Dr Reddy’s shares crack 9% after weak Q1; these 3 brokerages slash their target prices
- Posted on July 23, 2026
- By Business News Today
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- 1 min read
In brief
Dr Reddy's Laboratories faced significant market headwinds in Q1 FY27, experiencing a sharp 9% stock decline following disappointing financial results. The pharmaceutical giant's net profit contracted dramatically by 69% year-over-year, reaching Rs 443 crore, while revenues fell 6% to Rs 8,071 crore. Key challenges included a substantial Rs 240 crore impact from semaglutide API inventory adjustments and elevated operational costs stemming from Middle East geopolitical tensions, collectively pressuring EBITDA margins and triggering downward analyst revisions.
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Dr Reddy’s shares crack 9% after weak Q1; these 3 brokerages slash their target prices
Dr Reddys shares plunged 9% on Thursday after the drugmaker reported a weak Q1 FY27 performance, with net profit tumbling 69% year-on-year to Rs 443 crore and revenue declining 6% to Rs 8,071 crore. Earnings were hit by a Rs 240 crore semaglutide API-related impact, including inventory provisions, while higher solvent and freight costs due to the Middle East conflict further squeezed EBITDA margins.
