Eris Lifesciences reported robust financial results for Q3 and 9M FY26, highlighted by 10% year-over-year growth in Domestic Branded Formulations (DBF) revenue. The International Business delivered exceptional performance, surging 45% in Q3. Consolidated revenue reached ₹807 crore in Q3, with an adjusted PAT growth of 45% YoY. The company is focused on strategic pipeline launches, including Semaglutide and Esaxerenone, and reiterates its debt reduction goal of $<1.5x$ Debt-to-EBITDA by December 2026.
Q3 and 9M FY26 Financial Highlights
Eris Lifesciences announced its financial results for the third quarter and nine months ended December 31, 2025, demonstrating consistent growth across key segments. The company maintains a strong outlook, projecting an FY26 DBF revenue growth of 12% with a 37% EBIDTA margin.
Domestic Branded Formulations (DBF) Performance
The DBF segment showed solid expansion:
- Q3 Revenue was ₹696 crore, marking a 10% YoY growth.
- 9M Revenue reached ₹2,106 crore, growing by 10% YoY.
- DBF EBIDTA for 9M stood at ₹781 crore, achieving 12% YoY growth, with a margin of 37.1% (up 70 bps YoY).
The company is strategically discontinuing approximately ~2% of its DBF revenue composed of non-core/tail-end brands, which is expected to improve operating profit margins. Excluding these brands, the core DBF portfolio clocked 12% growth in Q3 and 9M FY26, projected to deliver 14% growth in FY26 with an EBIDTA margin of ~39%.
RHI Cartridges Market Share Tripled
The insulin business demonstrated significant market penetration:
- Eris market share in RHI Cartridges by Rx increased by 1,800 bps since the Biocon acquisition, reaching 28% by December 2025.
- Market share by Sales increased by 1,700 bps to 25%.
In the overall RHI + Glargine market (Rs. 3,000+ crore p.a.), Eris nearly doubled its share from 9% to 16% since acquisition, reaffirming its objective to reach 25% overall market share.
Insulin Manufacturing Milestones
In-house manufacturing at Bhopal is progressing:
- RHI Vials: Manufacturing started in August 2025, yielding over 5 million vials.
- Glargine Vials: Production initiated in February 2026.
- Cartridges (RHI + Glargine): Commercial manufacturing is expected from Q2-FY27 following Process Validation in Q4-FY26.
GLP-1 and Esaxerenone Pipeline Updates
Eris is advancing key pipeline products targeting high-growth therapeutic areas:
- GLP-1 (Semaglutide): Strategic partnership in place, with decks cleared for final regulatory approval expected soon. Form-fill-finish process validation is complete at the AMD site.
- Esaxerenone: This novel, in-house developed drug, the First to launch in India, is a next-generation nsMRA approved for uncontrolled and resistant hypertension, proving statistically significant greater effect on lowering SBP/DBP compared to Eplerenone.
International Business (IB) Momentum
The International Business demonstrated rapid expansion:
- Q3 Revenue hit ₹111 crore, showing a 45% YoY growth.
- Q3 EBIDTA was ₹33 crore, reflecting 46% YoY growth.
- 9M Revenue grew 11% YoY to ₹259 crore.
The company is investing heavily in people and EU CDMO capabilities, expecting the full impact starting in FY27. Visibility for FY26 is set at Revenue of ₹370-375 crore and EBIDTA of ₹115+ crore.
FY27 Outlook and Breakout Year Visibility
Eris anticipates FY27 to be a breakout year, driven by:
- EU-CDMO book ramping up to over ₹1,000+ crore by the end of Q3 FY27.
- Strong tailwinds in the base business, including Corticosteroids acceleration and new Latin America approvals.
- New opportunities like the Semaglutide CMO and Eris AMD site exports.
Visibility for FY27 Revenue is set between ₹550-600 crore, with an EBIDTA of ₹180-200 crore.
Consolidated Financial Summary
Consolidated performance reflects overall strength:
- Q3 Consolidated Revenue was ₹807 crore (up 11% YoY). Excluding Trade Gx, revenue grew 13% YoY.
- Q3 EBIDTA was ₹282 crore (up 13% YoY) with a margin of 35%.
- Adjusted PAT grew 45% YoY in Q3 and 42% in 9M, driven by reduced depreciation, finance costs, and a lower tax rate (Book Tax Rate 22.5% in Q3).
Consolidated FY26 visibility projects Revenue around ₹3,200 crore and EBIDTA near ₹1,150 crore, targeting a 36% EBIDTA Margin.
Debt Reduction Trajectory
The company remains committed to its deleveraging plan:
- Net Debt as of 31st December 2025 was ₹2,270 crore (2.1x Debt to TTM EBIDTA).
- The Net Debt to TTM EBIDTA ratio has significantly reduced from ~4x to ~2x during FY25.
- The guidance to achieve a Net Debt to TTM EBIDTA ratio of less than 1.5x by December 2026 is reiterated, despite expedited strategic investments totaling ~Rs. 750-800 crore planned over FY26-FY28.
Source: BSE
