Eris Lifesciences announced a significant change in its audit structure as R R S & Associates, the statutory auditor of its wholly-owned material subsidiary Eris Therapeutics Limited (ETL), tendered their resignation effective August 12, 2025.

Resignation Details

R R S & Associates, a chartered accountancy firm with registration number 118336W, was initially appointed for a five-year term from April 1, 2022, to March 31, 2027. However, their tenure has been cut short, with the firm completing the statutory audit for the financial year ended March 31, 2025, and conducting a limited review for the quarter ended June 30, 2025.

Reasons for the Change

The primary reason cited for the auditor's resignation is to facilitate the appointment of a single auditor for both Eris Lifesciences and its material subsidiary, ETL. This move is aimed at:

• Bringing synergies to the audit process
• Aligning audit terms across the group
• Maintaining consistency in auditing practices

Assurances and Compliance

In their resignation letter, R R S & Associates confirmed that there were no material concerns or issues leading to their resignation beyond the stated reason of audit consolidation at the group level. This assurance is crucial for maintaining investor confidence in the company's financial reporting integrity.

Regulatory Compliance

Eris Lifesciences has duly informed the stock exchanges about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI Master Circular dated November 11, 2024.

Impact and Next Steps

While the change in auditors is significant from a corporate governance perspective, it is part of a broader strategy to streamline audit processes across the Eris Lifesciences group. The company is expected to appoint a new auditor for ETL, likely aligning with the auditor of the holding company, to ensure a seamless transition and maintain the integrity of financial reporting across the group.

Investors and stakeholders will be keenly watching for the announcement of the new auditor appointment, which is expected to bring about greater efficiency and uniformity in the audit process for Eris Lifesciences and its subsidiaries.

As the pharmaceutical sector continues to evolve, such corporate governance measures underscore the importance of transparent and consistent financial reporting practices in maintaining investor trust and regulatory compliance.

Eris Lifesciences , a prominent player in the Indian pharmaceutical sector, has reported impressive financial results for the first quarter. The company's performance showcases significant growth across key financial metrics, indicating a strong start to the year.

Revenue Growth

Eris Lifesciences witnessed a substantial increase in its revenue for Q1. The company's total revenue from operations rose to ₹773.00 crore, up from ₹719.72 crore in the same quarter of the previous year, marking a 7.4% year-over-year growth.

Profit Surge

The pharmaceutical firm's bottom line saw a remarkable improvement. Consolidated net profit for the quarter reached ₹125.10 crore, compared to ₹89.55 crore in the corresponding period last year, representing a significant 39.7% increase.

Operational Performance

Eris Lifesciences demonstrated enhanced operational efficiency in Q1:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew to ₹276.00 crore from ₹250.00 crore year-over-year.
• The EBITDA margin improved to 35.80% from 34.73% in the same quarter last year.

Financial Ratios

The company's financial health remains robust, as evidenced by key financial ratios:

Management Commentary

Amit Bakshi, Chairman and Managing Director of Eris Lifesciences, approved the financial results at the board meeting held on August 5. The company's leadership expressed satisfaction with the Q1 performance, which sets a positive tone for the fiscal year.

Conclusion

Eris Lifesciences' robust Q1 performance underscores its strong position in the pharmaceutical market and its ability to deliver value to shareholders. The improved profitability and operational efficiency suggest that the company's strategic initiatives are yielding positive results.