Dr Reddy's Laboratories saw its stock plummet 5.77% in Thursday's intraday trading session, underperforming the broader Asian markets. The pharmaceutical company's shares were among the biggest decliners in the South Asian region, as Asian equities traded as American depositary receipts (ADRs) edged lower overall.

The significant drop in Dr Reddy's stock price appears to be driven by the company's disappointing third-quarter earnings results for the fiscal year 2025. While Dr Reddy's reported a year-over-year increase in sales, reaching $977 million compared to $843 million in the previous year, the earnings per share (EPS) growth was relatively muted, rising to $0.20 from $0.19.

Investors may have reacted negatively to the Q3 earnings, viewing them as falling short of expectations for a more substantial improvement in profitability. The lackluster EPS growth could indicate ongoing challenges or headwinds faced by the pharmaceutical firm, prompting concerns about its future performance and potential impact on its stock valuation.