Entero Healthcare Solutions (ENTERO) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 consolidated revenue was Rs. 19,404.95 million, up 38.2% YoY and 40.0% like-for-like; like-for-like growth adjusts for net-margin revenue recognition and a subsidiary divestment.

• Reported organic growth was 17.8% and like-for-like organic growth was 19.6%; EBITDA margin reached 5.0%.

• Management called the quarter a strong start to FY27, expressed confidence in delivering guidance, and prioritized integration, organic growth and value-adding acquisitions.

Financial highlights

• Gross profit rose 59% YoY to Rs. 221.4 crore; gross margin expanded 147 bps to 11.4%.

• EBITDA increased 94% YoY to Rs. 97.0 crore; EBITDA margin rose 143 bps to 5.0%.

• PAT was Rs. 52.1 crore, up 72%, with a 2.7% margin; PAT attributable to owners was Rs. 38.2 crore, up 37%, and diluted EPS was Rs. 8.76.

• Consolidated profit before tax was Rs. 671.20 million versus Rs. 363.63 million in Q1 FY26; total income was Rs. 19,435.02 million.

• Standalone revenue was Rs. 832.66 million and PAT was Rs. 34.57 million; standalone results received an unmodified limited-review conclusion.

Outlook and guidance

• FY27 guidance remains ~23% consolidated revenue growth excluding new acquisitions, 5% EBITDA margin and 50% EBITDA-to-OCF conversion; 11%-12% growth is from acquisition calendarisation, with the balance organic.

• Management targets >20% total growth over the next 3-4 years without meaningful acquisitions; 20% is a reasonable modeling assumption, with smaller acquisitions possible.

• FY27 MedTech revenue is expected to exceed Rs. 1,000 crore; management targets 20% MedTech growth without further acquisitions.

• Internal aspiration is EBITDA margin above 6% over time; guidance may be revisited after Q2 if H1 supports a stronger H2 outlook.

• Growth priorities include customer and geographic expansion, manufacturer partnerships, technology investment, adjacent products, private labels and services.