Entero Healthcare Solutions LimitedPharmaceuticals & HealthcareENTERO
Q1 FY27 concall · earnings callEntero Healthcare Solutions Limited
Entero delivered a strong start to FY27, exceeding full-year margin guidance in Q1 with 38.2% revenue growth and a 143 bps expansion in EBITDA margin to 5%, driven by scale, mix, and deliberate portfolio actions.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue | ₹1,940 Cr | 38.2% YoY | |
| EBITDA Margin | 5% | 143 bps YoY | |
| PAT | ₹52 Cr | 72% YoY | |
| PAT (Attributable to Owners) | ₹38 Cr | 37% YoY | |
| Gross Margin | 11.4% | 147 bps YoY | |
| Net Working Capital Days | 61 days | Improved from 66 days | |
| ROCE | 21.1% | Doubled from 11.5% | |
| ROE | 20.4% | Improved from 9% |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹1,359.00 Cr+36.9% YoY+4.5% QoQ | ₹29.45 Cr+321.9% YoY+13.1% QoQ | ₹5.85+206.3% YoY+7.7% QoQ |
| Q2 FY25 | ₹1,300.69 Cr— YoY+18.6% QoQ | ₹26.03 Cr— YoY+26.8% QoQ | ₹5.43— YoY+17.5% QoQ |
| Q1 FY25 | ₹1,097.04 Cr— YoY+6.1% QoQ | ₹20.53 Cr— YoY-3.1% QoQ | ₹4.62— YoY-19.4% QoQ |
| Q4 FY24 | ₹1,034.18 Cr— YoY+4.2% QoQ | ₹21.18 Cr— YoY+203.4% QoQ | ₹5.73— YoY+200% QoQ |
| Q3 FY24 | ₹992.63 Cr— YoY— QoQ | ₹6.98 Cr— YoY— QoQ | ₹1.91— YoY— QoQ |
TL;DR
- Revenue grew 38.2% YoY to INR 1,940 Cr, with like-for-like growth at 40%.
- EBITDA margin reached 5%, meeting the full-year FY27 target in Q1, with EBITDA growing 94% YoY.
- Organic growth was 17.8% (19.6% like-for-like), outpacing IPM growth of 13.8%.
- ROCE doubled to 21.1% and ROE improved to 20.4%.
- Management maintains FY27 guidance of ~23% revenue growth (ex-new M&A), 5% EBITDA margin, and 50% EBITDA-to-OCF conversion.
- Focus for the year is on consolidation and organic growth, with MedTech revenue on track to cross INR 1,000 Cr organically in FY27.
Said on the call
“We are pleased to have delivered our full year FY27 EBITDA margin guidance in the very first quarter of the year.”
From the Q&A
| Topic | What management said |
|---|---|
| Growth Outlook & Strategy | Management targets >20% growth over the medium term (3-4 years) even without new acquisitions, and sees potential for EBITDA margin to expand beyond 6%. |
| Acquisition Pipeline & Capital Use | No major acquisitions planned for FY27, with focus on consolidation and organic growth. Free cash flow will be used for acquisitions, debt paydown, or buying out minorities based on what maximizes EPS. |
| MedTech Business | MedTech is a key structural margin lever, on track to organically cross INR 1,000 Cr in FY27 and capable of ~20% growth, with opportunities for more comprehensive, demand-generation roles compared to pharma distribution. |
| Working Capital & Cash Flow | Net working capital days improved to 61. Management reiterated FY27 guidance for 50% EBITDA-to-operating-cash-flow conversion but cautioned against quarterly OCF analysis due to seasonality. |
| Margin Expansion Drivers | Q1 margin improvement was attributed to scale-led procurement, a growing share of higher-margin MedTech business, and exiting low-margin accounts. Future expansion is expected from operating leverage and procurement benefits. |
| Minority Interest Structure | Non-wholly owned subsidiaries have pre-agreed call options (2-5 year horizon) to acquire remaining stakes at valuation multiples consistent with the original acquisition. The higher minority interest reflects subsidiary performance, not cash outflow. |
| Market Share Gains | Management attributes organic growth outperformance vs. IPM to its 'two-way network effect' offering a wide product range (one-stop-shop) to customers and pan-India reach to principals. |
Guidance
- FY27 consolidated revenue growth of approximately 23% year-on-year, excluding any contribution from new acquisitions.
- FY27 EBITDA margin of 5%.
- FY27 EBITDA to operating cash flow conversion of 50%.
- MedTech revenue on track to cross INR 1,000 crores in FY27 on an organic basis.
Source
Summary written from the transcript filed by Entero Healthcare Solutions Limited for the call held on 10 Aug 2026; published 18 Aug 2026, 19:55 IST.
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