EX-99.3 4 rdy0813_ex99-3.htm EXHIBIT 99.3

Exhibit 99.3

	CONTACT
DR. REDDY’S LABORATORIES LTD. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India.	Investor relationS	Media relationS
	Richa Periwal	richaperiwal@drreddys.com
	AISHWARYA SITHARAM	PRIYA K
	aishwaryasitharam@drreddys.com	priyak@drreddys.com

Dr. Reddy’s Q2 & H1FY26 Financial Results

Hyderabad, India, October 24, 2025: Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter and six months ended September 30, 2025. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).

	Q2FY26	H1FY26
Revenues	₹ 88,051 Mn [Up: 9.8% YoY; 3% QoQ]	₹ 173,503 Mn [Up: 10.6% YoY]
Gross Margin	54.7% [Q2FY25: 59.6%; Q1FY26: 56.9%]	55.8% [H1FY25: 60.0%]
SG&A Expenses	₹ 26,436 Mn [Up: 15% YoY; 3% QoQ]	₹ 52,083 Mn [Up: 14% YoY]
R&D Expenses	₹ 6,202 Mn [7.0% of Revenues]	₹ 12,446 Mn [7.2% of Revenues]
EBITDA	₹ 23,511 Mn [26.7% of Revenues]	₹ 46,295 Mn [26.7% of Revenues]
Profit before Tax	₹ 18,350 Mn [Down: 4% YoY; 4% QoQ]	₹ 37,397 Mn [Down: 2% YoY]
Profit after Tax attributable to Equity Holders	₹ 14,372 Mn [Up: 14% YoY; 1% QoQ]	₹ 28,549 Mn [Up: 8% YoY]

Commenting on the results, Co-Chairman & MD, G V Prasad said: “Growth in Q2 was driven by momentum in branded markets and steady contributions from the Nicotine Replacement Therapy (NRT) portfolio, which helped offset the decline in U.S. Lenalidomide sales. We remain focused on strengthening our core business, advancing key pipeline assets, driving productivity and pursuing business development initiatives.”

All amounts in millions, except EPS

All US dollar amounts based on convenience translation rate of 1 USD = ₹88.78

Dr. Reddy’s Laboratories Limited & Subsidiaries

Revenue Mix by Segment for the quarter

Particulars	Q2FY26		Q2FY25		YoY			Q1FY26		QoQ
	(₹)		(₹)		Gr %			(₹)		Gr%
Global Generics		78,498		71,576		10			75,620		4
North America		32,408		37,281		(13	)		34,123		(5	)
Europe		13,762		5,770		138	^		12,744		8	^
India		15,780		13,971		13			14,711		7
Emerging Markets		16,548		14,554		14			14,042		18
Pharmaceutical Services and Active Ingredients (PSAI)		9,450		8,407		12			8,181		16
Others		103		179		(42	)		1,651		(94	)
Total		88,051		80,162		10			85,452		3

^Excluding acquired Consumer Healthcare business in Nicotine Replacement Therapy (NRT) sales; revenue growth is at 17% YoY and 12% QoQ.

Revenue Mix by Segment for the half year

Particulars	H1FY26		H1FY25		YoY
	(₹)		(₹)		Gr%
Global Generics		154,118		140,434		10
North America		66,531		75,743		(12	)
Europe		26,506		11,035		140	^
India		30,491		27,223		12
Emerging Markets		30,590		26,433		16
PSAI		17,631		16,064		10
Others		1,754		391		349
Total		173,503		156,889		11

^Excluding NRT sales; revenue growth is at 16% YoY.

Consolidated Income Statement for the quarter

Particulars	Q2FY26						Q2FY25						YoY			Q1FY26						QoQ
	($)			(₹)			($)			(₹)			Gr%			($)			(₹)			Gr%
Revenues		992			88,051			903			80,162			9.8			963			85,452			3
Cost of Revenues		450			39,911			365			32,393			23			415			36,825			8
Gross Profit		542			48,140			538			47,769			1			548			48,627			(1	)
% of Revenues					54.7	%					59.6	%								56.9	%
Selling, General & Administrative Expenses		298			26,436			259			23,007			15			289			25,647			3
% of Revenues					30.0	%					28.7	%								30.0	%
Research & Development Expenses		70			6,202			82			7,271			(15	)		70			6,244			(1	)
% of Revenues					7.0	%					9.1	%								7.3	%
Impairment of Non-Current Assets, net		7			662			10			924			(28	)		0			0			NA
Other (Income)/Expense, net		(30	)		(2,673	)		(11	)		(984	)		172			(8	)		(739	)		262
Results from Operating Activities		197			17,513			198			17,551			(0	)		197			17,475			0
Finance (Income)/Expense, net		(9	)		(774	)		(18	)		(1,555	)		(50	)		(18	)		(1,570	)		(51	)
Share of Profit of Equity Investees, net of tax		(1	)		(63	)		(1	)		(61	)		3			(0	)		(2	)		3050
Profit before Income Tax		207			18,350			216			19,167			(4	)		215			19,047			(4	)
% of Revenues					20.8	%					23.9	%								22.3	%
Income Tax Expense		46			4,082			65			5,752			(29	)		56			4,951			(18	)
Profit for the Period		161			14,268			151			13,415			6			159			14,096			1
% of Revenues					16.2	%					16.7	%								16.5	%
Attributable to Equity holders of the Parent Co.		162			14,372			141			12,553			14			160			14,178			1
Attributable to Non-controlling interests		(1	)		(104	)		10			862			(112	)		(1	)		(82	)		27
Diluted Earnings per Share (EPS)		0.19			17.25			0.17			15.05			15			0.19			17.02			1

Earnings before Interest, Tax, Depreciation & Amortization (EBITDA) Computation for the quarter

Particulars	Q2FY26						Q2FY25						Q1FY26
	($)			(₹)			($)			(₹)			($)			(₹)
Profit before Income Tax		207			18,350			216			19,167			215			19,047
Interest (Income) / Expense, net*		(6	)		(552	)		(14	)		(1,262	)		(12	)		(1,028	)
Depreciation		35			3,091			30			2,629			33			2,894
Amortization		22			1,960			15			1,346			21			1,871
Impairment		7			662			10			924			(0	)		(0	)
EBITDA		265			23,511			257			22,803			257			22,784
% of Revenues					26.7	%					28.4	%					26.7	%

*Includes income from Investment

Consolidated Income Statement for the half year

Particulars	H1FY26						H1FY25						YoY
	($)			(₹)			($)			(₹)			Gr%
Revenues		1,954			173,503			1,767			156,889			11
Cost of Revenues		864			76,736			707			62,776			22
Gross Profit		1,090			96,767			1,060			94,113			3
% of Revenues					55.8	%					60.0	%
Selling, General & Administrative Expenses		587			52,083			515			45,698			14
% of Revenues					30.0	%					29.1	%
Research & Development Expenses		140			12,446			152			13,464			(8	)
% of Revenues					7.2	%					8.6	%
Impairment of Non-Current Assets, net		7			662			10			929			(29	)
Other (Income)/Expense, net		(38	)		(3,412	)		(16	)		(1,454	)		135
Results from Operating Activities		394			34,988			400			35,476			(1	)
Finance (Income)/Expense, net		(26	)		(2,344	)		(27	)		(2,392	)		(2	)
Share of Profit of Equity Investees, net of tax		(1	)		(65	)		(1	)		(120	)		(46	)
Profit before Income Tax		421			37,397			428			37,988			(2	)
% of Revenues					21.6	%					24.2	%
Income Tax Expense		102			9,033			120			10,653			(15	)
Profit for the Period		319			28,364			308			27,335			4
% of Revenues					16.3	%					17.4	%
Attributable to Equity holders of the Parent Co.		322			28,549			298			26,473			8
Attributable to Non-controlling interests		(2	)		(185	)		10			862			(122	)
Diluted Earnings per Share (EPS)		0.39			34.26			0.36			31.74			8

EBITDA Computation for the half year

Particulars	H1FY26						H1FY25
	($)			(₹)			($)			(₹)
Profit before Income Tax		421			37,397			428			37,988
Interest (Income) / Expense, net*		(18	)		(1,580	)		(26	)		(2,300	)
Depreciation		67			5,985			58			5,137
Amortization		43			3,831			30			2,648
Impairment		7			662			10			929
EBITDA		521			46,295			500			44,402
% of Revenues					26.7	%					28.3	%

*Includes income from Investment

Key Balance Sheet Items

Particulars	As on 30^th Sep 2025				As on 30^th Jun 2025				As on 30^th Sep 2024
	($)		(₹)		($)		(₹)		($)		(₹)
Cash and Cash Equivalents and Other Investments		838		74,393		824		73,169		724		64,274
Trade Receivables		1,101		97,738		1,072		95,137		951		84,398
Inventories		854		75,821		852		75,600		811		72,039
Property, Plant, and Equipment		1,261		111,981		1,158		102,784		976		86,693
Goodwill and Other Intangible Assets		1,276		113,240		1,212		107,572		1,170		103,842
Loans and Borrowings (Current & Non-Current)		659		58,539		548		48,644		547		48,540
Trade Payables		453		40,248		422		37,457		403		35,776
Equity		4,078		362,082		3,985		353,755		3,484		309,283

Key Business Highlights for Q2FY26

Acquired the STUGERON^® portfolio, including leading local brands across 18 markets in the Asia-Pacific (APAC) and Europe, Middle East, and Africa (EMEA) regions, with India and Vietnam as key markets for $50.5 million.

Launched Linaclotide, a novel drug for Chronic Constipation management in adults, in India under the brand name, ‘Colozo^®’.

Launched Tegoprazan, a partnered, patented molecule indicated for acid-related gastrointestinal diseases, in India under the brand name, ‘PCAB^®.’

Partnered with Unitaid, the Clinton Health Access Initiative (CHAI), and Wits RHI to make HIV prevention tool, Lenacapavir, affordable in 120 low- and middle-income countries.

The Subject Expert Committee (SEC) under Central Drugs Standard Control Organization (CDSCO) recommended grant of permission to manufacture and market Semaglutide injection in India.

Received a positive opinion from European Medicines Agency’s (EMA’s) Committee for Medicinal Products for Human Use (CHMP) recommending marketing authorisation for denosumab biosimilar candidate.

Received acceptance of Investigational New Drug (IND) application for COYA 302, a partnered novel drug for the treatment of patients with ALS.

Two-thirds of NRT business integrated, including Canada, Australia and select key Western European markets.

Launched Sacubitril Valsartan tablets, generic version of Entresto® indicated for heart failure management in the US.

Launched partnered product, fluorouracil cream, as an authorized generic of Extrovis AG’s CARAC® in the US.

Launched Skorolox, first INN loxoprofen in Russia for treatment of acute upper respiratory tract infections and indicated for musculoskeletal & postoperative pain.

ESG Highlights for Q2FY26

Retained MSCI ESG Rating of A for the 2^nd consecutive year.

Improved ESG Risk Rating from Morningstar Sustainalytics' from 23.6 to 18.4, representing a lower ESG risk profile.

Received ‘Diamond Standard’ certification from TÜV SÜD South Asia for achieving 99.9% of waste diversion from landfills.

Formulations facility at Srikakulam, FTO-11, became India’s first pharmaceutical facility to receive a ‘Leadership in Energy and Environmental Design (LEED) Platinum certification’ for existing buildings from the US Green Building Council.

Other Updates for Q2FY26

Received a Form 483 with seven observations for formulations manufacturing facility, FTO-11, in Srikakulam, Andhra Pradesh, post a GMP and a Pre-Approval Inspection (PAI) conducted by the United States Food & Drug Administration (USFDA) in July 2025. The USFDA has classified the inspection outcome as 'Voluntary Action Indicated (VAI)' in October 2025.

Received ‘VAI’ as inspection outcome, following GMP inspection conducted by the USFDA in May 2025 at API facility, CTO-5, in Miryalaguda, Telangana, India.

Received ‘VAI’ as inspection outcome, following GMP inspection conducted by the USFDA in May 2025 at API facility in Middleburgh, New York.

Received a Form 483 with five observations for biologics facility, in Bachupally, Hyderabad, post a PAI conducted by the USFDA in September 2025, pursuant to the inspection conducted in October 2023.

Received a Form 483 with seven observations for API facility, in Mirfield, UK, post a GMP inspection conducted by the USFDA in September 2025.

Revenue Analysis

Q2FY26 consolidated revenues at ₹88.1 billion, growth of 9.8% YoY and 3% QoQ.

H1FY26 consolidated revenues at ₹173.5 billion, growth of 11% YoY.

Growth was broad-based across key markets, except for North America Generics, which witnessed higher price erosion in select products and lower lenalidomide sales. The acquired Consumer Healthcare portfolio in Nicotine Replacement Therapy (NRT) also contributed positively to overall performance.

Global Generics (GG)

Q2FY26 revenues at ₹78.5 billion, growth of 10% YoY and 4% QoQ.

H1FY26 revenues at ₹154.1 billion, growth of 10% YoY.

North America

Q2FY26 revenues at ₹32.4 billion, decline of 13% YoY and 5% QoQ.

H1FY26 revenues at ₹66.5 billion, decline of 12% YoY.

The decline was primarily due to increased price erosion in certain key products including Lenalidomide, partly offset by favourable forex and contribution from new products launches.

During the quarter, we launched seven new products, while a total of 12 new products were launched during H1FY26.

We filed five new Abbreviated New Drug Applications (ANDAs) with the USFDA during the quarter, taking the total to six for H1FY26.

As of September 30, 2025, filings pending approval from USFDA were 75 including:

73 ANDAs (45 are Paragraph IV applications, and 22 may have a ‘First to File’ status) and

Two New Drug Applications (NDAs) filed under Section 505(b)(2).

Europe

Q2FY26 revenues at ₹13.8 billion, growth of 138% YoY and 8% QoQ. Excluding NRT business; growth of 17% YoY and 12% QoQ.

H1FY26 revenues at ₹26.5 billion, growth of 140% YoY.

The YoY growth in Europe was largely driven by revenues from the acquired NRT portfolio, new product launches, increase in volumes for existing products and favourable forex movement partly offset by ongoing price erosion. On a sequential basis, growth was pre-dominantly volume driven.

Q2FY26 NRT revenues at ₹7.0 billion, growth of 5% QoQ.

H1FY26 NRT revenues at ₹13.7 billion.

Q2FY26 Germany revenues at ₹4.0 billion, growth of 23% YoY and 26% QoQ.

H1FY26 Germany revenues at ₹7.1 billion, growth of 19% YoY.

Q2FY26 UK revenues at ₹1.6 billion, decline of 4% YoY and 10% QoQ.

H1FY26 UK revenues at ₹3.3 billion, growth of 3% YoY.

Q2FY26 Rest of Europe revenues at ₹1.2 billion, growth of 35% YoY and 6% QoQ.

H1FY26 Rest of Europe revenues at ₹2.4 billion, growth of 32% YoY.

During the quarter, we launched eight new products in the region, taking the total to 21 for H1FY26.

India

Q2FY26 revenues at ₹15.8 billion, growth of 13% YoY and 7% QoQ.

H1FY26 revenues at ₹30.5 billion, growth of 12% YoY.

Growth for the quarter was driven by price increases, new launches and higher volumes.

As per IQVIA, our IPM rank was at 10 on a Moving Quarterly Total (MQT) and Moving Annual Total (MAT) basis. We moved to the 9th position in the Indian Pharmaceutical Market (IPM) in September.

During the quarter, we launched 11 new brands, taking the total to 16 for H1FY26.

Emerging Markets

Q2FY26 revenues at ₹16.5 billion, growth of 14% YoY and 18% QoQ.

H1FY26 revenues at ₹30.6 billion, growth of 16% YoY.

YoY growth was largely driven by new product launches across markets, aided by favourable forex. QoQ growth was primarily on account of volume growth.

Q2FY26 Russia revenues at ₹8.7 billion, growth of 28% YoY and 24% QoQ.

H1FY26 Russia revenues at ₹15.8 billion, growth of 28% YoY.

YoY growth was due to higher volumes of existing products, price increase in certain brands and favorable forex. QoQ gains primarily reflects higher sales volumes.

Q2FY26 Other Commonwealth of Independent States (CIS) countries and Romania revenues at ₹2.3 billion, growth of 9% YoY and 20% QoQ.

H1FY26 CIS and Romania revenues at ₹4.3 billion, growth of 6% YoY.

YoY growth for the quarter was on account of new launches and favourable forex while QoQ growth benefitted from higher sales volumes and new product launches.

Q2FY26 Rest of World (RoW) revenues at ₹5.5 billion, decline of 2% YoY and growth of 9% QoQ.

H1FY26 RoW revenues at ₹10.5 billion, growth of 5% YoY.

While YoY decline for the quarter was largely on account of pricing pressure, QoQ growth was primarily due to higher sales volumes from existing products and new product launches.

During Q2FY26, we launched 24 new products across countries, taking the total to 50 for H1FY26.

Pharmaceutical Services and Active Ingredients (PSAI)

Q2FY26 revenues at ₹9.4 billion, growth of 12% YoY and 16% QoQ.

H1FY26 revenues at ₹17.6 billion, growth of 10% YoY.

YoY growth during the quarter was driven by launch of new API products and favourable forex, while QoQ growth was on account of higher API sales volumes and growth in the services business.

During the quarter, we filed 37 Drug Master Files (DMFs) globally, taking the total to 49 for H1FY26.

Income Statement Highlights:

Gross Margin

Q2FY26 at 54.7% (GG: 59.1%, PSAI: 18.0%), a decline of 492 basis points (bps) YoY and 223 bps QoQ.

H1FY26 at 55.8% (GG: 60.0%, PSAI: 15.8%), a decline of 421 bps YoY.

The YoY decline for the quarter was primarily driven by reduced sales of Lenalidomide, product-specific price erosion in North America Generics (NAG) and one-time inventory provisions linked to discontinued pipeline products affected by technical challenges and regulatory delays. Additionally, lower operating leverage in the Pharmaceutical Services and Active Ingredients (PSAI) segment contributed to the decline.

Selling, General & Administrative (SG&A) Expenses

Q2FY26 at ₹26.4 billion, increase of 15% YoY and 3% QoQ.

As % to Revenues – Q2FY26: 30.0% | Q2FY25: 28.7% | Q1FY26: 30.0%.

H1FY26 revenues at ₹52.1 billion, increase of 14% YoY.

As % to Revenues – H1FY26: 30.0% | H1FY25: 29.1%.

The YoY increase was driven by focused investments in consumer healthcare business - NRT and branded markets. One-time expenses including potential VAT liability of ₹ 0.7 billion in one of our subsidiaries and charges associated with discontinuation of a pipeline product also contributed to the increase. Excluding the one-off associated with VAT liability, SG&A was 29.2% of revenues for the quarter and 29.6% of revenues for H1FY26.

Research & Development (R&D) Expenses

Q2FY26 at ₹6.2 billion, decrease of 15% YoY and 1% QoQ.

As % to Revenues – Q2FY26: 7.0% | Q2FY25: 9.1% | Q1FY26: 7.3%.

H1FY26 revenues at ₹12.4 billion, decrease of 8% YoY.

As % to Revenues – H1FY26: 7.2% | H1FY25: 8.6%.

R&D expenditure was lower due to reduced investment in Biosimilars following the completion of major funding for Abatacept biosimilar candidate. The R&D spends were directed towards complex generics, biosimilars, APIs and novel biologics with a focus on oncology, peptides and injectables.

Impairment

Q2FY26 at ₹0.7 billion compared to ₹0.9 billion in Q2FY25.

H1FY26 at ₹0.7 billion compared to ₹0.9 billion in H1FY25.

The impairment charge during the quarter includes a one-time charge ₹0.5 billion related to property, plant and equipment at the Middleburgh facility following the discontinuation of a pipeline product and remaining charge pertains to product-related intangible assets impacted by unfavorable market conditions.

Other Operating Income/Expense

Q2FY26 income at ₹2.7 billion compared to ₹1.0 billion in Q2FY25.

H1FY26 income at ₹3.4 billion compared to ₹1.5 billion in H1FY25.

This includes product related settlement income from the United States and a one-time reversal of ₹0.9 billion in liabilities associated with the discontinuation of a pipeline product.

Net Finance Income/Expense

Q2FY26 income at ₹0.8 billion compared to ₹1.6 billion in Q2FY25.

H1FY26 income at ₹2.3 billion compared to ₹2.4 billion in H1FY25.

Profit before Tax (PBT)

Q2FY26 at ₹18.4 billion, decline of 4% YoY and QoQ.

As % to Revenues – Q2FY26: 20.8% | Q2FY25: 23.9% | Q1FY26: 22.3%.

H1FY26 at ₹37.4 billion, decline of 2% YoY.

As % to Revenues – H1FY26: 21.6% | H1FY25: 24.2%.

Adjusted for the one-off related to VAT provision mentioned earlier, PBT as a % to Revenues – Q2FY26: 21.6% | H1FY26: 22.0%.

Income Tax

Q2FY26 at ₹4.1 billion. As % to PBT – Q2FY26: 22.2% | Q2FY25: 30.0% | Q1FY26: 26.0%.

H1FY26 at ₹9.0 billion. As % to PBT – H1FY26: 24.2% | H1FY25: 28.0%.

The ETR was lower in Q2FY26 due to a favourable jurisdictional mix. The ETR in corresponding quarter in previous period is higher due to reversal of previously recognized deferred tax asset on indexation of land, consequent to amendments made to the Finance Act (No.2) 2024 of the Income Tax Act, 1961.

Profit attributable to Equity Holders of Parent Company

Q2FY26 at ₹14.4 billion, growth of 14% YoY and 1% QoQ.

As % to Revenues – Q2FY26: 16.3% | Q2FY25: 15.7% | Q1FY26: 16.6%.

H1FY26 at ₹28.5 billion, growth of 8% YoY.

As % to Revenues – H1FY26: 16.5% | H1FY25: 16.9%.

Diluted Earnings per Share (EPS)

Q2FY26 is ₹17.25.

H1FY26 is ₹34.26.

Other Financial Highlights:

EBITDA

Q2FY26 at ₹23.5 billion, growth of 3% YoY and QoQ.

As % to Revenues – Q2FY26: 26.7% | Q2FY25: 28.4% | Q1FY26: 26.7%.

Adjusted for the one-offs related to VAT provision, EBITDA as a % to Revenues – Q2FY26: 27.5% | H1FY26: 27.1%.

Others:

Operating Working Capital: As on 30^th September 2025 at ₹133.3 billion.

Capital Expenditure: Q2FY26 at ₹5.1 billion.

Free Cash Flow: Q2FY26 at ₹5.8 billion (post-acquisition related payout).

Net Cash Surplus: As on 30^th September 2025 at ₹27.5 billion

Net Debt to Equity: As on 30^th September 2025 is (0.08)

Annualized Return on Capital Employed (RoCE): Q2FY26 stood at 21.9%

About key metrics and non-GAAP Financial Measures

This press release contains non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K. Such non-GAAP financial measures are measures of our historical performance, financial position or cash flows that are adjusted to exclude or include amounts from the most directly comparable financial measure calculated and presented in accordance with IFRS.

The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS. Our non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. These measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.

We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.

For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please refer to "Reconciliation of GAAP to Non-GAAP Results" table in this press release.

All amounts in millions, except EPS

Reconciliation of GAAP Measures to Non-GAAP Measures

Operating Working Capital

Particulars	As on 30^th Sep 2025
		(₹)
Inventories		75,821
Trade Receivables		97,738
Less:
Trade Payables		(40,248	)
Operating Working Capital		133,311

Free Cash Flow

Particulars	Three months ended 30^th Sep 2025
	(₹)
Net cash generated from operating activities		21,230
Less:
Taxes		(5,658	)
Investments in Property, Plant & Equipment		(5,112	)
Free Cash Flow before Acquisitions		10,460
Less:
Acquisition related pay-outs		(4,670	)
Free Cash Flow		5,790

Net Cash Surplus and Debt to Equity

Particulars	As on 30^th Sep.2025
	(₹)
Cash and Cash Equivalents		9,906
Investments		64,487
Short-term Borrowings		(41,155	)
Long-term Borrowings (Current & Non-current)		(17,384	)
Less:
Restricted Cash Balance – Unclaimed Dividend and others		355
Lease liabilities (Included in Short-term and Long-term Borrowings)		(13,585	)
Equity Investments (Included in Investments)		1,576
Net Cash Surplus		27,508
Equity		362,082
Net Debt/Equity		(0.08	)

Computation of RoCE

Particulars	As on 30^thSep 2025
	(₹)
Profit before Tax		18,350
Less:
Interest and Investment Income (Excluding forex gain/loss)		(552	)
Earnings Before Interest and taxes [A]		17,798

Average Capital Employed [B]		327,347

Annualised Return on Capital Employed (A/B) (Ratio)		21.9	%

Computation of Capital Employed:

Particulars	As on
	Sep 30, 2025			Mar 31, 2025
Property Plant and Equipment		111,981			97,761
Intangibles		100,942			96,803
Goodwill		12,298			11,810
Investment in Equity Accounted Associates		5,184			4,811
Other Current Assets		36,032			30,142
Other Non-Current Assets		1,072			972
Inventories		75,821			71,085
Trade Receivables		97,738			90,420
Derivative Financial Instruments		(2,722	)		(729	)
Less:
Other Liabilities		49,124			48,788
Provisions		6,721			6,324
Trade payables		40,248			35,523
Operating Capital Employed		342,253			312,440
Average Capital Employed		327,347

Computation of EBITDA

Refer page no. 3 & 4.

Earnings Call Details

The management of the Company will host an Earnings call to discuss the Company’s financial performance and answer any questions from the participants.

Date: Friday, October 24, 2025

Time: 19:30 pm IST | 10:00 am ET

Conference Joining Information

Pre-register with the below link and join

https://drreddys.zoom.us/webinar/register/WN_UsxFnaCVRaiV-KhZsVDuFQ

Audio Link and Transcript will be available on the Company’s website: www.drreddys.com

About Dr. Reddy’s: Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is a global pharmaceutical company headquartered in Hyderabad, India. Established in 1984, we are committed to providing access to affordable and innovative medicines. Driven by our purpose of ‘Good Health Can’t Wait’, we offer a portfolio of products and services including APIs, generics, branded generics, biosimilars and OTC. Our major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Our major markets include – USA, India, Russia & CIS countries, China, Brazil, and Europe. As a company with a history of deep science that has led to several industry firsts, we continue to plan and invest in businesses of the future. As an early adopter of sustainability and ESG actions, we released our first Sustainability Report in 2004. Our current ESG goals aim to set the bar high in environmental stewardship; access and affordability for patients; diversity; and governance.

For more information, log on to: www.drreddys.com.

Disclaimer: This press release may include statements of future expectations and other forward-looking statements that are based on the management’s current views and assumptions and involve known or unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to without limitation, (i) general economic conditions such as performance of financial markets, credit defaults , currency exchange rates , interest rates, persistency levels and frequency / severity of insured loss events (ii) mortality and morbidity levels and trends, (iii) changing levels of competition and general competitive factors, (iv) changes in laws and regulations and in the policies of central banks and/or governments, (v) the impact of acquisitions or reorganization , including related integration issues, and (vi) the susceptibility of our industry and the markets addressed by our, and our customers’, products and services to economic downturns as a result of natural disasters, epidemics, pandemics or other widespread illness, including coronavirus (or COVID-19), and (vii) other risks and uncertainties identified in our public filings with the Securities and Exchange Commission, including those listed under the "Risk Factors" and "Forward-Looking Statements" sections of our Annual Report on Form 20-F for the year ended March 31, 2025, our quarterly financial statements filed in Form 6-K with the US SEC for the quarter ended June 30, 2025 and our other filings with US SEC. The company assumes no obligation to update any information contained herein.