EX-99.4 5 rdy0840_ex99-4.htm EXHIBIT 99-4

 

Exhibit 99.4 

 

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 Nine months ended 31 December 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: 26213271ADHCAU7701
 
Place: Hyderabad
Date: January 21, 2026

 

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 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   40,718    45,587    47,775    163,825    164,385    218,448 
   b) License fees and service income   1,946    442    2,203    2,755    10,620    12,020 
   c) Other operating income   163    157    172    528    520    686 
   Total revenue from operations   42,827    46,186    50,150    167,108    175,525    231,154 
                                  
2  Other income   3,603    3,642    2,354    11,224    6,287    10,034 
                                  
   Total income (1 + 2)   46,430    49,828    52,504    178,332    181,812    241,188 
                                  
3  Expenses                              
   a) Cost of materials consumed   10,668    10,090    10,117    32,113    28,571    37,997 
   b) Purchase of stock-in-trade   7,692    7,238    5,084    21,568    19,052    24,399 
   c) Changes in inventories of finished goods, work-in-progress and stock-in-trade   (1,315)   (23)   (370)   (3,467)   (2,561)   (1,739)
   d) Employee benefits expense   9,602    8,679    7,944    27,154    24,904    32,875 
   e) Depreciation and amortisation expense   3,143    2,948    2,651    8,889    7,749    10,394 
   f) Impairment of non current assets, net   157    37    -    194    -    1,036 
   g) Finance costs   414    334    433    940    788    1,099 
   h) Other expenses   15,027    15,362    15,451    45,373    46,568    62,768 
                                  
   Total expenses   45,388    44,665    41,310    132,764    125,071    168,829 
                                  
                                  
4  Profit before tax (1 + 2 - 3)   1,042    5,163    11,194    45,568    56,741    72,359 
                                  
5  Tax expense                              
   a) Current tax   130    777    2,563    10,324    14,262    17,905 
   b) Deferred tax   6    513    137    853    992    960 
                                  
6  Net profit for the period/year (4 - 5)   906    3,873    8,494    34,391    41,487    53,494 
                                  
7  Other comprehensive income                              
   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   94    (1,186)   (779)   (844)   (812)   234 
                                  
   (ii) Income tax relating to items that will be reclassified to profit or loss   (24)   299    196    213    204    (59)
                                  
   Total other comprehensive (loss)/income   70    (887)   (583)   (631)   (608)   98 
                                  
8  Total comprehensive income (6 + 7)   976    2,986    7,911    33,760    40,879    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   1.09    4.65    10.20    41.32    49.81    64.22 
   Diluted   1.09    4.65    10.18    41.27    49.73    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   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   38,129    40,170    42,401    150,540    156,315    204,602 
   b) Pharmaceutical Services and Active Ingredients   6,257    8,040    8,272    21,400    24,764    33,904 
   c) Others   57    20    1,281    334    1,365    1,410 
   Total   44,443    48,230    51,954    172,274    182,444    239,916 
                                  
   Less: Inter-segment revenue   1,616    2,044    1,804    5,166    6,919    8,762 
   Total revenue from operations   42,827    46,186    50,150    167,108    175,525    231,154 
                                  
2  Segment results                              
   Profit/(loss) before tax and interest from each segment                              
   a) Global Generics   2,494    5,976    8,268    46,857    54,735    69,966 
   b) Pharmaceutical Services and Active Ingredients   (794)   65    313    (950)   97    353 
   c) Others   73    48    1,255    347    1,372    1,419 
   Total   1,773    6,089    9,836    46,254    56,204    71,738 
                                  
   Less: (i) Finance costs   414    334    433    940    788    1,099 
   (ii) Other un-allocable (income)/expenditure, net   317    592    (1,791)   (254)   (1,325)   (1,720)
   Total profit before tax   1,042    5,163    11,194    45,568    56,741    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 21 January 2026. The Statutory Auditors have carried out a limited review on the unaudited standalone financial results and issued 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 to the New Labour Codes. 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.1,101 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 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.

 

4Pursuant 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 nine months ended 31 December 2024.

 

 

  

 

 

 

 

 

DR. REDDY’S LABORATORIES LIMITED

 

5The 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 6 July 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.

 

6The 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