Pharma stock with ₹750-800 Cr capex guidance for FY26-28 to keep an eye on

Synopsis: Eris Lifesciences plans ₹750-800 crore capex for FY26-28, focusing on insulin and injectables, while targeting ~12% revenue growth and ~15% year-on-year EBITDA growth in FY26.

This Pharma stock, engaged in the development, manufacture, and marketing of branded formulations for chronic diseases, including cardiology, diabetes, neurology, and speciality therapeutics in India, is in focus after the company announced a Rs. 750-800 crore Capex guidance for FY26-28

With a market capitalization of Rs. 21,268 crore, the shares of ERIS Lifesciences Limited were currently trading at Rs. 1,566 per equity share,up nearly 0.80 percent from its previous day’s close price of Rs. 1,553. 

Capex Plans:

Eris Lifesciences has outlined capital expenditure of around Rs. 750-800 crore for FY26 to FY28. The company expects to spend Rs. 380-400 crore over the next three quarters to fast-track key projects. These include Rs. 150 crore for the Phase-2 insulin expansion at its Bhopal facility and Rs. 130 crore for the new Swiss Unit-3 focused on general injectables.

Another Rs. 100 crore will go toward strengthening its diabesity pipeline and DS manufacturing at Levim. In Q2 alone, the company invested Rs. 50 crore, taking the total capex for the first half of FY26 to Rs. 117 crore. Most of this spending was directed toward insulin and injectable-related expansions.

FY26 Growth Expectations:

Eris Lifesciences expects steady growth in FY26, supported mainly by its domestic branded formulations business. The H1 performance indicates around 12 percent revenue growth for the financial year 2026, which the management highlights as being about 50 percent higher than the expected market growth rate. 

For FY26, the company has guided for approximately 15 percent year-on-year EBITDA growth in its DBF segment. Any contribution from RHI cartridges in the second half of the year will be an added positive.

Export Revenue Guidance:

Eris Lifesciences remains confident about the performance of its international business and expects to achieve revenues of Rs. 375-390 crore in FY26. Looking ahead, the company has kept its long-term goals unchanged. Eris aims to scale its international business to around Rs. 700 crore by FY28 and further to Rs. 1,000 crore by FY30.

Eris Lifesciences expects strong CDMO revenue visibility of Rs. 125-150 crore in FY27 from its first European innovator project, marking an important step in its global expansion. The company also has a broader EU-CDMO order book worth Rs. 700-800 crore, which is expected to scale up steadily over the next three to four years, supporting long-term growth.

Business Mix for FY27

By FY27, Eris Lifesciences expects a major shift in its business mix compared to FY24. The company aims to increase its revenue share from regulated markets from less than 2 percent to nearly 30 percent, driven by new capabilities and expansion plans. The share of the private market is also projected to rise meaningfully from about 30 percent in FY24 to 50 percent by FY27.

Another significant transformation will come from RLDs, where exposure was historically zero. By FY27, Eris expects around 20 percent of its revenue to come from RLDs linked to innovator and loss-of-exclusivity opportunities, strengthening its long-term growth profile.

Company Overview:

ERIS Lifesciences Limited is an Indian pharmaceutical company founded in 2007 and based in Ahmedabad, Gujarat. It focuses on branded formulations for chronic diseases like diabetes and heart conditions, ranking among the top 20 players in India’s pharmaceutical market.​

The company develops, manufactures, and markets prescription drugs mainly for chronic and sub-chronic therapies. It operates a fully integrated model with facilities for oral solids, injectables, and more, serving specialist doctors through a network of over 2,000 stockists across India.​

Its products cover cardiology, diabetes, neurology, gastroenterology, dermatology, and gynecology, with over 200 formulations including top brands in anti-diabetics and cardiovascular drugs. ERIS offers innovative treatments like insulins and complex injectables.​

Recent quarter results:

Coming into financial highlights, ERIS Lifesciences Limited’s revenue has increased from Rs. 741 crore in Q2 FY25 to Rs. 792 crore in Q2 FY26, which has grown by 6.88 percent. The net profit has also grown by 39.58 percent from Rs. 96 crore in Q2 FY25 to Rs. 134 crore in Q2 FY26.

ERIS Lifesciences Limited’s revenue and net profit have grown at a CAGR of 21.93 percent and 4.77 percent, respectively, over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 12.2 percent and 12.9 percent, respectively. ERIS Lifesciences Limited has an earnings per share (EPS) of Rs. 30.5, and its debt-to-equity ratio is 0.77x.

Written By – Nikhil Naik

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