India Q1 Earnings: Dr Reddy's Plunges 69%, Eternal Triples Profit
Indian corporate earnings for the first quarter showed sharp divergence, with food delivery firm Eternal and lender IndusInd Bank posting strong profit growth while drugmaker Dr Reddy's faced severe US pricing pressures.
A handful of major Indian companies reported first-quarter results on Wednesday, revealing a fragmented earnings picture that underscores varying sectoral pressures. Food delivery company Eternal and private lender IndusInd Bank posted significant profit jumps, while renewable energy firm Adani Green logged steady growth. Conversely, pharmaceutical company Dr Reddy's suffered a steep earnings decline that will likely weigh on broader sector sentiment.
The most notable market mover was Dr Reddy's, where a smaller-than-expected profit highlights ongoing difficulties for Indian generic drugmakers in the United States. Consolidated net profit fell 69% to Rs 444 crore ($45.98 million) for the quarter ending June 30. This sharp contraction was driven by muted sales of a key generic oncology drug and intense pricing pressure, serving as a reminder of the margin volatility inherent in the US generic drug space.
IndusInd Bank reported a 72% year-on-year surge in consolidated net profit to Rs 1,037 crore, up from Rs 604 crore in the prior year period. However, the lender's net interest income remained essentially flat at Rs 4,685 crore, compared to Rs 4,640 crore in the same quarter last year. This divergence suggests that the bottom-line improvement was driven by factors outside of core lending growth, such as lower provisions or improved asset quality.
Eternal continued to demonstrate strong operational leverage in the competitive food delivery sector. The company posted a consolidated net profit of Rs 92 crore for the first quarter of financial year 2027, a 268% increase from the Rs 25 crore posted in the same period last year. This sustained profitability indicates that the firm is successfully managing its delivery logistics and scaling its unit economics.
Adani Green provided a steady performance within the renewable infrastructure space. The power developer saw its consolidated net profit rise 19% year-on-year to Rs 845 crore, up from Rs 713 crore. Revenue from operations climbed 16% to Rs 4,663 crore during the quarter, reflecting continued capacity additions that reinforce the clean energy investment thesis.
