Eris Lifesciences (ERIS IN) – Q1FY27 Result Update – Weak margins – BUY
Published on 30 Jul 2026
Eris Lifesciences’ (ERIS) Q1FY27 EBITDA growth was muted at INR 2.9bn; up 7% YoY. We see improvement from H2FY27E/FY28E supported by the continued ramp-up of Semaglutide, Bhopal commercialization and growth in the insulin franchise. Swiss Parenterals remediation work is likely to keep growth subdued in the near term, with management guiding for neutral to low-single-digit growth and ~200bps margin pressure. We expect margins to recover in 2HFY27E as Bhopal ramps up, with gross margins likely to improve from Q3FY27. The company has multiple growth levers including insulin analogues, Semaglutide, new product launches and a structurally higher-growth biologics portfolio. Our FY27 and FY28E EPS stands cut by ~6%/3%. We maintain ‘BUY’ rating with revised TP of INR 1,700 (valuing at 17x EV/EBITDA on FY28E).
