Is Dr. Reddy's Laboratories Limited (RDY) halal? Halal. Based on AAOIFI screening, Dr. Reddy's Laboratories Limited passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 76/100 (Grade: B+).

Dr. Reddy's Laboratories Limited

RDY: Is Dr. Reddy's Laboratories Limited Halal?

Halal

Dr. Reddy's Laboratories Limited

NYSEHealthcareIN

$13.15

-1.13%

Purify ~2.3% of income

About Dr. Reddy's Laboratories Limited

Dr. Reddy's Laboratories Limited, alongside its associated companies, functions as a holistic pharmaceutical entity with a global footprint. Its business operations are divided into several key divisions. The Global Generics segment is responsible for the manufacturing and sale of both prescription and over-the-counter finished pharmaceutical products. These offerings are available either under a proprietary brand or as generic formulations that are therapeutically identical to their branded equivalents. This segment also includes the company's biologics ventures. The Pharmaceutical Services and Active Ingredients (PSAI) division focuses on producing and distributing active pharmaceutical ingredients (APIs) and chemical intermediates, which serve as crucial building blocks for final drug products. Additionally, PSAI provides contract research services and produces custom-specified APIs and steroids for clients. The Proprietary Products segment is dedicated to the research and advancement of unique pharmaceutical formulations. The Others segment is actively involved in developing treatments, primarily for oncology (cancer) and inflammatory conditions. Dr. Reddy's addresses a broad spectrum of therapeutic areas, including gastrointestinal issues, cardiovascular health, diabetes, dermatological concerns, cancer, respiratory diseases, oral health, urological disorders, and nephrological conditions. The company has also established a partnership with Curis, Inc., centered on the discovery, development, and commercialization of small molecule antagonists designed for immuno-oncology and precision oncology targets. Founded in 1984, Dr. Reddy's Laboratories Limited maintains its principal office in Hyderabad, India.

Sector: Healthcare 路 Industry: Drug Manufacturers - Specialty & Generic

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 18, 2026
B+

Good

Good compliance with minor concerns

76Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap7.2% / 30.0%

Compliance History

  1. Halalnow

    since Jun 2026

  2. Not Halal

    until the change above

Tracked since Jun 2026. Updates automatically on each re-screen.

Screened: Jun 18, 2026Fiscal: FY 2026Source: FMP-ADR

Purify Your RDY Dividends

2.3% non-compliant income

RDY has 2.3% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

10.9B

Price

$13.15

Sector

Healthcare

Industry

Drug Manufacturers - Specialty & Generic

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Frequently Asked Questions

Is Dr. Reddy's Laboratories Limited (RDY) halal to invest in?
Based on AAOIFI Standard 21 screening, Dr. Reddy's Laboratories Limited (RDY) is rated Halal with a compliance grade of B+ (Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).
Why did Dr. Reddy's Laboratories Limited get a B+ compliance rating?
Dr. Reddy's Laboratories Limited (RDY) received a grade of B+ (Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 7.2% (limit 30%); interest-bearing deposits of 8.1% (limit 30%); prohibited income of 2.34% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Dr. Reddy's Laboratories Limited's Shariah verdict?
Dr. Reddy's Laboratories Limited's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Dr. Reddy's Laboratories Limited re-screened for Shariah compliance?
Dr. Reddy's Laboratories Limited (RDY) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 18, 2026.

Screened according to AAOIFI Standard No. 21 路 For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.