Dr Reddys Laboratories500124Quarterly results

Board meeting outcome: Q2 and H1 FY27 unaudited results approved; Akhil Ravi named Head API and Services

Board outcome, October 23, 2026.

By ScoutQuest · Fri 23 Oct 2026, 6:41 PM IST · 3 min read

Q2 Revenue: ₹86,708 Mn, down 1.5% YoY
Q2 PAT: ₹9,250 Mn
Gross Margin / EBITDA: Gross margin 52.1%; EBITDA ₹17,828 Mn (20.6% of revenue)

What the board approved

Unaudited consolidated financial results for the quarter and half-year ended September 30, 2026, prepared under IFRS
Unaudited consolidated and standalone results under Indian Accounting Standards (Ind AS)
Limited review reports of the statutory auditors on these results
Appointment of Mr. Akhil Ravi as Head API and Services and Senior Management Personnel, and his induction as a Member of the Management Council, effective November 13, 2026

Q2 FY27 in numbers (consolidated, IFRS)

Revenue ₹86,708 Mn, down 1.5% year-on-year
Gross margin 52.1%
EBITDA ₹17,828 Mn, or 20.6% of revenues
Profit after tax attributable to equity holders ₹9,250 Mn, lower than in the same quarter last year

H1 FY27 in numbers (consolidated, IFRS)

Revenue ₹167,413 Mn
Profit after tax attributable to equity holders ₹13,685 Mn

What these lines mean

Revenue is total sales. Gross margin is the share of sales left after the direct cost of making the products. EBITDA is operating profit before interest, tax, depreciation and amortisation. Profit after tax is what finally belongs to shareholders.

Reading the quarter

Sales were a shade below the same quarter last year and profit after tax was lower as well, while gross margin and EBITDA margin came in at the levels shown above. The company's own note records that Q1 FY27 results carried a provision towards inventory and associated costs related to the active pharmaceutical ingredient for semaglutide, which is why a quarter-on-quarter comparison is not a clean like-for-like one.

Change in senior management

Mr. Akhil Ravi takes charge as Head API and Services and joins the Management Council from November 13, 2026
He will continue to be responsible for the operations of Aurigene Pharmaceutical Services Ltd, a wholly owned subsidiary of the company
The update describes him as a related party of the company, being the son-in-law of Mr. G V Prasad, Co-Chairman and Managing Director
The appointment followed recommendations of the Nomination, Governance and Compensation Committee and the Audit Committee

Other points disclosed with the results

Partnership with Takeda for QDENGA, a dengue vaccine approved by India's Central Drugs Standard Control Organisation
Expanded collaboration with Gilead Sciences for investigational lenacapavir for HIV prevention
USFDA approval secured for a rituximab biosimilar for the United States, and launches in India including a nivolumab biosimilar
Certain batches of semaglutide were found to be out of specification due to an issue associated with the API used in the product; the company says measures are being taken to ensure product quality and resumption of supplies
Voluntary Action Indicated classification received after a USFDA Good Manufacturing Practice inspection at the API facility in Mirfield, United Kingdom
Inspection observations received at other manufacturing and records sites under the USFDA framework, with responses provided within the stipulated timeline
Distribution and promotion agreement with Novartis India for select brands in India terminated, following a change in its controlling shareholding

What a retail investor can take away

This is a routine quarterly board outcome that combines the results with a senior management appointment. The key things to track are the year-on-year direction of revenue and profit, the margin levels, and the product and regulatory updates listed alongside the numbers.

Also from Dr Reddys Laboratories