Entero Healthcare Solutions (ENTERO) Q1 25/26 earnings summary

Executive summary

• Consolidated Q1 FY26 revenue rose 28% YoY to INR 1,403.819 crore; like-for-like growth was 31%, including a 3-percentage-point adjustment for a contract revenue-recognition change.

• Gross profit, EBITDA and PAT increased 40%, 66% and 47% YoY, respectively; EBITDA margin was 3.6%.

• The distribution network covered 469 districts, serving 71,000+ retailers and 2,500+ hospitals through 102 warehouses, with 74,700+ SKUs.

Financial highlights

• Consolidated revenue from operations was INR 14,038.19 million versus INR 10,970.36 million in Q1 FY25; other income was INR 58.25 million.

• Gross profit reached INR 139.6 crore, up 40% YoY; EBITDA rose 66% to INR 50.1 crore, PBT increased 33% to INR 36.4 crore and PAT grew 47% to INR 30.2 crore.

• Other income declined to INR 5.6 crore from INR 13.3 crore YoY; finance costs were INR 8.3 crore versus INR 8.0 crore.

• Standalone revenue from operations was INR 793.52 million versus INR 1,223.84 million in Q1 FY25; standalone PAT was INR 69.57 million.

• Unaudited standalone and consolidated results received unmodified limited-review conclusions.

Outlook and guidance

• FY26 revenue growth target remains 30%, including organic and inorganic growth; recognized acquisition revenue growth target is INR 500 crore.

• FY26 EBITDA margin guidance is above 4%, supported mainly by operating leverage, with procurement gains and gross-margin improvement also contributing.

• Positive operating cash flow is expected for FY26; management reported positive cash flow over the prior six months.

• Working-capital target is 60 days by FY-end; management cited ~66 days currently, while reported net operating working capital was 71 days in Q1 FY26.

• Acquisition deadlines for equity purchases in Well Wisher Pharma, Khera Medisolutions, AV Medisolutions and Anand Medical Distributors were extended from August 15 to November 30, 2025.