Eris Lifesciences (ERIS IN) – Q4FY26 Result Update – Weak quarter – BUY
Published on 21 May 2026
Eris Lifesciences’ (ERIS) Q4FY26 EBITDA was below our estimate (INR 2.7bn; up 8.4% YoY). Though FY26 revenue growth (up 8% YoY) was muted; we see improvement from FY27E with Sema launch in India, export recovery and supply normalization in insulin franchise. Recent observations for Swiss parental’s plant will have an impact on EU CDMO business which will get pushed to FY28E. Eris has opted for inorganic route to diversify and scale up existing portfolio. This has been implemented without diluting margins. We expect margins to remain healthy at current level of 36% 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 INR 1,750 (valuing at 17x EV/EBITDA on FY28E).
