Eris Q2 FY27: PAT +39% YoY on tax one-off; adjusted profit growth ~17%, margin dips

Eris Lifesciences' consolidated (primary basis) Q2 FY27 revenue rose 12.6% YoY and 2.2% QoQ to ₹892.4 Cr, with reported PAT up a striking 39.2% YoY (+30.6% QoQ) to ₹187.1 Cr. That headline is flattered by two one-offs that both land in this quarter's tax and exceptional-item lines: a ~₹65 Cr net tax credit (₹96 Cr current tax credit against a ₹31 Cr deferred tax charge) arising from the NCLT Scheme that amalgamated Aprica Healthcare and demerged Eris Oaknet's domestic business into Eris Therapeutics (effective 22 October 2026), and a ₹35.90 Cr exceptional charge for writing down dues from customers on products that were launched at risk. Stripping both out, adjusted PAT is closer to ₹158 Cr, up ~17.5% YoY and ~10.3% QoQ — a steady print, not the blowout the reported number suggests.

The margin story matches management's own prior framing. EBITDA-level operating margin (profit before JV share/exceptional items/finance cost/tax, D&A added back) came in near 35.0% this quarter versus ~36.7% a year ago — a YoY compression of roughly 170 bps — though it improved sequentially from ~34.2% in Q1 FY27. On the June concall management had flagged that "H1 FY27 margins may be softer due to launch expenses," with H2 improvement expected from insourced manufacturing and new product introductions; this quarter's YoY dip and QoQ recovery is broadly consistent with that script, so the print reads as guidance met/on-track rather than a beat or miss on margins. The reported net-profit-margin jump to 20.97% (from 16.97% YoY) is almost entirely the tax one-off; the adjusted NPM of ~17.7% is a much more modest expansion from 16.97% a year ago.

The stock went into the print at ₹1,114.5, down 12.2% over the past month of trading.

For context: this is the second-highest quarterly PAT of the last 6 quarters; revenue is at a 6-quarter high.

Consolidated basic EPS ₹13.26 vs ₹10.28 (Q1 FY27) vs ₹8.82 (Q2 FY26)

No analyst consensus or brokerage preview for this specific quarter could be located (the result was only declared today, 26 October 2026), so vs-Street is unknown; prior-quarter coverage only confirms Q1 FY27's reported 13% revenue / 14.5% PAT growth, matching the comparison context. No separate company press release was available to cross-check management's own framing beyond the regulatory filing and notes. Standalone tells a materially different story: standalone revenue fell 25.9% YoY to ₹482.2 Cr and PAT fell 13.7% YoY to ₹129.2 Cr (pre-exceptional profit nearly halved, ₹119.4 Cr vs ₹234.7 Cr), a divergence that lines up with the NCLT Scheme reallocating business and tax benefits toward the subsidiary/consolidated level rather than the standalone parent — readers comparing the two numbers should not read the standalone softness as contradicting the consolidated growth. Separately, COO Krishnakumar Vaidyanathan resigned on 5 October 2026 and the Executive Director & COO role also saw a resignation on 11 September 2026, alongside Akhil Awasthi's appointment as Additional Director on 21 September — a reshuffle in the senior team during the quarter that the filing does not tie to the results.