This development follows the company’s earlier board approval on November 5, 2024, to infuse up to ₹600 crore into DRL Russia. The investment was completed on July 25, 2025, through cash consideration.
The funds will be used to meet the working capital requirements of DRL Russia, which operates as a pharmaceutical distribution company in the Russian Federation. DRL Russia reported a turnover of ₹2,347 crore for FY2025.
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The transaction qualifies as a related party transaction since DRL Russia is a step-down wholly-owned subsidiary of Dr Reddy’s Laboratories. The company clarified that apart from this relationship, the promoter group has no other interest in the entity, and the deal was conducted at arm’s length.
First Quarter Results
Dr Reddy’s Laboratories reported a revenue of ₹8,542 crore in the first quarter of the financial year 2026 in comparison to the previous year’s ₹7,672.7 crore. This was above a CNBC-TV18 poll estimate of ₹8,676.4 crore.
The pharma firm’s net profit of ₹1,417.8 crore was higher than last year’s ₹1,392 crore. A CNBC-TV18 poll had estimated its profit to be at ₹1,478.3 crore.
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The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at ₹2,287 crore. It had reported an EBITDA of ₹2,160 crore in the previous year, while the poll had estimated it to be ₹2,201.6 crore.
Dr Reddy’s Laboratories’ margins contracted to 26.7% from 28.2% in the year-ago period. The poll had estimated margins to be at 25.4%. The Street estimated revenue growth to be led by the integration of the Nicotinell acquisition.
Shares of Dr Reddy’s Laboratories Ltd ended at ₹1,277.10, up by ₹12.25, or 0.97%, on the BSE.
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