EX-99.3 4 rdy0840_ex99-3.htm EXHIBIT 99-3

 

Exhibit 99.3 

 

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 Consolidated 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 Consolidated Financial Results for the Quarter and Nine months ended 31 December 2025” (the “Statement”) of Dr. Reddy’s Laboratories Limited (the “Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), its associates and joint ventures attached herewith, being submitted by the Holding 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 Holding 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 Holding 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.

 

We also performed procedures in accordance with the Master Circular issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable.

 

4.The Statement includes the results of the following entities:

 

Holding Company:

 

Dr. Reddy’s Laboratories Limited

 

Subsidiaries

 

1.Aurigene Discovery Technologies (Malaysia) Sdn. Bhd.
2.Aurigene Oncology Limited (Formerly, Aurigene Discovery Technologies Limited)
3.Aurigene Pharmaceutical Services Limited
4.beta Institut gemeinnützige GmbH
5.betapharm Arzneimittel GmbH
6.Cheminor Investments Limited
7.Dr. Reddy’s Farmaceutica Do Brasil Ltda.
8.Dr. Reddy’s Laboratories (EU) Limited
9.Dr. Reddy’s Laboratories (Proprietary) Limited
10.Dr. Reddy’s Laboratories (UK) Limited
11.Dr. Reddy’s Laboratories Canada, Inc.
12.Dr. Reddy’s Laboratories Chile SPA.
13.Dr. Reddy’s Laboratories Inc.

 

 

 

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

 

  

 

 

 

14.Dr. Reddy’s Laboratories Japan KK
15.Dr. Reddy’s Laboratories Kazakhstan LLP
16.Dr. Reddy’s Laboratories Malaysia Sdn. Bhd.
17.Dr. Reddy’s Laboratories New York, LLC
18.Dr. Reddy’s Laboratories Philippines Inc.
19.Dr. Reddy’s Laboratories Romania Srl
20.Dr. Reddy’s Laboratories SA
21.Dr. Reddy’s Laboratories Taiwan Limited
22.Dr. Reddy’s Laboratories (Thailand) Limited
23.Dr. Reddy’s Laboratories LLC, Ukraine
24.Dr. Reddy’s New Zealand Limited.
25.Dr. Reddy’s Srl
26.Dr. Reddy’s Bio-Sciences Limited
27.Dr. Reddy’s Laboratories (Australia) Pty. Limited
28.Dr. Reddy’s Laboratories SAS
29.Dr. Reddy’s Netherlands B.V. (Formally Dr. Reddy’s Research and Development B.V.)
30.Dr. Reddy’s (Beijing) Pharmaceutical Co. Limited
31.DRL Impex Limited
32.Dr. Reddy’s Formulations Limited
33.Idea2Enterprises (India) Pvt. Limited
34.Imperial Owners and Land Possessions Private Limited (Formerly, Imperial Credit Private Limited, till August 05, 2025)
35.Industrias Quimicas Falcon de Mexico, S.A. de CV
36.Lacock Holdings Limited
37.Dr. Reddy’s Laboratories LLC, Russia
38.Promius Pharma LLC
39.Reddy Holding GmbH
40.Reddy Netherlands B.V.
41.Reddy Pharma Iberia SAU
42.Reddy Pharma Italia S.R.L.
43.Reddy Pharma SAS
44.Svaas Wellness Limited
45.Nimbus Health GmbH
46.Dr. Reddy’s Laboratories Jamaica Limited
47.Dr. Reddy’s and Nestle Health Science Limited (Formerly, Dr. Reddy’s Nutraceuticals Limited)
48.Northstar Switzerland SARL
49.North Star OpCo Limited
50.North Star Sweden AB
51.Dr. Reddy’s Denmark ApS
52.Dr. Reddy’s Finland Oy (Effective from December 20, 2024)
53.Dr. Reddy’s Laboratories (Vietnam) Company Limited (incorporated on May 09, 2025)

 

Associates

1.O2 Renewable Energy IX Private Limited
2.Clean Renewable Energy KK 2A Private Limited

 

Joint Venture

1.DRES Energy Private Limited
2.Kunshan Rotam Reddy Pharmaceutical Co. Limited (including Kunshan Rotam Reddy Medicine Company Limited)

 

Other Consolidating Entities

1.Dr. Reddy’s Employees ESOS Trust
2.Cheminor Employees Welfare Trust
3.Dr. Reddy’s Research Foundation

 

 

 

  

 

 

 

 

5.Based on our review conducted and procedures performed as stated in paragraph 3 above , nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with 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: 26213271KJKVEJ8016
   
Place: Hyderabad  
Date: January 21, 2026  

  

  

 

 

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

Web: www.drreddys.com

 

 

DR. REDDY’S LABORATORIES LIMITED

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2025

 

All amounts in Indian Rupees millions

        Quarter ended     Nine months ended     Year ended  
Sl. No.   Particulars   31.12.2025     30.09.2025     31.12.2024     31.12.2025     31.12.2024     31.03.2025  
        (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Audited)  
1   Revenue from operations                                    
    a) Sales     84,204       86,386       79,960       253,256       234,215       316,320  
    b) License fees and service income     3,066       1,663       3,626       7,515       6,259       9,215  
    c) Other operating income     264       234       226       767       681       904  
                                                     
    Total revenue from operations     87,534       88,283       83,812       261,538       241,155       326,439  
                                                     
2   Other income     2,688       3,239       1,502       8,830       6,156       10,973  
                                                     
3   Total income (1 + 2)     90,222       91,522       85,314       270,368       247,311       337,412  
                                                     
4   Expenses                                                
    a) Cost of materials consumed     18,255       14,413       14,526       53,026       39,670       56,835  
    b) Purchase of stock-in-trade     15,421       17,459       10,507       45,039       37,136       48,411  
    c) Changes in inventories of finished goods, work-in-progress  and stock-in-trade     (2,723 )     (635 )     782       (7,800 )     (5,507 )     (5,447 )
    d) Employee benefits expense     15,885       14,521       13,665       45,441       41,794       55,800  
    e) Depreciation and amortisation expense     5,210       5,046       4,714       15,017       12,490       17,037  
    f) Impairment of non-current assets, net     270       673       (4 )     943       925       1,693  
    g) Finance costs     944       907       817       2,681       2,172       2,829  
    h) Other expenses     21,551       21,753       21,606       64,179       62,050       83,676  
                                                     
    Total expenses     74,813       74,137       66,613       218,526       190,730       260,834  
                                                     
5   Profit before tax and before share of equity accounted investees(3 - 4)     15,409       17,385       18,701       51,842       56,581       76,578  
                                                     
6   Share of profit of equity accounted investees, net of tax     23       63       42       88       162       217  
                                                     
7   Profit before tax (5+6)     15,432       17,448       18,743       51,930       56,743       76,795  
                                                     
8   Tax expense/(benefit):                                                
    a) Current tax     2,074       1,847       5,330       14,182       18,258       22,581  
    b) Deferred tax     1,462       2,233       (629 )     (1,615 )     (2,900 )     (3,038 )
                                                     
9   Net profit after taxes and share of profit of associates (7 - 8)     11,896       13,368       14,042       39,363       41,385       57,252  
                                                     
10   Net profit after taxes attributable to                                                
    a) Equity shareholders of the parent company     12,099       13,471       14,137       39,751       40,618       56,551  
    b) Non-controlling interests     (203 )     (103 )     (95 )     (388 )     767       701  
                                                     
11   Other comprehensive income/(loss)                                                
    a) (i) Items that will not be reclassified subsequently to profit or loss     (16 )     (14 )     (52 )     (25 )     (176 )     (293 )
    (ii) Income tax relating to items that will not be reclassified  to profit or loss     -       -       -       -       -       24  
    b) (i) Items that will be reclassified subsequently to profit or loss     1,810       862       (2,142 )     4,749       951       2,376  
    (ii) Income tax relating to items that will be reclassified  to profit or loss     (24 )     270       170       213       180       (58 )
    Total other comprehensive income/(loss)     1,770       1,118       (2,024 )     4,937       955       2,049  
                                                     
12   Total comprehensive income (9 + 11)     13,666       14,486       12,018       44,300       42,340       59,301  
                                                     
13   Total comprehensive income attributable to                                                
    a) Equity shareholders of the parent company     13,869       14,589       12,113       44,688       41,573       58,600  
    b) Non-controlling interest     (203 )     (103 )     (95 )     (388 )     767       701  
                                                     
14   Paid-up equity share capital (face value Re. 1/- each)     835       835       834       835       834       834  
                                                     
15   Other equity                                             334,662  
                                                     
16   Earnings per equity share attributable to equity shareholders of parent(face value Re. 1/- each)                                                
                                                     
    Basic     14.53       16.18       16.97       47.76       48.77       67.89  
    Diluted     14.52       16.17       16.94       47.70       48.69       67.79  
          (Not annualised)       (Not annualised)       (Not annualised)       (Not annualised)       (Not annualised)          

 

See accompanying notes to the financial results 

 

   

 

 

 

 

 

Segment information All amounts in Indian Rupees millions

      Quarter ended   Nine months ended   Year ended 
Sl. No.  Particulars  31.12.2025   30.09.2025   31.12.2024   31.12.2025   31.12.2024   31.03.2025 
      (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Audited) 
   Segment wise revenue and results:                        
1  Segment revenue :                        
   a) Global Generics   79,568    78,235    73,813    233,535    214,378    289,810 
   b) Pharmaceutical Services and Active Ingredients   9,472    12,079    10,387    31,425    32,049    43,868 
   c) Others   151    103    1,614    1,897    2,005    2,150 
   Total   89,191    90,417    85,814    266,857    248,432    335,828 
                                  
   Less: Inter-segment revenue   1,657    2,134    2,002    5,319    7,277    9,389 
   Total revenue from operations   87,534    88,283    83,812    261,538    241,155    326,439 
                                  
2  Segment results:                              
   Gross profit from each segment                              
   a) Global Generics   45,411    46,431    45,219    137,928    134,899    179,606 
   b) Pharmaceutical Services and Active Ingredients   1,360    1,706    2,359    4,153    6,652    9,178 
   c) Others   43    5    1,478    1,507    1,625    1,665 
   Total   46,814    48,142    49,056    143,588    143,176    190,449 
                                  
   Less: Selling and other un-allocable expenditure/(income), net   31,382    30,694    30,313    91,658    86,433    113,654 
   Total profit before tax   15,432    17,448    18,743    51,930    56,743    76,795 

 

Global Generics includes operations of Biologics business. Inter-segment revenue represents sales 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 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 consolidated financial results of Dr. Reddy’s Laboratories Limited (“the Company”), together with its subsidiaries (collectively, “the Company”) joint ventures and associates, have been prepared in accordance with the Indian Accounting Standards (“Ind AS”) prescribed under section 133 of Companies Act,2013 (“the Act”) read with relevant rules issues thereunder, other accounting principles generally accepted in India and guidelines issues by the Securities and Exchange Board of India (“SEBI”) were reviewed and recommended by Audit Committee and approved by the Board of Directors at their meetings held on 21 January 2026. The Statutory Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.

 

2The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four labour codes as follows: Code on Wages, 2019, Code on Social Security, 2020, Industrial Relations Code, 2020 and Occupational Safety, Health and Working Conditions Code 2020 (collectively referred to as the “New Labour Codes”). The New Labour Codes are effective from 21 November 2025 and introduce changes that include, among other things, setting a uniform definition of wages. The Government is in the process of issuing related rules. The New Labour Codes have implications on employee benefits including gratuity, leave encashment, and other related obligations.
The Company has assessed the implications of the New Labour Codes and has recognized an incremental cost of Rs.1,170 million towards employee benefits during the three months ended 31 December 2025. The Company continues to monitor the developments pertaining to the New Labour Codes and the impact of these will be accounted in accordance with applicable accounting standards.

 

3During the nine months ended 31 December, 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.934 million in the income statement.

- Impairment loss of the entire carrying value of Rs.545 million for property, plant and equipment;

- Inventory related provisions of Rs.260 million;

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

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

 

4Other income for the nine months ended 31 December 2025 includes Rs. 748 million representing payment for avoided litigation costs pursuant to settlement of product related litigations, by the Company in the United States.

 

5During the nine months ended 31 December, 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 “Other expenses”, and believes that the likelihood of any further liability that may arise on account of this is not probable.

 

6“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.

 

   

 

 

 

 

7“Other income” for the 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.

 

8Pursuant 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 periods on land, during the nine months ended 31 December 2024.

 

9The 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.

 

10The Company considered the uncertainties relating to geo-political conflicts (including 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: 21 January 2026     Co-Chairman & Managing Director

DIN : 00057433