Dr Reddy’s Laboratories is currently the top loser on the BSE, falling over 5% to Rs. 1,272.90 after the company flagged manufacturing issues in certain batches of its Semaglutide product. The stock slipped from its previous close of Rs. 1,348.70 and touched an intraday low of Rs. 1,261.20 as investors reacted to the likely delay in commercial supplies and fresh regulatory-quality concerns.

Trigger

• Dr Reddy’s shares fell over 5% in intraday trade.
• The stock was trading at Rs. 1,272.90, down Rs. 75.80 from its previous close.
• The stock touched an intraday low of Rs. 1,261.20.
• The fall was triggered by manufacturing snags in certain batches of Semaglutide.
• The company said an issue with the active pharmaceutical ingredient caused some batches to be “out of specification”.
• Commercial supplies of the product are likely to be delayed while the investigation is underway.
• Sentiment was already cautious due to recent legal and compliance issues, including the Delhi High Court directive linked to the company’s Olympiq product.
• The stock is also facing pressure from weak earnings momentum, after the company reported a sharp YoY decline in Q4 FY26 net profit.
• Generic pricing pressure and competition in key products, including Revlimid, remain broader overhangs.

The market is reacting sharply because Semaglutide is not an ordinary product for Dr Reddy’s. It is linked to the high-growth GLP-1 opportunity in diabetes and obesity treatment, where investors were expecting strong commercial upside. Any delay in supply therefore hurts the company’s future growth narrative, not just near-term sales.

Until there is clarity on when Semaglutide supplies resume and whether the issue is contained, the stock may remain under pressure despite Dr Reddy’s strong long-term presence in generics and complex products.