Saturday, May 23, 2026

Eris Life Q4 Results: Stock gains 12% as Domestic Branded Formulations leads growth

Date:

Shares of Eris Lifesciences Ltd. rose nearly 12% after the company reported a strong March quarter performance on Tuesday, May 20, with net profit nearly tripling year-on-year, aided largely by a sharp deferred tax gain.Consolidated net profit for Q4FY26 stood at ₹281.6 crore compared to ₹93.8 crore in the corresponding quarter last year. The sharp jump in profitability was primarily driven by a deferred tax gain of ₹132.2 crore during the quarter, compared to a deferred tax gain of ₹4.9 crore in the year-ago period.

The company’s revenue rose 7.3% from last year to ₹756.6 crore from ₹705.3 crore a year ago. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased 8.5% year-on-year to ₹274 crore from ₹252.3 crore, while EBITDA margin improved marginally to 36.2% from 36% a year ago.
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Leading Eris Life’s Growth

Eris said its Domestic Branded Formulations (DBF) business delivered 12% revenue growth in the March quarter to ₹671 crore, while segment EBITDA rose 10% to ₹246 crore. The DBF EBITDA margin stood at 37%.For the full year, the DBF business reported 11% revenue growth to ₹2,778 crore and 12% EBITDA growth to ₹1,026 crore, with EBITDA margin expanding to 37% from 36.5% in FY25.

The company highlighted strong traction in its insulin and dermatology businesses during the year. Eris Life said its insulin segment growth significantly outpaced the broader chronic therapies market, with insulin market share rising from 12% in April 2025 to 16% in March 2026.

It also highlighted a strong initial response to its generic semaglutide brand “Sundae”. The company said it ranked first by sales volume and second by sales value in injectable semaglutide during April 2026.Management said the phased rollout of the semaglutide portfolio, including pen-based products and obesity-focused SKUs, is expected to support growth momentum going ahead.

The company expects additional tailwinds from Q2FY27 as it begins in-house manufacturing of semaglutide pens, which is also expected to improve margins.

The international business reported Q4 revenue of ₹86 crore and EBITDA of ₹28 crore with a margin of 32.4%. However, the company said around ₹30 crore worth of finished goods shipments were delayed during the quarter due to supply chain disruptions.

For FY27, Eris Life guided for Domestic Branded Formulations growth at 1.3 times the growth rate of the Indian chronic therapies market, while EBITDA margin is expected to remain around 37%, with margins likely to improve further in the second half of the year.

The board declared an interim dividend of ₹7.21 per equity share for FY27 and fixed May 29, 2026, as the record date. The dividend will be paid on or before June 19, 2026.

Shares of Eris Lifesciences ended 11.4% higher after the earnings announcement at ₹1,489.2. The stock, after this move, has nearly turned positive on a year-to-date basis.

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