Eris Lifesciences (ERIS) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was ₹892.37 crore, up 12.6% YoY; net profit was ₹187.14 crore, up 39.2%, or ₹158 crore and up 17.5% on an adjusted basis.

• H1 revenue was ₹1,765.62 crore, up 12.8%; domestic branded formulations grew 14.2%.

• H2 EBITDA margin outlook improved to 36%; Bhopal ramp-up and gross-margin recovery are key supports, while Swiss recovery depends on GMP progress.

Financial highlights

• H1 EBITDA was ₹606 crore, up 7.2%, and net profit was ₹330.46 crore, up 27.3%; Q2 consolidated EBITDA grew 7.3% YoY.

• Q2 consolidated gross margin was 74.7% vs 74.5% YoY; EBITDA margin was 34.7% vs 36.4%.

• Q2 basic EPS was ₹13.26; H1 basic EPS was ₹23.54, not annualised.

• H1 operating cash flow was ₹637.13 crore, equal to 105% of EBITDA; H1 capex was ₹220.40 crore.

• Higher other expenses, up 27%, reflected seasonal launch spending, product development, filings and regulatory costs.

Outlook and guidance

• Domestic growth guidance remains 300 bps above the market; management sees IPM growth of 11%-12% next year.

• Swiss Parenterals FY27 revenue is expected within ±5% of last year, with EBITDA margin around 25%.

• FY27 effective tax rate is expected at 20%-21%, with a similar level next year.

• Management expects 1-3 insulin analog launches next year; FY27 launches are largely on track, with a cardiac product due imminently.

• FY27 capex of ~₹100 crore remained for H2; the capex cycle is expected to wind down by FY27-end.