Organic Revenue Growth
17.1%
+17.1pp YoY
Highest organic growth for the financial year, outpacing industry growth of 12%.
ENTEROHEALTHCARESOLUTION
Healthcare
10 Feb 2026
Entero Healthcare Solutions Ltd — Q3 FY26
Entero Healthcare delivered a strong Q3 FY26 with revenue of ₹1,771 crore (+26% YoY) and EBITDA of ₹68 crore (+36% YoY), driven by organic growth of 17.1% and contributions from recent medtech acquisitions.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Entero Healthcare delivered a strong Q3 FY26 with revenue of ₹1,771 crore (+26% YoY) and EBITDA of ₹68 crore (+36% YoY), driven by organic growth of 17.1% and contributions from recent medtech acquisitions. Gross margin expanded 30bps to 10.1%, while EBITDA margin improved 30bps to 4%. PAT (adjusted for one-off labor code impact) grew 36% to ₹40 crore. Operating cash flow turned positive at ₹49 crore, a sharp improvement from -₹21 crore last year, aided by working capital days reducing to 61. Management reiterated full-year guidance of 30% like-to-like revenue growth, 4%+ EBITDA margin, and OCF of ₹100 crore. The medtech segment, now annualizing over ₹1,000 crore, is expected to add 50-75bps to EBITDA margins. Risk: Integration of multiple acquisitions could strain margins if cost synergies fail to materialize as expected.
Key Numbers
Working Capital Days
61 days
-5 days YoY
Improved from 66 days in Q1 FY26, reflecting better inventory and receivable management.
Medtech Annualized Revenue
₹1,000+ crore
New
Post-acquisition, medtech segment crosses ₹1,000 crore annualized revenue, contributing ~15% of total.
Return on Capital Employed
14.8%
+100bps QoQ
Improved from 13.8% in Q2 FY26, driven by margin expansion and working capital optimization.
Management Guidance
Full-year like-to-like revenue growth of 30%
Management confirmed on track to deliver 30% like-to-like revenue growth for FY26, implying ~35% growth in Q4.
Management guidance revenueFull-year EBITDA margin above 4%
EBITDA margin guidance of north of 4% for FY26, requiring Q4 margin of ~4.5% to achieve.
Management guidance marginsOperating cash flow of ₹100 crore for FY26
OCF guidance of ₹100 crore for full year, with Q4 expected to generate over ₹100 crore given 9-month OCF of -₹8 crore.
Management guidance growthMedtech acquisitions to add 50-75bps to EBITDA margins
Post-integration, medtech acquisitions expected to improve overall EBITDA margin by 50-75 basis points on a pro forma basis.
Management guidance marginsKey Risks
Integration of multiple acquisitions may strain margins
Management plans to slow acquisitions for 2-3 quarters to integrate, but cost synergies may take longer, pressuring margins.
medium · management_commentaryRising other expenses due to medtech demand generation
Medtech acquisitions bring higher gross margins but also higher employee and marketing costs, which could limit net margin expansion.
medium · analyst_questionCompetition from PharmEasy resuming acquisitions
Analyst raised concern that PharmEasy's recovery could increase competition for acquisition targets, though management downplayed the risk.
low · analyst_questionCarry-forward tax losses may be exhausted by next year
Effective tax rate of 13-18% is low due to carry-forward losses; once exhausted, tax rate could normalize to 25%, impacting PAT.
medium · analyst_questionNotable Quotes
We are on track to deliver our full year guidance.
The impact of metric acquisitions will drive the margins up plus all other factors that we continuously work on.
We have completed all the big acquisitions. As of now we are not looking forward to raise any equity capital.
Frequently Asked Questions
What was Entero Healthcare Solutions's revenue in Q3 FY26?
Entero Healthcare Solutions reported revenue of ₹1,707 Cr in Q3 FY26, representing a +26% change compared to the same quarter last year.
What guidance did Entero Healthcare Solutions management give for FY27?
Full-year like-to-like revenue growth of 30%: Management confirmed on track to deliver 30% like-to-like revenue growth for FY26, implying ~35% growth in Q4. Full-year EBITDA margin above 4%: EBITDA margin guidance of north of 4% for FY26, requiring Q4 margin of ~4.5% to achieve. Operating cash flow of ₹100 crore for FY26: OCF guidance of ₹100 crore for full year, with Q4 expected to generate over ₹100 crore given 9-month OCF of -₹8 crore. Medtech acquisitions to add 50-75bps to EBITDA margins: Post-integration, medtech acquisitions expected to improve overall EBITDA margin by 50-75 basis points on a pro forma basis.
What are the key risks for Entero Healthcare Solutions in FY27?
Key risks include Integration of multiple acquisitions may strain margins — Management plans to slow acquisitions for 2-3 quarters to integrate, but cost synergies may take longer, pressuring margins.; Rising other expenses due to medtech demand generation — Medtech acquisitions bring higher gross margins but also higher employee and marketing costs, which could limit net margin expansion.; Competition from PharmEasy resuming acquisitions — Analyst raised concern that PharmEasy's recovery could increase competition for acquisition targets, though management downplayed the risk.; Carry-forward tax losses may be exhausted by next year — Effective tax rate of 13-18% is low due to carry-forward losses; once exhausted, tax rate could normalize to 25%, impacting PAT..
Did Entero Healthcare Solutions meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Entero Healthcare Solutions Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.