Entero Healthcare Solutions Limited announced its financial results for the second quarter of FY27, reporting a consolidated revenue growth of 32.9% to INR2,087 crore. The company also saw significant improvements in profitability, with EBITDA margin expanding by 135 basis points to 5.3%. Management expressed confidence in exceeding FY27 guidance, citing strong market share gains and a robust business model.
Entero Healthcare Solutions Reports Robust Q2 FY27 Performance
Entero Healthcare Solutions Limited has announced its financial results for the second quarter and first half of the financial year 2026-27. The company has demonstrated strong growth, with consolidated revenues increasing by 32.9% year-on-year to INR2,087 crore for the quarter. On a like-for-like basis, which adjusts for revenue recognized on a net margin basis and the divestment of a subsidiary in the base period, the growth was even higher at 34.7%.
Profitability and Margin Expansion
The company also achieved significant improvements in profitability. Gross margin expanded by 126 basis points year-on-year to 11.5%. EBITDA margin saw an increase of 135 basis points, reaching 5.3%. Consequently, EBITDA grew by a substantial 78% year-on-year. This margin expansion was attributed to several key factors, including scale-led procurement economies, a growing contribution from the MedTech business, and the strategic exit from certain low-margin accounts.
First Half Performance
For the first half of the financial year, consolidated revenues grew by 35% year-on-year to INR4,028 crore. Gross profit stood at INR461 crore with a margin of 11.5%. While operating cash flow was impacted by fund reallocations due to the drought situation in Maharashtra, management stated that it would have been positive had the funds been received on the due date. Return ratios also showed improvement, with ROCE and ROE at 22.0% and 22.4% for the quarter, respectively.
Strategic Outlook and Business Model
Entero Healthcare Solutions remains confident in sustaining its momentum and expects to surpass its stated FY2027 guidance, which projected a consolidated revenue growth of approximately 23% and an EBITDA margin of 5%. The company is focused on its differentiated business model, gaining market share, and building a sustainable business. The expansion into the MedTech sector is highlighted as a key growth opportunity, leveraging existing infrastructure and customer relationships.
Acquisition Strategy
Regarding acquisitions, the company indicated that while it is not evaluating small acquisitions, there are still large acquisition opportunities available in both the pharma and MedTech spaces. They are evaluating these opportunities with the hope of closing some within the current year. The focus is on opportunities that lead to portfolio expansion or entry into new product categories or geographies.
Source: BSE
