What caused Dr Reddy's first-quarter profit to slump by 68.7%?

Dr Reddy's first-quarter profit slumped by 68.7% to 4.44 billion rupees ($45.98 million) primarily due to a 2.39 billion rupee provision for inventory and related costs linked to disruptions in its semaglutide supply, stemming from an impurity issue in the active ingredient that forced a halt in new batch production.

Why is the semaglutide disruption significant for Dr Reddy's growth strategy?

The semaglutide disruption is a major setback because Dr Reddy's is counting on its generic version of semaglutide — the active ingredient in Wegovy — as a key growth driver in India and select global markets, especially now that the compound is off-patent in India and has opened the door for generic competition.

India's Dr Reddy's posts quarterly profit slump on semaglutide inventory costs

Jul 22, 2026

Dr Reddy's Q1 profit plunged 68.7% to 4.44 billion rupees due to semaglutide inventory costs stemming from an active ingredient impurity. Revenue dropped 5.5% amidst pricing pressures and market competition.

reuters

2026-07-09

India's Dr Reddy's Extends Slide as Semaglutide Setback Threatens First-Mover Edge

2026-07-22

India's Dr Reddy's posts quarterly profit slump on semaglutide inventory costs

2026-07-22

Indian drugmaker Dr Reddy's slips on margin, semaglutide supply woes

India's Dr Reddy's posts quarterly profit slump on semaglutide inventory costs

FAQ