Dr Reddy's profit falls 36% in Q2 as India caps trade margins on cancer drugs
Dr Reddy's reported a 36% drop in quarterly profit and called the cap on trade margins for 137 anti-cancer drugs a positive move, according to Moody's.
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what happened
According to Moody's, Hyderabad-based Dr Reddy's Labs views the recent cap on trade margins for 137 anti-cancer drugs, set by the National Pharmaceutical Pricing Authority, as a positive step that should improve patient access to lifesaving medicines. The Supreme Court has been hearing petitions on high trade margins and has criticised regulators for inaction.
For the second quarter of FY2027, revenue fell 1.5% to 8,671 crore rupees, while profit after tax dropped 36% to 925 crore from 1,437 crore a year earlier. The company said it expects to relaunch its semaglutide brand in the third quarter of FY27 in India, Canada and ten other markets, after halting production in July.
Dr Reddy's also said it moved up one place in the Indian market, from ninth to eighth by market share.
why it matters
A sharp profit decline alongside steady growth in the core business and plans to restart semaglutide sales matter for investors in India's pharma sector. Margin caps may pressure generic makers' profitability, though they widen patient access.
market impact
Indian pharma: margin caps pressure profitability, while volume growth may offset it
tags
instruments
sources
- DRL says Cap on Trade Margins a Positive, Posts 36% Dip in Q2 PAT — Moody's, 24 October 2026 at 04:14 UTC
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