are likely to decline by around 10% year-on-year, primarily reflecting weakness in the US generics portfolio.

A sharper sequential contraction is also anticipated in the North America business, where revenues are estimated to fall nearly 33% quarter-on-quarter to about $226 million, impacted by pricing pressure and reduced contribution from key products.

Revlimid Erosion and Inventory Adjustments Weigh on US Performance

A major drag on the US segment is the fading contribution from generic Revlimid, with analysts factoring in near-zero revenues following patent-related developments. Alongside this, one-off inventory adjustments are also expected to distort quarterly performance.

Together, these factors are likely to materially compress the company's high-margin revenue base from its most critical overseas market.

India Business Expected to Remain a Key Growth Engine

In contrast, the domestic business is expected to provide meaningful support. Kotak Institutional Equities estimates 15%-18% year-on-year growth in the India segment, driven by strong momentum in key therapies and the ongoing integration benefits from portfolios associated with Nestlé and Sanofi.

Other international markets are also likely to contribute steadily, with Russia expected to deliver robust volume-led growth of around 26%, while Europe is projected to maintain stable incremental gains.

Dr Reddy's Laboratories EBITDA, Profitability Likely to Come Under Strain

On the profitability front, Kotak Institutional Equities expects consolidated EBITDA to decline by nearly 30% year-on-year, with margins compressing to around 19%.

This contraction is expected to stem from weaker gross margins, reduced contribution from high-value generics, and the broader impact of the shrinking US business, which continues to be a key earnings driver for the company.

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