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- **Revenue Growth**: 10% YoY driven by consumer health and emerging markets.
- **Biosimilar Momentum**: Abatacept BLA submission by end-2025; semaglutide facing India patent challenge.
- **Financial Strength**: Net cash surplus of USD 310M, free cash flow of USD 118M.
- **Strategic Focus**: Integration of NRT business, India expansion, and 12M semaglutide pens for global markets.
- **Risks**: U.S. generics price erosion, regulatory challenges for biosimilars.

**【CEO Summary Section】**
- Q2 FY '26 revenue grew 10% YoY to INR 8,805 crore (USD 992M), driven by consumer health and emerging markets.
- U.S. generics faced price erosion (-16% YoY), but biosimilars (abatacept, semaglutide) show promise.
- EBITDA margin 26.7%, ROCE 22%, with focus on innovation and sustainability.
- Strategic moves: NRT business integration, India expansion (Stugeron acquisition), and 12M semaglutide pens for global markets.

**【CFO Financial Commentary】**
- Gross profit margin 54.7% (-492 bps YoY) due to Lenalidomide decline and price erosion.
- SG&A up 15% YoY to INR 2,644 crore (USD 298M) for consumer health and branded generics.
- R&D spend down 15% YoY to INR 620 crore (USD 70M), focused on biosimilars.
- Free cash flow INR 1,046 crore (USD 118M), net cash surplus INR 2,751 crore (USD 310M).

**【Q&A Highlights】**
- U.S. generics: Price erosion expected to stabilize; biosimilars (abatacept, semaglutide) to offset.
- Semaglutide: India patent challenge ongoing; launches in Canada, Brazil, Turkey.
- Abatacept: BLA submission by end-2025; CMO for U.S. manufacturing to mitigate tariff risk.
- India: 13% YoY growth via innovation (PCAB, Colozo) and acquisitions.
- Margins: Target 25% EBITDA by FY '27 with biosimilar launches and cost control.

Dr. Reddy's Laboratories Limited (RDY) Q2 2026 Earnings Call Transcript

Revenue

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RDY

RDY fundamentals

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