Exhibit 99.3

 

Dr. Reddy’s Laboratories Ltd.

8-2-337, Road No. 3, Banjara Hills,

Hyderabad - 500 034, Telangana, India.

CIN : L85195TG1984PLC004507

 

Tel      : +91 40 4900 2900

Fax     : +91 40 4900 2999

Email : mail@drreddys.com

www.drreddys.com

 

DR. REDDY'S LABORATORIES LIMITED

Unaudited consolidated financial results of Dr. Reddy's Laboratories Limited and its subsidiaries for the quarter and half year ended 30 September 2026 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)

 

All amounts in Indian Rupees millions

      Quarter ended   Half year ended   Year ended 
Sl. No.  Particulars  30.09.2026   30.06.2026   30.09.2025   30.09.2026   30.09.2025   31.03.2026 
      (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Audited) 
1  Revenues   86,708    80,705    88,051    167,413    173,503    335,933 
2  Cost of revenues   41,504    43,165    39,911    84,669    76,736    158,669 
3  Gross profit (1 - 2)   45,204    37,540    48,140    82,744    96,767    177,264 
4  Selling, general and administrative expenses   28,075    28,820    26,436    56,895    52,083    106,763 
5  Research and development expenses   5,235    5,766    6,202    11,001    12,446    24,058 
6  Impairment of non-current assets, net   123    15    662    138    662    3,519 
7  Other income, net   (912)   (845)   (2,673)   (1,757)   (3,412)   (7,627)
   Total operating expenses   32,521    33,756    30,627    66,277    61,779    126,713 
                                  
8  Results from operating activities [(3) - (4 + 5 + 6 + 7)]   12,683    3,784    17,513    16,467    34,988    50,551 
   Finance income   919    2,989    1,681    3,908    4,081    7,870 
   Finance expense   (1,248)   (1,255)   (907)   (2,503)   (1,737)   (3,738)
9  Finance income, net   (329)   1,734    774    1,405    2,344    4,132 
10  Share of profit/(losses) of equity accounted investees, net of tax   (77)   8    63    (69)   65    134 
11  Profit before tax (8 + 9 + 10)   12,277    5,526    18,350    17,803    37,397    54,817 
12  Tax expense, net   3,143    1,178    4,082    4,321    9,033    12,351 
13  Profit for the period/year (11 - 12)   9,134    4,348    14,268    13,482    28,364    42,466 
                                  
   Attributable to:                              
   Equity holders of the parent company   9,250    4,435    14,372    13,685    28,549    42,850 
   Non-controlling interests   (116)   (87)   (104)   (203)   (185)   (384)
                                  
14  Earnings per equity share attributable to equity shareholders of parent                              
   Basic earnings per share of Re.1/- each   11.11    5.32    17.26    16.43    34.30    51.48 
   Diluted earnings per share of Re.1/- each   11.10    5.32    17.25    16.42    34.26    51.42 
       (Not annualised)    (Not annualised)    (Not annualised)    (Not annualised)    (Not annualised)      

 

Segment information All amounts in Indian Rupees millions

      Quarter ended   Half year ended   Year ended 
Sl. No.  Particulars  30.09.2026   30.06.2026   30.09.2025   30.09.2026   30.09.2025   31.03.2026 
      (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Audited) 
   Segment wise revenue and results:                              
1  Segment revenue:                              
   a) Global Generics   77,927    71,993    78,498    149,920    154,118    299,033 
   b) Pharmaceutical Services and Active Ingredients   10,415    10,527    11,584    20,942    21,293    42,043 
   c) Others   471    193    103    664    1,754    2,127 
   Total   88,813    82,713    90,185    171,526    177,165    343,203 
   Less: Inter-segment revenues   2,105    2,008    2,134    4,113    3,662    7,270 
   Net revenues   86,708    80,705    88,051    167,413    173,503    335,933 
                                  
2  Segment results:                              
   Gross profit from each segment                              
   a) Global Generics   43,833    37,123    46,428    80,956    92,514    169,698 
   b) Pharmaceutical Services and Active Ingredients   980    381    1,700    1,361    2,782    5,984 
   c) Others   391    36    12    427    1,471    1,582 
   Total   45,204    37,540    48,140    82,744    96,767    177,264 
   Less: Selling and other un-allocable expenditure, net of other income   32,927    32,014    29,790    64,941    59,370    122,447 
   Total profit before tax   12,277    5,526    18,350    17,803    37,397    54,817 

 

Global Generics segment includes operations of Biologics business. Inter-segment revenues represent sale from Pharmaceutical Services and Active Ingredients to Global Generics and Others at cost.

 

Segmental capital employed
As certain assets of the Company including manufacturing facilities, development facilities, treasury assets and liabilities are often deployed interchangeably across segments, it is impractical to allocate these assets and liabilities to each segment. Hence, the details for capital employed have not been disclosed in the above table.

 

 

 

 

 

 

 

Consolidated statements of financial position

All amounts in Indian Rupees millions

   As at   As at 
Particulars  30.09.2026   31.03.2026 
   (Unaudited)   (Audited) 
ASSETS          
Current assets          
Cash and cash equivalents   13,294    15,368 
Other investments   62,948    72,446 
Trade and other receivables   101,399    101,219 
Inventories   81,182    76,531 
Derivative financial instruments   287    155 
Other current assets   38,465    36,256 
Total current assets   297,575    301,975 
Non-current assets          
Property, plant and equipment   115,097    115,930 
Goodwill   12,980    12,893 
Other intangible assets   104,165    105,059 
Investment in equity accounted investees   5,867    5,673 
Other investments   10,428    10,695 
Deferred tax assets   23,155    22,436 
Tax assets   4,163    3,459 
Other non-current assets   1,051    1,226 
Total non-current assets   276,906    277,371 
Total assets   574,481    579,346 
           
LIABILITIES AND EQUITY          
Current liabilities          
Trade and other payables   36,082    33,411 
Short-term borrowings   58,260    59,135 
Long-term borrowings, current portion   2,334    6,003 
Provisions   7,255    7,550 
Tax liabilities   2,805    4,310 
Derivative financial instruments   5,321    6,898 
Other current liabilities   42,434    50,259 
Total current liabilities   154,491    167,566 
Non-current liabilities          
Long-term borrowings   11,693    12,203 
Deferred tax liabilities   16,187    15,568 
Provisions   119    109 
Other non-current liabilities   2,621    3,443 
Total non-current liabilities   30,620    31,323 
Total liabilities   185,111    198,889 
Equity          
Share capital   835    835 
Treasury shares   (1,484)   (1,815)
Share premium   11,479    11,364 
Share based payment reserve   1,750    1,684 
Capital redemption reserve   173    173 
Retained earnings   359,005    351,984 
Other reserves   3,979    3,979 
Other components of equity   10,442    8,859 
Equity attributable to equity holders of the parent company   386,179    377,063 
Non-controlling interests   3,191    3,394 
Total equity   389,370    380,457 
Total liabilities and equity   574,481    579,346 

 

 

 

 

 

 

 

Consolidated statements of cash flows

All amounts in Indian Rupees millions

   Half year ended 
Particulars  30.09.2026   30.09.2025 
   (Unaudited)   (Unaudited) 
Cash flows from/(used in) operating activities :          
Profit for the period   13,482    28,364 
Adjustments for:          
Tax expense, net   4,321    9,033 
Fair value changes and profit on sale of financial instruments measured at FVTPL*, net   (1,209)   (1,277)
Depreciation and amortization   10,641    9,816 
Impairment of non-current assets   138    662 
Allowance for credit losses (on trade receivables and other advances)   340    679 
Gain on sale or de-recognition of non-current assets, net   (405)   (268)
Share of (profit)/losses of equity accounted investees   69    (65)
Inventories write-down   5,622    3,450 
Foreign exchange (gain)/loss, net   (585)   (509)
Interest income, net   543    (303)
Equity settled share-based payment expense   196    212 
Changes in operating assets and liabilities:          
Trade and other receivables   177    (7,689)
Inventories   (10,274)   (8,186)
Trade and other payables   1,864    8,846 
Other assets and other liabilities, net   (13,741)   (3,718)
Cash generated from operations   11,179    39,047 
Income tax paid, net   (6,822)   (8,845)
Net cash generated from operating activities   4,357    30,202 
           
Cash flows (used in)/from investing activities :          
Purchase of property, plant and equipment   (5,826)   (12,084)
Proceeds from sale of property, plant and equipment   1,003    142 
Purchase of other intangible assets   (2,201)   (8,198)
Proceeds from sale of other intangible assets   2,214    239 
Purchase of other investments   (14,461)   (17,724)
Proceeds from sale of other investments   25,595    8,182 
Proceeds from disposal of subsidiary   5    - 
Investment in associates   -    (51)
Payment for acquisition of businesses   (220)   - 
Interest and dividend received   2,006    759 
Net cash (used in)/from in investing activities   8,115    (28,735)
           
Cash flows (used in)/from financing activities :          
Proceeds from issuance of equity shares (including treasury shares)   316    288 
(Repayments)/Proceeds from short-term borrowings, net   (1,043)   2,675 
(Repayment) of long term borrowings   (3,799)   - 
Payment of principal portion of lease liabilities   (717)   (565)
Dividend paid   (6,664)   (6,659)
Interest paid   (2,779)   (2,265)
Net cash used in financing activities   (14,686)   (6,526)
           
Net increase in cash and cash equivalents   (2,214)   (5,059)
Effect of exchange rate changes on cash and cash equivalents   36    372 
Cash and cash equivalents at the beginning of the period(1)   15,368    14,593 
Cash and cash equivalents at the end of the period(2)   13,190    9,906 

*FVTPL (fair value through profit or loss)

(1) Adjusted for bank-overdraft of Rs.61 million for the year ended 31 March 2025.

(2) Adjusted for bank-overdraft of Rs.104 million for the half year ended 30 September 2026.

 

 

 

 

 

 

 

Notes:

 

1 The above Statement of unaudited consolidated financial results of Dr. Reddy’s Laboratories Limited (the “parent company”), together with its subsidiaries (collectively, the “Company”), joint ventures and associates, have been prepared in accordance with recognition and measurement principles of IAS 34 as issued by the International Accounting Standards Board (IASB), and were reviewed and recommended by Audit Committee and approved by the Board of Directors at their meetings held on 23 October 2026. The Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report there on.
   
2 In August 2026, the Company initiated recall of Semaglutide batches in Canada due to elevated levels of unspecified impurity exceeding the approved specification limit and a packaging and labelling error (unrelated to the Semaglutide API issue as detailed under Note 5 below). Accordingly, the Company recorded Rs. 710 million towards expected product returns as a reduction of "Revenue from sale of goods" in the Company's Global Generics Segment.
   
3

Revenues for the quarter ended 30 September 2026 includes: 

- Rs.529 million from the sale of the Company’s territorial rights relating to Bendamustine HCL in the United States; and
- Rs.976 million towards achievement of certain milestones under various license agreements with a customer in Russia pertaining to biosimilars.

These transactions pertain to the Company’s Global Generics segment.

   
4 During the year ended 31 March 2026, consequent to resolution of a shelf stock adjustment claim arising from reduction in price of its generic product Lenalidomide in the United States, the Company has recorded an amount of Rs. 4,530 million (USD 50 million) as a reduction of “Revenue from sale of goods” in the Company's Global Generics Segment.
   
5 Certain batches of Semaglutide were found to be out of specification due to an issue associated with the active pharmaceutical ingredient (API) used in the product. Consequently, based on its best estimate, the Company has made a provision of Rs. 2,230 million towards inventory and Rs. 167 million towards other associated costs during the quarter ended 30 June 2026.
   
6

During the year ended 31 March 2026, the Company decided to discontinue certain of its R&D programs associated with Chimeric Antigen Receptor T-cell (CAR-T) therapy portfolio in light of the development status and clinical trial outcomes. Consequent to this decision, the Company has recognized a net loss of Rs. 1,350 million in the Company's Global Generic segment, comprising of:

 

a. Impairment of non-current assets of Rs. 1,291 million (i.e., towards Property, plant and equipment, Other Intangible assets and Right of use assets) and

b. Other development program related wind down cost under Selling, general and administrative expenses (“SG&A”) of Rs. 59 million.

 

In August 2026, the company sold certain assets related to this CAR-T program and novated the related lease agreement to the acquirer resulting in impairment loss reversal of Rs. 137 million.

   
7

During the year ended 31 March 2026, the Company recorded below Impairment losses in the Company’s Global Generic segment

 

a. Rs. 914 million (USD 10 million) consequent to discontinuation of the Phase III study in first line non-small cell lung cancer conducted by Immutep Limited following the results of the futility analysis.

 

b. Rs. 47 million, consequent to certain technical challenges in product development, the Company decided to discontinue development of conjugated estrogen at its site in Middleburgh, New York comprising the below financial impacts:

- Impairment loss of the entire carrying value of Rs. 535 million for property, plant and equipment;

- Inventory related provisions of Rs. 260 million;

- Other development program related wind down costs of Rs. 129 million;

- Gain recognized under Other Income, net from the write back of liabilities no longer required of Rs. 877 million.

   
8

“Other income, net” includes:

a. Rs. 1,400 million recognised pursuant to settlement of product related litigations representing payment for avoided litigation costs by the Company and its affiliates in the United States and the United Kingdom during the year ended 31 March 2026.

b. Gain on sale of non-current assets, net amounting to Rs. 1,890 million towards divestment of certain product related intangibles i.e., trademarks during the quarter ended 31 March 2026.

   
9

During the year ended 31 March 2026, based on a final order received from the Federal Tax Service authority in respect of one of its foreign subsidiaries, based on its estimate the Company had recorded a VAT provision of Rs. 1,836 million under “Selling, general and administrative expenses” including applicable interest and penalties and covering the periods both under audit as well as subsequent period up to 31 March 2026.

 

The Company believes that the likelihood of any further liability that may arise on account of this field tax audit is not probable. This transaction pertains to Company's Global Generics segment.

   
10 The Company considered the on-going uncertainties relating to geo-political conflicts (including Russia, Ukraine and the Middle East) in assessing the recoverability of receivables, intangible assets, investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of approval of these financial results. Based on its judgments, estimates and assumptions, the Company expects to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue to closely monitor any material changes to future economic conditions.

 

  By order of the Board
  For Dr. Reddy’s Laboratories Limited
   
Place: Hyderabad G V Prasad
Date: 23 October 2026 Co-Chairman & Managing Director
  DIN: 00057433