In a remarkable display of growth, Dr. Reddy’s Laboratories has unveiled its financial performance for the March quarter of FY25, showcasing impressive figures that surpassed market expectations. The leading Indian pharmaceutical firm reported a 22% year-on-year increase in consolidated net profit, reaching ₹1,594 crore—outpacing analysts’ projections of ₹1,491 crore. Furthermore, the company delivered a robust revenue of ₹8,506 crore, reflecting a 20% rise from the previous year’s ₹7,083 crore.

Key Financial Highlights

• Net Profit: ₹1,594 crore (+22% YoY)
• Revenue: ₹8,506 crore (+20% YoY)
• Consumer Healthcare Contribution: ₹597 crore from Nicotine Replacement Therapy (NRT)

The revenue figures prominently include ₹597 crore from the newly acquired Consumer Healthcare business focused on Nicotine Replacement Therapy (NRT). Excluding this segment, Dr. Reddy’s underlying growth stands at 12% year-on-year and 2% quarter-on-quarter.

Segment Performance Insights

A closer examination of Dr. Reddy’s revenue streams reveals key performance indicators:

• Global Generics: Contributed ₹7,536 crore, a significant leap from ₹6,119 crore in Q4FY24, making up nearly 90% of total revenue.
• Pharmaceutical Services and Active Ingredients: Recorded revenue of ₹1,167 crore, slightly up from ₹1,152 crore in the same period last year.

Operational Excellence

On the operational front, the company’s EBITDA surged to ₹2,975 crore, showcasing a 58.9% increase compared to ₹1,872 crore in Q4FY24. Margins also saw an expansion of 510 basis points, climbing to 29.1%, up from 24% in the prior fiscal year.

Annual Performance Overview

For the entire fiscal year, Dr. Reddy’s revenue grew by 17% year-on-year, totaling ₹32,553 crore, while profit after tax saw a modest rise of 2%, reaching ₹5,654 crore.

Leadership Commentary

In response to these promising results, Co-Chairman and Managing Director G. V. Prasad remarked, “We achieved double-digit growth across our businesses, propelled by successful product launches and enhanced revenues from key products in the U.S. The integration of the NRT business has also played a pivotal role. We remain committed to strengthening our core operations through meticulous portfolio management and exploring strategic partnerships.”

Dividend Declaration

In a show of confidence, Dr. Reddy’s has declared a final dividend of ₹8 per equity share. The record date for shareholders to qualify for this dividend has been set for July 10, 2025. The Board of Directors confirmed this recommendation during their meeting on May 9, 2025, pending shareholder approval.

Conclusion

Dr. Reddy’s Laboratories continues to make significant strides within the pharmaceutical sector, demonstrating resilience and growth potential. As the company focuses on strengthening its core businesses while exploring new avenues for expansion, stakeholders remain optimistic about its future trajectory. For those interested in the latest trends in the pharmaceutical industry, consider exploring related articles on market growth and emerging opportunities.