Shares of Dr Reddy’s Laboratories Ltd. and Bajaj Finance Ltd. declined in Tuesday’s session, reflecting cautious investor sentiment even as both companies reported steady revenue growth in their latest financial data.
Dr Reddy’s Laboratories fell about 1.36% to ₹1,258.10, with selling pressure emerging despite consistent top-line expansion. The company reported Total Revenue of ₹2,41,188 million for March 2025, up from ₹2,03,461 million in the previous year. However, rising expenditure at ₹1,68,829 million and higher material and operational costs weighed on sentiment, indicating margin sensitivity in the near term.
Meanwhile, Bajaj Finance Ltd. declined around 1.46% to ₹968.75, as investors turned cautious despite strong financial growth. The company posted Total Revenue of ₹5,94,198 million for March 2025, compared with ₹4,69,459 million a year earlier, showing robust expansion. However, Total Expenditure rose sharply to ₹4,02,878 million, with higher finance costs and employee expenses signaling pressure on profitability and cost efficiency.
Key Market Drivers Behind the Decline:
Margin Concerns: Rising expenditure in both companies raised concerns over near-term profitability.
Cost Pressures: Higher operational, finance, and employee-related expenses impacted investor confidence.
Cautious Sentiment: Strong revenue growth was offset by uncertainty around earnings visibility and margin sustainability.
Short-Term Weakness: Both stocks traded in the lower range during the session, reflecting subdued market momentum.
Market analysts suggest that while the long-term fundamentals of both companies remain stable, near-term stock movement will depend on margin improvement, cost control, and clearer earnings visibility.
