Eris Lifesciences (ERIS) Q3 24/25 earnings summary

Executive summary

• Q3 consolidated revenue rose 50% year-over-year to ₹727.45 crore; nine-month revenue reached ₹2,188 crore, reflecting strong organic growth and contributions from recent acquisitions.

• EBITDA for Q3 grew 43% year-over-year to ₹250 crore; nine-month EBITDA was ₹765 crore, up 45%.

• Net profit for Q3 declined 14% year-over-year to ₹86.93 crore, with a net margin of 11.9%.

• Organic growth of 12% in Q3 and 9% YTD, driven by new product launches and price increases.

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

Financial highlights

• Gross margin for Q3 declined by 600 bps year-over-year to 75.7% due to product mix changes, offset by a 436 bps reduction in fixed expenses ratio.

• Book tax rate at 25.2% for the quarter and 24.3% YTD, up from 12.4% a year ago.

• Q3 base business revenue: ₹529 crore; nine-month base business revenue: ₹1,540 crore.

• Domestic branded formulations Q3 revenue: ₹635 crore (+35%); EBITDA: ₹230 crore (+31%).

• Cash EPS for nine months was ₹30, in line with the previous year.

Outlook and guidance

• EPS growth of over 50% expected in FY26, driven by margin improvement, debt reduction, and lower tax rates.

• ROCE projected to reach 18% in FY26 and exceed 20% in FY27, up from 11% in FY24.

• Net debt for FY25E expected at ₹2,100 crore, ₹500 crore lower than guidance; further reduction to ₹1,750 crore by H1 FY26.

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

• GLP-1 market entry expected in CY2026, with a projected first-year market size of ₹2,500–3,000 crore and one million patients.