Dr. Reddy's Laboratories stock gets a Citi upgrade to Buy

Published on 10/01/2026 at 06:46 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Citi lifted Dr. Reddy's target to INR 1,450 from INR 1,040 on September 28, 2026. Q1 FY27 profit fell 68.7 percent year over year.

Dr Reddy, INE089A01023, Illustration mit AI erstellt.

Dr. Reddy's Laboratories stock is being reshaped by a sharp Citi upgrade, with the brokerage moving to Buy and lifting its target to INR 1,450 from INR 1,040 on September 28, 2026. The call follows Q1 FY27 revenue of INR 80.998 billion, down 5.5 percent year over year, and net profit of INR 4.435 billion, down 68.7 percent.

Citi sees a recovery path

According to Markets Insider on September 28, 2026, Citi analyst Vivek Agrawal upgraded the company from Sell to Buy and raised the target from INR 1,040 to INR 1,450. Citi projects potential incremental revenue of USD 350 million to USD 400 million across FY27 to FY29 from a possible abatacept launch in the United States and resumed semaglutide supplies in Canada.

The target change contrasts with the latest reported earnings pressure. ET Now reported that Q1 FY27 gross profit margin was 46.5 percent, while the company attributed the decline to lower lenalidomide sales, a semaglutide API provision and higher solvent costs. The combination gives the upgrade a recovery profile rather than an earnings-growth profile based on the latest quarter.

October results set the next test

StockTitan reports that Dr. Reddy's board will meet on October 23, 2026, to consider unaudited results for the quarter ended September 30, 2026. The company's trading window is scheduled to remain closed from September 24, 2026 through October 25, 2026.

The upcoming report will test whether the business can offset the Q1 decline in North America generics with growth in India, emerging markets and Europe. Citi's thesis also depends on regulatory and commercial milestones, so the next results carry more weight than the target revision alone.

NSE quote remains below target

DRREDDY last traded at INR 1,226.90 on the NSE on September 30, 2026, down 2.00 percent, according to the dated exchange quote context. The 52-week range was INR 1,101.00 to INR 1,414.90, placing the last traded price INR 188.10 below the yearly high and INR 125.90 above the yearly low.