Zacks Research Has Pessimistic Outlook of RDY Q2 Earnings

Key Points

• Zacks Research has lowered its Q2 2026 earnings per share estimate for Dr. Reddy's Laboratories to $0.18, down from $0.19.
• Despite the pessimistic outlook from Zacks, multiple research firms, including HSBC, have upgraded the stock's rating to buy.
• The current consensus rating for Dr. Reddy's Laboratories is "Buy" with a price target of $16.95.

Dr. Reddy's Laboratories Ltd (NYSE:RDY - Free Report) - Equities research analysts at Zacks Research cut their Q2 2026 EPS estimates for Dr. Reddy's Laboratories in a research report issued to clients and investors on Tuesday, August 12th. Zacks Research analyst R. Department now forecasts that the company will post earnings of $0.18 per share for the quarter, down from their prior estimate of $0.19. The consensus estimate for Dr. Reddy's Laboratories' current full-year earnings is $0.80 per share. Zacks Research also issued estimates for Dr. Reddy's Laboratories' Q4 2026 earnings at $0.16 EPS, FY2026 earnings at $0.71 EPS, Q1 2028 earnings at $0.17 EPS and FY2028 earnings at $0.62 EPS.

Several other research firms have also recently weighed in on RDY. HSBC raised shares of Dr. Reddy's Laboratories from a "hold" rating to a "buy" rating and upped their price objective for the stock from $14.44 to $16.90 in a research report on Thursday, June 5th. Wall Street Zen raised shares of Dr. Reddy's Laboratories from a "hold" rating to a "buy" rating in a research report on Thursday, May 8th. Finally, Hsbc Global Res raised shares of Dr. Reddy's Laboratories from a "hold" rating to a "strong-buy" rating in a research report on Thursday, June 5th. One research analyst has rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $16.95.

Dr. Reddy's Laboratories Trading Up 2.2%

RDY opened at $14.22 on Wednesday. Dr. Reddy's Laboratories has a twelve month low of $12.26 and a twelve month high of $16.85. The company has a 50-day simple moving average of $14.82 and a 200 day simple moving average of $14.00. The company has a quick ratio of 1.36, a current ratio of 1.89 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $11.87 billion, a price-to-earnings ratio of 21.47, a P/E/G ratio of 5.53 and a beta of 0.29.

Dr. Reddy's Laboratories (NYSE:RDY - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The company reported $0.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.18 by $0.02. The company had revenue of $988.82 million during the quarter, compared to analysts' expectations of $88.27 billion. Dr. Reddy's Laboratories had a net margin of 16.99% and a return on equity of 17.25%.

Institutional Investors Weigh In On Dr. Reddy's Laboratories

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Ascent Group LLC increased its stake in shares of Dr. Reddy's Laboratories by 7.4% in the second quarter. Ascent Group LLC now owns 10,885 shares of the company's stock valued at $164,000 after buying an additional 754 shares during the period. Allworth Financial LP increased its stake in shares of Dr. Reddy's Laboratories by 28.4% in the first quarter. Allworth Financial LP now owns 3,504 shares of the company's stock valued at $49,000 after buying an additional 776 shares during the period. Mercer Global Advisors Inc. ADV increased its stake in shares of Dr. Reddy's Laboratories by 3.1% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 27,419 shares of the company's stock valued at $433,000 after buying an additional 831 shares during the period. Bridgewater Advisors Inc. increased its stake in shares of Dr. Reddy's Laboratories by 2.8% in the first quarter. Bridgewater Advisors Inc. now owns 31,973 shares of the company's stock valued at $446,000 after buying an additional 880 shares during the period. Finally, Wealth Enhancement Advisory Services LLC increased its stake in shares of Dr. Reddy's Laboratories by 6.8% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 13,909 shares of the company's stock valued at $183,000 after buying an additional 883 shares during the period. 3.85% of the stock is owned by institutional investors.

About Dr. Reddy's Laboratories

Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company worldwide. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segments. The company's Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosages with therapeutic equivalence to branded formulations, as well as engages in the biologics business.

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