Synopsis: Dr. Reddy’s Laboratories Limited awaits Semaglutide approval in Canada, a key growth trigger, while Shaily Engineering Plastics Limited remains linked as a supplier of injection pen components supporting the drug’s delivery.
This Large-Cap Pharma Stock, engaged in developing, manufacturing, and marketing generic medicines, active pharmaceutical ingredients, biosimilars, and specialty drugs across global healthcare markets worldwide, hit a 10 percent upper-circuit in today’s intraday trade. In this article, we will explore the reasons for the stock’s surge.
With a market capitalization of Rs. 1,08,671.43 crores, the share of Dr Reddy’s Laboratories Limited has reached an intraday high of Rs. 1,338.70 per equity share, rising 10 percent from its previous day’s close price of Rs. 1,217.
Reason Behind the Surge
Dr Reddy’s Laboratories Limited is engaged in developing, manufacturing, and marketing generic medicines, active pharmaceutical ingredients, and specialty pharmaceuticals across global healthcare markets. During intraday trading, this pharmaceutical stock saw an 10 percent price increae with a huge volume of 7.1 million shares traded. Here are the reasons for the share rise.
According to CNBC-TV18, Dr. Reddy’s Laboratories Limited is still waiting for approval for its Semaglutide drug in Canada. This approval is seen as an important near-term trigger for the company. After this news, the company’s shares rose sharply by around 8 percent, marking their biggest single-day gain since May 2022.
In late October 2025, Dr. Reddy’s Laboratories Limited received a Notice of Non-Compliance from the Canadian Pharmaceutical Drugs Directorate regarding its Semaglutide Injection submission, requesting additional information and clarifications on certain aspects. The company submitted a comprehensive response by mid-November 2025, within the stipulated timeline, and is currently awaiting further communication from the Canadian regulatory authority.
The company’s management had earlier said they expect a decision on this approval by May 2026. They are also preparing to launch the product soon after approval, likely by the end of FY26 or early FY27. Semaglutide is a widely used drug, especially for diabetes and weight management, making it a key opportunity.
Experts say the Canadian market for Semaglutide is large, valued at around $1.5 billion, which makes it an attractive opportunity for growth. Analysts expect that after approval, Dr. Reddy’s may face little or no competition for the first six to nine months, giving it a strong early advantage.
During this period, the company could generate revenue between $80 million and $100 million in FY27. However, competition is expected to increase later, as other players like Sandoz and Apotex are also preparing to enter the market with similar products.
Why does Shaily Engineering rise 8% on Dr. Reddy’s Semaglutide news?
Shaily Engineering Plastics Limited is engaged in manufacturing high-precision injection-moulded plastic components, medical devices like injector pens, and assemblies for healthcare, consumer, and industrial applications globally. After Dr. Reddy’s Semaglutide news, Shaily Engineering Plastics Limited has reached an intraday high of Rs. 2,097.80 per equity share, rising nearly 8.5 percent from its previous day’s close price.
Shaily Engineering Plastics Limited is closely linked to Dr. Reddy’s Laboratories Limited through its role as a supplier of plastic components for pre-filled injection pens used in Semaglutide delivery. As highlighted in its FY25 annual report, Dr. Reddy’s remains one of Shaily’s key pharma clients. The rising demand for Semaglutide has significantly boosted Shaily’s healthcare business, with its revenue share increasing to 41.64 percent in Q3 FY26.
To support growing requirements, especially from partners like Dr. Reddy’s, Shaily has expanded its production capacity by adding 19 new injection moulding machines and a dedicated assembly line, increasing output by 25 million pens annually. The company is also setting up another 25-million-pen line for a different Semaglutide variant, with total FY26 capital expenditure of Rs. 125 crore, expected to be completed by early next year.
Revenue Segment (Q3 FY26)
Dr Reddy’s Laboratories Limited reported Q3 FY26 revenue of about Rs. 8,727 crore, mainly driven by its Global Generics segment, which contributed 91 percent (Rs. 7,911 crore) with steady growth. The PSAI segment added 9 percent (Rs. 802 crore), while other segments were minimal.
Regionally, North America was the largest contributor at Rs. 2,964 crore, though it declined slightly. Europe (Rs. 1,448 crore), India (Rs. 1,603 crore), and Emerging Markets (Rs. 1,896 crore) showed strong growth. Overall, the company saw broad-based performance across regions, supported by favorable forex, but moderated by some product-specific challenges in the US market.
Company Overview
Dr Reddy’s Laboratories Limited is a multinational pharmaceutical company headquartered in Hyderabad, India. Founded in 1984 by Dr. Kallam Anji Reddy, it has grown into one of India’s largest drug manufacturers and a leading global supplier of generic medicines, biosimilars, and active pharmaceutical ingredients (APIs). The company operates in over 70 countries and serves hundreds of millions of patients worldwide.
Recent Quarter Results
Coming into financial highlights, Dr. Reddy’s Laboratories Limited’s revenue has increased from Rs. 8,381 crore in Q3 FY25 to Rs. 8,753 crore in Q3 FY26, which has grown by 4.44 percent. The net profit has decreased by 15.24 percent from Rs. 1,404 crore in Q3 FY25 to Rs. 1,190 crore in Q3 FY26. Dr. Reddy’s Laboratories Limited’s revenue and net profit have grown at a CAGR of 13.26 percent and 23.09 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 22.7 percent and 18.0 percent, respectively. Dr. Reddy’s Laboratories Limited has an earnings per share (EPS) of Rs. 66.7, and its debt-to-equity ratio is 0.16x.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
