Dr Reddy’s stock took a sharp tumble this morning, plunging over 6% after its Q3 results left investors unimpressed. Opening at ₹1,247.95—already 3% lower than Thursday’s close of ₹1,289.35—the stock slid further to touch ₹1,203.60 during intraday trading. The pharma giant posted a 2% year-on-year rise in consolidated profit after tax, reaching ₹1,413.3 crore, but the market wasn’t buying it. US sales, a critical revenue driver, barely moved, inching up just 1% YoY to ₹33,834 crore and dropping 9% sequentially. Sales growth in India and emerging markets at 12–14% YoY provided some relief, but not enough to offset concerns. Analysts weren’t kind. Jefferies pointed to “core profitability weakness” and flat US growth, slashing earnings estimates for FY25-27 by 3-6% while sticking to their bearish stance with an ₹1,170 target. They flagged high competition in key products and elevated SG&A costs as culprits, warning that significant catalysts may only materialize post-FY27. JM Financial painted a more balanced picture, noting healthy EBITDA margins at 27.5% despite a slump in generic Revlimid sales and price pressures. The firm is optimistic about the company’s ability to bounce back post-FY26, fueled by Semaglutide and Abatacept opportunities. They reiterated a BUY rating with a higher target of ₹1,723, betting on near-term gains in Canada and other emerging markets.