Entero Healthcare Solutions Limited submitted an investor presentation containing unaudited financial results for the quarter and half year ended September 30, 2026 under SEBI Listing Regulations Regulation 30.
Q2 FY27 Financial Performance
- Revenue: ₹2,087.1 Cr, up 33% YoY from ₹1,570.9 Cr in Q2FY26
- Gross Profit: ₹240.0 Cr, up 49% YoY
- Gross Margin: 11.5%, improved by 126bps YoY from 10.2%
- EBITDA: ₹110.7 Cr, up 78% YoY
- EBITDA Margin: 5.3%, improved by 135bps YoY from 4.0%
- Profit After Tax: ₹60.7 Cr, up 66% YoY
- PAT to Owners: ₹45.5 Cr, up 44% YoY
- EPS (Basic): ₹10.47
- EPS (Diluted): ₹10.45
H1 FY27 Financial Performance
- Revenue: ₹4,027.6 Cr, up 35% YoY from ₹2,974.8 Cr in H1FY26
- Gross Profit: ₹461.3 Cr, up 54% YoY
- Gross Margin: 11.5%, improved by 136bps YoY from 10.1%
- EBITDA: ₹207.7 Cr, up 85% YoY
- EBITDA Margin: 5.2%, improved by 139bps YoY from 3.8%
- Profit After Tax: ₹112.8 Cr, up 69% YoY
- PAT to Owners: ₹83.7 Cr, up 41% YoY
- EPS (Basic): ₹19.24
- EPS (Diluted): ₹19.20
Growth Metrics
Q2FY27 Growth:
- Revenue growth on LFL basis: 34.7% YoY
- Organic revenue growth on LFL basis: 20.0% YoY
- Reported revenue growth: 32.9% YoY
- Organic revenue growth: 18.2% YoY
- Inorganic growth: 14.7% (entirely calendarisation)
H1FY27 Growth:
- Revenue growth on LFL basis: 37.2% YoY
- Organic revenue growth on LFL basis: 19.8% YoY
- Reported revenue growth: 35.4% YoY
- Organic revenue growth: 18.0% YoY
- Inorganic growth: 17.4% (entirely calendarisation)
Operational Highlights
- Net Working Capital days: 64 days in Q2FY27 (from 61 days in Q1FY27), impacted by timing in trade receivables on a contract
- ROCE: 22.0% in Q2FY27 (improved from 21.1% in Q1FY27)
- ROE: 22.4% in Q2FY27 (vs 20.4% in Q1FY27)
- No new acquisitions done during Q2 or H1FY27
- Organic growth outpaced IPM growth, moderated by conscious exit from certain low-margin businesses
Cash Flow Statement (H1FY27)
- Net Cash from Operating Activities: ₹(46.5) Cr (negative due to timing in trade receivables on certain government contracts)
- Collection received in November 2026 - adjusted for this collection, H1FY27 operating cashflow would have been positive
- Net Cash from Investing Activities: ₹(180.0) Cr
- Net Cash from Financing Activities: ₹175.6 Cr
- Net decrease in Cash and Cash equivalents: ₹(51.0) Cr
- Cash & Cash equivalents at period end: ₹96.1 Cr
Balance Sheet Highlights (as of September 30, 2026)
- Total Assets: ₹3,871 Cr (vs ₹3,600 Cr as of March 31, 2026)
- Inventories: ₹867 Cr
- Trade Receivables: ₹1,461 Cr
- Cash and Cash Equivalents: ₹96 Cr
- Total Equity: ₹1,874 Cr
- Borrowings: ₹794 Cr (₹188 Cr non-current + ₹606 Cr current)
- Trade Payables: ₹779 Cr
Business Overview and Strategy
- Company is a healthcare supply chain solutions specialist with pan-India presence through 148 warehouses in 50+ cities and 490+ districts
- Among top three healthcare products distributors in India by revenue
- Track record of 51 acquisitions since inception
- FY27 MedTech revenue expected to cross ₹1,000 Cr
- Focus on IVD and Cardiology/Orthopedic devices segments which are large and high growth
- Offers both demand generation and demand fulfilment capabilities to healthcare brands
- Proprietary technology platform with integrated business intelligence tools
Management Commentary
Prabhat Agrawal, Promoter, MD and CEO stated: "We continued the strong organic growth momentum outpacing industry growth and sustained improvement in EBITDA margin in the second quarter. Our revenue grew by 34.7% YoY (LFL) with EBITDA margin at 5.3%. We are pleased with the performance in first half of the year and are on track to deliver comfortably against our full year guidance."
Market Context
- Pharmaceutical supply chain in India is highly fragmented with top 3 players having only 8-10% market share
- Market consolidation expected with share of large/national distributors expected to rise to 20-30% by FY28
- Entero positioned to benefit from consolidation trend