Promises
1 promise
Promise Tracker
0 delivered, 0 close, 1 missed.
View Promises →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.
bullish
high
✓ Verified against BSE filing
2-Minute 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.
Promises0 met · 1 missedRisks4 trackedTranscriptfull text
Research workspace
Focused Modules
Risks
4 risks
Risk Intelligence
Integration of multiple acquisitions may strain margins
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Organic Revenue Growth
17.1%
+17.1pp YoY
Highest organic growth for the financial year, outpacing industry growth of 12%.
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.
What Changed vs Last Quarter
NEW
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.
NEW
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.
UPDATED
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.
UPDATED
Full-year EBITDA margin above 4%
EBITDA margin guidance of north of 4% for FY26, requiring Q4 margin of ~4.5% to achieve.
DROPPED
Working capital target of 60 days by FY26 end
Targeting a 10% reduction in working capital days from 66 to 60 by end of FY26 through ERP and data science initiatives.
DROPPED
Tax rate of 17-18% for FY26
Effective tax rate expected to remain in the 17-18% range for the full year due to tax efficiency measures.
NEW RISK
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.
NEW RISK
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.
NEW RISK
Competition from PharmEasy resuming acquisitions
Analyst raised concern that PharmEasy's recovery could increase competition for acquisition targets, though management downplayed the risk.
NEW 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.
RISK GONE
Regulatory delays in acquisition closures
Closure of two announced acquisitions delayed due to drug license site outage, impacting revenue recognition timing.
RISK GONE
Quick commerce disruption in pharma distribution
Analyst raised concern about Amazon and Zepto entering pharmacy; management downplayed risk citing range, AOV, and prescription challenges.
RISK GONE
Integration risks from rapid M&A
Management acknowledged evolving integration approach (more aggressive now), but past slower integration may have caused inefficiencies.
RISK GONE
Servier distribution agreement modification
Article reported termination of exclusive distribution with Servier; management clarified it was modified to allow direct supply, but exclusivity for marketing retained.
Fast read
Guidance and risk preview
Management confirmed on track to deliver 30% like-to-like revenue growth for FY26, implying ~35% growth in Q4.
Management plans to slow acquisitions for 2-3 quarters to integrate, but cost synergies may take longer, pressuring margins.
View Risks →