Dr Reddy's Reports 36% Decline in Q2 Net Profit to ₹925 Crore

HYDERABAD — Dr Reddy’s Laboratories has reported its financial results for the second quarter ended September 2026, registering a 36 percent decline in its net profit to ₹925 crore on a year-on-year basis.

Alongside the drop in net profit, the Hyderabad-based pharmaceutical major recorded a marginal decrease in its top line. The total revenue of the company declined by 1.5 percent to ₹8,671 crore during the quarter under review.

According to the company, the financial performance was significantly impacted by a specific one-time cost. Dr Reddy's made a provision of ₹239 crore towards inventory and associated costs related to the Semaglutide API impact.

The company announced these financial figures on Friday, detailing the factors that weighed on its quarterly earnings.

"The financial results from Dr Reddy's Laboratories highlight how single-product inventory provisions and associated supply chain factors can significantly impact quarterly profitability, even for established pharmaceutical companies with large revenue bases. A ₹239 crore provision related to the Semaglutide API clearly demonstrates the financial weight of regulatory and inventory adjustments in specialized drug manufacturing. Moving forward, pharmaceutical enterprises must maintain robust inventory management and agile cost controls to navigate similar market headwinds and protect their bottom line." — Dr. Shishir Gupta, Founder & CEO, StartupLanes