How did RDY's Q3 2025 EPS forecast compare to past trends?

**Dr. Reddy's Laboratories Ltd. (RDY) Q3 2025 EPS Forecast Analysis**: The Q3 2025 EPS forecast for RDY is $0.19, which represents an 80.8% year-over-year decrease. This significant decline is indicative of a challenging period for the company, and it is crucial to analyze the factors contributing to this downturn. 1. **Historical Trends and Recent Performance**: - The EPS in Q3 2024 was $0.54, which is substantially higher than the projected Q3 2025 EPS of $0.19. This indicates a sharp decline in profitability over the same period. - Reddy's Laboratories experienced a 19% year-over-year increase in SG&A Spend, reaching INR2,412 crores (USD282 million), which could suggest inefficiencies or strategic shifts impacting short-term profitability. - Gross Profit Margin decreased by 91 basis points QoQ, with the margin standing at approximately 59%. This decline might reflect increased costs or pricing pressures affecting profit margins. |code|Ticker|Name|Date|Estimate EPS|Estimate EPS YoY|market_code| |---|---|---|---|---|---|---| |RDY|RDY.N|Dr. Reddy'S Laboratories|20221231|0.55||169| |RDY|RDY.N|Dr. Reddy'S Laboratories|20230331|0.52|-22.388059701492537|169| |RDY|RDY.N|Dr. Reddy'S Laboratories|20230630|0.57|-33.720930232558146|169| |RDY|RDY.N|Dr. Reddy'S Laboratories|20230930|0.58|-27.500000000000007|169| |RDY|RDY.N|Dr. Reddy'S Laboratories|20231231|0.64|16.36363636363636|169| |RDY|RDY.N|Dr. Reddy'S Laboratories|20240331|0.7|34.615384615384606|169| |RDY|RDY.N|Dr. Reddy'S Laboratories|20240630|0.84|47.36842105263159|169| |RDY|RDY.N|Dr. Reddy'S Laboratories|20240930|0.79|36.20689655172416|169| |RDY|RDY.N|Dr. Reddy'S Laboratories|20241231|0.9|40.625|169| |RDY|RDY.N|Dr. Reddy'S Laboratories|20250331|0.2|-71.42857142857143|169| 2. **Analyst Insights and Market Sentiment**: - Analysts at Zacks Research decreased their FY2025 EPS estimates for Dr. Reddy's Laboratories, indicating a bearish outlook. This aligns with the Q3 2025 EPS forecast, suggesting that the company's performance is not isolated to a single quarter. - Despite the challenges, some analysts remain optimistic about the company's long-term prospects, as evidenced by increased holdings by certain institutional investors. 3. **Strategic Moves and Future Prospects**: - The company's record revenue growth and increased R&D spend suggest a focus on innovation, which could bode well for future growth. - The launch of generic drugs in the U.S. market by the company indicates a strategic effort to expand its product portfolio and market share. In conclusion, Dr. Reddy's Q3 2025 EPS forecast reflects a company facing significant headwinds, as evidenced by a substantial decrease in EPS compared to the previous year. However, the company's strategic initiatives and the confidence of some institutional investors suggest a potential for recovery or adaptation in the face of current challenges.