Dr Reddy’s Infuses ₹565 Cr into Russian Arm

28 Jul 2025 , 12:22 PM

Dr Reddy’s Laboratories Ltd has infused ₹565.4 crore into its Russian arm, Dr Reddy’s Laboratories LLC (DRL Russia), acquiring a 45.19% equity stake in the step-down wholly-owned subsidiary.

The investment, made on July 25, 2025, follows board approval granted on November 5, 2024, to inject up to ₹600 crore into the Russian entity. The capital was infused via cash and will be used to support DRL Russia’s working capital requirements.

DRL Russia, which operates as a pharmaceutical distribution company in the Russian Federation, reported a turnover of ₹2,347 crore in FY25.

The company noted that this is a related-party transaction as DRL Russia is a step-down subsidiary. However, it clarified that the transaction was conducted on an arm’s length basis, with no additional interest from the promoter group.

Separately, Dr Reddy’s reported strong financials for Q1 FY26, with consolidated revenue rising to ₹8,542 crore from ₹7,672.7 crore in the same quarter last year.

Net profit for the quarter stood at ₹1,417.8 crore, marginally higher than the ₹1,392 crore posted in Q1 FY25. EBITDA increased to ₹2,287 crore, up from ₹2,160 crore last year. However, operating margins dipped to 26.7% compared to 28.2% a year earlier.

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