EX-99.2 3 rdy0813_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

Dr. Reddy’s Laboratories Ltd.

8-2-337, Road No. 3, Banjara Hills,

Hyderabad - 500 034, Telangana, India.

CIN : L85195TG1984PLC004507

Tel : +91 40 4900 2900

Fax : +91 40 4900 2999

Email : mail@drreddys.com

www.drreddys.com

DR. REDDY'S LABORATORIES LIMITED

Unaudited consolidated financial results of Dr. Reddy's Laboratories Limited and its subsidiaries for the quarter and half year ended 30 September 2025 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)

All amounts in Indian Rupees millions

		Quarter ended									Half year ended						Year ended
Sl. No.	Particulars	30.09.2025			30.06.2025			30.09.2024			30.09.2025			30.09.2024			31.03.2025
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
1	Revenues		88,051			85,452			80,162			173,503			156,889			325,535
2	Cost of revenues		39,911			36,825			32,393			76,736			62,776			135,107
3	Gross profit (1 - 2)		48,140			48,627			47,769			96,767			94,113			190,428
4	Selling, general and administrative expenses		26,436			25,647			23,007			52,083			45,698			93,870
5	Research and development expenses		6,202			6,244			7,271			12,446			13,464			27,380
6	Impairment of non-current assets, net		662			-			924			662			929			1,693
7	Other income, net		(2,673	)		(739	)		(984	)		(3,412	)		(1,454	)		(4,358	)
	Total operating expenses		30,627			31,152			30,218			61,779			58,637			118,585
8	Results from operating activities [(3) - (4 + 5 + 6 + 7)]		17,513			17,475			17,551			34,988			35,476			71,843
	Finance income		1,681			2,400			2,312			4,081			3,747			7,553
	Finance expense		(907	)		(830	)		(757	)		(1,737	)		(1,355	)		(2,829	)
9	Finance income, net		774			1,570			1,555			2,344			2,392			4,724
10	Share of profit of equity accounted investees, net of tax		63			2			61			65			120			217
11	Profit before tax (8 + 9 + 10)		18,350			19,047			19,167			37,397			37,988			76,784
12	Tax expense, net		4,082			4,951			5,752			9,033			10,653			19,539
13	Profit for the period/year (11 - 12)		14,268			14,096			13,415			28,364			27,335			57,245

	Attributable to:
	Equity holders of the parent company		14,372			14,178			12,553			28,549			26,473			56,544
	Non-controlling interests		(104	)		(82	)		862			(185	)		862			701

14	Earnings per equity share attributable to equity shareholders of parent
	Basic earnings per share of Re.1/- each		17.26			17.04			15.07			34.30			31.79			67.88
	Diluted earnings per share of Re.1/- each		17.25			17.02			15.05			34.26			31.74			67.78
			(Not annualised)			(Not annualised)			(Not annualised)			(Not annualised)			(Not annualised)

Segment information

All amounts in Indian Rupees millions

		Quarter ended						Half year ended				Year ended
Sl. No.	Particulars	30.09.2025		30.06.2025		30.09.2024		30.09.2025		30.09.2024		31.03.2025
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
	Segment wise revenue and results:
1	Segment revenue:
	a) Global Generics		78,498		75,620		71,576		154,118		140,434		289,552
	b) Pharmaceutical Services and Active Ingredients		11,584		9,709		11,030		21,293		21,339		43,235
	c) Others		103		1,651		179		1,754		391		2,137
	Total		90,185		86,980		82,785		177,165		162,164		334,924
	Less: Inter-segment revenues		2,134		1,528		2,623		3,662		5,275		9,389
	Net revenues		88,051		85,452		80,162		173,503		156,889		325,535

2	Segment results:
	Gross profit from each segment
	a) Global Generics		46,428		46,086		45,162		92,514		89,680		179,606
	b) Pharmaceutical Services and Active Ingredients		1,700		1,082		2,518		2,782		4,286		9,157
	c) Others		12		1,459		89		1,471		147		1,665
	Total		48,140		48,627		47,769		96,767		94,113		190,428
	Less: Selling and other un-allocable expenditure, net of other income		29,790		29,580		28,602		59,370		56,125		113,644
	Total profit before tax		18,350		19,047		19,167		37,397		37,988		76,784

Global Generics segment includes operations of Biologics business. Inter-segment revenues represent sale from Pharmaceutical Services and Active Ingredients to Global Generics and Others at cost.

Segmental capital employed

As certain assets of the Company including manufacturing facilities, development facilities, treasury assets and liabilities are often deployed interchangeably across segments, it is impractical to allocate these assets and liabilities to each segment. Hence, the details for capital employed have not been disclosed in the above table.

Notes:

The above Statement of unaudited consolidated financial results of Dr. Reddy’s Laboratories Limited (the “parent company”), together with its subsidiaries (collectively, the “Company”), joint ventures and associates, have been prepared in accordance with recognition and measurement principles of IAS 34 as issued by the International Accounting Standards Board (IASB), and presented as per the format of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, and were reviewed and recommended by Audit Committee and approved by the Board of Directors at their meetings held on 24 October 2025. The Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.

During the quarter and six months period ended 30 September 2025, consequent to certain technical challenges in product development, the Company decided to discontinue development of conjugated estrogen at its site in Middleburgh, New York. Consequent to discontinuance of development, the Company recorded the following financial impacts, resulting in a net loss of Rs.47 million in the income statement:

- Impairment loss of the entire carrying value of Rs.535 million for property, plant and equipment;

- Inventory related provisions of Rs.260 million;

- Other development program related wind down costs of Rs.129 million;

- Gain recognized from the write back of liabilities no longer required of Rs.877 million.

This transaction pertains to the Company’s Global Generics segment.

"Impairment of non-current assets, net" for the year ended 31 March 2025 primarily includes:

a. Impairment of intangibles pertaining to acquisition from Mayne:

-an amount of Rs.907 million towards Haloette® (a generic equivalent to Nuvaring®), a product-related intangible, due to constraints on procurement of the underlying product from its contract manufacturer, resulting in a lower recoverable value compared to the carrying value.

-an amount of Rs.270 million pertaining to impairment of certain product related intangibles, due to adverse market conditions resulting in lower recoverable value compared to the carrying value.

b. Other impairments:

-an impairment loss of Rs. 288 million consequent to adverse market conditions with respect to certain product related intangibles forming part of the Company’s global generic business in India and Europe.

The above impairment charge pertains to the Company’s Global Generics segment.

In September 2025, the Company had acquired the STUGERON brand from Janssen Pharmaceutica NV ( an affiliate of Johnson & Johnson) for a consideration of Rs.4,464 million ($50.5 million).The portfolio acquired includes STUGERON® FORTE and STUGERON® PLUS, across 18 markets in the Asia-Pacific and Europe, Middle East, and Africa regions, with India and Vietnam as the key markets.

“Other income, net” for the quarter and year ended 31 March 2025 includes cumulative amount of foreign exchange gain of Rs. 1,551 million, reclassified from the foreign currency translation reserve upon divestment of the membership interest in the subsidiary “Dr. Reddy’s Laboratories Louisiana LLC”. This transaction pertains to the Company's Global Generics segment.

During the six months ended 30 September 2025, the Company received a Field Tax Audit Report from the Federal Tax service authority for one of its foreign subsidiaries for the period from January 2020 to December 2022. The report classified that certain services would be subject to value-added tax (VAT). The Company filed objections, and a revised report was issued on 15 September 2025. The Company submitted further objections, stating that the specified services should not be subject to VAT on 6 October 2025 and is awaiting the final tax assessment.

Based on its best estimate, the Company has recorded a provision of Rs.695 million under “Selling, general and administrative expenses”, and believes that the likelihood of any further liability that may arise on account of this is not probable.

Pursuant to the amendment in The Finance Act 2024, resulting in withdrawal of indexation benefit on long-term capital gain, the Company has written off Deferred Tax Asset amounting to Rs.473 million, created in earlier period on land, during the quarter and half year ended 30 September 2024.

Consolidated statements of financial position

All amounts in Indian Rupees millions

Particulars	As at			As at
	30.09.2025			31.03.2025
	(Unaudited)			(Audited)
ASSETS
Current assets
Cash and cash equivalents		9,906			14,654
Other investments		59,906			43,254
Trade and other receivables		97,738			90,420
Inventories		75,821			71,085
Derivative financial instruments		114			557
Other current assets		36,032			30,142
Total current assets		279,517			250,112
Non-current assets
Property, plant and equipment		111,981			97,761
Goodwill		12,298			11,810
Other intangible assets		100,942			96,803
Investment in equity accounted investees		5,184			4,811
Other investments		4,581			10,391
Deferred tax assets		22,717			18,508
Tax assets		3,713			1,821
Other non-current assets		1,072			972
Total non-current assets		262,488			242,877
Total assets		542,005			492,989

LIABILITIES AND EQUITY
Current liabilities
Trade and other payables		40,248			35,523
Short-term borrowings		41,155			38,045
Long-term borrowings, current portion		5,747			857
Provisions		6,548			6,168
Tax liabilities		7,628			3,028
Derivative financial instruments		2,836			1,286
Other current liabilities		46,765			45,485
Total current liabilities		150,927			130,392
Non-current liabilities
Long-term borrowings		11,637			7,864
Deferred tax liabilities		14,827			14,108
Provisions		173			156
Other non-current liabilities		2,359			3,303
Total non-current liabilities		28,996			25,431
Total liabilities		179,923			155,823
Equity
Share capital		835			834
Treasury shares		(1,937	)		(2,264	)
Share premium		11,310			11,133
Share based payment reserve		1,637			1,642
Capital redemption reserve		173			173
Retained earnings		337,683			315,793
Other reserves		3,979			3,979
Other components of equity		4,809			2,098
Equity attributable to equity holders of the parent company		358,489			333,388
Non-controlling interests		3,593			3,778
Total equity		362,082			337,166
Total liabilities and equity		542,005			492,989

Consolidated statements of cash flows

All amounts in Indian Rupees millions

Particulars	Half year ended
	30.09.2025			30.09.2024
	(Unaudited)			(Unaudited)
Cash flows from/(used in) operating activities :
Profit for the period		28,364			27,335
Adjustments for:
Tax expense, net		9,033			10,653
Fair value changes and profit on sale of financial instruments measured at FVTPL*, net		(1,277	)		(2,245	)
Depreciation and amortization		9,816			7,785
Impairment of non-current assets		662			929
Allowance for credit losses (on trade receivables and other advances)		679			96
Gain on sale or de-recognition of non-current assets, net		(268	)		(447	)
Share of profit of equity accounted investees		(65	)		(120	)
Inventories write-down		3,450			2,844
Foreign exchange (gain)/loss, net		(509	)		507
Interest income, net		(303	)		(54	)
Equity settled share-based payment expense		212			208
Changes in operating assets and liabilities:
Trade and other receivables		(7,689	)		(4,182	)
Inventories		(8,186	)		(11,331	)
Trade and other payables		8,846			4,062
Other assets and other liabilities, net		(3,718	)		(9,474	)
Cash generated from operations		39,047			26,566
Income tax paid, net		(8,845	)		(8,754	)
Net cash generated from operating activities		30,202			17,812

Cash flows (used in)/from investing activities :
Purchase of property, plant and equipment		(12,084	)		(12,646	)
Proceeds from sale of property, plant and equipment		142			411
Purchase of other intangible assets		(8,198	)		(1,687	)
Proceeds from sale of other intangible assets		239			419
Payment for acquisition of businesses		-			(51,441	)
Purchase of other investments		(102,831	)		(138,326	)
Proceeds from sale of other investments		93,289			162,988
Investment in associates		(51	)		(317	)
Interest and dividend received		759			1,280
Net cash (used in)/from in investing activities		(28,735	)		(39,319	)

Cash flows (used in)/from financing activities :
Proceeds from issuance of equity shares (including treasury shares)		288			157
Purchase of treasury shares
Proceeds from issuance of equity shares in subsidiary to non-controlling interests		-			7,056
Proceeds from short-term borrowings, net		2,675			27,556
Payment of principal portion of lease liabilities		(565	)		(735	)
Dividend paid		(6,659	)		(6,662	)
Interest paid		(2,265	)		(1,681	)
Net cash used in financing activities		(6,526	)		25,691

Net increase in cash and cash equivalents		(5,059	)		4,184
Effect of exchange rate changes on cash and cash equivalents		372			(6	)
Cash and cash equivalents at the beginning of the period⁽¹⁾		14,593			7,107
Cash and cash equivalents at the end of the period⁽²⁾		9,906			11,285

*FVTPL (fair value through profit or loss)

⁽¹⁾Adjusted for bank-overdraft of Rs.61 million for the year ended 31 March 2025.

⁽²⁾Adjusted for bank-overdraft of Rs.45 million for the half year ended 30 September 2024.

The Company received an anonymous complaint in September 2020, alleging that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S. anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On July 6, 2021 the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC. The Company has continued to engage with the SEC and DOJ, including through submissions and presentations regarding the initial complaint and additional complaints relating to other markets, and in relation to its Global Compliance Framework, which includes enhancement initiatives undertaken by the Company, and the Company is complying with its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions and can also lead to civil and criminal sanctions under relevant laws, the outcomes, including liabilities, are not reasonably ascertainable at this time.

The Company considered the uncertainties relating to the escalation of conflict in the middle east, and duration of military conflict between Russia and Ukraine, in assessing the recoverability of receivables, goodwill, intangible assets, investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of approval of these financial results. Based on its judgments, estimates and assumptions, the Company expects to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue to closely monitor any material changes to future economic conditions.

		By order of the Board
		For Dr. Reddy’s Laboratories Limited



Place: Hyderabad		G V Prasad
Date: 24 October 2025		Co-Chairman & Managing Director