Hyderabad, India | January 22, 2026
Pharmaceutical major Dr. Reddy’s Laboratories reported a 14% year-on-year decline in net profit for the December quarter, primarily due to lower sales in the United States market, according to the company’s regulatory filing.
For the third quarter of the current financial year, the company posted a net profit of ₹1,210 crore, compared with the same period last year. The dip in earnings came despite growth in overall revenue during the quarter.
Revenue Performance
Dr. Reddy’s Laboratories reported total revenue of ₹8,727 crore, reflecting an increase from the year-ago period. However, performance varied significantly across key markets.
Revenue from North America, the company’s largest market, declined 12% year-on-year to ₹2,964 crore, weighing on overall profitability. The company cited softer demand and pricing pressure in the US market as key factors behind the decline.
Strong Growth in Domestic Market
In contrast, the company’s India business delivered a strong performance. Domestic sales rose 19% to ₹1,603 crore during the December quarter, helping partially offset weakness in overseas markets.
Outlook
Industry analysts said near-term performance for Indian pharmaceutical companies will continue to depend on demand conditions in the US market, pricing trends, and regulatory developments. Dr. Reddy’s is expected to focus on strengthening its domestic portfolio and diversifying growth across geographies to mitigate external headwinds.
