Entero Healthcare Solutions (ENTERO) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached ₹1,359 crore, up 37% YoY, with 17% organic growth and 20% from acquisitions; new acquisitions contributed ₹197 crore of quarterly revenue.

• EBITDA rose 75% YoY to ₹50 crore and PAT was ₹29.4 crore; EBITDA margin expanded to 3.7% from 2.9%.

• Strategy combines organic expansion, disciplined acquisitions, broader categories and technology-enabled service improvements; management sees opportunity in distribution consolidation.

Financial highlights

• Q3 consolidated revenue was Rs 13,589.96 mn, gross profit Rs 1,334 mn, EBITDA Rs 500 mn and net profit Rs 294.48 mn; growth was 37%, 48%, 75% and 322%, respectively.

• 9M consolidated revenue was Rs 37,567.24 mn, gross profit Rs 3,555 mn, EBITDA Rs 1,226 mn and net profit Rs 760.11 mn; revenue, EBITDA and PAT grew 30%, 48% and 308%.

• Q3 PBT was Rs 394.39 mn, up 374% YoY; 9M PBT was Rs 1,015.14 mn, up 361%.

• Q3 gross margin rose 73 bps YoY to 9.8% and EBITDA margin increased 80 bps to 3.7%; 9M gross margin was 9.5% and EBITDA margin 3.3%.

• Standalone revenue from operations was Rs 1,011.52 mn in Q3 and Rs 3,363.68 mn in 9M FY25.

Outlook and guidance

• FY25 revenue growth guidance remains 35%-40%, subject to timing of pending Q4 acquisitions; management cited negotiations and procedural timing behind deal delays.

• FY25 acquisition target is ₹1,000 crore; close to ₹800 crore was completed, with ₹200 crore or more targeted for Q4; management sees scope for similar volumes next year.

• EBITDA margin targets are 4% by FY25 year-end and 5% by the end of next year; Q4 margin improvement remains the target.

• Organic growth target is 1.5x-2x Indian pharma market growth; operating cash flow is expected to turn positive next year, excluding acquisition investment.

• Management expects to optimize net working capital by a further 5-6 days over the next 12 months.