Dr Reddy's opens Q2 earnings for Indian big pharma; investors brace for muted quarter
RDY•Brokerages expect Dr Reddy's Laboratories to post a muted second quarter, with lower gRevlimid sales weighing on earnings. Healthy India formulations and steady U.S. sales excluding gRevlimid may cushion, but not offset, the slowdown.
1. Brokerages flag earnings pressure
Dr Reddy's is due to report Q2 results later Friday. Brokerages cite lower gRevlimid sales as a key drag; Kotak expects pharma-sector EBITDA to fall 6% year over year, while Nuvama counts Dr Reddy's among likely underperformers.
2. Partial offsets expected
Healthy India formulations and steady U.S. sales excluding gRevlimid are expected to partly cushion the impact, but brokerages say they are unlikely to offset the slowdown in the high-margin product. Antique expects sector-wide margin pressure from weaker product mix and higher costs. The average rating of 36 analysts is “hold,” and the median price target is 1,243 rupees, LSEG-compiled data showed.
