Entero Healthcare Solutions (ENTERO) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 consolidated revenue was Rs 15,709.48m and PAT was Rs 366.00m, versus Rs 13,006.92m and Rs 260.33m in Q2 FY25; reported revenue growth was 20.8%.

• Adjusted Q2 revenue growth was 23.4% YoY, with organic growth of 13.4%; EBITDA margin reached 4.0%.

• H1 FY26 consolidated revenue was Rs 29,747.67m and PAT was Rs 668.32m; acquired entities are included from their share-transfer dates, affecting period comparability.

Financial highlights

• Q2 gross profit was Rs 160.8 Cr, up 32% YoY; gross margin was 10.2%, up 84 bps YoY and 29 bps QoQ.

• Q2 EBITDA was Rs 62.1 Cr, up 46% YoY; margin was 4.0%, versus 3.3% a year earlier and up 38 bps QoQ.

• Q2 PAT was Rs 36.6 Cr, up 41% YoY; PAT margin was 2.3%, up 18 bps QoQ.

• H1 revenue rose 24% YoY to Rs 29,747.67m; gross profit rose 35% to Rs 300.4 Cr, EBITDA 54% to Rs 112.1 Cr and PAT 43% to Rs 66.8 Cr.

Outlook and guidance

• FY26 revenue growth guidance remains 30%; H1 like-for-like growth was 27.8%, implying 31% H2 growth to meet the target, subject partly to acquisition timing.

• FY26 operating cash flow is expected to exceed Rs 100 Cr, with working-capital days near 60; H1 operating cash flow was negative Rs 57.3 Cr.

• FY26 EBITDA margin guidance remains 4%+; after acquisition integration, estimated consolidated margins are 4.5%-4.75%, based on acquired FY25 financials.

• Announced acquisitions are expected to add 70-90 bps to gross margin and 50-75 bps to EBITDA margin on a pro forma basis.