Entero Healthcare Solutions (ENTERO) Q3 25/26 earnings summary

Executive summary

• Q3FY26 revenue rose 25.6% YoY to ₹1,706.518 crore, with organic LFL growth of 17.1%; results include acquired subsidiaries from their respective acquisition dates, limiting comparability.

• Management described Q3 as the strongest organic-growth quarter of FY26 to date, with growth above industry growth and market-share gains.

• Positive Q3 operating cash flow, completed acquisitions and 17.1% organic LFL growth were cited as positioning for growth and margin expansion.

Financial highlights

• Q3 gross profit rose 29.4% YoY to ₹172.6 crore; gross margin increased 30 bps to 10.1%.

• Q3 EBITDA rose 35.5% to ₹67.8 crore, with margin up 29 bps to 4.0%; 9MFY26 EBITDA rose 46.7% to ₹179.9 crore, with margin up 58 bps to 3.8%.

• Reported Q3 PAT was ₹33.878 crore, up 15.0%; adjusted PAT before the labour-code exceptional item was ₹40.0 crore, up 35.8%.

• 9MFY26 revenue was ₹4,681.285 crore versus ₹3,756.724 crore; PAT was ₹100.712 crore versus ₹76.011 crore.

Outlook and guidance

• FY26 guidance remains on track: 30% like-for-like revenue growth, EBITDA margin above 4% and ₹100 crore operating cash flow; management expects to deliver the cash-flow target in Q4.

• FY27 is expected to be better than FY26 as FY26 acquisitions contribute for a full year alongside organic growth; numeric guidance is expected on the next call.

• Closed acquisitions are on track to deliver ₹1,000 crore revenue; MedTech revenue is expected to exceed ₹1,000 crore next FY after integration.

• Management plans to prioritize integration, margin improvement and cash generation for the next two to three quarters before evaluating further deals.