Eris Lifesciences (ERIS) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 consolidated revenue rose 28% year-on-year to INR 705 crores, with EBITDA at INR 252 crores (70% growth) and PAT at INR 102 crores (28% growth).

• FY25 consolidated revenue reached INR 2,894 crores, EBITDA INR 1,117 crores (51% growth), and PAT INR 375 crores.

• Margin expansion and fixed cost synergies continued, with significant reduction in fixed expenses as a percentage of revenue.

• Strategic focus on anti-diabetes, insulin, and GLP-1 pipeline, with major launches and insourcing initiatives underway.

• Board approved audited results for FY25 and declared an interim dividend of INR 100 crores and INR 7.35 per share.

Financial highlights

• Q4 gross margin declined by 269 bps year-on-year; FY25 gross margin at 75.3% versus 81.1% in FY24.

• Operating cash flow to EBITDA ratio was 111% in Q4 and 105% for FY25.

• FY25 capex was INR 263 crores, including Bhopal site acquisition.

• Standalone and consolidated revenue and profit increased, but standalone net profit declined due to higher tax and acquisition impacts.

• Standalone and consolidated operating margins for FY25 were 20.04% and 24.89%, respectively.

Outlook and guidance

• FY26 consolidated revenue guidance: INR 3,325–3,500 crores (15%–21% growth); EBITDA: INR 1,190–1,255 crores (36% margin).

• EPS expected to grow 50% in FY26; ROCE guidance at 17%–22%.

• DBF organic revenue growth guidance for FY26: 15%–21%, with EBITDA margin at 37%.

• Swiss Parenterals revenue guidance: INR 375–390 crores with 35% EBITDA margin.

• Net debt targeted to reduce to INR 1,800 crores (1.5x debt/EBITDA) by FY26 end.