Dr Reddys Labs Financials

RDY

Source SEC Filings (10-K/10-Q) Updated Mar 31, 2025 Currency USD FYE March

This page shows Dr Reddys Labs (RDY) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 8 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 2026-04-22

Growth is increasingly being funded by working capital and reinvestment, leaving profit growth ahead of free cash generation.

Over the last two years, earnings and reported margins improved, yet free cash flow margin moved the other way. With operating cash flow flat at $545M and capex up to $322M in the latest year, more of the company's growth is being absorbed by working capital and reinvestment before it becomes discretionary cash.

The balance sheet still looks equity-funded rather than debt-led: total equity of $3.9B sits well above liabilities of $1.8B. That cushion also comes mostly from retained earnings, which means the company has financed much of its capacity from accumulated profits even as cash conversion has recently softened.

The drop in current ratio from 2.6x to 1.9x is less about immediate liquidity stress than about growth demanding more balance-sheet support. Large inventory and receivables positions mean expansion is not self-financing; a meaningful share of each new sales dollar gets parked in the operating cycle before it can show up as cash.

Financial Health Signals

Financial Profile 47/100

Based on FY2025 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 grew 13.8% year-over-year to $3.8B, a solid pace of expansion. This earns a growth score of 55/100.

Leverage

Dr Reddys Labs carries a low D/E ratio of 0.46, meaning only $0.46 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 93/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Dr Reddys Labs's current ratio of 1.92 indicates adequate short-term liquidity, earning a score of 34/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow

Dr Reddys Labs has a free cash flow margin of 5.9%, earning a moderate score of 50/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns

Dr Reddys Labs's ROE of 17.0% shows moderate profitability relative to equity, earning a score of 52/100. This is down from 19.9% the prior year.

Piotroski F-Score Weak

2/9

Dr Reddys Labs passes 2 of 9 financial strength tests. 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.

Earnings Quality Mixed

0.81x

For every $1 of reported earnings, Dr Reddys Labs generates $0.81 in operating cash flow ($545.0M OCF vs $671.0M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

Key Financial Metrics

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Earnings & Revenue

Revenue

$3.8B

YoY+13.8%

5Y CAGR+10.5%

Dr Reddys Labs generated $3.8B in revenue in fiscal year 2025. This represents an increase of 13.8% from the prior year.

EBITDA

N/A

Net Income

$671.0M

YoY+0.4%

5Y CAGR+21.0%

Dr Reddys Labs reported $671.0M in net income in fiscal year 2025. This represents an increase of 0.4% from the prior year.

EPS (Diluted)

N/A

Cash & Balance Sheet

Free Cash Flow

$223.0M

YoY-35.9%

5Y CAGR-7.7%

Dr Reddys Labs generated $223.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 35.9% from the prior year.

Cash & Debt

$172.0M

YoY+102.4%

5Y CAGR+44.8%

Dr Reddys Labs held $172.0M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

834M

Dr Reddys Labs had 834M shares outstanding in fiscal year 2025. This represents an increase of 400.2% from the prior year.

Margins & Returns

Gross Margin

N/A

Operating Margin

N/A

Net Margin

17.6%

YoY-2.3pp

5Y CAGR+6.4pp

Dr Reddys Labs's net profit margin was 17.6% in fiscal year 2025, showing the share of revenue converted to profit. This is down 2.3 percentage points from the prior year.

Return on Equity

17.0%

YoY-2.8pp

5Y CAGR+4.4pp

Dr Reddys Labs's ROE was 17.0% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 2.8 percentage points from the prior year.

Capital Allocation

R&D Spending

N/A

Share Buybacks

N/A

Capital Expenditures

$322.0M

YoY+63.5%

5Y CAGR+38.1%

Dr Reddys Labs invested $322.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 63.5% from the prior year.

RDY Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$3.8B+13.8%	$3.4B+12.0%	$3.0B+5.9%	$2.8B+8.9%	$2.6B+12.0%	$2.3B
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	$55.0M+14.6%	$48.0M+37.1%	$35.0M+25.0%	$28.0M+21.7%	$23.0M+15.0%	$20.0M
Income Tax	$229.0M+18.0%	$194.0M+4.3%	$186.0M+61.7%	$115.0M-8.0%	$125.0M+757.9%	-$19.0M
Net Income	$671.0M+0.4%	$668.0M+21.9%	$548.0M+76.2%	$311.0M+31.8%	$236.0M-8.9%	$259.0M
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	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$5.8B+24.1%	$4.7B+18.7%	$3.9B+1.5%	$3.9B+6.3%	$3.6B+17.8%	$3.1B
Current Assets	$2.9B-1.6%	$3.0B+18.2%	$2.5B+5.0%	$2.4B+18.3%	$2.0B+17.2%	$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
Inventory	$832.0M+9.0%	$763.0M+28.9%	$592.0M-11.8%	$671.0M+8.1%	$621.0M+33.5%	$465.0M
Accounts Receivable	$1.1B+9.9%	$963.0M+9.2%	$882.0M+0.2%	$880.0M+29.6%	$679.0M+1.8%	$667.0M
Goodwill	$138.0M+170.6%	$51.0M-1.9%	$52.0M-10.3%	$58.0M-6.5%	$62.0M+17.0%	$53.0M
Total Liabilities	$1.8B+42.1%	$1.3B+16.1%	$1.1B-18.0%	$1.3B+6.6%	$1.3B+23.3%	$1.0B
Current Liabilities	$1.5B+32.6%	$1.2B+10.3%	$1.0B-15.7%	$1.2B+8.7%	$1.1B+18.0%	$966.0M
Long-Term Debt	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
Retained Earnings	$3.7B+16.1%	$3.2B+21.3%	$2.6B+13.3%	$2.3B+8.6%	$2.1B+11.5%	$1.9B

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	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$545.0M0.0%	$545.0M-23.9%	$716.0M+93.5%	$370.0M-24.2%	$488.0M+23.2%	$396.0M
Capital Expenditures	$322.0M+63.5%	$197.0M+42.8%	$138.0M-28.5%	$193.0M+45.1%	$133.0M+107.8%	$64.0M
Free Cash Flow	$223.0M-35.9%	$348.0M-39.8%	$578.0M+226.6%	$177.0M-50.1%	$355.0M+6.9%	$332.0M
Investing Cash Flow	-$682.0M-41.2%	-$483.0M+4.0%	-$503.0M-44.5%	-$348.0M-12.3%	-$310.0M-376.9%	-$65.0M
Financing Cash Flow	$222.0M+593.3%	-$45.0M+86.2%	-$327.0M-921.9%	-$32.0M-700.0%	-$4.0M+98.8%	-$334.0M
Dividends Paid	$78.0M-2.5%	$80.0M+31.1%	$61.0M+10.9%	$55.0M-3.5%	$57.0M+9.6%	$52.0M
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	FY25	FY24	FY23	FY22	FY21	FY20
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	17.6%-2.3pp	19.9%+1.6pp	18.3%+7.3pp	11.0%+1.9pp	9.1%-2.1pp	11.2%
Return on Equity	17.0%-2.8pp	19.9%+0.4pp	19.5%+7.1pp	12.4%+2.4pp	10.0%-2.6pp	12.6%
Return on Assets	11.6%-2.7pp	14.4%+0.4pp	14.0%+5.9pp	8.1%+1.6pp	6.5%-1.9pp	8.4%
Current Ratio	1.92-0.7	2.58+0.2	2.41+0.5	1.93+0.2	1.78-0.0	1.79
Debt-to-Equity	0.46+0.1	0.38-0.0	0.39-0.1	0.540.0	0.53+0.0	0.50
FCF Margin	5.9%-4.5pp	10.4%-8.9pp	19.3%+13.1pp	6.3%-7.4pp	13.7%-0.7pp	14.3%

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 $3.8B in total revenue for fiscal year 2025. This represents a 13.8% 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 grew by 13.8% year-over-year, from $3.4B to $3.8B in fiscal year 2025.

Is Dr Reddys Labs profitable?

Yes, Dr Reddys Labs (RDY) reported a net income of $671.0M in fiscal year 2025, with a net profit margin of 17.6%.

What is Dr Reddys Labs's net profit margin?

Dr Reddys Labs (RDY) had a net profit margin of 17.6% in fiscal year 2025, 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 17.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Dr Reddys Labs's free cash flow?

Dr Reddys Labs (RDY) generated $223.0M in free cash flow during fiscal year 2025. This represents a -35.9% 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 $545.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Dr Reddys Labs's total assets?

Dr Reddys Labs (RDY) had $5.8B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Dr Reddys Labs's capital expenditures?

Dr Reddys Labs (RDY) invested $322.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How many shares does Dr Reddys Labs have outstanding?

Dr Reddys Labs (RDY) had 834M shares outstanding as of fiscal year 2025.

What is Dr Reddys Labs's current ratio?

Dr Reddys Labs (RDY) had a current ratio of 1.92 as of fiscal year 2025, 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 0.46 as of fiscal year 2025, 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 11.6% for fiscal year 2025, 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 2 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 0.81x, considered mixed 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 47 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.