Motilal Oswal has issued a neutral rating on Eris Lifesciences with a target price of ₹1,435 in its research report dated July 29, 2026, contrasting with Prabhudas Lilladher's buy rating and ₹1,700 target. According to Motilal Oswal's analysis, the company delivered slightly better-than-expected revenue for the quarter, though EBITDA and PAT were marginally below estimates by 4% and 6% respectively. The brokerage notes that the domestic branded formulation segment has witnessed an improving year-on-year growth trend, with insulin, Onco-Nephro, and VMN categories significantly outperforming the industry.
Eris Lifesciences' Q1FY27 EBITDA growth was muted at ₹2.9 billion, up 7% year-on-year. As reported by Prabhudas Lilladher, the company expects improvement from H2FY27E/FY28E supported by the continued ramp-up of Semaglutide, Bhopal commercialization and growth in the insulin franchise. The domestic branded formulation segment has shown improving year-on-year growth trend, with insulin, Onco-Nephro, and VMN categories significantly outperforming the industry, as noted by Motilal Oswal. The brokerage anticipates margins to recover in the second half of FY27E as Bhopal ramps up, with gross margins likely to improve from Q3FY27.
Swiss Parenterals remediation work is likely to keep growth subdued in the near term, with management guiding for neutral to low-single-digit growth and approximately 200 basis points margin pressure. According to Prabhudas Lilladher's assessment, this remediation work is expected to impact the company's performance in the current period. Motilal Oswal's report indicates that the current valuation adequately factors in the earnings upside, supporting their neutral stance.
The brokerages project strong growth trajectory for Eris Lifesciences over the next three years. Motilal Oswal expects 13%/15%/28% revenue/EBITDA/PAT CAGR over FY26-28, reaching ₹40 billion/₹15 billion/₹8 billion respectively. Despite the earnings revision, Prabhudas Lilladher maintains its 'BUY' rating with a revised target price of ₹1,700, valuing the company at 17x EV/EBITDA on FY28E. The target price reflects confidence in the company's long-term growth prospects despite near-term challenges, with both brokerages acknowledging the company's structural growth drivers including insulin analogues, Semaglutide, and biologics portfolio.
