Eris Lifesciences Ltd (ERIS) AI Stock Analysis

• Market Cap: ₹185.71B
• Dividend Yield: 0.47%
• Average Volume (3M): 2.07K
• Price to Earnings (P/E): 51.4
• Beta (1Y): 0.65
• Revenue Growth: 20.02%
• EPS Growth: 19.17%
• Country: IN
• Employees: 3,620
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 7.30
• Shares Outstanding: 136,216,890
• 10 Day Avg. Volume: 1,915
• 30 Day Avg. Volume: 2,071
• PEG Ratio: -5.23
• Price to Book (P/B): 6.64
• Price to Sales (P/S): 6.58
• P/FCF Ratio: 20.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 42.7
• Revenue Forecast (FY): ₹32.02B

• Rating: 70 Outperform
• Price Target: ₹1,500.00 ▼(-2.02% Downside)
• Action: Upgraded Date: 12/10/25
• Date: Action: Upgraded 12/10/25

Eris Lifesciences Ltd demonstrates strong financial performance with robust revenue and cash flow growth, which significantly contributes to the overall score. The technical analysis shows a positive trend, though some bearish signals are present. The high P/E ratio and low dividend yield suggest overvaluation, impacting the valuation score.

Positive Factors

Revenue Growth

Sustained top-line growth, including a material revenue jump year-over-year, reflects stronger brand acceptance in chronic/lifestyle therapies and higher prescription penetration. Durable revenue expansion supports scale advantages, better capacity utilization and funds long-term marketing and R&D investments.

Strong Cash Generation

Improving operating cash flow and materially better free cash flow provide sustained internal funding for working capital, strategic acquisitions and capex without overreliance on external financing. Reliable cash conversion underpins capital allocation flexibility and resilience across business cycles.

Healthy Balance Sheet & Margins

Manageable leverage and a solid equity base combined with resilient gross and operating margins indicate pricing power in branded formulations and prudent financial management. This structural strength supports sustained investment, withstands regulatory pressure, and preserves strategic optionality.

Negative Factors

Declining Cash Balances

A downward trend in cash and equivalents reduces the liquidity buffer available for shocks or opportunistic investments. Over several quarters this could increase reliance on operating cash timing or external funding for capex, acquisitions or working capital, constraining strategic flexibility.

Free Cash Flow Volatility

Variable free cash flow complicates long-term planning for reinvestment, dividends and debt reduction. Persistent volatility raises the risk that funding for growth initiatives may require external capital during down cycles, increasing financing cost risk and limiting consistent capital returns.

Margin & Profitability Variability

Fluctuating net margins point to exposure to cost pressures (marketing spend, manufacturing mix) and pricing or regulatory risk in India. Margin variability undermines earnings predictability and could constrain sustained reinvestment or stable shareholder returns if adverse trends persist.

Eris Lifesciences Ltd Business Overview & Revenue Model

Company Description

Eris Lifesciences Limited manufactures, markets, and distributes pharmaceutical products in India. It offers various branded formulations in various therapeutic areas, such as cardiovascular, anti–diabetes, anti-infective, antipyretics, vitamins/nutrients, gastroenterology, respiratory, gynecology, pediatrics, neurology, psychiatry, and pain/analgesics, as well as in-vitro fertilization, cosmetology, and dermatology. Eris Lifesciences Limited was incorporated in 2007 and is based in Ahmedabad, India.

How the Company Makes Money

Eris Lifesciences generates revenue primarily through the sales of its pharmaceutical products, particularly its branded generics. The company has a well-established distribution network that allows it to reach a broad customer base, including hospitals, pharmacies, and healthcare providers across India. Key revenue streams include prescription drugs for chronic diseases, which are often prescribed by healthcare professionals, and a range of over-the-counter medications. Additionally, ERIS may engage in partnerships with other pharmaceutical companies for co-marketing or distribution agreements, further enhancing its market reach and revenue potential. Factors contributing to its earnings include a strong focus on research and development to innovate new products, strategic marketing initiatives, and maintaining a robust supply chain to ensure product availability.

Eris Lifesciences Ltd Financial Statement Overview

Summary

Eris Lifesciences Ltd displays solid financial health with strong revenue and cash flow growth. The company effectively manages its operational and financial resources, evidenced by robust margins and a solid equity base. However, areas such as cash balances and Free Cash Flow volatility need monitoring.

Income Statement

Eris Lifesciences Ltd has shown impressive revenue growth over the years, with a significant jump from 2024 to 2025. The Gross Profit Margin remains strong, indicating efficient cost management. However, the Net Profit Margin has shown some fluctuations, indicating potential areas for improvement. The EBIT and EBITDA margins are robust, demonstrating solid operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a solid equity base. The Debt-to-Equity Ratio is manageable, suggesting prudent financial leverage. The Return on Equity is strong, reflecting effective resource utilization. However, the decrease in cash and equivalents over the years may need monitoring.

Cash Flow

Eris Lifesciences Ltd has demonstrated strong growth in Operating Cash Flow, which supports its Net Income. The Free Cash Flow has seen significant improvement, indicating efficient capital expenditure management. However, the fluctuations in Free Cash Flow over the years highlight potential volatility in cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	29.37B	28.79B	19.91B	16.62B	13.26B	11.93B
Gross Profit	20.13B	21.49B	9.95B	13.09B	10.65B	9.51B
EBITDA	10.58B	10.17B	6.99B	5.48B	5.11B	4.39B
Net Income	3.87B	3.52B	3.92B	3.82B	4.06B	3.55B
Balance Sheet
Total Assets	0.00	70.33B	70.49B	36.67B	22.72B	18.35B
Cash, Cash Equivalents and Short-Term Investments	2.05B	2.28B	13.39B	892.43M	2.12B	1.31B
Total Debt	0.00	24.78B	27.81B	8.77B	844.07M	67.77M
Total Liabilities	-32.72B	37.61B	38.27B	14.47B	3.64B	2.58B
Stockholders Equity	32.72B	28.54B	25.86B	21.96B	19.08B	15.76B
Cash Flow
Free Cash Flow	0.00	9.10B	3.57B	-5.50B	2.57B	3.50B
Operating Cash Flow	0.00	10.65B	4.86B	2.92B	3.78B	3.75B
Investing Cash Flow	0.00	-799.70M	-18.55B	-9.82B	-3.20B	-3.23B
Financing Cash Flow	0.00	-8.81B	13.80B	6.88B	-446.99M	-823.95M

Eris Lifesciences Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1530.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ERIS, the sentiment is Negative. The current price of 1530.85 is above the 20-day moving average (MA) of 1397.82, above the 50-day MA of 1444.35, and below the 200-day MA of 1604.04, indicating a bearish trend. The MACD of -24.26 indicates Negative momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 59.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ERIS.

Eris Lifesciences Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERIS	70 Outperform	₹185.71B	51.42	―	0.47%	20.02%	19.17%
GLAND	63 Neutral	₹295.75B	27.13	―	1.07%	-1.51%	14.27%
GLAXO	63 Neutral	₹429.60B	35.44	―	2.16%	4.17%	41.51%
GLENMARK	53 Neutral	₹599.25B	35.61	―	0.24%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Eris Lifesciences Ltd Corporate Events

Eris Lifesciences Posts Analyst Call Transcript for Q3 FY26

Eris Lifesciences Ltd has announced that the transcript of its analyst and investor conference call, held after the release of financial results for the quarter and nine months ended 31 December 2025, is now available on its website. The disclosure aims to provide transparent access to the company’s financial discussions and performance commentary for shareholders, analysts and other market participants, supporting informed decision-making and reinforcing its investor communication practices.

Eris Lifesciences Raises Stake to Make Swiss Parenterals Wholly Owned Unit via Preferential Share Allotment

Eris Lifesciences has allotted 2,306,372 fully paid equity shares of face value Re 1 each at an issue price of ₹1,835.35 per share on a preferential basis via private placement to investor Naishadh Shah, as consideration other than cash. The shares were issued in exchange for 1,674,493 equity shares representing 30% of Swiss Parenterals Ltd, completing Eris’s acquisition of this stake and making Swiss Parenterals a wholly owned subsidiary. Following the allotment, Eris’s paid-up equity capital has risen from ₹13.62 crore to ₹13.85 crore, with the new shares ranking pari passu with existing equity except for regulatory lock-in conditions, and are to be listed on NSE and BSE after receipt of listing approvals, signaling further consolidation of Eris’s manufacturing footprint and control over its injectable/ parenteral capabilities.