EX-99.5 6 rdy0813_ex99-5.htm EXHIBIT 99.5

 

Exhibit 99.5 

 

  THE SKYVIEW 10
18th Floor, "NORTH LOBBY"
Survey No 83/1, Raidurgam
Hyderabad - 500 032, India
Tel : +91 40 6141 6000

 

Independent Auditor’s Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

 

Review Report to

The Board of Directors

Dr. Reddy’s Laboratories Limited

 

1.We have reviewed the accompanying “Statement of Unaudited Standalone Financial Results for the Quarter and Half Year ended 30 September 2025” (the “Statement”) of Dr. Reddy’s Laboratories Limited (the “Company”) attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).

 

2.The Company’s Management is responsible for the preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) “Interim Financial Reporting” prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Statement has been approved by the Company’s Board of Directors. Our responsibility is to express a conclusion on the Statement based on our review.

 

3.We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

4.Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

 

For S.R. BATLIBOI & ASSOCIATES LLP

Chartered Accountants

ICAI Firm registration number: 101049W/E300004

 

 

per Shankar Srinivasan

Partner

Membership No.: 213271

 

UDIN: 25213271BMISWR5998

  

 

Place: Hyderabad

Date: October 24, 2025

 

S.R. Batliboi & Associates LLP, a Limited Liability Partnership with LLP Identity No. AAB-4295
Regd. Office : 22, Camac Street, Block 'B', 3rd Floor, Kolkata-700 016

 

 

 

  

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

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2025

 

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  Revenue from operations                        
   a) Sales   45,587    77,520    58,534    123,107    116,610    218,448 
   b) License fees and service income   442    367    8,254    809    8,417    12,020 
   c) Other operating income   157    208    175    365    348    686 
   Total revenue from operations   46,186    78,095    66,963    124,281    125,375    231,154 
                                  
2  Other income   3,642    3,983    2,076    7,625    3,935    10,034 
                                  
   Total income (1 + 2)   49,828    82,078    69,039    131,906    129,310    241,188 
                                  
3  Expenses                              
   a) Cost of materials consumed   10,090    11,355    9,343    21,445    18,454    37,997 
   b) Purchase of stock-in-trade   7,238    6,638    6,565    13,876    13,968    24,399 
   c) Changes in inventories of finished goods, work-in-progress and stock-in-trade   (23)   (2,129)   (930)   (2,152)   (2,191)   (1,739)
   d) Employee benefits expense   8,679    8,873    8,401    17,552    16,960    32,875 
   e) Depreciation and amortisation expense   2,948    2,798    2,600    5,746    5,098    10,394 
   f) Impairment of non current assets, net   37    -    -    37    -    1,036 
   g) Finance costs   334    192    284    526    355    1,099 
   h) Other expenses   15,362    14,988    16,368    30,350    31,119    62,768 
                                 
   Total expenses   44,665    42,715    42,631    87,380    83,763    168,829 
                                  
4  Profit  before tax (1 + 2 - 3)   5,163    39,363    26,408    44,526    45,547    72,359 
                                  
5  Tax expense                              
   a) Current tax   777    9,417    7,033    10,194    11,699    17,905 
   b) Deferred tax   513    334    554    847    855    960 
                                  
6  Net profit for the period / year (4 - 5)   3,873    29,612    18,821    33,485    32,993    53,494 
                                  
7  Other comprehensive income / (loss)                              
   a) (i) Items that will not be reclassified to profit or loss   -    -    -    -    -    (103)
   (ii) Income tax relating to items that will not be reclassified to profit or loss   -    -    -    -    -    26 
   b) (i) Items that will be reclassified to profit or loss   (1,186)   248    (88)   (938)   (33)   234 
   (ii) Income tax relating to items that will be reclassified to profit or loss   299    (63)   22    236    8    (59)
   Total other comprehensive income / (loss)   (887)   185    (66)   (702)   (25)   98 
                                  
8  Total comprehensive income (6 + 7)   2,986    29,797    18,755    32,783    32,968    53,592 
                                  
9  Paid-up equity share capital (face value Re. 1/- each)   835    835    834    835    834    834 
                                  
10  Other equity                            287,732 
                                  
11  Earnings per equity share (face value Re. 1/- each)                              
                                  
   Basic   4.65    35.59    22.60    40.23    39.62    64.22 
   Diluted   4.65    35.54    22.56    40.19    39.55    64.13 
       (Not annualised)    (Not annualised)    (Not annualised)    (Not annualised)    (Not annualised)      

  

See accompanying notes to the financial results.

 

 

  

 

 

 

DR. REDDY'S LABORATORIES LIMITED

 

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   40,170    72,241    61,467    112,411    113,914    204,602 
   b) Pharmaceutical Services and Active Ingredients   8,040    7,103    7,972    15,143    16,492    33,904 
   c) Others   20    257    23    277    84    1,410 
   Total   48,230    79,601    69,462    127,831    130,490    239,916 
                                  
   Less: Inter-segment revenue   2,044    1,506    2,499    3,550    5,115    8,762 
   Total revenue from operations   46,186    78,095    66,963    124,281    125,375    231,154 
                                  
2  Segment results                              
   Profit / (loss) before tax and interest from each segment                              
   a) Global Generics   5,976    38,387    26,800    44,363    46,467    69,966 
   b) Pharmaceutical Services and Active Ingredients   65    (221)   (146)   (156)   (216)   353 
   c) Others   48    226    20    274    117    1,419 
   Total   6,089    38,392    26,674    44,481    46,368    71,738 
                                  
   Less:   (i) Finance costs   334    192    284    526    355    1,099 
   (ii) Other un-allocable (income) / expenditure, net   592    (1,163)   (18)   (571)   466    (1,720)
   Total profit before tax   5,163    39,363    26,408    44,526    45,547    72,359 

   

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

 

Segmental capital employed

As certain assets of the Company including manufacturing facilities, development facilities and 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:

 

1The above statement of unaudited standalone financial results of Dr. Reddy's Laboratories Limited ("the Company"), which have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') prescribed under Section 133 of the Companies Act, 2013 ("the Act'') read with relevant rules issued thereunder, other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India ("SEBI'') were reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meetings held on 24 October 2025. The Statutory Auditors have carried out a limited review on the unaudited standalone financial results and issued unmodified report thereon.

 

2"License fees and service income" for the half year ended 30 September 2024 and year ended 31 March 2025 includes:

a. an amount of Rs. 8,113 million (excluding GST) received as a consideration towards transfer of its nutraceutical and vitamins, minerals, herbals, and supplements portfolio to Dr. Reddy's and Nestlé Health Science Limited (the “Nutraceuticals subsidiary”) as part of the definitive agreement. This transaction pertains to Company’s Global Generics segment.

 

3"License fees and service income" for the year ended 31 March 2025 includes: .

a. an amount of Rs.1,266 million received as a milestone payment upon U.S.FDA approval of DFD 29, in accordance with the license and collaboration agreement dated 29 June 2021 with Journey Medical Corporation. This transaction pertains to the Company’s Others segment.

 

4In 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.

 

5During the six months ended September 30, 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 September 15, 2025. The Company submitted further objections, stating that the specified services should not be subject to VAT on October 6, 2025 and is awaiting the final tax assessment.

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

 

6Pursuant 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. 464 million, created in earlier period on land, during the quarter and half year ended 30 September 2024.

 

7The 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.

 

8The 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.

 

 

  

 

 

 

 

DR. REDDY'S LABORATORIES LIMITED

 

9Balance sheet

 

All amounts in Indian Rupees millions
Particulars  As at   As at 
    30.09.2025    31.03.2025 
    (Unaudited)    (Audited) 
ASSETS          
Non-current assets          
Property, plant and equipment   70,082    58,654 
Capital work-in-progress   17,061    21,564 
Goodwill   853    853 
Other intangible assets   26,769    22,817 
Intangible assets under development   430    404 
Financial assets          
Investments   111,463    103,105 
Loans   14    14 
Other financial assets   2,652    8,562 
Tax assets, net   1,947    1,244 
Other non-current assets   726    662 
Total non-current assets   231,997    217,879 
           
Current assets          
Inventories   48,616    45,758 
Financial assets          
Investments   32,696    28,830 
Trade receivables   66,352    59,590 
Derivative financial instruments   65    539 
Cash and cash equivalents   1,491    3,197 
Other bank balances   8,923    6,571 
Other financial assets   12,435    910 
Other current assets   23,331    19,635 
Total current assets   193,909    165,030 
           
TOTAL ASSETS   425,906    382,909 
           
EQUITY AND LIABILITIES          
Equity          
Equity share capital   835    834 
Other equity   314,291    287,732 
Total Equity   315,126    288,566 
           
Liabilities          
Non-current liabilities          
Financial liabilities          
Lease liabilities   2,584    765 
Provisions   123    54 
Deferred tax liabilities, net   5,765    5,154 
Other non-current liabilities   1,440    1,852 
Total non-current liabilities   9,912    7,825 
           
Current liabilities          
Financial liabilities          
Borrowings   36,626    33,855 
Lease liabilities   577    309 
Trade payables          
Total outstanding dues of micro enterprises and small enterprises   332    210 
Total outstanding dues of creditors other than micro enterprises and small enterprises   25,006    19,721 
Derivative financial instruments   2,798    1,273 
Other financial liabilities   20,837    19,955 
Other current liabilities   6,877    7,006 
Liabilities for current tax, net   4,991    794 
Provisions   2,824    3,395 
Total current liabilities   100,868    86,518 
           
TOTAL EQUITY AND LIABILITIES   425,906    382,909 

 

 

  

 

 

 

 

DR. REDDY'S LABORATORIES LIMITED

 

10Statement of cashflows

 

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 before tax   44,526    45,547 
Adjustments for:          
Fair value changes and profit on sale of financial instruments measured at FVTPL*, net   (1,097)   (1,988)
Depreciation and amortisation expense   5,746    5,098 
Impairment of non current assets, net   37    - 
Allowance for credit losses (on trade receivables and other advances)   143    87 
Profit on sale or de-recognition of non-current assets, net   15    (4)
Unrealized exchange (gain)/loss, net   (1,593)   (117)
Interest income   (3,905)   (1,718)
Finance costs   526    355 
Equity settled share-based payment expense   197    189 
Inventories write-down   2,419    1,635 
Changes in operating assets and liabilities:          
Trade receivables   (6,890)   (13,354)
Inventories   (5,277)   (7,125)
Trade payables   5,407    1,410 
Other assets and other liabilities, net   (3,857)   (2,100)
Cash generated from operations   36,397    27,915 
Income taxes paid, net   (5,981)   (6,166)
Net cash generated from operating activities   30,416    21,749 
           
Cash flows from/(used in) investing activities :          
Purchase of property, plant and equipment   (9,936)   (10,204)
Proceeds from sale of property, plant and equipment   86    194 
Purchase of other intangible assets   (5,141)   (577)
Proceeds from sale of other intangible assets   -    104 
Purchase of investments (including bank deposits)   (92,649)   (113,202)
Proceeds from sale of investments (including bank deposits)   83,797    143,644 
Equity investments in subsidiary/associates   (5,705)   (67,601)
Interest income received   2,438    1,619 
Loans and advances repaid/(given) by/to subsidiaries   -    602 
Net cash used in investing activities   (27,110)   (45,421)
           
Cash flows from/(used in) financing activities :          
Proceeds from issuance of equity shares (including treasury shares)   288    157 
Proceeds/(Repayment of) from short-term loans and borrowings, net   2,718    29,985 
Payment of principal portion of lease liabilities   (219)   (140)
Dividend paid   (6,659)   (6,662)
Interest paid   (1,035)   (683)
Net cash from/(used in) financing activities   (4,907)   22,657 
           
Net decrease in cash and cash equivalents   (1,601)   (1,015)
Effect of exchange rate changes on cash and cash equivalents   (105)   (16)
Cash and cash equivalents at the beginning of the period   3,197    2,014 
Cash and cash equivalents at the end of the period         1,491    983 

  

* FVTPL ( Fair value through profit or loss)

 

  By order of the Board
  For Dr. Reddy’s Laboratories Limited
   
   
Place:  Hyderabad G V Prasad
Date:  24 October 2025 Co-Chairman & Managing Director