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RDY · NYSE · United States · Pharmaceutical Preparations

DR REDDYS LABORATORIES LTD

Hyderabad · Fiscal year ends in March · Figures in INR

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In shortDR REDDYS LABORATORIES LTD is profitable, generates cash and holds more cash than debt, with revenue growing (+16.6% last year).

Financial health

Strong

Built from five areas over the last five annual reports. Tap an area to see the figures behind it.

How is this score calculated? →

Profitability91

Operating marginShare of each sale left after running the business, before interest and tax.	22.1%	90/100
Net marginShare of each sale left as profit after every cost, interest and tax.	17.4%	89/100
Return on equityProfit earned on the money shareholders put in. Above 15% is strong.	18.4%	92/100
Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge.	14.1%	94/100

Weight in the score: 25%

Balance sheet99

Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash.	1.92×	93/100
Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted.	0.14×	100/100
Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable.	Net cash	100/100
Interest coverageHow many times operating profit covers interest. Below 2 is risky.	25.40×	100/100
Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress.	6.91	100/100

Weight in the score: 25%

Cash generation49

Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt.	5.8%	43/100
Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy.	0.33×	4/100
Years with positive free cash flow (last 5)	5 of 5	100/100

Weight in the score: 20%

Stability90
Profitable years (last 5) 5 of 5 100/100
Years of revenue decline (last 5) 0 of 5 100/100
Revenue growth volatility 2.9% 100/100
Operating margin volatility 5.5% 59/100
Weight in the score: 20%
Growth50
Revenue growth, 3-year average 14.9% 100/100
EPS growth, 3-year average -21.8% 0/100
Weight in the score: 10%

Profitable years (last 5)	5 of 5	100/100
Years of revenue decline (last 5)	0 of 5	100/100
Revenue growth volatility	2.9%	100/100
Operating margin volatility	5.5%	59/100

Revenue growth, 3-year average	14.9%	100/100
EPS growth, 3-year average	-21.8%	0/100

Fiscal year 2025 · change vs prior year

Revenue: INR 325.5B; ▲ 16.6%
Net income: INR 56.5B; ▲ 1.5%
Free cash flow: INR 18.9B; ▼ 34.8%
Operating margin: 22.1%; −2.2 pts
Cash & investments: INR 57.9B; –
Total debt: INR 45.9B; ▲ 145.3%
Diluted EPS: INR67.78; ▲ 1.5%
Return on equity: 18.4%; –

Trends

Annual figures as reported. Hover a bar or point for the exact value.

5 older years available with the 10-year history. Essential plan, from €8.25/month →

Revenue and net income

RevenueNet income

Margins

Statements

The last 5 fiscal years from the company's annual reports.

INR millions; negative values in parentheses.

Fiscal year	FY21	FY22	FY23	FY24	FY25
Revenue	189,722	214,391	245,879	279,164	325,535
Cost of revenue	86,645	100,551	106,536	115,557	135,107
Gross profit	103,077	113,840	139,343	163,607	190,428
Research & development	16,541	17,482	19,381	22,873	27,380
Selling, general & admin	54,650	62,081	68,026	77,201	93,870
Operating income	24,280	29,476	57,144	67,729	71,843
Interest expense	970	958	1,428	1,711	2,829
Pre-tax income	26,413	32,298	60,367	71,870	76,784
Income tax	9,175	8,730	15,300	16,186	19,539
Net income	17,238	23,568	45,067	55,684	56,544
Diluted EPS	INR103.65	INR141.69	INR54.17	INR66.80	INR67.78
Diluted shares (millions)	166	166	832	834	834

5 older years available with the 10-year history. Essential plan, from €8.25/month →

Risk checks

Altman Z'' score

6.91 Safe zone

Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.

Piotroski F-score

3/9

Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.

Positive net income: passed
Positive operating cash flow: passed
Return on assets improved: failed
Cash flow exceeds net income: failed
Long-term debt ratio fell: failed
Current ratio improved: failed
No share dilution: passed
Gross margin improved: failed
Asset turnover improved: failed

Sources

20-FPeriod ending Mar 31, 2026Filed May 29, 2026Open the report ↗
20-FPeriod ending Mar 31, 2025Filed Jun 6, 2025Open the report ↗
20-FPeriod ending Mar 31, 2024Filed Jun 12, 2024Open the report ↗
20-FPeriod ending Mar 31, 2023Filed Jun 13, 2023Open the report ↗
20-FPeriod ending Mar 31, 2022Filed Jun 27, 2022Open the report ↗
20-FPeriod ending Mar 31, 2021Filed Jun 30, 2021Open the report ↗
20-FPeriod ending Mar 31, 2020Filed Jun 15, 2020Open the report ↗
20-FPeriod ending Mar 31, 2019Filed Jun 3, 2019Open the report ↗

DR REDDYS LABORATORIES LTD (RDY) financial health, profit and balance sheet · Scorvest