In , Entero Healthcare Solutions Ltd (Pharmacy Distribution) is outperforming Nifty 500 with +8.7% relative strength. Fundamentals: Weak. On a 4-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 19, 2026
What: MedTech Revenue Share: 15% post-consolidation
Impact: 50-75 bps EBITDA margin
“representation of MedTech in our business will be 14%-15%... expect that at least 50 to 75 basis points on overall consol financials.”
What: Organic Growth vs Industry: 17.1% vs 12%
“organic growth was 17.1% year-on-year... we continue to grow faster than the industry, which grew by 12%.”
What: Other Expenses %: 6.1% vs 6.4% in Q1
Impact: 20 bps improvement
“if you look at even inclusive of that, we were like 20 basis points improvement over quarter 1... our expenses were around 6.4%. Now, it has gone to 6.1%.”
What: GLP-1 Market Share: 10%
“Next year when semaglutide goes off patent, then we will have a lot many more manufacturers coming into play.”
What: Acquisition Pipeline: 7 deals
Impact: ₹1,000 Cr+ revenue
“we are on track to close INR1,000 crores plus revenue acquisitions through 7 M&A transactions.”
What: Organic Revenue Growth of 17.1%
“organic growth was 17.1% year-on-year... we continue to grow faster than the industry, which grew by 12% and thereby increase our market share.”
Earnings deceleration risks from management commentary
Trigger: Retrospective provision for past service costs required by new regulations.
Impact: PAT impact: ₹6.1 Cr
Management view: Management stated this is a one-time cost and will not materially affect future margins.
Monitor: labor
Trigger: Transition to lower GST rates reduced the absolute value of billings and receivables.
Impact: PAT impact: 1% growth loss in Sept
Management view: Management expects a 7% benefit in cash flow through lower payouts in H2.
Monitor: regulatory
Trigger: Low import component and zero exports.
Management view: Focus remains on India consumption story.
Monitor: fx
Key quotes from recent conference calls
“So, my question was basically on the guidance part where you mentioned that we maintain our FY26 guidance which included 30% revenue growth for the year. [Previous Revenue Growth guidance]”
“This should aid us in delivering strong positive operating cash flow for the year in the range of INR100 crores plus. [Previous Operating Cash Flow guidance]”
“most of the MedTech distributors are enjoying 10% plus EBITDA margins. So that's very synergistic to our existing business. [Initiative: MedTech Segment Expansion]”
“We are confident of closing FY26 with working capital days of around 60. This should aid us in delivering strong positive operating cash flow. [Initiative: Working Capital Optimization]”
Headline numbers from the latest earnings call
Revenue
₹1,707 Cr
Why: Growth was driven by a 17.1% organic increase and the highest organic growth for the financial year, outperforming the industry's 12% growth.
Revenue growth on a like-to-like basis, adjusting for net margin accounting and subsidiary divestment, stood at 28.5%.
EBITDA
₹68 Cr
Why: Expansion was driven by gross margin improvements of 30 basis points and ongoing focus on operational efficiencies and working capital management.
Management is targeting a 4.5% EBITDA margin in Q4 to meet full-year guidance.
PAT
₹34 Cr
Why: Profit was impacted by a one-off exceptional charge of ₹6.1 crores related to the new labor code in India.
Adjusted for the labor code impact, PAT would have been ₹40 crores, representing 36% YoY growth.
Other Highlights
• Operating cash flow (OCF) turned positive at ₹49 crores for the quarter.
• Net working capital days improved to 61 days on a like-to-like basis.
• MedTech acquisitions of Anand Medilink, Ace Cardiopathy, Bioaide, and Anand Chemiceutics were closed.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Organic Revenue Growth
17.1%
Why: Highest organic growth for the financial year, driven by market share gains.
MedTech Revenue Share
15%
Why: Targeted share post-consolidation of recent acquisitions.
Net Working Capital Days
61 days
Why: Improved due to credit monitoring and collection discipline.
Retail Pharmacy Reach
97,600+
Why: Expansion of distribution network across 505 districts.
Warehouse Count
131
Why: Supported by new acquisitions and organic expansion.
Total SKU Count
89,200+
Why: Expansion of product portfolio through MedTech and trade generics.
Return on Capital Employed
14.8%
Why: Steady improvement in return ratios driven by margin expansion.
Effective Tax Rate
18%
Why: Lower rate due to available carry-forward losses from acquired entities.
Net Debt
₹200 Cr
Why: Utilized for acquisitions and milestone payments.
GLP-1 Market Share
10%
Why: Strong nationwide reach allows for high share in specialized categories.
Forward-looking targets from management for FY26
Revenue Growth Target
30%
OPM Guidance
4%
30% like-to-like growth for FY26
REAFFIRMED
₹30-40 lakhs per warehouse
Maintenance and new warehouse setup
Guidance Changes
Operating Cash Flow: ₹100 crores plus → ₹100 crores plus
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +26% | +26% | Stable |
| PAT (Net Profit) | +17% | +80% | Decelerating |
| OPM | 4.0% | 0 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Entero Healthcare Solutions Ltd's latest quarterly results (Dec 2025) show
Entero Healthcare Solutions Ltd's profit is growing with an decelerating trend.
Entero Healthcare Solutions Ltd's revenue growth trend is stable.
Entero Healthcare Solutions Ltd's operating margin is expanding.
Entero Healthcare Solutions Ltd's long-term compounding rates
Entero Healthcare Solutions Ltd's earnings growth is decelerating with mixed signals on a sequential basis.
Entero Healthcare Solutions Ltd's trailing twelve month (TTM) performance
Entero Healthcare Solutions Ltd appears significantly overvalued based on our fair value analysis.
Entero Healthcare Solutions Ltd's current PE ratio is 45.8x.
Entero Healthcare Solutions Ltd's current PE is 45.8x.
Entero Healthcare Solutions Ltd's price-to-book ratio is 3.0x.
Entero Healthcare Solutions Ltd is rated Weak with a fundamental score of 32.03/100. This score is calculated from objective financial metrics
Entero Healthcare Solutions Ltd has a debt-to-equity ratio of N/A.
Entero Healthcare Solutions Ltd's return ratios over recent years
Entero Healthcare Solutions Ltd's operating cash flow is negative (FY2025).
Entero Healthcare Solutions Ltd currently does not pay a significant dividend (yield 0.00%).
Entero Healthcare Solutions Ltd's shareholding pattern (Mar 2026)
Entero Healthcare Solutions Ltd's promoter holding has remained stable recently.
Entero Healthcare Solutions Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Entero Healthcare Solutions Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
Entero Healthcare Solutions Ltd has 6 key growth catalysts identified from recent earnings analysis
Entero Healthcare Solutions Ltd has 3 key risks worth monitoring
In Q3 FY26, Entero Healthcare Solutions Ltd's management highlighted
Entero Healthcare Solutions Ltd's management has provided the following forward guidance for FY26
Entero Healthcare Solutions Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Entero Healthcare Solutions Ltd may be worth studying
Entero Healthcare Solutions Ltd investment thesis summary:
Entero Healthcare Solutions Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
