Entero Healthcare Solutions (ENTERO) Q4 25/26 earnings summary

Executive summary

• FY26 revenue rose 29.3% to INR 65,912.12 million; like-for-like growth was 31.5%, including organic LFL growth of 15.6%.

• EBITDA margin expanded 67 bps YoY to 4.0%; FY26 operating cash flow was INR 96.2 crore, versus an outflow of INR 76.9 crore in FY25.

• FY27 guidance targets 23% revenue growth excluding new acquisitions and a 5% EBITDA margin, with organic growth and efficiency prioritized.

Financial highlights

• FY26 gross profit rose 39.9% to INR 680.4 crore, gross margin expanded 78 bps to 10.3%, and EBITDA increased 55% to INR 266 crore.

• FY26 net profit was INR 1,458.4 million, up 35.7%; profit attributable to owners was INR 115 crore, up 21.3%, with basic EPS of INR 26.44.

• Q4 revenue increased 42.6% YoY to INR 19,099.27 million; EBITDA rose 75.9% to INR 86 crore and PAT rose 43.6% to INR 45.1 crore.

• Q4 gross margin was 10.9%, up 109 bps YoY; EBITDA margin was 4.5%, up 85 bps, and PAT margin was 2.4%.

• Standalone FY26 revenue was INR 4,619.64 million and net profit was INR 268.75 million.

Outlook and guidance

• FY27 revenue growth guidance is 23% YoY excluding new acquisitions; it includes ~11% acquisition calendarization, with pharma and MedTech contributing equally to organic growth.

• FY27 EBITDA margin target is 5%, supported by gross-margin expansion, operating leverage, higher-margin MedTech activity and exits from selected low-margin businesses.

• Target EBITDA-to-operating-cash-flow conversion is at least 50%; FY27 tax rate is expected at 22%-23%.

• Organic growth will be prioritized for 6-8 months; value-accretive acquisitions remain possible and could prompt an upward guidance revision.

• Finance costs are expected to remain relatively stable near term, then decline as IPO funds are deployed and debt levels reduce.