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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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

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Cost of Financing Services

Other Cost

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Operating Expenses

Selling, General and Administrative Expenses

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Loss on Bad Debts

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Net Interest Expense

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Net Income

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RDY

RDY fundamentals

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