Dr Reddys Labs Financials

RDY

Source SEC Filings (10-K/10-Q) Updated May 29, 2026 Currency USD FYE May

This page shows Dr Reddys Labs (RDY) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 9 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI RDY FY2025 2026-05-29

Dr. Reddy's is still profitable, but cash conversion is weakening as working capital needs and capex expand.

Over the last two annual periods, free cash flow margin fell from 19.3% to 5.9% even though net margin stayed in the high teens. The squeeze came from operating cash flow settling at $545M while capital spending rose to $322M, so more reported profit is being absorbed by receivables, inventory, and reinvestment before it becomes spendable cash.

The balance sheet still looks equity-funded: liabilities remain well below assets, and the current ratio was still 1.9x in FY2025 even after sliding from 2.6x. Current liabilities rose by about $375M while current assets slipped by roughly $48M, which explains why liquidity tightened even though cash nearly doubled.

Return on assets fell from 14.4% to 11.6% in FY2025 even though profit stayed near the prior-year level, showing that added assets are not yet earning at the same rate. That makes the business look more capital-intensive than it did in FY2023-FY2024: it is getting larger, but each new dollar invested is currently producing less profit and less cash.

Financial Health Signals

Financial Profile 42/100

Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Dr Reddys Labs's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Growth

Dr Reddys Labs's revenue declined 6.1% year-over-year, from $3.8B to $3.6B. This contraction results in a growth score of 39/100.

Leverage

Dr Reddys Labs carries a low D/E ratio of 0.52, meaning only $0.52 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 91/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Dr Reddys Labs's current ratio of 1.80 indicates adequate short-term liquidity, earning a score of 32/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow

Dr Reddys Labs has a free cash flow margin of 10.0%, earning a moderate score of 47/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns

Dr Reddys Labs's ROE of 11.2% shows moderate profitability relative to equity, earning a score of 44/100. This is down from 17.0% the prior year.

Piotroski F-Score Weak

3/9

Dr Reddys Labs passes 3 of 9 financial strength tests. 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.

Earnings Quality Cash-Backed

1.34x

For every $1 of reported earnings, Dr Reddys Labs generates $1.34 in operating cash flow ($607.0M OCF vs $452.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Earnings & Revenue

Revenue

$3.6B

YoY-6.1%

5Y CAGR+6.7%

Dr Reddys Labs generated $3.6B in revenue in fiscal year 2026. This represents a decrease of 6.1% from the prior year.

EBITDA

N/A

Net Income

$452.0M

YoY-32.6%

5Y CAGR+13.9%

Dr Reddys Labs reported $452.0M in net income in fiscal year 2026. This represents a decrease of 32.6% from the prior year.

EPS (Diluted)

N/A

Cash & Balance Sheet

Free Cash Flow

$358.0M

YoY+60.5%

5Y CAGR+0.2%

Dr Reddys Labs generated $358.0M in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 60.5% from the prior year.

Cash & Debt

$164.0M

YoY-4.7%

5Y CAGR-4.2%

Dr Reddys Labs held $164.0M in cash against $0 in long-term debt as of fiscal year 2026.

Dividends Per Share

N/A

Shares Outstanding

835M

YoY+0.0%

Dr Reddys Labs had 835M shares outstanding in fiscal year 2026. This represents an increase of 0.0% from the prior year.

Margins & Returns

Gross Margin

N/A

Operating Margin

N/A

Net Margin

12.6%

YoY-5.0pp

5Y CAGR+3.5pp

Dr Reddys Labs's net profit margin was 12.6% in fiscal year 2026, showing the share of revenue converted to profit. This is down 5.0 percentage points from the prior year.

Return on Equity

11.2%

YoY-5.9pp

5Y CAGR+1.2pp

Dr Reddys Labs's ROE was 11.2% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 5.9 percentage points from the prior year.

Capital Allocation

R&D Spending

N/A

Share Buybacks

N/A

Capital Expenditures

$249.0M

YoY-22.7%

5Y CAGR+13.4%

Dr Reddys Labs invested $249.0M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 22.7% from the prior year.

RDY Income Statement

Metric	FY26	FY25	FY24	FY23	FY22	FY21
Revenue	$3.6B-6.1%	$3.8B+13.8%	$3.4B+12.0%	$3.0B+5.9%	$2.8B+8.9%	$2.6B
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	N/A	N/A	N/A	N/A	N/A
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	$44.0M-20.0%	$55.0M+14.6%	$48.0M+37.1%	$35.0M+25.0%	$28.0M+21.7%	$23.0M
Income Tax	$132.0M-42.4%	$229.0M+18.0%	$194.0M+4.3%	$186.0M+61.7%	$115.0M-8.0%	$125.0M
Net Income	$452.0M-32.6%	$671.0M+0.4%	$668.0M+21.9%	$548.0M+76.2%	$311.0M+31.8%	$236.0M
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'25	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19	Q4'18
Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

RDY Balance Sheet

Metric	FY26	FY25	FY24	FY23	FY22	FY21
Total Assets	$6.2B+7.0%	$5.8B+24.1%	$4.7B+18.7%	$3.9B+1.5%	$3.9B+6.3%	$3.6B
Current Assets	$3.2B+9.9%	$2.9B-1.6%	$3.0B+18.2%	$2.5B+5.0%	$2.4B+18.3%	$2.0B
Cash & Equivalents	$164.0M-4.7%	$172.0M+102.4%	$85.0M+21.4%	$70.0M-64.3%	$196.0M-3.4%	$203.0M
Inventory	$816.0M-1.9%	$832.0M+9.0%	$763.0M+28.9%	$592.0M-11.8%	$671.0M+8.1%	$621.0M
Accounts Receivable	$1.1B+2.0%	$1.1B+9.9%	$963.0M+9.2%	$882.0M+0.2%	$880.0M+29.6%	$679.0M
Goodwill	$137.0M-0.7%	$138.0M+170.6%	$51.0M-1.9%	$52.0M-10.3%	$58.0M-6.5%	$62.0M
Total Liabilities	$2.1B+16.2%	$1.8B+42.1%	$1.3B+16.1%	$1.1B-18.0%	$1.3B+6.6%	$1.3B
Current Liabilities	$1.8B+17.0%	$1.5B+32.6%	$1.2B+10.3%	$1.0B-15.7%	$1.2B+8.7%	$1.1B
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$4.1B+2.7%	$3.9B+17.3%	$3.4B+19.8%	$2.8B+11.9%	$2.5B+6.1%	$2.4B
Retained Earnings	$3.8B+1.5%	$3.7B+16.1%	$3.2B+21.3%	$2.6B+13.3%	$2.3B+8.6%	$2.1B

Metric	Q4'25	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19	Q4'18
Total Assets	$5.8B+24.1%	$4.7B+18.7%	$3.9B+1.5%	$3.9B+6.3%	$3.6B+17.8%	$3.1B-5.5%	$3.3B-5.9%	$3.5B
Current Assets	$2.9B-1.6%	$3.0B+18.2%	$2.5B+5.0%	$2.4B+18.3%	$2.0B+17.2%	$1.7B+4.4%	$1.7B-1.7%	$1.7B
Cash & Equivalents	$172.0M+102.4%	$85.0M+21.4%	$70.0M-64.3%	$196.0M-3.4%	$203.0M+651.9%	$27.0M-15.6%	$32.0M-22.0%	$41.0M
Inventory	$832.0M+9.0%	$763.0M+28.9%	$592.0M-11.8%	$671.0M+8.1%	$621.0M+33.5%	$465.0M-4.3%	$486.0M+8.7%	$447.0M
Accounts Receivable	$1.1B+9.9%	$963.0M+9.2%	$882.0M+0.2%	$880.0M+29.6%	$679.0M+1.8%	$667.0M+15.8%	$576.0M-7.7%	$624.0M
Goodwill	$138.0M+170.6%	$51.0M-1.9%	$52.0M-10.3%	$58.0M-6.5%	$62.0M+17.0%	$53.0M-5.4%	$56.0M-8.2%	$61.0M
Total Liabilities	$1.8B+42.1%	$1.3B+16.1%	$1.1B-18.0%	$1.3B+6.6%	$1.3B+23.3%	$1.0B-16.8%	$1.2B-19.1%	$1.5B
Current Liabilities	$1.5B+32.6%	$1.2B+10.3%	$1.0B-15.7%	$1.2B+8.7%	$1.1B+18.0%	$966.0M+11.9%	$863.0M-19.3%	$1.1B
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$3.9B+17.3%	$3.4B+19.8%	$2.8B+11.9%	$2.5B+6.1%	$2.4B+15.1%	$2.1B+1.4%	$2.0B+4.4%	$1.9B
Retained Earnings	$3.7B+16.1%	$3.2B+21.3%	$2.6B+13.3%	$2.3B+8.6%	$2.1B+11.5%	$1.9B+2.8%	$1.9B+6.3%	$1.7B

RDY Cash Flow Statement

Metric	FY26	FY25	FY24	FY23	FY22	FY21
Operating Cash Flow	$607.0M+11.4%	$545.0M0.0%	$545.0M-23.9%	$716.0M+93.5%	$370.0M-24.2%	$488.0M
Capital Expenditures	$249.0M-22.7%	$322.0M+63.5%	$197.0M+42.8%	$138.0M-28.5%	$193.0M+45.1%	$133.0M
Free Cash Flow	$358.0M+60.5%	$223.0M-35.9%	$348.0M-39.8%	$578.0M+226.6%	$177.0M-50.1%	$355.0M
Investing Cash Flow	-$700.0M-2.6%	-$682.0M-41.2%	-$483.0M+4.0%	-$503.0M-44.5%	-$348.0M-12.3%	-$310.0M
Financing Cash Flow	$88.0M-60.4%	$222.0M+593.3%	-$45.0M+86.2%	-$327.0M-921.9%	-$32.0M-700.0%	-$4.0M
Dividends Paid	$71.0M-9.0%	$78.0M-2.5%	$80.0M+31.1%	$61.0M+10.9%	$55.0M-3.5%	$57.0M
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'25	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19	Q4'18
Operating Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Financing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

RDY Financial Ratios

Metric	FY26	FY25	FY24	FY23	FY22	FY21
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	12.6%-5.0pp	17.6%-2.3pp	19.9%+1.6pp	18.3%+7.3pp	11.0%+1.9pp	9.1%
Return on Equity	11.2%-5.9pp	17.0%-2.8pp	19.9%+0.4pp	19.5%+7.1pp	12.4%+2.4pp	10.0%
Return on Assets	7.3%-4.3pp	11.6%-2.7pp	14.4%+0.4pp	14.0%+5.9pp	8.1%+1.6pp	6.5%
Current Ratio	1.80-0.1	1.92-0.7	2.58+0.2	2.41+0.5	1.93+0.2	1.78
Debt-to-Equity	0.52+0.1	0.46+0.1	0.38-0.0	0.39-0.1	0.540.0	0.53
FCF Margin	10.0%+4.2pp	5.9%-4.5pp	10.4%-8.9pp	19.3%+13.1pp	6.3%-7.4pp	13.7%

Metric	Q4'25	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19	Q4'18
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Assets	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Current Ratio	1.92-0.7	2.58+0.2	2.41+0.5	1.93+0.2	1.78-0.0	1.79-0.1	1.92+0.3	1.57
Debt-to-Equity	0.46+0.1	0.38-0.0	0.39-0.1	0.540.0	0.53+0.0	0.50-0.1	0.61-0.2	0.78
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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Frequently Asked Questions

What is Dr Reddys Labs's annual revenue?

Dr Reddys Labs (RDY) reported $3.6B in total revenue for fiscal year 2026. This represents a -6.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Dr Reddys Labs's revenue growing?

Dr Reddys Labs (RDY) revenue declined by 6.1% year-over-year, from $3.8B to $3.6B in fiscal year 2026.

Is Dr Reddys Labs profitable?

Yes, Dr Reddys Labs (RDY) reported a net income of $452.0M in fiscal year 2026, with a net profit margin of 12.6%.

What is Dr Reddys Labs's net profit margin?

Dr Reddys Labs (RDY) had a net profit margin of 12.6% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.

What is Dr Reddys Labs's return on equity (ROE)?

Dr Reddys Labs (RDY) has a return on equity of 11.2% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.

What is Dr Reddys Labs's free cash flow?

Dr Reddys Labs (RDY) generated $358.0M in free cash flow during fiscal year 2026. This represents a 60.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Dr Reddys Labs's operating cash flow?

Dr Reddys Labs (RDY) generated $607.0M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.

What are Dr Reddys Labs's total assets?

Dr Reddys Labs (RDY) had $6.2B in total assets as of fiscal year 2026, including both current and long-term assets.

What are Dr Reddys Labs's capital expenditures?

Dr Reddys Labs (RDY) invested $249.0M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.

How many shares does Dr Reddys Labs have outstanding?

Dr Reddys Labs (RDY) had 835M shares outstanding as of fiscal year 2026.

What is Dr Reddys Labs's current ratio?

Dr Reddys Labs (RDY) had a current ratio of 1.80 as of fiscal year 2026, which is generally considered healthy.

What is Dr Reddys Labs's debt-to-equity ratio?

Dr Reddys Labs (RDY) had a debt-to-equity ratio of 0.52 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Dr Reddys Labs's return on assets (ROA)?

Dr Reddys Labs (RDY) had a return on assets of 7.3% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.

What is Dr Reddys Labs's Piotroski F-Score?

Dr Reddys Labs (RDY) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Dr Reddys Labs's earnings high quality?

Dr Reddys Labs (RDY) has an earnings quality ratio of 1.34x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

How financially healthy is Dr Reddys Labs?

Dr Reddys Labs (RDY) scores 42 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.