ERIS Lifesciences Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 892.37 Cr (+12.61% YoY) and PAT growth of +39.17% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 26, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 892.37 Cr (+12.61% YoY) |
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| PAT (Q2) | Rs. 187.14 Cr (+39.17% YoY) |
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| EBITDA margin | 34.67% (-170 bps YoY) |
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| EPS (Q2) | Rs. 13.26 (+50.34% YoY) |
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| Market cap | Rs. 15,165.51 Cr |
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| CMP | Rs. 1,093.10 |
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Quarter Snapshot
Eris delivered 12.61% YoY consolidated revenue growth with normalized PAT up 12.83% YoY, though reported PAT growth of 39.17% was inflated by a Rs.65 Cr scheme tax credit. EBITDA margin compressed 170 bps YoY to 34.67% on input-cost inflation (materials +30.6%) but improved 75 bps QoQ, and gross margin missed the guided 76-77% band. Cash generation was the standout: H1 CFO of Rs.637.13 Cr (1.93× PAT) funded capex and dividends while net debt fell to ~1.80× annualized EBITDA, keeping the <1.5× December 2026 leverage target on track.
Key Investment Insights
Key Positives
- Consolidated revenue grew 12.61% YoY to Rs.892.37 Cr; H1 FY27 up 12.79% YoY
- Normalized PAT grew 12.83% YoY to Rs.151.72 Cr after stripping one-time items; reported PAT grew 39.17% to Rs.187.14 Cr
- EBITDA margin improved 75 bps QoQ to 34.67% from the Q1 trough of 33.92%
- H1 operating cash flow of Rs.637.13 Cr was 1.93× PAT; FCF of Rs.416.73 Cr funded capex and a Rs.99.88 Cr dividend
- Net debt fell to Rs.2,175.37 Cr (~1.80× annualized EBITDA) from Rs.2,291.32 Cr at March 2026; debt-equity improved to 0.59
- Subsidiaries' PAT contribution swung from a Rs.29.38 Cr drag in Q2 FY26 to a Rs.54.67 Cr contribution in Q2 FY27
- Scheme of Arrangement (Aprica, Eris Oaknet, Eris Therapeutics) received NCLT approval on 24 September 2026, effective 22 October 2026
- Capital work-in-progress rose Rs.223.47 Cr to Rs.394.94 Cr as the Bhopal/insulin/injectables capex program progresses
Risk Factors
- EBITDA margin compressed 170 bps YoY to 34.67%; gross margin of 74.70% fell below management's 76-77% guided band
- Material costs grew 30.61% YoY against 12.61% revenue growth, indicating input-cost inflation
- Rs.35.90 Cr exceptional write-down of amounts due from customers under at-risk launches
- Hitting the FY27 36% EBITDA margin guidance requires ~37.7% H2 margin, a stretch vs the current 34.67%
- Standalone revenue declined 25.87% YoY and standalone PAT declined 13.65% YoY amid the perimeter shift