ENTERO - Entero Healthcar
📢 Recent Corporate Announcements
Mr. Sambit Mohanty, President – Institutional Business at Entero Healthcare Solutions, has resigned from his position effective March 31, 2026. As a Senior Management Personnel (SMP), his departure marks a leadership change in a key business segment. The resignation was submitted on March 11, 2026, to allow him to pursue career opportunities outside the organization. The company has formally notified the stock exchanges in compliance with SEBI listing regulations.
- Mr. Sambit Mohanty resigned as President – Institutional Business on March 11, 2026.
- His official cessation as Senior Management Personnel is effective from the close of business on March 31, 2026.
- The reason for resignation is to pursue external career opportunities for better prospects.
- The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Entero Healthcare Solutions Limited has announced a virtual group meeting with analysts and institutional investors scheduled for March 6, 2026, at 4:00 PM. The interaction is organized by Nirmal Bang Institutional Equities and will focus on the company's performance and outlook. The company has explicitly stated that no unpublished price-sensitive information (UPSI) will be shared during this session. Such meetings are standard practice for listed entities to engage with the investment community and provide clarity on publicly available data.
- Virtual group meeting scheduled for March 6, 2026, starting at 4:00 PM.
- Interaction organized by Nirmal Bang Institutional Equities.
- Discussions will be strictly limited to publicly available information to ensure SEBI compliance.
- The meeting follows Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Entero Healthcare reported a strong Q3 FY26 with revenue growing 26% YoY to ₹1,707 crores, driven by 17.1% organic growth. EBITDA margins expanded by 30 bps to 4%, while adjusted PAT rose 36% to ₹40 crores after accounting for a one-time labor code impact. The company successfully closed several MedTech acquisitions, projecting this segment's annualized revenue to exceed ₹1,000 crores. Management remains confident in achieving its ₹100 crore operating cash flow target for FY26.
- Revenue grew 26% YoY to ₹1,707 crores with a record 17.1% organic growth rate.
- EBITDA increased 36% YoY to ₹68 crores, achieving a 4% margin.
- MedTech acquisitions completed; segment revenue expected to surpass ₹1,000 crores with 50-75 bps EBITDA margin accretion.
- Net Working Capital improved to 61 days (like-to-like), generating ₹49 crores in operating cash flow this quarter.
- Adjusted PAT grew 36% YoY to ₹40 crores, excluding a ₹6.1 crore one-off labor code impact.
Entero Healthcare reported a revenue of ₹1,067.35 million for the quarter ended December 31, 2025, showing growth over the previous quarter's ₹832.21 million. Net profit for the quarter stood at ₹8.05 million, significantly impacted by a one-time exceptional charge of ₹44.87 million related to the implementation of New Labour Codes. The company has successfully utilized its total IPO proceeds of ₹5,548 million for debt repayment, working capital, and inorganic growth. Multiple acquisitions were completed during the period, including Ramson Medical and Sri RK Pharma, to strengthen its distribution network.
- Revenue from operations grew to ₹1,067.35 million in Q3 FY26 compared to ₹832.21 million in Q2 FY26.
- Profit After Tax (PAT) for Q3 FY26 was ₹8.05 million, following a ₹44.87 million exceptional item for labor code compliance.
- The company fully utilized ₹5,548 million of IPO proceeds, with ₹1,425 million used for debt repayment.
- Aggressive inorganic expansion continued with the acquisition of six entities including Ramson Medical and Bio-side Technologies.
- 9M FY26 PAT stood at ₹134.59 million on a total income of ₹3,430.76 million.
Entero Healthcare Solutions Limited has released the audio recording of its earnings conference call for the quarter and nine months ended December 31, 2025. This disclosure follows the company's financial results announcement and provides investors with access to management's discussion on performance. The recording is available on the company's official website, with a written transcript expected to follow soon. This is a standard regulatory filing under SEBI's Listing Obligations and Disclosure Requirements.
- Audio recording of the Q3 and 9M FY26 earnings call is now accessible via the company website.
- The call pertains to the unaudited financial results for the period ending December 31, 2025.
- A written transcript of the proceedings will be shared with BSE and NSE in due course.
- The filing complies with Regulation 30 of the SEBI (LODR) Regulations, 2015.
Entero Healthcare reported a standalone revenue of ₹1,067.36 million for Q3 FY26, showing growth from ₹832.21 million in the previous quarter. However, Standalone Profit After Tax (PAT) plummeted to ₹8.06 million from ₹107.83 million in the same quarter last year, a significant year-on-year decline. This drop was exacerbated by a ₹44.97 million exceptional item related to incremental liabilities from New Labour Codes. Additionally, the company cancelled the proposed acquisitions of Khera Medisolutions and AV Medisolutions due to commercial reasons.
- Standalone Revenue from operations stood at ₹1,067.36 million for Q3 FY26 compared to ₹1,011.52 million YoY.
- Net Profit (PAT) fell sharply to ₹8.06 million from ₹107.83 million in the corresponding quarter of the previous year.
- Recognized an exceptional expense of ₹44.97 million (₹33.65 million net of tax) due to New Labour Code compliance.
- Cancelled two planned acquisitions (Khera Medisolutions and AV Medisolutions) previously announced in 2025.
- Board approved the grant of 5,000 fresh Employee Stock Options (ESOPs) under the 2023 plan.
Entero Healthcare reported a strong Q3FY26 with revenue growing 25.6% YoY to ₹1,706.5 crore, driven by 17.1% organic like-for-like growth. The company achieved a significant milestone by generating positive operating cash flow of ₹49 crore during the quarter, reversing previous negative trends. EBITDA margins improved by 29 bps to 4.0%, while adjusted PAT (excluding a one-off labor code impact) rose 36% to ₹40 crore. Management is aggressively expanding into the high-margin MedTech segment, which is projected to exceed ₹1,000 crore in revenue next fiscal year.
- Reported revenue grew 25.6% YoY to ₹1,706.5 Cr, with organic LFL growth outperforming the industry at 17.1%.
- EBITDA increased by 35.5% YoY to ₹67.8 Cr, with margins expanding to 4.0% from 3.7% YoY.
- Generated positive Operating Cash Flow of ₹49 Cr in Q3, a sharp turnaround from negative ₹10.3 Cr in Q2FY26.
- Completed 7 acquisitions year-to-date, with a strategic focus on the MedTech segment to drive margin expansion.
- Net Working Capital (NWC) days improved to 61 on a like-for-like basis compared to 63 in the previous quarter.
Entero Healthcare reported a sharp decline in standalone net profit to ₹8.06 million for Q3 FY26, down from ₹107.83 million YoY, largely due to a ₹44.97 million exceptional charge for new labour code compliance. Revenue from operations grew modestly to ₹1,067.36 million from ₹1,011.52 million in the year-ago period. Notably, the company has cancelled the proposed acquisitions of Khera Medisolutions and AV Medisolutions due to commercial reasons. The board also approved a small grant of 5,000 fresh ESOPs to employees.
- Standalone Net Profit fell over 92% YoY to ₹8.06 million in Q3 FY26.
- Recognized a one-time exceptional expense of ₹44.97 million related to New Labour Code liabilities.
- Cancelled two previously announced acquisitions (Khera Medisolutions and AV Medisolutions) citing commercial reasons.
- Standalone Revenue from operations increased by 5.5% YoY to ₹1,067.36 million.
- Board approved the grant of 5,000 fresh Employee Stock Options under the 2023 Plan.
Entero Healthcare Solutions approved its Q3 and nine-month financial results for the period ending December 31, 2025. In a significant strategic shift, the company announced the cancellation of the proposed acquisitions of Khera Medisolutions and AV Medisolutions due to commercial reasons. Additionally, the board approved the grant of 5,000 ESOPs to employees at an exercise price of INR 804 per share. The company noted a temporary technical delay in generating the UDIN for the consolidated financial results due to portal maintenance.
- Approved unaudited financial results for the quarter and nine months ended December 31, 2025.
- Cancelled the acquisitions of Khera Medisolutions and AV Medisolutions, previously announced in 2025.
- Granted 5,000 ESOPs under the Entero Employee Stock Option Plan 2023 at an exercise price of INR 804.
- ESOPs have a vesting period ranging from 1 to 4 years and an exercise period of 8 years from vesting.
- Statutory auditors reported a technical error in UDIN generation for consolidated results, to be updated later.
Entero Healthcare's board approved the financial results for the quarter and nine months ended December 31, 2025. A significant strategic update includes the cancellation of the proposed acquisitions of Khera Medisolutions and AV Medisolutions due to commercial reasons. The board also approved the grant of 5,000 ESOPs to eligible employees at an exercise price of INR 804 per share. Additionally, the company noted a technical delay in generating the UDIN for consolidated results due to auditor portal maintenance.
- Approved standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.
- Cancelled the proposed acquisitions of Khera Medisolutions Private Limited and AV Medisolutions Private Limited.
- Granted 5,000 Employee Stock Options (ESOPs) at an exercise price of INR 804 per share.
- ESOPs have a vesting period of 1 to 4 years and an exercise period of 8 years from vesting.
- Statutory auditors reported a temporary technical error in generating UDIN for consolidated results.
Entero Healthcare has successfully closed the acquisition of a 51.5% stake in Anand Chemiceutics, a prominent diagnostic and MedTech solutions provider. This acquisition significantly expands Entero's footprint in the diagnostic distribution space, adding a network of over 1,500 laboratories and hospitals. Management expects the MedTech segment to contribute more than INR 1,000 crore in annualized revenue during the next financial year. This move is a strategic step toward building an integrated healthcare supply chain platform in India.
- Acquired a 51.5% majority stake in Anand Chemiceutics, a diagnostic and MedTech specialist established in 2003.
- The acquisition adds a customer service network of 1,500+ laboratories, hospitals, and government institutions.
- MedTech segment is projected to generate over INR 1,000 crore in annualized revenue in the next financial year.
- Expands capabilities into high-growth areas like advanced genomics and turnkey solutions for hospitals.
- The deal leverages Entero's proprietary technology platform and distribution reach to scale the acquired business.
Entero Healthcare Solutions Limited has successfully completed the acquisition of a 51.51% majority equity stake in Anand Chemiceutics Private Limited. This follows the initial announcement made on November 12, 2025, regarding the proposed transaction. The completion of this acquisition allows Entero to consolidate the financials of Anand Chemiceutics, supporting its inorganic growth strategy. This move strengthens the company's position in the healthcare distribution market.
- Acquired a majority equity stake of 51.51% in Anand Chemiceutics Private Limited.
- The acquisition process was completed on February 07, 2026.
- The transaction was previously disclosed on November 12, 2025.
- The move aligns with SEBI Regulation 30 for material disclosures.
Entero Healthcare Solutions has scheduled its earnings conference call for Friday, February 13, 2026, at 11:00 AM IST. The management will discuss the unaudited financial results for the third quarter and the nine-month period ended December 31, 2025. Key executives including the MD & CEO, COO, and Group CFO will be present to interact with analysts and investors. The call is being hosted by DAM Capital Advisors and follows the company's regulatory disclosure requirements.
- Earnings call scheduled for February 13, 2026, at 11:00 AM IST.
- Focus on financial performance for Q3 and 9M ended December 31, 2025.
- Management participants include MD & CEO Prabhat Agrawal and CFO Balakrishnan Natesan Kaushik.
- Universal dial-in numbers provided are +91 22 6280 1384 and +91 22 7115 8285.
Entero Healthcare Solutions' wholly-owned subsidiary, Atreja Healthcare Solutions Private Limited, has been ordered to temporarily suspend its drug licenses for three days. The suspension, issued by the Karnal Zone Licensing Authority, will be effective from January 30, 2026, to February 1, 2026. This administrative action follows contraventions of the Drugs and Cosmetics Act, 1940. The company anticipates a minor revenue loss of approximately Rs 1.88 million, which is not expected to materially impact the overall financial health of the listed entity.
- 3-day temporary suspension of drug licenses for subsidiary Atreja Healthcare Solutions.
- Suspension period scheduled from January 30, 2026, to February 1, 2026.
- Estimated potential revenue loss of approximately Rs 1.88 million during the suspension.
- Action taken by Senior Drugs Control Officer, Karnal Zone, for violations of Drugs and Cosmetics Rules 64 and 65(5).
- Management confirms no material impact on the overall operations of Entero Healthcare Solutions.
Entero Healthcare Solutions Limited has notified the exchanges regarding a change in the legal structure of its Statutory Auditor. M S K A & Associates, Chartered Accountants, has converted into a Limited Liability Partnership (LLP) effective January 14, 2026. The firm will now be known as M S K A & Associates LLP. This change is purely administrative and does not affect the audit engagement or the auditor's tenure with the company.
- Statutory Auditor M S K A & Associates converted to an LLP on January 14, 2026.
- The firm is now officially renamed as M S K A & Associates LLP.
- There is no change in the existing audit engagement or professional obligations.
- The auditor will continue to serve for the remaining duration of their original appointment tenure.
Financial Performance
Revenue Growth by Segment
Total revenue for Q2 FY26 reached INR 1,571 Cr, representing a 20.8% YoY growth. On a like-to-like basis, adjusted for contracts on a net margin basis, revenue growth was 23.4% YoY. Organic revenue growth stood at 13.4% YoY, which is 1.8x the Indian Pharmaceutical Market (IPM) growth rate of 7.3%. The MedTech segment is projected to cross INR 1,000 Cr in annualized revenue following the integration of recent acquisitions.
Geographic Revenue Split
Not specifically disclosed by region, but the company operates a massive portfolio across 100-plus warehouses nationwide to service various geographies.
Profitability Margins
Gross margin for Q2 FY26 improved to 10.2%, up 84 bps YoY and 29 bps QoQ. PAT margin expanded to 2.3% in Q2 FY26 from 2.0% in Q2 FY25. Profit After Tax (PAT) grew 41% YoY to INR 37 Cr. These improvements are driven by a shift toward higher-value categories like MedTech and trade generics.
EBITDA Margin
EBITDA margin reached 4.0% in Q2 FY26, an improvement of 69 bps YoY and 38 bps QoQ. EBITDA for the quarter was INR 62 Cr, up 46% YoY. The company expects a further proforma impact of 50 to 75 bps on EBITDA margins once all MedTech acquisitions are fully integrated.
Capital Expenditure
The company utilized INR 193 Cr of IPO proceeds for inorganic growth through acquisitions as of March 31, 2025, with INR 44 Cr remaining for this purpose. Acquisitions are funded through a mix of internal accruals, cash balance, and some debt addition.
Credit Rating & Borrowing
The company utilized INR 142.5 Cr of IPO proceeds for the full repayment/prepayment of certain borrowings. Interest was paid back during the reversal of specific territory transactions, though specific interest rate percentages are not disclosed.
Operational Drivers
Raw Materials
As a healthcare distributor, 'raw materials' consist of pharmaceutical products, medical devices, diagnostic consumables, and equipment (cardiology and orthopedic devices).
Import Sources
Not disclosed in available documents; however, the company services products across 100+ warehouses in India.
Key Suppliers
The company distributes for various pharmaceutical and MedTech manufacturers; specific supplier names are not listed, but they carry a 'massive product portfolio'.
Capacity Expansion
Expansion is focused on warehouse reach and segment depth. The company closed 5 acquisitions between July and October 2025 to expand into the MedTech segment.
Raw Material Costs
Gross profit stood at INR 161 Cr (+32% YoY). Procurement efficiency and operational cost optimization contributed to an 84 bps YoY improvement in gross margins.
Manufacturing Efficiency
Not applicable as a distributor; however, operational efficiency is measured by the improvement in RoCE, which rose to 13.8% in Q2 FY26 from 11.0% YoY.
Logistics & Distribution
The role of the distributor in MedTech is more value-added (commercial role), allowing for higher margin pools compared to standard distribution.
Strategic Growth
Expected Growth Rate
30%
Growth Strategy
The 30% revenue growth guidance for FY26 will be achieved through a combination of organic growth (currently 13.4%) and aggressive inorganic expansion. The company is fast-tracking the closure of acquisitions in the MedTech and trade generics segments to bridge the 2.5% gap seen in H1 FY26 growth (27.8% like-to-like vs 30% target).
Products & Services
Pharmaceutical products, trade generics, diagnostic consumables, diagnostic equipment, cardiology medical devices, and orthopedic medical devices.
Brand Portfolio
Entero Healthcare Solutions; the company also operates through various acquired subsidiaries in the MedTech and distribution space.
New Products/Services
Expansion into MedTech (consumables and equipment) and trade generics, which are higher growth and margin accretive.
Market Expansion
Significant expansion in the MedTech segment through 5 new acquisitions closed in H2 2025. The company aims to scale its digital and technology infrastructure to improve healthcare access across India.
Market Share & Ranking
The company's organic growth of 13.4% is 1.8x the Indian Pharmaceutical Market (IPM) growth of 7.3%, indicating significant market share gains.
Strategic Alliances
The company utilizes acquisitions rather than JVs, targeting single-digit EV/EBITDA multiples for all new deals.
External Factors
Industry Trends
The MedTech industry is high-growth and offers higher margin pools for distributors who take on commercial roles. The industry is shifting toward organized distribution and digital infrastructure to improve supply chain efficiency.
Competitive Landscape
The company competes in a fragmented distribution market but is consolidating its position through acquisitions at attractive single-digit multiples.
Competitive Moat
Moat is built on a massive scale (100+ warehouses), a diversified product portfolio (Pharma + MedTech), and a data-driven approach to inventory and credit, which reduced working capital days by 6 days YoY.
Macro Economic Sensitivity
Sensitive to the growth of the Indian Pharmaceutical Market (IPM), which grew at 7.3% during the period.
Consumer Behavior
Chemists reportedly reduced procurement between August 15 and September 15, 2025, due to GST changes, yet Entero maintained 20.8% revenue growth through effective transition management.
Geopolitical Risks
Not specifically mentioned, though the company focuses on the domestic Indian healthcare market.
Regulatory & Governance
Industry Regulations
Operations are subject to the Companies Act 2013, Ind AS, and GST regulations. The company successfully navigated the GST transition in September 2025 across its 100+ warehouses.
Taxation Policy Impact
Direct taxes paid (net of refund) amounted to INR 25.9 Cr in H1 FY26 compared to INR 14.1 Cr in H1 FY25.
Legal Contingencies
The Secretarial Audit Report for FY ended March 31, 2025, reported that the company has adequate systems to ensure compliance with applicable laws and that all board decisions were carried unanimously with no dissenting views.
Risk Analysis
Key Uncertainties
The primary uncertainty is the timing and integration of inorganic deals; a delay in closures resulted in a 2.5% gap relative to the 30% growth guidance in H1 FY26.
Geographic Concentration Risk
Not disclosed, but the company operates 100+ warehouses, suggesting broad domestic diversification.
Third Party Dependencies
The company is dependent on pharmaceutical and MedTech manufacturers for supply, though its 'massive portfolio' across 100+ warehouses suggests a diversified vendor base.
Technology Obsolescence Risk
The company is actively investing in digital, data, and technology infrastructure to mitigate the risk of falling behind in supply chain automation.
Credit & Counterparty Risk
The company has implemented ongoing initiatives around credit monitoring and enhanced collection discipline, successfully reducing working capital days to 63.