Entero Healthcare Solutions Limited reported a robust performance in the first quarter of FY27 (Q1 FY27), with consolidated revenue growing by 38.2% year-on-year to INR 1,940 crore. On a like-for-like basis, the growth was even stronger at 40%. The company also achieved a significant improvement in profitability, with EBITDA margins reaching 5%, meeting its full-year guidance in the first quarter itself.
Entero Healthcare Reports Strong Q1 FY27 Results
Entero Healthcare Solutions Limited has announced its financial results for the first quarter of Fiscal Year 2027 (Q1 FY27), showcasing significant growth across key financial metrics. The company’s consolidated revenue for the quarter reached INR 1,940 crore, marking a substantial increase of 38.2% compared to the same period last year.
Revenue Growth Drivers
The impressive top-line performance was further amplified by a like-for-like revenue growth of 40%. This adjusted figure accounts for the impact of revenue recognized on a net margin basis and the divestment of a subsidiary in the base period. The company highlighted that organic revenue growth stood at 17.8% on a reported basis, and 19.6% on a like-for-like basis, comfortably outpacing the pharmaceutical market growth of 13.8%. Inorganic growth contributed 20.4%, primarily from the calendarization of acquisitions made in the previous year, with no new acquisitions during Q1 FY27.
Margin Expansion and Profitability
Entero Healthcare demonstrated meaningful margin improvement, with EBITDA margins expanding by 143 basis points to reach 5% for the quarter. This achievement means the company has met its full-year FY27 EBITDA margin guidance within the very first quarter. EBITDA grew by 94% year-on-year, nearly 2.5 times the revenue growth rate. This margin expansion was attributed to scale-led procurement economies, a growing share of revenue from the MedTech business, and the deliberate exit from certain low-margin accounts. Profit after tax for the quarter was INR 52 crore, up 72% year-on-year, with a PAT margin of 2.7%. Profit attributable to owners was INR 38 crore, a 37% year-on-year increase.
Operational Efficiencies and Returns
The company also reported structural efficiency gains, with net working capital days improving to 61 days from 66 days in the prior year. Return ratios saw a significant uplift, with ROCE doubling year-on-year from 11.5% to 21.1%, and ROE moving from 9% to 20.4%. These figures are comfortably ahead of the full-year FY26 numbers, indicating growth combined with capital efficiency.
MedTech Segment Focus
The MedTech segment is identified as a key structural lever for medium-term margin improvement. Entero Healthcare is on track for MedTech revenue to cross INR 1,000 crore in FY27 on an organic basis, with higher gross and EBITDA margins than its core pharmaceutical distribution business. The company’s focus for the year remains on deepening relationships and building organic capabilities within this segment.
Strategic Outlook
Entero Healthcare continues to scale its operations, serving over 72,000 retail and 2,300 hospital customers. The company reaffirmed its FY27 guidance of consolidated revenue growth of approximately 23% year-on-year (excluding new acquisitions), along with an EBITDA margin of 5% and EBITDA to operating cash flow conversion of 50%. Entero believes its differentiated and scalable platform positions it for long-term compounding growth in the large, fragmented Indian healthcare market.
Source: BSE
