Eris Lifesciences (ERIS) Q1 25/26 earnings summary

Executive summary

• Domestic Branded Formulations (DBF) business grew 11% year-on-year, outperforming the Indian Pharmaceutical Market by 330 bps; excluding discontinued FDCs and insulin shortages, growth was 13–14%.

• Consolidated revenue reached INR 773 crore, up 7.4% year-on-year; consolidated EBITDA margin expanded to 36% from 35% last year.

• Profit after tax rose 41% year-on-year to INR 125 crore; EPS for the quarter was INR 9.

• Biocon segment margin improved to 30% from 19% at acquisition.

• Results reflect recent acquisitions, including Eris Bionxt Private Limited and Swiss Parenterals Limited, impacting comparability with prior periods.

Financial highlights

• DBF segment revenue was INR 702 crore, up from INR 632 crore year-on-year; EBITDA margin expanded to 37.2%.

• Consolidated EBITDA rose 11% to INR 277 crore, with margin expanding to 35.8%.

• Export revenue was INR 68 crore, down from INR 74 crore year-on-year; EBITDA for exports was INR 22 crore.

• Interest expense reduced by 20% year-on-year.

• Gross margin increased to 76.1% from 74.9% year-on-year.

Outlook and guidance

• Net debt guidance reaffirmed at INR 1,800 crore by year-end, targeting net debt/EBITDA of 1.5x.

• Consolidated revenue growth guidance of 15–21% maintained, with caveat on ramp-down of trade generics.

• CDMO segment expected to contribute INR 100 crore per annum from confirmed contracts starting FY 2027.

• International business targeting INR 1,000 crore revenue by FY 2029, combining ROW, CDMO, and OSD exports.

• GLP-1 and insulin cartridge manufacturing at Bhopal to be commissioned in Q4 FY26.