Eris Lifesciences (ERIS IN) – Q3FY26 Result Update – Growth to improve – BUY
Published on 16 Feb 2026
Eris Lifesciences’ (ERIS) Q3FY26 EBITDA was 5% below our estimate (Rs2.8bn; up 12.5% YoY). Though 9MFY26 revenue growth (up 8% YoY) was muted, we see pick up from FY27 as export pick up and likely additional market share gain from human insulin market. Eris has opted for inorganic route to diversify and scale up existing portfolio. This has been implemented without diluting margins. We expect margins to scale up from the current level of 36% in FY26 as commercial manufacturing start from Bhopal facility along with scale up in export business. The company has multiple growth levers such as broad-based offerings in the derma segment, tapping GLP-1 market, demand supply mismatch in insulin segment, creating large injectable franchise across India and RoW market and benefits of operating leverage. Our FY27 and FY28E EBITDA stands cut by ~3%. We maintain ‘BUY’ rating with revised TP of Rs1,800 (valuing at 17x EV/EBITDA on FY28E).
