Buy Eris Lifesciences; target of Rs 1800: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Eris Lifesciences has recommended buy rating on the stock with a target price of Rs 1800 in its research report dated February 16, 2026.

Broker Research

February 16, 2026 / 13:22 IST

Buy

Prabhudas Lilladher's research report on Eris Lifesciences

Eris Lifesciences’ (ERIS) Q3FY26 EBITDA was 5% below our estimate (Rs2.8bn; up 12.5% YoY). Though 9MFY26 revenue growth (up 8% YoY) was muted, we see pick up from FY27 as export pick up and likely additional market share gain from human insulin market. Eris has opted for inorganic route to diversify and scale up existing portfolio. This has been implemented without diluting margins. We expect margins to scale up from the current level of 36% in FY26 as commercial manufacturing start from Bhopal facility along with scale up in export business. The company has multiple growth levers such as broad-based offerings in the derma segment, tapping GLP-1 market, demand supply mismatch in insulin segment, creating large injectable franchise across India and RoW market and benefits of operating leverage.

Outlook

Our FY27 and FY28E EBITDA stands cut by ~3%. We maintain ‘BUY’ rating with revised TP of Rs 1800 (valuing at 17x EV/EBITDA on FY28E).

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