Profit before tax (PBT) dropped 70.98% YoY to Rs 552.6 crore in Q1 FY27.

EBITDA slipped 55.72% to Rs 1,008.8 crore in Q1 FY27 compared with Rs 2,278.4 crore in Q1 FY26. EBITDA margin contracted to 12.5% in Q1 FY27 as against 26.7% in Q1 FY26.

Revenue from the Global Generics segment declined 4.79% year-on-year to Rs 7,199.3 crore during the quarter.

Revenue from the North America business fell 35.38% YoY to Rs 2,204.8 crore, mainly due to lower sales of Lenalidomide. The company launched six new products in the region during the quarter.

Revenue from the India business increased 16.76% YoY to Rs 1,717.7 crore, supported by new brand launches, including innovative assets and recently acquired portfolios, along with price increases and higher sales volumes. The company launched seven new brands during the quarter.

Revenue from the Europe region grew 13.30% YoY to Rs 1,444 crore, aided by the launch of 24 new generic products.

The Emerging Markets segment reported a 30.52% YoY growth in revenue to Rs 1,832.8 crore, driven by new launches, higher volumes and favourable foreign exchange movement.

Research and Development (R&D) expenditure stood at Rs 580 crore in Q1 FY27, down 8% year-on-year but up 6% sequentially. R&D expenses accounted for 7.1% of revenue during the quarter, compared with 7.3% in Q1 FY26. The decline was primarily due to lower development spending on biosimilars, while investments remained focused on complex generics, including peptides and biosimilars.

Co-Chairman & MD, G V Prasad said: 'Our Q1 FY27 performance reflected the expected transition beyond lenalidomide revenues, along with an unexpected impact related to semaglutide API. However, our underlying base business continued to deliver healthy doubledigit growth across all key geographies. Our focus remains on improving the health of our base business through disciplined execution and operational excellence, while building our future pipeline of peptides, biosimilars, and innovative assets to deliver long-term growth.'

Meanwhile, the company's board approved the appointment of Dr Sridevi Khambhampaty as Global Head of Biologics and Senior Management Personnel and her induction as a member of the Management Council, effective 22 July 2026.

Hyderabad-based Dr. Reddy’s Laboratories is a global pharmaceutical company. It offers a portfolio of products and services including APIs, generics, branded generics, biosimilars and OTC.