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View Promises →Entero Healthcare Solutions Limited — Q4 FY26
Entero Healthcare delivered a strong FY26, with revenue of ₹6,591 crore growing 31.5% YoY on a like-for-like basis, driven by 15.6% organic growth and 16% inorganic contribution.
bullish
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Entero Healthcare delivered a strong FY26, with revenue of ₹6,591 crore growing 31.5% YoY on a like-for-like basis, driven by 15.6% organic growth and 16% inorganic contribution. EBITDA margin expanded 67 bps to 4.0%, aided by gross margin improvement of 78 bps to 10.3%. PAT grew 36% to ₹146 crore. Q4 revenue surged 42.6% YoY, with EBITDA margin at 4.5%. Management guided for FY27 consolidated revenue growth of 23% (excluding new M&A) and EBITDA margin of 5%, with operating cash flow conversion of at least 50% of EBITDA. The medtech segment now contributes over ₹1,000 crore in annualized revenue. Key risks include potential margin dilution from minority interest (guided ~25% of PAT) and integration challenges from recent acquisitions.
एंटरो हेल्थकेयर ने वित्त वर्ष 2025-26 में शानदार प्रदर्शन किया। कंपनी की कमाई ₹6,591 करोड़ रही, जो पिछले साल से 31.5% ज्यादा है। इसमें 15.6% अपने कारोबार से और 16% नई कंपनियों को खरीदने से बढ़ोतरी हुई। कंपनी का मुनाफा (EBITDA) 4% रहा, जो पहले से बेहतर है। शुद्ध मुनाफा (PAT) 36% बढ़कर ₹146 करोड़ हो गया। चौथी तिमाही में कमाई 42.6% बढ़ी। अगले साल कंपनी को 23% कमाई बढ़ने और 5% मुनाफा (EBITDA) होने की उम्मीद है। मेडिकल उपकरणों का कारोबार अब ₹1,000 करोड़ से ज्यादा का हो गया है। लेकिन नई कंपनियों को मिलाने में मुश्किलें और छोटे शेयरधारकों के हिस्से का मुनाफा कम होने का खतरा है।
Promises0 met · 3 missedRisks4 trackedTranscriptfull text
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Focused Modules
Risks
4 risks
Risk Intelligence
Minority interest volatility
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Read Transcript →Quarter Snapshot
Retailers served
100,000+
+25% YoY
Serving over 100,000 retail pharmacies, representing ~1 in 10 pharmacies in India.
SKU portfolio
97,500
+8% YoY
Product portfolio expanded to 97,500 SKUs, enhancing breadth of offering.
Medtech annualized revenue
₹1,000+ crore
New segment
Medtech segment crossed ₹1,000 crore in annualized revenue, now >15% of total.
Return on Capital Employed (ROCE)
14.6%
+390 bps YoY
ROCE improved to 14.6% from 10.7% in FY25, driven by margin expansion and working capital optimization.
What Changed vs Last Quarter
NEW
FY27 consolidated revenue growth of 23% (ex-new M&A)
Revenue growth target of 23% YoY, excluding any new acquisitions, driven by calendarization of past deals and organic growth.
NEW
FY27 EBITDA margin target of 5%
EBITDA margin guided to 5% for FY27, up from 4% in FY26, supported by gross margin expansion and operating leverage.
NEW
Operating cash flow conversion of at least 50% of EBITDA
Target to convert at least 50% of EBITDA into operating cash flow in FY27, reflecting working capital discipline.
NEW
Minority interest to be ~25% of PAT before minority
Minority interest expected to normalize to ~25% of PAT (pre-minority) in FY27, down from 38% in Q4 FY26.
DROPPED
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.
DROPPED
Full-year EBITDA margin above 4%
EBITDA margin guidance of north of 4% for FY26, requiring Q4 margin of ~4.5% to achieve.
DROPPED
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.
DROPPED
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.
NEW RISK
Minority interest volatility
Minority interest spiked to 38% of PAT in Q4 due to abnormal subsidiary profit; guided to normalize to ~25%, but could remain lumpy.
NEW RISK
Integration of recent acquisitions
Seven acquisitions closed in FY26, including three in medtech; integration risks and retention of key personnel are critical.
NEW RISK
Interest cost headwinds
Finance costs rose as IPO funds were deployed; management expects stable near-term costs but sequential decline only over 2-3 years.
NEW RISK
Dependence on IPM growth for organic outperformance
Organic growth multiplier vs IPM has compressed to ~1.4x from ~1.7x as IPM growth accelerated; any IPM slowdown could pressure organic growth.
RISK GONE
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.
RISK GONE
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.
RISK GONE
Competition from PharmEasy resuming acquisitions
Analyst raised concern that PharmEasy's recovery could increase competition for acquisition targets, though management downplayed the risk.
RISK GONE
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.
Fast read
Guidance and risk preview
Revenue growth target of 23% YoY, excluding any new acquisitions, driven by calendarization of past deals and organic growth.
Minority interest spiked to 38% of PAT in Q4 due to abnormal subsidiary profit; guided to normalize to ~25%, but could remain lumpy.
View Risks →