Financial Performance Highlights

Consolidated Performance

  • Revenue: ₹6,591.21 crore in FY26, representing 29.3% YoY growth (31.5% like-for-like growth)
  • Gross Profit: ₹680.38 crore, up 39.91% YoY with margin expansion to 10.32%
  • EBITDA: ₹265.96 crore, up 55.03% YoY with margin improvement to 4.03%
  • PAT: ₹145.84 crore, up 35.75% YoY with margin improvement to 2.21%

Standalone Performance

  • Net Profit: ₹268.75 million for FY26, representing 70% increase from ₹191.81 million in FY25
  • Revenue from Operations: ₹3,482.41 million for FY26
  • Basic EPS: ₹6.18 (FY25: ₹4.41)
  • Exceptional Items: ₹44.97 million provision for revised employee benefit obligations under new labor codes

Operational & Financial Metrics

  • Retail Pharmacy Customers: 105,300+
  • Hospital Customers: 3,600+
  • Operating Cash Flow: ₹96.20 crore positive (improved from outflow of ₹76.90 crore in FY25)
  • Net Working Capital Days: 59 days in Q4 FY26 (improved from 70 days in FY25)
  • ROCE: 14.6% (improved from 10.7% in FY25)
  • ROE: 12.5% (improved from 7.7% in FY25)
  • Adjusted Net Debt-to-Equity Ratio: 0.23

Strategic Developments & Acquisitions

Entero significantly expanded into MedTech through seven strategic acquisitions, achieving over ₹1,000 crore in annualized revenue in this segment. Key acquisitions include:

  • Bioaide Technologies Pvt. Ltd. (80% stake, ₹423.45 million) - Focused on interventional cardiology, ENT, wound management, and neuro psychiatry solutions
  • Ace Cardiopathy Solutions Pvt. Ltd. (60% stake, ₹866.44 million) - Specialized in cardiovascular care segment
  • Anand Chemiceutics Pvt. Ltd. (51.51% stake, ₹1,728.44 million) - Leading distributor in IVD and MedTech segment with 1,500+ customers
  • Ramson Medical Distributors Pvt. Ltd. (70% stake, ₹2.00 million) - Distribution of trade generic medicines
  • Sai RK Pharma Pvt. Ltd. & Well Wisher Pharma Pvt. Ltd. (70% stake each) - Distribution with focus on specialty drugs supply
  • Anand Medilink Pvt. Ltd. (80% stake, ₹450.93 million) - Pharmaceutical distribution in Pune

Goodwill impairment testing showed no impairment with discount rates ranging 8.88%-13.13% and terminal growth at 5%, indicating significant headroom exists.

Investments & Financing

  • Total investment in subsidiaries: ₹7,649.93 million (up from ₹2,516.24 million in FY25)
  • New term loans raised: ₹1,076.79 million from Bajaj Finance, Poonawalla Fincorp, and Tata Capital
  • IPO proceeds fully utilized: ₹9,548.00 million across debt repayment, working capital, inorganic growth, and general corporate purposes
  • Property, plant and equipment: Increased to ₹442.98 million with ₹69.54 million in additions

Corporate Governance & Regulatory Matters

  • Board Changes: Mr. Kevin Rohitbhai Daftary redesignated as Nominee Director; Mr. CV Ram resigned as Group CFO, replaced by Dr. Balakrishnan Natesan Kaushik
  • Regulatory Compliance: Received order from Controller of Legal Metrology, Maharashtra; temporary drug license suspension of subsidiary with no material impact
  • Annual Report Re-filing: Document re-filed to correct inadvertent error in Note 52 of consolidated financial statements
  • Credit Rating: India Ratings and Research affirmed 'IND A-' with stable outlook

Related Party Transactions & Employee Benefits

  • Related Party Transactions: Totaled ₹4,146.37 million with promoters and entities under significant influence
  • Key Management Compensation: Prabhat Agrawal (₹47.25 million), Prem Sethi (₹25.76 million), total ₹87.97 million
  • Employee Benefits: Defined benefit plans obligation ₹231.64 million; ESOP expense ₹35.50 million with 205,545 options outstanding
  • CSR Spending: ₹16.11 million deployed for ambulance services, diagnostic imaging, and educational infrastructure

Risk Management & Capital Structure

  • Credit Risk: Trade receivables ₹12,124.42 million with allowance for expected credit loss of ₹888.43 million
  • Liquidity Risk: Maturities well managed with ₹4,441.23 million borrowings due within 1 year
  • Market Risk: 100 basis points interest rate change would impact profit after tax by ₹36.64 million
  • Corporate Guarantees: Outstanding ₹6,327.00 million to subsidiaries

The company maintains strong capital management with consolidated net assets of ₹17,525.46 million and continues to focus on strategic expansion while improving operational efficiency and financial metrics.