Sector Alpha Week of 2026-07-24
Sector Alpha — machine-written from the numbers · Data as of 2026-07-24

Dr Reddys Laboratories Ltd

DRREDDY
Pharma - Formulators

Dr Reddys Laboratories Ltd's three tracks disagree. Price, valuation and the earnings engine each tell a different story — the next quarter or two settles it.

The sharpest disagreement: Domestic institutions moved +11.0 points over 8 quarters while the operating story went the other way — someone close to the numbers is not convinced.

The price is in a confirmed uptrend (17 weeks in) while the P/E sits at the 60th percentile of its own 10-year range. Underneath, the last four quarters read deteriorating — profit −69.1% year on year, and 96% of the last 3 years' profit arrived as cash. What settles it: whether the register turns back in the story’s favour.

Stage
Deteriorating
fundamental trajectory, 12 quarters
Price
₹1,211
−3.7% 1Y
P/E
29.8×
60th pctile
of its own 10-year range
Revenue (Jun 26)
₹8,100 Cr
−5.5% YoY
Profit (Jun 26)
₹436 Cr
−69.1% YoY
Operating margin
11.0%
−14.0 pp YoY
ROCE
13%
FY26
ROIC
7.5%
vs WACC 12.0% → −4.5 pp
Cash conversion
96%
of profit, last 3 FY
01 · Price story

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Dr Reddys Laboratories Ltd trades at ₹1,211, in a confirmed uptrend and 17 weeks into that stage. That is −4.9% against its own 200-day average. It sits at 18% of a 52-week range of ₹1,176 to ₹1,374. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (3 weeks and counting).

Today the stock is in a confirmed uptrend — week 17 of stage 2, confirmed. At ₹1,211 it trades −4.9% versus its 200-day average and sits at 18% of its 52-week range (₹1,176–₹1,374).

Jul 26: ₹1,211 Weekly closing price (₹) with 50- and 200-day averages; shaded bands mark the price stage (grey base, green advance, amber top, red decline). 3-year window.
−4.9% versus the 200-day line, week 17 of stage 2
Price50-day avg200-day avg
S2S3S4S2S3S2₹1,445₹1,305₹1,164₹1,024₹883₹1,211₹1,273Jul 23Apr 24Feb 25Nov 25Jul 26
S2S3S4S2S3S2₹1,445₹1,305₹1,164₹1,024₹883₹1,211₹1,273Jul 23Feb 25Jul 26
Beating or trailing, week by week since 2016 Each cell is one week from 2016 to now (548 weeks): the stock's trailing 13-week return minus the NIFTY 500's, green ahead / red behind (±25% ramp). Grey cells are the 13-week warm-up or weeks where the NIFTY 500 reading is not held.
trailing 13-week return vs the NIFTY 500
Mar 16Jul 26

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +86% while the NIFTY 500 moved +272% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (3 weeks and counting; last ahead the week of 2026-07-01) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 60th percentile of its own range.

02 · Valuation

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Dr Reddys Laboratories Ltd trades at 29.8× P/E, mid-range by its own standards (60th percentile). Its long-run median P/E is 25.6×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 29.8× is mid-range by its own standards (60th percentile), against a long-run median of 25.6× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

P/E 29.8× vs a 25.6× long-run median P/E, weekly (left axis); earnings per share, trailing twelve months, weekly (right axis). 10.4-year window; loss-period spikes above 50× shown pinned at the top. The eps (ttm) bars are red where the reading is lower than the quarter before.
mid-range by its own standards (60th percentile)
P/EMedianEPS (TTM) (quarterly)
52.6×₹74.542.9×₹55.933.2×₹37.223.5×₹18.613.8×₹0.0×29.80×₹39Mar 16Oct 18Jun 21Feb 24Jul 26
52.6×₹74.542.9×₹55.933.2×₹37.223.5×₹18.613.8×₹0.0×29.80×₹39Mar 16Jun 21Jul 26
PEG 5.19 PEG ratio per quarter — the P/E divided by the earnings-growth rate. The dashed line marks 1.0: below it the growth is cheap against the multiple, above it the price already prices the growth in. Computed here as quarter-end P/E ÷ trailing-twelve-month EPS growth (only quarters with positive growth), because a reported quarterly PEG is not held for this stock. Last 10 quarters; values above 6 pinned at the top.
above 1.0, the multiple already banks the growth
PEGPEG = 1.0
6.5×4.8×3.2×1.6×0.0××5.19×Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q3 FY26
6.5×4.8×3.2×1.6×0.0××5.19×Q2 FY24Q2 FY25Q3 FY26
P/E
29.8×
60th percentile of 10y
PEG
3.72
derived from 3-year earnings growth

Why the multiple sits where it does: over the past year annual EPS moved −25.8% against a −3.7% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +2.3%/yr price move, ~+10.4%/yr came from earnings growth and ~−8.1 pp from the multiple (compressing); over 10y, of the +5.4%/yr price move, ~+7.2%/yr came from earnings growth and ~−1.8 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

03 · Stage: Deteriorating

Stage: Deteriorating Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Dr Reddys Laboratories Ltd reads as deteriorating on its fundamental arc. Deteriorating — profit and EPS growth are shrinking (profit growth −44.6% latest against +64.4% at its 12-quarter best), ROCE slipping at 14.9%. The read is built from 12 quarters across 4 curves, on full evidence.

Three growth curves, twelve quarters Year-on-year growth of trailing-twelve-month revenue (left axis), profit and EPS (right axis — they swing far wider), % at each quarter-end. A missing point means that reading is not held for the quarter.
the trajectory the stage is read from
RevenueProfitEPS
22%73%16%42%9.6%9.9%3.5%−22%−2.6%−53%%%−0.9%−44.6%−43.3%Sep 23Dec 24Jun 26
22%73%16%42%9.6%9.9%3.5%−22%−2.6%−53%%%−0.9%−44.6%−43.3%Sep 23Dec 24Jun 26
ROCE Trailing-twelve-month operating profit (before interest and tax) as a share of average capital employed — total assets minus current liabilities, the standard textbook basis, %.
the return curve, computed quarterly
ROCE
30%26%22%18%14%%14.9%Sep 23Dec 24Jun 26
30%26%22%18%14%%14.9%Sep 23Dec 24Jun 26
Revenue growth
Falling
latest −0.9% · span −0.9% to +20.1%
Profit growth
Falling
latest −44.6% · span −44.6% to +64.4%
EPS growth
Falling
latest −43.3% · span −43.3% to +63.6%
ROCE
Falling
latest 14.9% · span 14.9%–29.1%

🚨 Why it matters: falling curves mean every cheap-looking ratio below needs a discount for direction.

Growth, year by year: revenue +3.2% in FY26, profit −27.4% Year-over-year growth per fiscal year, %: revenue (left axis); net profit and EPS (right axis — profit growth swings far wider). Zero line drawn.
Revenue YoYProfit YoYEPS YoY
19%118%11%76%3.8%34%−3.5%−8.7%−11%−51%%%3.2%−27.4%FY16FY21FY26
19%118%11%76%3.8%34%−3.5%−8.7%−11%−51%%%3.2%−27.4%FY16FY21FY26
TTM growth by quarter Trailing-twelve-month growth versus the year-ago TTM, per quarter, %: revenue (left axis); profit and EPS (right axis). The acceleration read compares the last 4 quarters (−0.9%) with the last 8 annualized (+7.1%).
revenue rolling over, profit rolling over
Revenue TTM YoYProfit TTM YoYEPS TTM YoY
22%73%16%42%9.6%9.9%3.5%−22%−2.6%−53%%%−0.9%−44.6%Sep 23Dec 24Jun 26
22%73%16%42%9.6%9.9%3.5%−22%−2.6%−53%%%−0.9%−44.6%Sep 23Dec 24Jun 26
Compound annual growth rate (%) Compound annual growth rate over each window, %. Revenue, profit and EPS from fiscal-year figures; share price is the price CAGR over the same spans. A dash = that window is not held, or the base was a loss.
1yr3yr5yr10yr
Revenue+3.2%+11.0%+12.1%+8.0%
Profit−27.4%−2.7%+16.3%+6.9%
EPS−25.8%−2.4%+16.5%+7.2%
Share price−3.7%+5.9%+2.3%+5.4%
Revenue YoY (Jun 26)
−5.5%
latest quarter vs a year ago
Profit YoY (Jun 26)
−69.1%
latest quarter vs a year ago
Revenue 10y
8.0%
long-run compound pace

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

04 · 4-Factor Sector Score

4-Factor Sector Score

31.6/100 — rank 40 of 43 in Pharma - Formulators · 100% evidence confidence

Dr Reddys Laboratories Ltd scores 31.6 out of 100 against the 43 companies it is compared with in Pharma - Formulators, ranking 40. Cheap but unconfirmed: require improving earnings before treating the valuation as an opportunity.

The four contributions add to the total exactly: 4.4 + 11.8 + 13.9 + 1.5 = 31.6. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

05 · Revenue

Revenue Revenue is the top line: everything the company billed its customers in the period.

Dr Reddys Laboratories Ltd reported ₹8,100 Cr of revenue in the Jun 26 quarter, −5.5% year on year. Over 10 years it has compounded at 8.0% a year. The last full year, FY26, came in at ₹33,700 Cr. The last four reported quarters add to ₹33,227 Cr.

Dr Reddys Laboratories Ltd reported ₹8,100 Cr of revenue in the Jun 26 quarter, −5.5% year on year. Over 10 years it has compounded at 8.0% a year. The last full year, FY26, came in at ₹33,700 Cr. The last four reported quarters add to ₹33,227 Cr.

FY26 revenue came in at ₹33,700 Cr (+3.2% on the year), capping 10 years at 8.0% compound. The latest quarter (Jun 26) printed ₹8,100 Cr, −5.5% year on year.

FY26 revenue ₹33,700 Cr (+3.2% YoY) Revenue bars, ₹ Cr (left); YoY growth-% line (right). 11-year window. A bar is red when it is lower than the year before.
8.0% a year over 10 years
RevenueYoY growth
36.4k19%27.3k11%18.2k3.8%9.1k−3.5%0−11%₹ Cr%₹33,7003.2%FY16FY21FY26
36.4k19%27.3k11%18.2k3.8%9.1k−3.5%0−11%₹ Cr%₹33,7003.2%FY16FY21FY26
Jun 26: ₹8,100 Cr (−5.5% YoY) Quarterly revenue bars, ₹ Cr (left); YoY growth-% line (right). Last 12 quarters. A bar is red when it is lower than the quarter before.
Revenue (quarterly)YoY growth
9.5k22%7.2k13%4.8k4.2%2.4k−4.9%0−14%₹ Cr%₹8,100−5.5%Sep 23Dec 24Jun 26
9.5k22%7.2k13%4.8k4.2%2.4k−4.9%0−14%₹ Cr%₹8,100−5.5%Sep 23Dec 24Jun 26

Pace check: the last four quarters averaged −0.7% growth against the decade's 8.0% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −0.9% over the last 4 quarters against +7.1%/yr over the last 8 — rolling over; TTM profit −44.6% vs −24.4%/yr — rolling over.

→ Revenue slipped — did margins hold as it scaled? Next: 11.0% this quarter (−14.0 pp YoY).

06 · Operating margin

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Dr Reddys Laboratories Ltd's operating margin is 11.0% in the Jun 26 quarter, −14.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 14.0% to 28.0%. The current quarter is running below every full year in that window.

Dr Reddys Laboratories Ltd's operating margin is 11.0% in the Jun 26 quarter, −14.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 14.0% to 28.0%. The current quarter is running below every full year in that window.

The latest quarter's operating margin is 11.0%, −14.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 14.0%–28.0%.

🚨 Why the margin moved: operating margin went −14.7 pp year on year while gross margin went −9.0 pp — the loss came mostly from the gross line: input costs and pricing.

FY26: 19.0% Operating margin by fiscal year, %, line (left); year-on-year change in the margin, in percentage points, line (right). 13-year window.
within a 14.0–28.0% band over 13 years
operating marginYoY change (pp)
29%10%25%5.6%21%1.0%17%−3.6%13%−8.3%%%19%−7%FY14FY20FY26
29%10%25%5.6%21%1.0%17%−3.6%13%−8.3%%%19%−7%FY14FY20FY26
Jun 26: 11.0% operating margin (−14.0 pp YoY) Quarterly operating margin, %, line (left); year-on-year change in the margin, in percentage points, line (right). Last 12 quarters. Operating profit as a share of revenue, per quarter.
Operating marginYoY change (pp)
31%3.6%24%−2.2%17%−8.0%10%−14%3.1%−20%%%11%−14%Sep 23Dec 24Jun 26
31%3.6%24%−2.2%17%−8.0%10%−14%3.1%−20%%%11%−14%Sep 23Dec 24Jun 26

→ Margins slipped — did that reach the bottom line? Next: profit −69.1% in the latest quarter.

07 · Net profit

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Dr Reddys Laboratories Ltd earned ₹436 Cr of net profit in the Jun 26 quarter, −69.1% year on year. Full-year FY26 profit was ₹4,158 Cr. The 10-year compound rate is 6.9%. That is 5.4% of the quarter's revenue. The same quarter a year earlier earned ₹1,410 Cr.

Dr Reddys Laboratories Ltd earned ₹436 Cr of net profit in the Jun 26 quarter, −69.1% year on year. Full-year FY26 profit was ₹4,158 Cr. The 10-year compound rate is 6.9%. That is 5.4% of the quarter's revenue. The same quarter a year earlier earned ₹1,410 Cr.

Jun 26 profit was ₹436 Cr, −69.1% year on year. On the full year, FY26 printed ₹4,158 Cr (−27.4%), and the 10-year compound rate is 6.9%.

FY26 profit ₹4,158 Cr (−27.4% YoY) Net profit bars, ₹ Cr (left); YoY growth-% line (right). 11-year window. A bar is red when it is lower than the year before.
6.9% a year over 10 years
Net profitYoY growth
6.2k118%4.6k76%3.1k34%1.5k−8.7%0−51%₹ Cr%₹4,158−27.4%FY16FY21FY26
6.2k118%4.6k76%3.1k34%1.5k−8.7%0−51%₹ Cr%₹4,158−27.4%FY16FY21FY26
Jun 26: ₹436 Cr (−69.1% YoY) Quarterly net profit bars, ₹ Cr (left); YoY growth-% line (right). Last 12 quarters. A bar is red when it is lower than the quarter before.
Net profit (quarterly)YoY growth
1.7k46%1.3k11%857−25%428−60%0−96%₹ Cr%₹436−69.1%Sep 23Dec 24Jun 26
1.7k46%1.3k11%857−25%428−60%0−96%₹ Cr%₹436−69.1%Sep 23Dec 24Jun 26

🚨 Why profit moved: revenue contributed −5.5% and the margin −14.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit −42.7% vs revenue −0.7%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 96% of the last 3 years' profit arrived as cash.

08 · Cash flow — the router

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 96% of Dr Reddys Laboratories Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹5,674 Cr of operating cash against ₹4,158 Cr of profit. After ₹4,890 Cr of capital spending, ₹784 Cr was left as free cash.

FY26: operating cash of ₹5,674 Cr against reported profit of ₹4,158 Cr, leaving free cash of ₹784 Cr after ₹4,890 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 96% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

FY26: CFO ₹5,674 Cr vs profit ₹4,158 Cr Operating cash flow and net profit by fiscal year, ₹ Cr; the line is free cash flow (CFO minus capital spending). 11-year window, annual resolution.
96% of 3-year profit arrived as cash
Operating cashNet profitFree cash
6.8k3.4k0−3.4k−6.9k₹ Cr₹5,674₹4,158₹784FY16FY21FY26
6.8k3.4k0−3.4k−6.9k₹ Cr₹5,674₹4,158₹784FY16FY21FY26
FY26: CFO = 136% of profit (three-year rate 96%) Operating cash as a share of net profit, per fiscal year, % (line). Dashed line = 100% — every unit of profit arriving as cash.
Conversion100%
199%167%136%104%72%%136%FY16FY21FY26
199%167%136%104%72%%136%FY16FY21FY26

Why conversion sits at 96%: the cash cycle tightened 12 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 3.5× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹18,507 Cr of building over 3 years.

09 · Where the cash goes

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Dr Reddys Laboratories Ltd's cash conversion cycle runs 247 days in FY26, down from 259 days in FY21. Capital spending ran ₹18,507 Cr over the last 3 years. At FY26 sales of ₹33,700 Cr each day of that cycle holds about ₹92.3 Cr, so roughly ₹22,805 Cr sits inside the business at any moment.

FY26: debtors at 110 days, inventory at 228 days — roughly 7.5 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 247 days, tighter than FY21's 259.

The full loop: cash goes out to suppliers and production on day 0; stock waits 228 days to sell; customers pay about 110 days after that; and suppliers themselves are paid at 91 days — netting out to the 247-day cycle.

In money terms: at FY26 sales of ₹33,700 Cr, each day of the cycle holds about ₹92.3 Cr — so the 247-day loop keeps roughly ₹22,805 Cr sitting inside the business at any moment.

FY26: a 247-day cash cycle Debtor days, inventory days, payable days and the cash conversion cycle by fiscal year. 13-year window.
−12 days vs FY21
Cash cycleInventory daysDebtor daysPayable days
29924118412668days247d228d110d91dFY14FY17FY20FY23FY26
29924118412668days247d228d110d91dFY14FY20FY26

On the investment side: capital spending of ₹18,507 Cr over the last 3 fiscal years against ₹5,233 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹1,460 Cr (FY26) — capacity paid for but not yet earning.

FY26: capex ₹4,890 Cr, work-in-progress ₹1,460 Cr Capital spending per fiscal year, ₹ Cr (bars); capital work-in-progress, ₹ Cr (line). Quarterly capital-spending history is not held for India — annual is the honest resolution.
a build-out
CapexWork-in-progress
11.4k8.2k5.0k1.8k−1.5k₹ Cr₹4,890₹1,460FY16FY18FY21FY23FY26
11.4k8.2k5.0k1.8k−1.5k₹ Cr₹4,890₹1,460FY16FY21FY26

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 13% and the ROIC − WACC spread is −4.5 pp.

10 · Return on capital

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Dr Reddys Laboratories Ltd earns a ROCE of 13% in FY26. That is up from a trough of 8% in FY18. Return on invested capital clears the cost of that capital by −4.5 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 12.3% net margin on 0.60× asset turns.

FY26 ROCE is 13%, recovered from a FY18 trough of 8% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 12.3% net margin × 0.60× asset turns × 1.49× balance-sheet leverage ≈ 11.0% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 7.5% − 12.0% = a −4.5 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

FY26: ROCE 13% Return on capital employed by fiscal year, % (line); ROIC by fiscal year, % (line). 13-year window, dips included. Dashed line = the 12.0% cost of capital used on this page.
the climb back from FY18's 8%
ROCEROIC (annual)WACC
29%23%18%12%6.5%%13%11%FY14FY20FY26
29%23%18%12%6.5%%13%11%FY14FY20FY26
Q4 FY26: ROCE 12.0% (TTM) vs WACC 12.0% Trailing-twelve-month ROCE and ROIC, per quarter, %; dashed line = the cost of capital. Last 12 quarters, put on a trailing-twelve-month basis and anchored to the annual figure.
ROCE (TTM)ROIC (TTM)WACC
26%23%19%15%11%%12%15%Q1 FY24Q2 FY25Q4 FY26
26%23%19%15%11%%12%15%Q1 FY24Q2 FY25Q4 FY26

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.20.

11 · Debt

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Dr Reddys Laboratories Ltd carries total debt of ₹7,734 Cr against shareholder equity of ₹38,046 Cr as of Mar 26, a debt-to-equity of 0.20 — effectively unlevered. On the annual view that ratio went from 0.18 in FY22 to 0.20 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹7,734 Cr against shareholder equity of ₹38,046 Cr — a debt-to-equity of 0.20. On the annual view, debt-to-equity went from 0.18 (FY22) to 0.20 (FY26). The returns on this page are earned, not borrowed.

FY26: debt ₹7,734 Cr at 0.20× equity Total debt by fiscal year, ₹ Cr (bars); debt-to-equity, × (line). 5-year window.
Total debtDebt-to-equity
8.4k0.21×6.3k0.17×4.2k0.13×2.1k0.09×00.05×₹ Cr×₹7,7340.20×FY22FY24FY26
8.4k0.21×6.3k0.17×4.2k0.13×2.1k0.09×00.05×₹ Cr×₹7,7340.20×FY22FY24FY26
Mar 26: debt ₹7,734 Cr, debt-to-equity 0.20 Total debt per quarter, ₹ Cr (bars); debt-to-equity, × (line). Last 12 quarters. India reports the full balance sheet half-yearly, so the intervening quarter carries the prior reading forward.
Total debt (quarterly)Debt-to-equity
8.4k0.21×6.3k0.17×4.2k0.13×2.1k0.08×00.04×₹ Cr×₹7,7340.20×Jun 23Sep 24Mar 26
8.4k0.21×6.3k0.17×4.2k0.13×2.1k0.08×00.04×₹ Cr×₹7,7340.20×Jun 23Sep 24Mar 26

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 11.0 points over 8 quarters.

12 · Ownership

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 11.0 points of Dr Reddys Laboratories Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 31.8% of the company. Foreign institutions moved −7.0 points over the same window, to 20.7%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +11.0 points over 8 quarters to 31.8%; Foreign institutions: −7.0 points over 8 quarters to 20.7%; Promoters: +0.0 points over 8 quarters to 26.6%.

Why the register moved: rotation — foreign institutions −7.0 points against domestic institutions +11.0 points over 8 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Fiscal-year ends: promoters +0.0 pts from Mar 24 to Mar 26 Shareholding at each fiscal-year end (March quarter), % of the company. 3 year-ends held.
PromotersForeign inst.Domestic inst.Public
32%28%25%21%17%%26.6%21.1%30.7%21.3%Mar 24Mar 25Mar 26
32%28%25%21%17%%26.6%21.1%30.7%21.3%Mar 24Mar 25Mar 26
Domestic institutions added 11.0 points over 8 quarters Shareholding by holder class, % of the company, quarterly, last 13 quarters.
PromotersForeign inst.Domestic inst.Public
33%29%25%21%17%%26.6%20.7%31.8%20.8%Jun 23Dec 24Jun 26
33%29%25%21%17%%26.6%20.7%31.8%20.8%Jun 23Dec 24Jun 26

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

13 · Safety line

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Dr Reddys Laboratories Ltd: the Z-score reads 5.29. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 5.29 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 5.29.

Related companies · same sector · Pharma - Formulators Every company is compared on the shape of its own curves, not static ratios. The Revenue, EPS and ROCE columns each draw that company's last 12 quarters as a mini line of the ACTUAL level (trailing-twelve-month revenue and EPS, and the ROCE itself) — so a line that climbs is a business getting bigger, a line that sinks is one shrinking. The colour tracks the same line: green when it is rising or steadily healthy, amber when it is rolling over from a high (still elevated but turning down), red when it is falling, grey when flat or stuck. Colour and direction always agree — a green line never points down. The ROCE curve is the return on capital (annual readings for peers, so a slightly coarser line than the quarterly one at the top of this page). The Stage column then runs the same 12-quarter trajectory classifier used at the top of the page on each company and names where it sits. What lands a company in each bucket: CONSISTENT — growth stays positive across the window and returns are healthy (ROCE ≥ 15%, or ROE ≥ 12% for lenders); IMPROVING — profit or EPS fell into real decline, bottomed a few quarters back, and has climbed back to positive and held there; TURNING AROUND — the same kind of trough but more recent, with the latest quarters just lifting off it (an early, unconfirmed turn); TOPPING OUT — growth is still positive but decelerating hard from its own peak while returns have stopped rising; DETERIORATING — two or more growth curves are shrinking (latest below zero) and staying there, not one soft quarter; MIXED — the curves genuinely disagree, or no clean majority, so no single word fits; NO READ — fewer than eight usable quarters. It is a like-for-like read of every company against its own past, not a ranking against the group.
CompanyP/EMkt capRevenueEPSROCEStage
Dr Reddys Laboratories Ltd this page29.8×₹96,130 CrDeteriorating
Sun Pharmaceutical Industries Ltd37.5×₹4.7L CrImproving
Torrent Pharmaceuticals Ltd86.1×₹1.9L CrConsistent
Cipla Ltd31.8×₹1.1L CrDeteriorating
Zydus Lifesciences Ltd20.4×₹1.1L CrConsistent
Lupin Ltd19.1×₹1.1L CrConsistent
Mankind Pharma Ltd51.4×₹1L CrTurning around
Aurobindo Pharma Ltd25.1×₹88,979 CrMixed
Biocon Ltd182.0×₹70,672 CrDeteriorating
Alkem Laboratories Ltd27.6×₹67,357 CrMixed
Glenmark Pharmaceuticals Ltd21.0×₹61,858 CrNo read
Ipca Laboratories Ltd37.9×₹44,720 CrConsistent
Ajanta Pharma Ltd37.3×₹42,097 CrConsistent
J B Chemicals & Pharmaceuticals Ltd53.8×₹38,677 CrTopping out
Emcure Pharmaceuticals Ltd37.7×₹35,679 CrMixed
Wockhardt Ltd106.0×₹30,048 CrNo read
Rubicon Research Ltd102.0×₹25,141 CrNo read
ERIS Lifesciences Ltd30.7×₹19,409 CrTurning around
Caplin Point Laboratories Ltd29.2×₹18,753 CrConsistent
Natco Pharma Ltd11.6×₹16,504 CrTopping out
Alembic Pharmaceuticals Ltd21.4×₹15,678 CrTurning around
Corona Remedies Ltd64.7×₹12,923 CrNo read
Marksans Pharma Ltd26.7×₹11,161 CrConsistent
Akums Drugs & Pharmaceuticals Ltd40.3×₹10,818 CrNo read
Strides Pharma Science Ltd16.6×₹9,402 CrNo read
Suven Life Sciences Ltd₹8,929 CrNo read
FDC Ltd22.6×₹6,723 CrTurning around
Bliss GVS Pharma Ltd37.4×₹4,927 CrTurning around
RPG Life Sciences Ltd44.3×₹4,858 Cr
Gufic BioSciences Ltd59.2×₹3,799 CrNo read
Kwality Pharmaceuticals Ltd42.5×₹2,886 CrConsistent
Kwality Pharmaceuticals Ltd36.6×₹2,483 CrConsistent
Sai Parenterals Ltd166.0×₹2,366 Cr
Indoco Remedies Ltd₹2,247 CrNo read
Fredun Pharmaceuticals Ltd45.4×₹1,480 CrNo read
Amrutanjan Health Care Ltd22.8×₹1,472 CrMixed
Accent Microcell Ltd27.1×₹1,187 CrNo read
Lincoln Pharmaceuticals Ltd13.2×₹1,162 CrTurning around
Bajaj Healthcare Ltd19.3×₹1,088 CrNo read
Bharat Parenterals Ltd₹990 CrNo read
12 · Frequently asked questions

Frequently asked questions

What is Dr Reddys Laboratories Ltd's share price today?

Dr Reddys Laboratories Ltd trades at ₹1,211, −3.7% over the past year. The company is valued at ₹96,130 Cr. The stock sits at 18% of its 52-week range of ₹1,176–₹1,374, −4.9% versus its 200-day average. On the tape, the price is in a confirmed uptrend, 17 weeks in. — as of 24 July 2026.

What were Dr Reddys Laboratories Ltd's latest quarterly results?

Dr Reddys Laboratories Ltd reported revenue of ₹8,100 Cr and net profit of ₹436 Cr for the Jun 26 quarter. Revenue fell 5.5% and profit fell 69.1% year on year. Earnings per share were ₹5.32. The operating margin was 11.0%, 14.0 pp lower than a year earlier. — as of 24 July 2026.

What is Dr Reddys Laboratories Ltd's revenue?

Dr Reddys Laboratories Ltd reported revenue of ₹8,100 Cr in the Jun 26 quarter, −5.5% year on year. For the full FY26 fiscal year, revenue was ₹33,700 Cr (+3.2%). Over the last 10 years revenue compounded at 8.0% a year. — as of 24 July 2026.

What is Dr Reddys Laboratories Ltd's profit?

Dr Reddys Laboratories Ltd earned ₹436 Cr of net profit in the Jun 26 quarter, −69.1% year on year. Full-year FY26 profit was ₹4,158 Cr. The operating margin ran 11.0% in the latest quarter. — as of 24 July 2026.

What is Dr Reddys Laboratories Ltd's market cap?

Dr Reddys Laboratories Ltd's market capitalisation is ₹96,130 Cr at a share price of ₹1,211. Market cap is the share price multiplied by shares outstanding, so it is restated whenever the price moves. — as of 24 July 2026.

What is Dr Reddys Laboratories Ltd's P/E ratio?

Dr Reddys Laboratories Ltd trades at a P/E of 29.8×, at the 60th percentile of its own 10-year range, against a long-run median of 25.6×. This is a comparison with the stock's own history, not a value call — as of 24 July 2026.

Does Dr Reddys Laboratories Ltd pay a dividend?

Yes — Dr Reddys Laboratories Ltd's dividend payout was 16% of profit in FY26, and it recorded a payout in each of its last 13 reported fiscal years. This page holds the payout ratio, not a per-share amount. — as of 24 July 2026.

Is Dr Reddys Laboratories Ltd overvalued?

On its own history, Dr Reddys Laboratories Ltd looks mid-range against its own history: its P/E of 29.8× sits at the 60th percentile of its 10-year range (long-run median 25.6×). That is a percentile read against the stock's own past, not a price opinion or a direction call. — as of 24 July 2026.

Is Dr Reddys Laboratories Ltd growing?

Not right now — Dr Reddys Laboratories Ltd's latest numbers are shrinking: latest-quarter revenue −5.5% year on year, profit −69.1%, and the margin −14.0 pp at 11.0%. The 10-year compound rates are 8.0% (revenue) and 6.9% (profit). The earnings engine currently reads: deteriorating — as of 24 July 2026.

How is Dr Reddys Laboratories Ltd performing?

Dr Reddys Laboratories Ltd is in a confirmed uptrend, 17 weeks in. Its latest quarter's revenue fell 5.5% and profit fell 69.1% year on year. Against the NIFTY 500 it has been behind on a trailing-13-week view for 3 weeks. This describes what the data did, not a rating. — as of 24 July 2026.

What stage is Dr Reddys Laboratories Ltd in?

Deteriorating — profit and EPS growth are shrinking (profit growth −44.6% latest against +64.4% at its 12-quarter best), ROCE slipping at 14.9%. The read comes from the last 12 quarters of growth (revenue growth −0.9% latest, profit growth −44.6% latest, eps growth −43.3% latest) plus the ROCE curve, classified by deterministic rules — a trajectory read, not a buy or sell call — as of 24 July 2026.

Is Dr Reddys Laboratories Ltd in an uptrend?

Yes — the price is in a confirmed uptrend (week 17 of stage 2), trading −4.9% versus its 200-day average and at 18% of its 52-week range. Price stages cycle base → advance → top → decline, and the stage names where this stock sits in that cycle — as of 24 July 2026.

Is Dr Reddys Laboratories Ltd beating the market?

Not lately — on a trailing-13-week view Dr Reddys Laboratories Ltd is currently behind the NIFTY 500 (3 weeks and counting; last ahead the week of 2026-07-01), the same metric the week-by-week ribbon on this page draws. Separately, on the cumulative view: over the last 10.4 years the stock moved +86% against the NIFTY 500's +272% — behind the index over the full window. — as of 24 July 2026.

Will Dr Reddys Laboratories Ltd's share price go up?

This page publishes no price forecast for Dr Reddys Laboratories Ltd. What it measures instead: the share price is ₹1,211, the price is in a confirmed uptrend 17 weeks in. Its P/E of 29.8× sits at the 60th percentile of its own 10-year range. — as of 24 July 2026.

Who owns Dr Reddys Laboratories Ltd?

Promoters hold 26.6% of Dr Reddys Laboratories Ltd, foreign institutions 20.7%, domestic institutions 31.8% and the public 20.8% (latest quarter). The biggest move on the register over the last two years: Domestic institutions added 11.0 points over 8 quarters. — as of 24 July 2026.

Does Dr Reddys Laboratories Ltd have too much debt?

No — Dr Reddys Laboratories Ltd's debt-to-equity is 0.20, and operating profit covers the interest bill 17×. FY26 borrowings were ₹7,734 Cr against equity of ₹37,892 Cr. The returns on this page are earned, not borrowed — as of 24 July 2026.

What is Dr Reddys Laboratories Ltd's capex?

Dr Reddys Laboratories Ltd spent ₹18,507 Cr on capital expenditure over the last 3 fiscal years, a figure derived from the change in fixed assets plus depreciation. In FY26 alone that was ₹4,890 Cr, with ₹1,460 Cr in capital work-in-progress — capacity paid for but not yet earning. — as of 24 July 2026.

What is Dr Reddys Laboratories Ltd's cash flow?

Dr Reddys Laboratories Ltd generated ₹5,674 Cr of operating cash flow in FY26 and ₹784 Cr of free cash flow after ₹4,890 Cr of capital spending. Reported profit that year was ₹4,158 Cr, so operating cash ran ahead of profit. Cash-flow resolution for India is annual. — as of 24 July 2026.

Is Dr Reddys Laboratories Ltd's profit real cash?

Yes — over the last 3 fiscal years, 96% of Dr Reddys Laboratories Ltd's reported profit arrived as operating cash. In FY26, operating cash was ₹5,674 Cr against reported profit of ₹4,158 Cr. The cash then goes mostly into building capacity. Cash-flow resolution is annual — as of 24 July 2026.

How financially safe is Dr Reddys Laboratories Ltd?

On the balance sheet, the Z-score reads 5.29 — above roughly 3 is safe, below roughly 1.8 is the distress zone. That sits well clear of trouble. — as of 24 July 2026.

Where is Dr Reddys Laboratories Ltd in its business cycle?

Dr Reddys Laboratories Ltd's FY26 operating margin was 19.0%, against a 13-year band of 14.0%–28.0%: mid-band by its own history — neither the peak that precedes mean-reversion nor the trough that precedes recovery. The latest quarter ran 11.0%. Profitability versus a company's own long band is the cleanest cycle clock this page holds — as of 24 July 2026.

What could break the Dr Reddys Laboratories Ltd story?

The sharpest disagreement: Domestic institutions moved +11.0 points over 8 quarters while the operating story went the other way — someone close to the numbers is not convinced. Mechanically, two Friday closes in a row below the 200-day average would end the price trend — that is the exit rule this page tracks — as of 24 July 2026.

Is Dr Reddys Laboratories Ltd a stock worth studying right now?

This is not investment advice. The machine read: Dr Reddys Laboratories Ltd's three tracks disagree. Price, valuation and the earnings engine each tell a different story — the next quarter or two settles it. The sharpest open question: whether the register turns back in the story’s favour. Every number on this page is drawn deterministically from the raw series, with no forecasts and no price opinions — as of 24 July 2026.

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