Overview
- Dr Reddy’s reported on July 22 that consolidated net profit for Q1 FY27 fell about 69% to Rs 434.8 crore and revenue declined about 5.5% to Rs 8,070.5 crore.
- The company took a provision of roughly Rs 239.7–240 crore for inventory and related costs after certain semaglutide batches were found out of specification due to an API impurity and new-batch production was suspended.
- Semaglutide supplies are unavailable in India and expected to be disrupted in Canada until at least late October as the company completes quality remediation steps.
- North America generics revenue plunged about 35% in the quarter while India, Europe and emerging markets posted growth, producing a mixed regional picture that widened the hit to consolidated results.
- Management says it will focus on restoring product quality and base-business performance while investing in peptides, biosimilars and other pipeline assets, and analysts warn near-term earnings and the stock will hinge on semaglutide resupply and upcoming product launches.