₹610.00—a fresh close that pushed Dr Reddy’s shares 3% higher on Tuesday, nudging the stock above the ₹600 support line for the first time in weeks.
The company’s filing shows Q4 revenue of ₹4,771 crore, a 7.7% rise over the ₹4,428 crore of the prior year, while net profit climbed to ₹668 crore, up 17.9% from ₹569 crore. Analysts had pencilled in ₹4,600 crore revenue and ₹600 crore profit, so both metrics beat expectations by roughly 3% and 11% respectively.
The upward trajectory is largely driven by the domestic segment, which has delivered a 15% top‑line growth in branded formulations—a figure that exceeds the 10% CAGR forecasted for the segment by the market. The company’s semaglutide production line is now fully operational after last year's bottleneck, and the CEO hinted at a 20% lift in supply capacity by Q3 2027.
Biosimilar approval in December 2026 is the headline catalyst that could lift the stock by 10‑15%. Systematix’s Vishal Manchanda estimates the approval would add ₹300 crore to annual revenue and unlock a 5‑point gain in net margin. If the regulator green‑lights the drug, the share price could retrace to ₹650‑₹680 in the next 30‑45 days.
Analysts remain cautious, noting that the approval window is uncharted and the drug’s pipeline is still in Phase‑2 trials. Yet the consensus upgrade from Buy to Strong Buy reflects optimism that the company can sustain its domestic growth momentum and translate it into a higher valuation multiple. The next earnings call is slated for March 15, where guidance on the biosimilar pipeline will be disclosed.