Eris Lifesciences (ERIS IN) – Q2FY26 Result Update – Muted revenue growth – BUY
Published on 13 Nov 2025
Eris Lifesciences’ (ERIS) Q2FY26 EBITDA was broadly in line with our estimate (Rs2.9bn; up 9% YoY). Though H1FY26 revenue growth (up 7% YoY) was muted, we see pick up in coming quarters 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 35% in FY25 as revenue scales up from recent acquisitions, which are currently operating at sub-optimal profitability. 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 ~2%. We maintain ‘BUY’ rating with TP of Rs1,900 (valuing at 18x EV/EBITDA on Sept 2027E).
