What were Dr Reddys Laboratories Ltd's latest quarterly results?
Dr Reddys Laboratories Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: -15.2% (inflecting downward)
- Revenue Growth YoY: +4.4%
- Operating Margin: 22.0% (volatile)
Dr Reddys Laboratories Ltd: Why Is It Outperforming Nifty 500?
ActiveAverage11w Streak
In , Dr Reddys Laboratories Ltd (Pharma - Formulators) is outperforming Nifty 500 with +5.6% relative strength. Fundamentals: Average. On a 11-week streak.
Dr Reddys Laboratories Ltd Key Facts
- PE Ratio
- 19.4x
- Market Cap
- ₹1,07,996 Cr
- PAT Growth YoY
- -15%
- Revenue Growth YoY
- +4%
- OPM
- 22.0%
- RS vs Nifty 500
- +5.6%
PE: Cycle BottomNeutral
What's Happening
📊PE near cycle lows — valuation reset is underway
📊Debt increased 25% YoY — leverage rising
🌐FII stake decreased 2.8% this quarter
🏛️DII accumulation — stake up 6.5%
💰Trading 95% below estimated fair value — significant discount
Key Numbers
PAT Growth YoY
-15%
Inflection Down
Revenue YoY
+4%
Decelerating
Operating Margin
22.0%
-500 bps YoY
PE Ratio
19.4
Current Price
₹1,294
Dividend Yield
0.62%
Fundamental Score
43/100
Average
3Y PAT CAGR
+38%
Market Cap
1.1L Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
How Fast Is Dr Reddys Laboratories Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +4% | +15% | Decelerating |
| PAT (Net Profit) | -15% | +38% | Inflection Down |
| OPM | 22.0% | -500 bps | Volatile |
Other Top Pharma - Formulators Stocks Beating Nifty 500
Frequently Asked Questions: Dr Reddys Laboratories Ltd
Based on publicly available financial data. This is educational research, not investment advice.
Is Dr Reddys Laboratories Ltd's profit growing or declining?
Dr Reddys Laboratories Ltd's profit is declining with an inflecting downward trend.
- PAT Growth YoY: -15.2% (latest quarter)
- PAT Growth QoQ: -11.0% (sequential)
- 3-Year PAT CAGR: +37.9%
- Trend: Inflecting downward — consistent growth pattern
What is Dr Reddys Laboratories Ltd's revenue growth trend?
Dr Reddys Laboratories Ltd's revenue growth trend is decelerating.
- Revenue Growth YoY: +4.4%
- Revenue Growth QoQ: -0.8% (sequential)
- 3-Year Revenue CAGR: +14.9%
How is Dr Reddys Laboratories Ltd's operating margin trending?
Dr Reddys Laboratories Ltd's operating margin is volatile.
- Current OPM: 22.0%
- OPM Change YoY: -5.0% basis points
- OPM Change QoQ: -1.0% basis points
What is Dr Reddys Laboratories Ltd's 3-year profit and revenue CAGR?
Dr Reddys Laboratories Ltd's long-term compounding rates
- 3-Year Profit CAGR: +37.9%
- 3-Year Revenue CAGR: +14.9%
Is Dr Reddys Laboratories Ltd's growth accelerating or decelerating?
Dr Reddys Laboratories Ltd's earnings growth is inflecting downward with negative momentum on a sequential basis.
- YoY Acceleration: -14.8% bps
- Sequential Acceleration: -5.8% bps
- Margin Warning: Operating margins are under pressure
What is Dr Reddys Laboratories Ltd's trailing twelve month (TTM) performance?
Dr Reddys Laboratories Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹6,000 Cr
- TTM PAT Growth: +1.4% YoY
- TTM Revenue: ₹35,000 Cr
- TTM Revenue Growth: +11.1% YoY
- TTM Operating Margin: 23.2%
Is Dr Reddys Laboratories Ltd overvalued or undervalued?
Dr Reddys Laboratories Ltd appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 19.4x
- Price-to-Book: 3.0x
What is Dr Reddys Laboratories Ltd's current PE ratio?
Dr Reddys Laboratories Ltd's current PE ratio is 19.4x.
- Current PE: 19.4x
- Market Cap: 1.1 Lakh Cr
- Dividend Yield: 0.62%
How does Dr Reddys Laboratories Ltd's valuation compare to its history?
Dr Reddys Laboratories Ltd's current PE is 19.4x.
- Current PE: 19.4x
- Valuation Assessment: Significantly Undervalued
What is Dr Reddys Laboratories Ltd's price-to-book ratio?
Dr Reddys Laboratories Ltd's price-to-book ratio is 3.0x.
- Price-to-Book (P/B): 3.0x
- Book Value per Share: ₹432
- Current Price: ₹1294
Is Dr Reddys Laboratories Ltd a fundamentally strong company?
Dr Reddys Laboratories Ltd is rated Average with a fundamental score of 42.53/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +4.4% (10% weight)
- PAT Growth YoY: -15.2% (10% weight)
- PAT Growth QoQ: -11.0% (10% weight)
- Margins stable (10% weight)
Is Dr Reddys Laboratories Ltd debt free?
Dr Reddys Laboratories Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹5,000 Cr
What is Dr Reddys Laboratories Ltd's return on equity (ROE) and ROCE?
Dr Reddys Laboratories Ltd's return ratios over recent years
- FY2023: ROCE 27.0%
- FY2024: ROCE 27.0%
- FY2025: ROCE 23.0%
Is Dr Reddys Laboratories Ltd's cash flow positive?
Dr Reddys Laboratories Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹5,000 Cr
- Free Cash Flow (FCF): ₹-1,000 Cr
- CFO/PAT Ratio: 81% (strong cash conversion)
What is Dr Reddys Laboratories Ltd's dividend yield?
Dr Reddys Laboratories Ltd's current dividend yield is 0.62%.
- Dividend Yield: 0.62%
- Current Price: ₹1294
Who holds Dr Reddys Laboratories Ltd shares — promoters, FII, DII?
Dr Reddys Laboratories Ltd's shareholding pattern (Mar 2026)
- Promoters: 26.6%
- FII (Foreign): 21.1%
- DII (Domestic): 30.7%
- Public: 21.3%
Is promoter holding increasing or decreasing in Dr Reddys Laboratories Ltd?
Dr Reddys Laboratories Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 26.6% (Mar 2026)
- Previous Quarter: 26.6% (Dec 2025)
- Change: -0.01% (decreasing — worth monitoring)
How long has Dr Reddys Laboratories Ltd been outperforming Nifty 500?
Dr Reddys Laboratories Ltd has been outperforming Nifty 500 for 11 consecutive weeks, indicating consistent outperformance.
Is Dr Reddys Laboratories Ltd a new momentum entry or an established outperformer?
Dr Reddys Laboratories Ltd is an established outperformer with 11 weeks of consecutive Nifty 500 outperformance.
Is Dr Reddys Laboratories Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Dr Reddys Laboratories Ltd may be worth studying
- Valuation: appears significantly undervalued
- Cash flow is positive — CFO ₹5,000 Cr
What is the investment thesis for Dr Reddys Laboratories Ltd?
Dr Reddys Laboratories Ltd investment thesis summary:
Research Signals (Bull Case)
- Appears significantly undervalued
Risk Factors (Bear Case)
- Margins under pressure
What is the future outlook for Dr Reddys Laboratories Ltd?
Dr Reddys Laboratories Ltd's forward outlook based on current data signals
- Earnings Trend: inflecting downward
- Revenue Trend: decelerating
- Margin Trend: volatile
- Valuation: Significantly Undervalued
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.