Eris Lifesciences Limited — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

ERIS delivered a steady Q2 with 10% domestic growth and significant margin expansion in the acquired Biocon portfolio. The company is pivoting toward a major international inflection point, backed by a massive surge in its EU-CDMO order book. While H1 saw some delays in price hikes and the cancellation of the gSaxenda launch, management remains bullish on the upcoming GLP-1 opportunity and vertical integration in insulin manufacturing.

Highlights

  • Consolidated Revenue reached ₹792 crores for Q2, with H1 revenue at ₹1,565 crores.

  • Q2 PAT grew 39% YoY to ₹134 crores; H1 PAT grew 40% YoY to ₹260 crores.

  • Domestic Branded Formulations (DBF) revenue grew 10% YoY to ₹708 crores in Q2.

  • Biocon segment EBITDA margin expanded to 32% in Q2, up from 19% at the time of acquisition.

  • International EU-CDMO order book surged from ₹100 crores in Q1 to ₹700-800 crores in Q2.

  • Net debt-to-EBITDA ratio reduced from 4x to 2x over the last 18 months.

  • Management estimates the GLP-1 market opportunity in India could reach $1 billion in its first year post-LOE.

  • Capex guidance of ₹750-800 crores for FY26-28 maintained, with ₹380-400 crores front-loaded in the next three quarters.

Key financials

  1. Consolidated Revenue ₹792 Cr
  2. Consolidated EBITDA ₹288 Cr
  3. PAT ₹134 Cr +39%YoY
  4. EPS ₹10
  5. Net Debt ₹2,278 Cr

What they filed

Q1 FY27: revenue down 23.3%, net profit down 52.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue437 400 405 579 650 +49%315 −21%277 −32%444 −23%
EBITDA143 100 121 216 297 +108%77 −23%22 −82%120 −44%
Net profit28 2 30 100 150 +436%3 +50%-9 −130%48 −52%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹791 Cr Total
  • Domestic Branded Formulations (DBF) ₹708 Cr 89.5%
  • International Business (Swiss Parenterals) ₹83 Cr 10.5%

Guidance & targets

Revenue

  • Domestic Branded Formulations Growth Revenue · FY26 · High confidence 12%
    Basis H1 run rate, we have a visibility of 12% revenue growth for this year, which will be 50% over the expected market growth.

    — V. Krishnakumar, COO

  • International Business Revenue Revenue · FY26 · High confidence ₹375-390 crores
    we have good visibility to deliver on revenue guidance of Rs. 375-390 Cr for FY26.

    — V. Krishnakumar, COO

  • EU-CDMO Revenue Visibility Revenue · FY27 · High confidence ₹125-150 crores
    Based on this, we have a revenue visibility of INR 125-150 crores in the next financial year with EBITDA margins similar to the business average.

    — V. Krishnakumar, COO

  • International Business Long-term Target Revenue · by FY30 · Medium confidence ₹1,000 crores
    INR 700 crores revenue by FY28 and INR 1,000 crores revenue by FY30. So, we retain those aspirations.

    — V. Krishnakumar, COO

Margin

  • DBF EBITDA Growth Margin · FY26 · Medium confidence 15%
    we expect EBITDA growth to be in the range of 15%.

    — V. Krishnakumar, COO

Debt

  • Net Debt-to-EBITDA Ratio Debt · by December 2026 · High confidence 1.3x

    Previously 1.5x → 1.3x

    We expect to get this ratio down to 1.3x by December '26.

    — V. Krishnakumar, COO

Capex

  • Short-term Capex Outlay Capex · next 3 quarters · High confidence ₹380-400 crores
    So, we see the capex outlay over the next three quarters to be at around INR 380-400 crores.

    — V. Krishnakumar, COO

Risks & concerns

  • Cancellation of gSaxenda launch

    medium

    Delay in approval led to the decision to cancel the launch, impacting H1 growth targets.

    Management acknowledged

  • GST Receivables impacting Cash Flow

    medium

    Increase in GST receivables took 25 percentage points off the OCF to EBITDA ratio in Q2.

    Analyst acknowledged

  • Regulatory Timelines for Biosimilars

    medium

    Management noted that regulatory timelines for products like Insulin Aspart are unpredictable.

    Management acknowledged

Areas of evasion (2)

  • Specific details on the Levim stake structure and control.
  • Bifurcation of base business growth excluding Biocon insulin.

Q&A highlights

2 direct
GLP-1 Market Sizing and Dynamics Direct
I see it more like a billion dollar. INR 6,000 crores... First year, Madhav.

Management is making a bold claim that the Indian GLP-1 market post-patent expiry will be significantly larger than previously estimated, driven by volume explosion.

Asked by Madhav Marda, Fidelity International

Insulin Cartridge Production Delay Direct
Our first round of commercial production of Cartridges now shifts to say April-May next year... The cartridges will go to the first quarter of CY27.

Reveals a timeline shift in the monetization of the RHI cartridge opportunity, which was previously expected sooner.

Asked by Harith Ahamed

Levim Investment and Stake Partial
Right now, we are 30% equity stake with an agreement to enhance it to 49%. But how will it exactly work is something we'll tell you later.

Investors are looking for clarity on the consolidation of Levim, which is critical for the biotech/insulin pipeline.

Asked by Harith Ahamed

2 min read 5 chapters

Detailed narrative

Biocon Integration and Margin Expansion

The turnaround of the Biocon segment remains a core driver for Eris, with Q2 EBITDA margins reaching 32%, a significant jump from the 19% seen at acquisition. Management expects further expansion as in-house manufacturing of insulin at the Bhopal facility stabilizes. The company has already produced ~2 million vials since going live in August, aiming for full vertical integration in drug substance and drug product.

International Business Inflection Point

The international business, centered on Swiss Parenterals, is nearing a major inflection point starting FY27. The EU-CDMO order book has expanded dramatically from ₹100 crores to ₹700-800 crores in just one quarter. Eris received its first purchase order from a European client for an injectable CDMO project, providing revenue visibility of ₹125-150 crores for the next financial year with margins consistent with the business average.

The $1 Billion GLP-1 Opportunity

Chairman Amit Bakshi highlighted the GLP-1 segment as a transformative opportunity, estimating the Indian market could reach $1 billion in its first year post-patent expiry. Eris is positioning itself as a dominant player, leveraging its insulin selling experience and 'hand-holding' capabilities. Management believes the market will be split 60/40 between Indian generic players and MNCs, with Eris aiming to be a significant participant.

Capex Front-loading and Deleveraging

Eris is front-loading its capex plans to capture lucrative opportunities in diabetes and injectables, with ₹380-400 crores of investment planned over the next three quarters. This includes the Bhopal Phase 2 expansion (₹150 crores) and Swiss Unit-3 (₹130 crores). Despite this heavy spend, the company remains committed to deleveraging, targeting a net debt-to-EBITDA ratio of 1.3x by December 2026, down from 2x currently.

Domestic Growth and Pipeline Challenges

While DBF grew 10% in Q2, management acknowledged missing their target of 50% outperformance over the market due to the cancellation of the gSaxenda launch and delayed price hikes. However, the price increases taken in late H1 are expected to provide a tailwind for H2. The company also expects to monetize the RHI cartridge opportunity starting December 2025, which will be additive to current growth visibility.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Healthcare earnings calls