Dr Reddy’s Q4 results preview: Pharmaceutical major Dr Reddy’s Laboratories is expected to report a solid year-on-year (Y-o-Y) growth in both revenue and profit for March 2025 quarter (Q4FY25) on the back of Nicotinell acquisition, persistent US business growth, and expectations of a favourable business back home.
Dr Reddy’s Labs Q4 results date:
The company is scheduled to announce its fourth quarter results on Friday, May 9. 2025.
Dr Reddy’s Labs Q4 results: Profit expectations
According to brokerages tracked by Business Standard, Dr Reddy’s net profit is expected to come at ₹1,456.5 crore, marking around 18.6 per cent Y-o-Y increase, on average, as against ₹1,227.8 crore in the year-ago period (Q4 FY24). On a quarterly (Q-o-Q) basis, the company’s bottomline is projected to grow by an average of nearly 3 per cent.
Dr Reddy’s Labs Q4 results: Revenue expectations
The pharma major’s revenue for the quarter under review is expected to increase 17.07 per cent to ₹8,328.26 crore, on average, as compared to ₹7,113.8 crore in the corresponding quarter of the previous fiscal. On a sequential basis, revenue is expected to remain flattish compared to ₹8,358.6 crore in the December 2024 quarter.
Brokerages expected the company’s earnings before interest, tax, depreciation and amortisation (Ebitda) to increase nearly 25 per cent to ₹2,311.5 crore in Q4FY25 compared to ₹1,849.8 crore in the year-ago period.
Here’s how analysts expect Dr Reddy to perform in Q4 FY25:
Phillip Capital: Analysts at Phillip Capital expect Dr Reddy’s Labs to post a robust topline growth led by integration of Haleon OTC business acquisition along with benefits of gRevlimid. The company is a proven lead beneficiary of gRevlimid amongst its competitors and continues to lead the sales with $160 million from gRevlimid. Domestic business is expected to benefit from the Sanofi vaccine licensing deal, and joint venture (JV) with Nestle. In addition, steady growth in US base business sales, integration of Nicotinell and 13 per cent growth in India will also boost topline growth.
The brokerage expects Ebitda margins to improve 210 basis points Y-o-Y to 28.2 per cent mainly driven by higher gRevlimid sales and strong growth in domestic formulation business, leading to a 33 per cent Y-o-Y growth in Ebitda.
Nirmal Bang Institutional Equities: The domestic brokerage firm expects Dr Reddy’s revenue to increase 17.5 per cent Y-o-Y, mainly on account of NRT brand Nicotinell acquisition. US revenue is expected to grow 7 per cent Y-o-Y to $410 million. India business should increase by 24 per cent Y-o-Y on account of expectations of a favorable season and a marginal uptick in the cardiology and GI segment.
HDFC Securities: Analysts at HDFC Securities expect the pharma major’s US business to grow by 4 per cent Q-o-Q due to gRevlimid sales, which will be partly offset by price and market share erosion in the base business price due to incremental competition in key products. India business is likely to increase by 15 per cent Y-o-Y on account of incremental sales from acquired vaccine business from Sanofi.
“We have factored NRT business. We expect gross margin and Ebitda margin to remain steady,” the brokerage said.
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