📈 Dr Reddy’s Defies Profit Dip, Stock Rallies 5%+ — Here’s Why!

Dr Reddy’s Laboratories (

) surged over 5% on January 22, 2026, closing at ₹1,217.50, despite reporting a 14% YoY decline in Q3 FY26 profit to ₹1,210 crore. The drop in profit was largely due to weaker US sales, led by price erosion and lower contribution from Lenalidomide (generic Revlimid). However, the market cheered the earnings beat, as revenue rose 4% YoY to ₹8,727 crore, exceeding estimates. Strong execution in India, with 19% YoY growth driven by branded formulations, along with robust performance in Europe and emerging markets and supportive forex gains, more than offset US headwinds. The results highlight resilience and diversified growth drivers. 📌 Disclaimer: This content is for information only and not investment advice. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered advisor before making any investment decisions. I, Akhilesh Jat (SEBI Registered Research Analyst – INH000016649), do not have any position in the mentioned scrip.