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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.c

Tuesday, April 14, 2026 1 min read
Key Takeaway: Dr. Reddy's Laboratories LLC, a subsidiary of Dr. Reddy's Laboratories Limited, received a final penalty decision from the Interdistrict Inspectorate of the Federal Tax Service of Russia on April 13, 2026. The penalty, amounting to RUB 9.27 million, was related to the levy of Value Added Tax due to the re-classification of marketing services. Despite this penalty, the company has assessed that it will not have a material impact on their financials or operations.

Market Sentiment Analysis

POSITIVE FACTORS

  • The penalty amount has been reduced significantly.
  • Dr. Reddy's Laboratories evaluated that the penalty will not have a material impact.
  • The disclosure indicates transparency regarding regulatory matters.

CONCERNS & RISKS

  • Dr. Reddy's Laboratories LLC received a final penalty decision from the Russian Tax Authority.
  • The company faced a violation related to the re-classification of marketing services, which could indicate compliance vulnerabilities.

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)
Ref: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
In furtherance to our disclosure dated January 24, 2026, this is to inform that Dr. Reddy's Laboratories LLC, Russia, a step-down wholly-owned subsidiary of Dr. Reddy's Laboratories Limited has received final penalty decision on April 13, 2026, from the Interdistrict Inspectorate of the Federal Tax Service of Russia'. 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 : The Interdistrict Inspectorate of the Federal Tax Service of Russia. (Tax Authority)
1 Nature and details of the action(s) taken, or order(s) passed : Dr. Reddy's Laboratories LLC, Russia, a step-down wholly-owned subsidiary of Dr. Reddy's Laboratories Limited received a final penalty decision from the Tax Authority.
2 Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority : April 13, 2026
3 Details of the violation(s)/ contravention(s) committed or alleged to be committed : Levy of Value Added Tax (VAT) upon re-classification of marketing services as a taxable services by the Tax Authority.
4 Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible : The Tax Authority has quantified a penalty of RUB 9.27 million (INR 11.40 million) as against the original quantified amount of RUB 20.09 million (INR 24.50 million) Based on our evaluation, the above stated penalty amount has no material impact on the financials, operations, or other activities of the Company
This is for your information and records.
For Dr. Reddy's Laboratories Limited
Company Secretary, Compliance Officer & Head-CSR

Frequently Asked Questions

What recent action was taken against Dr. Reddy's Laboratories LLC in Russia?

Dr. Reddy's Laboratories LLC received a final penalty decision from the Russian Tax Authority.

What was the date of the penalty decision for Dr. Reddy's Laboratories?

The penalty decision was received on April 13, 2026.

What was the penalty amount imposed on Dr. Reddy's Laboratories?

The final penalty is RUB 9.27 million (INR 11.40 million).

Did the penalty decision significantly impact Dr. Reddy's financials?

The penalty has no material impact on the company's financials or operations.

What specific violation led to the penalty against Dr. Reddy's?

The violation was related to the levy of Value Added Tax on marketing services.

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Last updated: Apr 14, 2026