Eris Lifesciences (ERIS) Q3 24/25 earnings summary

Executive summary

• Q3 consolidated operating revenue rose 50% year-over-year to INR 727 crores, with nine-month revenue at INR 2,188 crores, reflecting strong organic growth and contributions from recent acquisitions.

• EBITDA for Q3 was INR 250 crores, up 43% year-over-year; nine-month EBITDA reached INR 765 crores, up 45%.

• Net profit for Q3 declined 14% year-over-year to INR 87 crores, with a net margin of 11.9%.

• Organic growth in the Domestic Branded Formulations business rebounded to 12% in Q3.

• Acquisitions of Swiss Parenterals, Biocon, and other businesses are driving growth and expected to support EPS inflection from FY26.

Financial highlights

• Gross margin for Q3 declined by about 600 bps year-over-year due to product mix changes, mainly from Biocon and Swiss Parenterals.

• Fixed expenses as a percentage of revenue improved by 436 bps year-over-year, offsetting some gross margin pressure.

• Book tax rate for Q3 was 25.2%, with a nine-month rate of 24.3%.

• OCF-to-EBITDA ratio was 103% YTD.

• Basic consolidated EPS for the quarter was ₹6.15, compared to ₹7.55 year-over-year.

Outlook and guidance

• FY25 consolidated revenue guidance reaffirmed at around INR 3,000 crores.

• EPS growth is expected to exceed 50% in FY26, driven by margin improvement, debt reduction, and tighter capital management.

• ROCE projected to rise from 11% in FY24 to 18% in FY26 and over 20% by FY27.

• GLP-1 market entry targeted for CY2026, with significant value creation expected.

• Bhopal insulin facility to be operational in FY26; OSD exports expected to start later in FY26.