What drove RDY's surprising EPS growth in Q2 2025?

Dr. Reddy's Laboratories Limited (RDY) experienced a surprising EPS growth in Q2 2025, with an EPS of $0.20, surpassing the consensus estimate of $0.19 by $0.01. This unexpected growth can be attributed to several key factors: 1. **Revenue Growth**: The company reported a 17% year-over-year increase in consolidated revenues, reaching $957 million for Q2 FY 2025. This revenue growth, particularly in global generics, was a significant driver of the earnings boost. 2. **Gross Profit Margin Improvement**: Dr. Reddy's saw an improvement in gross profit margin to 59.6% compared to 58.7% in the previous year's same quarter. This enhancement was due to a favorable product mix and overhead leverage, which positively impacted the bottom line. 3. **New Product Launches**: The company launched four new products in the United States during the reported quarter. These new offerings likely contributed to the revenue growth and helped increase market share. In summary, RDY's Q2 2025 EPS growth was primarily fueled by strong revenue expansion, improved gross profit margins, and successful product launches. These factors combined to surpass market expectations and deliver robust financial results.