Dr Reddy's Laboratories Ltd on Tuesday reported a sharp decline in its consolidated net profit for the March-ended quarter, falling 86 per cent year-on-year (YoY) to Rs 221 crore compared with Rs 1,587 crore in the same period last year.

The company's revenue from operations in Q4 FY26 declined 12 per cent YoY to Rs 7,516 crore versus Rs 8,506 crore in the corresponding quarter of the previous financial year.

EBITDA for the quarter came in at Rs 980 crore, marking a 60 per cent YoY decline.

Dr Reddy's said: "During the quarter ended March 31, 2026, the company has decided to discontinue certain of its R&D programs associated with Chimeric Antigen Receptor T-cell (CAR-T) therapy portfolio in light of the current development status and recent clinical trial outcomes. Consequent to this decision, the Company has recognised a net loss of Rs 135 crore in the Company's Global Generic segment." CAR-T therapy is a form of cancer treatment.

It further added that it recorded an additional impairment charge of Rs 91.4 crore after discontinuing a late-stage lung cancer study.

The company also noted additional headwinds during the year, stating that FY26 results include the impact of a VAT liability provision of Rs 69.5 crore and costs related to the New Labour Codes amounting to Rs 117 crore.

Dr Reddy's Co-Chairman & MD G V Prasad said: "Our performance this year reflects the impact of lower lenalidomide sales and several one-offs. The resilience of our branded businesses and currency tailwinds helped partially mitigate this impact. We remain focused on strengthening our base business and improving margins, through cost efficiencies and portfolio optimization. In parallel, we continue to build long-term franchises in biosimilars, consumer health and innovation to deliver sustainable value."

Dividend, record date

Alongside results, the company's Board has recommended a dividend of Rs 8 per equity share of face value Re 1 each (800 per cent of face value) for the year ended March 31, 2026, subject to shareholder approval.

The company has fixed July 10, 2026, as the record date for determining eligible shareholders for the dividend.