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RDY Neutral Sentiment Score: 45/100

Dr. Reddy's Laboratories Ltd . 8-2-337, Road No. 3, Banjara Hills Hyderabad - 500 034, Telangana, India CIN: L85195TG1984PLC004507 Tel: + 91 40 4900 2900 Fax: + 91 40 4900 2999 Email: mail@drreddys.com Web: www.drreddys.

Key Takeaway: Dr. Reddy's Laboratories Ltd. has received a penalty order from the Joint Commissioner of Customs for alleged irregularities in availing export incentives under the Customs Act. The penalty issued is Rs.3,00,00,000. However, the company anticipates no material impact on its financial or operational aspects and is considering an appeal against the penalty. This order was communicated to the company on September 3, 2025.

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CONCERNS & RISKS

  • The company received a penalty order from the GST Authority.
  • The penalty amounts to Rs.3,00,00,000.
  • The authority claims the company availed export incentives irregularly.

Full Press Release Details

National Stock Exchange of India Ltd. (Scrip Code: DRREDDY)
BSE Limited (Scrip Code: 500124)
New York Stock Exchange Inc. (Stock Code: RDY)
NSE IFSC Ltd. (Stock Code: DRREDDY)
This is to inform that the Company has received an order from GST Authority towards levying penalty. The details as required under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are as hereunder:
S.No. Name of the authority : Joint Commissioner of Customs, Ludhiana, Punjab.
1 Nature and details of the action(s) taken, or order(s) passed : The Company has received order seeking penalty under Customs Act, 1962.
2 Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority : September 0 3 , 2025.
3 Details of the violation(s)/ contravention(s) committed or alleged to be committed : The authority has passed the order on the ground that the Company has availed Export incentives irregularly.
4 Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible : The above order levies a penalty of Rs.3,00,00,000/-. Based on our evaluation, there is no material impact on the financials, operations, or other activities of the Company.
The Company will evaluate filing necessary appeal with the appellate authority in this regard.
This is for your information and records.
For Dr. Reddy's Laboratories Limited
Company Secretary, Compliance Officer & Head-CSR

Frequently Asked Questions

What penalty did Dr. Reddy's Laboratories receive?

Dr. Reddy's Laboratories received a penalty of Rs. 3,00,00,000.

Who issued the order to Dr. Reddy's Laboratories?

The order was issued by the Joint Commissioner of Customs, Ludhiana, Punjab.

What was the reason for the penalty?

The penalty was due to irregular availing of export incentives.

Will the penalty affect Dr. Reddy's financials?

There is no material impact expected on the Company's financials or operations.

What action will Dr. Reddy's Laboratories take regarding the penalty?

The Company is considering filing an appeal with the appellate authority.

Last updated: Sep 4, 2025