Entero Healthcare Solutions Limited has reported robust financial results for the first quarter of FY27 (ended June 30, 2026). Consolidated revenue saw a significant 40.0% YoY increase on a like-for-like basis, reaching INR 1,940 crore. The company also achieved further margin improvement, with EBITDA margins climbing to 5.0%. Return ratios also showed strong performance, with ROCE improving to 21.1% and ROE to 20.4%, indicating strong momentum for the fiscal year.
Entero Healthcare Delivers Strong Q1 FY27 Performance
Entero Healthcare Solutions Limited has commenced FY27 on a strong footing, showcasing impressive financial growth in the first quarter ended June 30, 2026. The company announced a consolidated revenue growth of 40.0% year-on-year (YoY) on a like-for-like (LFL) basis, amounting to INR 1,940 crore. This growth was accompanied by an improvement in profitability margins.
Margin Expansion and Improved Returns
The company achieved further margin enhancement, with EBITDA margins reaching 5.0%. Additionally, key return ratios have shown significant improvement. Return on Capital Employed (ROCE) nearly doubled YoY to stand at 21.1%, while Return on Equity (ROE) improved to 20.4%. These metrics underscore the company’s operational efficiency and effective capital management, setting a positive momentum for the remainder of the fiscal year.
Key Financial Highlights – Q1 FY27
Revenue and Profitability Growth
Revenue growth on LFL basis was 40.0% YoY. Organic revenue growth on LFL basis was 19.6% YoY. Reported revenue growth stood at 38.2% YoY, with organic revenue growth at 17.8% YoY and inorganic growth at 20.4%, primarily due to calendarisation. Gross margin improved by 147 basis points (bps) YoY to 11.4%. EBITDA Margin saw an improvement of 143 bps YoY to 5.0%. PAT Margin was reported at 2.7%.
Working Capital and Returns
Net Working Capital (NWC) days improved to 61 days, a reduction from 66 days in Q1 FY26. ROCE witnessed a substantial improvement, increasing to 21.0% from 11.5% in Q1 FY26. ROE was recorded at 20.4% compared to 9.0% in Q1 FY26. The company noted that no new acquisitions were made during the quarter; organic growth outperformed IPM growth, moderated by a strategic exit from certain low-margin businesses.
Consolidated Financial Snapshot
For Q1 FY27, Revenue stood at INR 1,940.5 crore, a 38% increase from INR 1,403.8 crore in Q1 FY26. Gross Profit rose by 59% to INR 221.4 crore with a margin of 11.4%, up from 9.9% in the prior year. EBITDA increased by 94% to INR 97.0 crore, with the margin improving to 5.0% from 3.6%. Profit After Tax (PAT) grew by 72% to INR 52.1 crore, with the PAT margin at 2.7%, up from 2.2% in Q1 FY26.
Balance Sheet and Cash Flow
The consolidated balance sheet as of March 26, shows total assets of INR 3,600.2 crore and total equity and liabilities of the same amount. The consolidated cash flow statement for FY26 indicates a Net Cash from Operating Activities of INR 96.2 crore, with a Net Profit Before Tax of INR 179.3 crore.
Source: BSE
