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Eris Lifesciences Ltd
(ERIS)
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Rating:59Neutral
Price Target:
₹1,147.00
▼(-18.01% Downside)
Action:Reiterated
Date:10/26/26
The score is driven by solid underlying profitability and a constructive earnings-call outlook, but it is capped by weak cash-flow conversion/volatility and notably bearish technical momentum. Valuation is neutral-to-moderate, offering limited support via a low dividend yield.
Positive Factors
Domestic branded growth
Strong domestic branded-formulation growth indicates sustained prescription traction across Eris’s core Indian business. Performance above the broader market supports recurring revenue expansion, reinforces the company’s chronic-therapy positioning, and can improve operating leverage as the portfolio scales.
Negative Factors
Weak cash conversion
The sharp decline in operating cash flow and free cash flow shows that reported earnings are not consistently converting into liquidity. Persistently weak conversion could constrain debt reduction, investment flexibility, and the company’s ability to absorb execution or regulatory setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Domestic branded growth
Strong domestic branded-formulation growth indicates sustained prescription traction across Eris’s core Indian business. Performance above the broader market supports recurring revenue expansion, reinforces the company’s chronic-therapy positioning, and can improve operating leverage as the portfolio scales.
Read all positive factors
Eris Lifesciences Ltd (ERIS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹163.18B
Dividend Yield0.61%
Average Volume (3M)27.63K
Price to Earnings (P/E)22.8
Beta (1Y)0.78
Revenue Growth11.06%
EPS Growth68.59%
CountryIN
Employees2,758
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)45.40
Shares Outstanding138,738,570
10 Day Avg. Volume57,694
30 Day Avg. Volume27,627
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)4.54
Price to Sales (P/S)5.67
P/FCF Ratio354.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)45.65
Revenue Forecast (FY)₹35.32B
Eris Lifesciences Ltd Business Overview & Revenue Model
Company Description
Eris Lifesciences Limited is an Indian pharmaceutical company engaged in the manufacturing, marketing, and distribution of medicinal products throughout the country. The company provides a comprehensive range of branded formulations, catering to a...
How the Company Makes Money
Eris Lifesciences primarily makes money by selling branded pharmaceutical formulations in India. Its main revenue stream is domestic prescription-led sales of its portfolio of branded medicines to the pharmaceutical trade (e.g., distributors/stock...
Eris Lifesciences Ltd Earnings Call Summary
Earnings Call Date:Oct 26, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 22, 2027
Earnings Call Sentiment Positive
The call was broadly positive, supported by double-digit revenue growth, strong profit after tax growth, improved margins, domestic and GLP-1 momentum, progress in insulin and biologics, and expected benefits from Bhopal, Zorvia, Levim, and Swiss capacity. The main challenges were higher other expenses, ongoing Swiss regulatory remediation and near-term disruption, limited initial Bhopal volume migration, additional depreciation, elevated remaining CapEx, and the exceptional receivable write-off. Highlights significantly outweighed the stated lowlights.Positive Updates
Consolidated Revenue Growth
Consolidated year-on-year growth was 12.6% in Q2 FY 2027 and 12.8% in H1 FY 2027.
Negative Updates
EBITDA Growth Lagged Revenue Growth
Although EBITDA grew 7.3% year-on-year in Q2 and 7.2% in H1, management said EBITDA growth was lower because other expenses were higher in the quarter.
Read all updates
Q2-2027 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated year-on-year growth was 12.6% in Q2 FY 2027 and 12.8% in H1 FY 2027.
Read all positive updates
Company Guidance
Management guided that H2 EBITDA margins will be around 35%, which have moved to 36%, with improvement in both gross margin and EBITDA forward; the Bhopal facility should provide 100 basis points of gross margin benefit in the next two quarters, with a 1.5%-2% reduction in gross margins when the entire business shifts by somewhere in the Q2 next year, while Zorvia and Bhopal each represent 100 basis points of gross margin levers in the H2 and Zorvia should start reflecting from next quarter. Swiss Parenterals’ top line is expected to be 5% plus minus of last year numbers, with EBITDA in the range of 25%, and no major turnaround is expected till Q1 next year. The GLP market is currently INR 40 crores-INR 45 crores a month and is expected to reach around INR 80 crores-INR 90 crores a month next year, while the company’s quarterly GLP revenue is expected to be INR 16 crores to INR 18 crores. Domestic growth guidance is 300 basis points ahead of the market, IPM growth is expected to be in the range of 11%-12% next year, and the effective tax rate should be in the range of 20%-21% for the current year and next year. FY 2027 CapEx was guided at around INR 100 crores left in the second half, after which it should move down significantly; net debt paydown is targeted at INR 150 crores to INR 200 crores this year and next year should be INR 400 crores, INR 500 crores more. Insulin ramp-up should start from the first quarter of next year, two mAbs are expected by second half of next year, and one, two, three analogs are expected to be launched in the next year.Eris Lifesciences Ltd Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
45
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.29B | 28.79B | 19.91B | 16.62B | 13.26B |
| Gross Profit | 14.98B | 21.49B | 16.04B | 13.05B | 10.65B |
| EBITDA | 11.11B | 10.36B | 6.99B | 5.48B | 5.11B |
| Net Income | 6.20B | 3.52B | 3.92B | 3.82B | 4.06B |
Balance Sheet | |||||
| Total Assets | 73.66B | 70.33B | 70.49B | 36.67B | 22.72B |
| Cash, Cash Equivalents and Short-Term Investments | 673.00M | 2.28B | 13.39B | 892.43M | 2.12B |
| Total Debt | 23.59B | 24.78B | 27.81B | 8.77B | 844.07M |
| Total Liabilities | 34.70B | 37.61B | 38.27B | 14.47B | 3.64B |
| Stockholders Equity | 39.03B | 28.54B | 25.86B | 21.96B | 19.08B |
Cash Flow | |||||
| Free Cash Flow | 500.70M | 9.10B | 3.57B | -5.50B | 2.57B |
| Operating Cash Flow | 3.47B | 10.65B | 4.86B | 2.92B | 3.78B |
| Investing Cash Flow | -3.72B | -799.70M | -18.55B | -9.82B | -3.20B |
| Financing Cash Flow | -1.20B | -8.81B | 13.80B | 6.88B | -446.99M |
Eris Lifesciences Ltd Technical Analysis
Neutral
1398.90
Price Trends
1249.94
Negative
1331.23
Negative
1352.17
Negative
Market Momentum
-31.92
Negative
47.72
Neutral
66.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ERIS, the sentiment is Neutral. The current price of 1398.9 is above the 20-day moving average (MA) of 1157.58, above the 50-day MA of 1249.94, and above the 200-day MA of 1352.17, indicating a neutral trend. The MACD of -31.92 indicates Negative momentum. The RSI at 47.72 is Neutral, neither overbought nor oversold. The STOCH value of 66.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ERIS.
Eris Lifesciences Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹1.03T | 45.83 | ― | 0.04% | 13.27% | 27.32% | |
70 Outperform | ₹153.96B | 22.19 | ― | 1.53% | 14.12% | 14.98% | |
67 Neutral | ₹1.73T | 74.66 | ― | 0.33% | 42.06% | -3.48% | |
66 Neutral | ₹606.69B | 28.13 | ― | 1.05% | 13.36% | -5.66% | |
66 Neutral | ₹649.22B | 36.10 | ― | 0.22% | 32.94% | 138.54% | |
59 Neutral | ₹163.18B | 22.84 | ― | 0.61% | 11.06% | 68.59% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:ERIS
Eris Lifesciences Ltd
1,176.20
-434.36
-26.97%
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2,300.35
418.62
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2,483.60
37.85
1.55%
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27.77%
Eris Lifesciences Ltd Corporate Events
Eris Lifesciences Files Scrutinizer’s Report and Voting Results for 20th AGM
Sep 25, 2026
Eris Lifesciences Ltd has submitted to the BSE and NSE the consolidated scrutinizer’s report and voting results for its 20th Annual General Meeting held on September 25, 2026. The AGM was conducted via video conferencing, with shareholders e...
Eris Lifesciences Adds Veteran Investor Akhil Awasthi as Independent Director
Sep 21, 2026
Eris Lifesciences Ltd has appointed veteran investment professional Akhil Awasthi as an Additional Non-Executive Independent Director for a five-year term starting September 26, 2026, following approval by the board based on the nomination committ...
Eris Lifesciences Schedules Investor Meet With Bank of India Mutual Fund
Sep 7, 2026
Eris Lifesciences Limited has scheduled an in-person meeting with Bank of India Mutual Fund on September 10, 2026, as part of its ongoing engagement with institutional investors. The interaction, to be attended by management representative Krishna...
Eris Lifesciences to Hold 20th AGM Virtually, Expands E-Voting Access
Sep 2, 2026
Eris Lifesciences Ltd, an Indian branded formulations pharmaceutical player focused on chronic and lifestyle therapies, maintains a domestic market presence through listings on BSE and NSE and adheres to Indian corporate governance requirements. T...
Eris Lifesciences Secures ₹64.4 Crore Working Capital Loan Without Raising Debt Burden
Aug 6, 2026
Eris Lifesciences Ltd has drawn down a working capital term loan of ₹64.4 crore from Axis Bank Ltd to meet short-term liabilities, while clarifying that its overall debt level will remain unchanged. The facility, sanctioned on August 5, 2026...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.