Entero Healthcare Solutions Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Entero Healthcare Solutions Ltd trades at ₹1,822, in a confirmed uptrend and 21 weeks into that stage. That is +37.7% against its own 200-day average. It sits at 99% of a 52-week range of ₹953 to ₹1,828. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 10 straight weeks.

Today the stock is in a confirmed uptrend — week 21 of stage 2, confirmed. At ₹1,822 it trades +37.7% versus its 200-day average and sits at 99% of its 52-week range (₹953–₹1,828).

Against the market, two honest reads. Cumulative: over the last 2.6 years the stock moved +58% while the NIFTY 500 moved +12% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 10 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Entero Healthcare Solutions Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: Not stated in the research file. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. Q1 FY27 delivered the thesis pivot — 5% EBITDA margin hit in the very first quarter against the full-year target, ROCE doubled to 21%, PAT up 72% — but the unexplained contraction in reported network metrics (72,000 vs 100,000+ customers) raises a structural question about the moat's reported scale.

From the numbers. PE compressed from peak 82.15x (Jun 2024) to 44.4x now — entirely earnings-driven (EPS +115% off-trough, PE falling). At 22nd percentile of own 10-year history. The STRONG_OPPORTUNITY label is mathematically earned but…

From the price. Price stage 2, week 21 — above its 200-day line, relative strength rising.

From the research. Q1 FY27 delivered the thesis pivot — 5% EBITDA margin hit in the very first quarter against the full-year target, ROCE doubled to 21%, PAT up 72% — but the unexplained contraction in reported network metrics (72,000 vs…

🚨 Where they disagree. PE compressed from peak 82.15x (Jun 2024) to 44.4x now — entirely earnings-driven (EPS +115% off-trough, PE falling). At 22nd percentile of own 10-year history. The STRONG_OPPORTUNITY label is mathematically earned but the data_sufficiency is MODERATE (short history since IPO FY24). EARNINGS_DISCONNECT: despite delivering strong numbers, the market has not re-rated — suggesting the re-rating catalyst (sustained margin delivery) is still ahead. FII_SELLING is the technical overhang; DII absorption provides a floor.

What is proven. Q1 FY27 delivered the thesis pivot — 5% EBITDA margin hit in the very first quarter against the full-year target, ROCE doubled to 21%, PAT up 72% — but the unexplained contraction in reported network metrics (72,000 vs 100,000+ customers) raises a structural question about the moat's reported scale.

🚨 What would change our mind. OPM reverting below 4.5% for two consecutive quarters after Q1 FY27's 5% level (confirming PEAK_MARGIN_VALUE_TRAP as real rather than a false positive from short data); OR organic growth falling below IPM for two quarters without an acquisition-timing explanation (loss of market share); OR the network contraction confirmed as genuine customer exits (72,000 active customers vs the 100,000+ reported three months earlier) with Q2 FY27 showing no recovery, and management still unable to explain why…

Layer 1 read, 22 August 2026 — KEEP. Hit its full-year margin target in one quarter — but its customer count fell by a third, unexplained. Entero is compounding hard: sales up 38.2% to Rs 1,940cr, operating margin up to 5% (the full-year FY27 target, delivered in Q1), return on capital doubled to 21.1%, and organic growth of 19.6% against a market growing 13.8% - it is taking share, and the margin gain comes from a genuine shift into medical devices that earn 15-20% versus 4-5% for plain pharma. But the August call reported 72,000 retail customers where May reported over 100,000, and hospitals fell from 3,600 to 2,300, with management describing the platform as still scaling and explaining none of it - and that customer network IS the moat being paid for. Separately, a quarter of the profit belongs to minority partners in the…

What would change Layer 1’s mind. Taking the timeline's three-part falsification line and naming the one that decides THIS verdict: the network question. If the Q2 FY27 result (due around mid-November 2026) again reports customers near 72,000 with no reconciliation of the fall from 100,000+, or reconciles it as genuine customer exits rather than a change of definition, then the two-way network that justifies the whole premium is smaller than sold and this goes to DROP. Conversely, a clean definitional explanation plus operating…

Layer 2 read, 22 August 2026 — BENCH. The business is growing, but the reported network moat cannot yet be measured consistently. Entero delivered strong growth and a higher margin, but its stated two-way moat depends on customer reach. The latest call reports materially lower network counts without a bridge, while the external fallback is mixed and the capital-cycle read is NEUTRAL; that is a BENCH data gap, not a DROP finding.

What would change Layer 2’s mind. A Q2 FY27 disclosure that reconciles the 72,000 and 100,000+ customer figures through a clear active-versus-registered bridge would flip BENCH to ADVANCE.

The test written in advance. Network Metric Contraction — Moat Scale Unverified — Network Metric Contraction — Moat Scale Unverified by the next result.

The test written in advance. Management Consistency Pattern — 8 Flags, VERIFY Status — Management Consistency Pattern — 8 Flags, VERIFY Status Two consecutive concalls with zero consistency flags and complete reconciliation of network metric data. by the next result.

Lever 2 · Value-added mix — BUILDING. MedTech organic platform (Anand Chemicells, Ace Cardiopathy, Bio-Med Technology + existing) at Rs 1,000 Cr+ annual run-rate; at 15-20% EBITDA vs 4-5% pharma, scaling MedTech toward 20% of revenue is the +150-200bps margin re-rating lever over 3-4 years. What proves it keeps working: MedTech Platform — 5% Margin Delivered, Aspiration Now 6%+. It stops working if OPM fails to sustain above 4.5% for two consecutive quarters after Q1 FY27's 5%, indicating PEAK_MARGIN_VALUE_TRAP is real and MedTech mix shift is not the structural driver claimed.

Lever 15 · Market-share gains — BUILDING. 19.6% like-for-like organic growth vs 13.8% IPM (Q1 FY27) confirms market share capture; two-way network moat (pharmacies + manufacturers) is the mechanism — but the unexplained drop from 100K+ to 72K customers places the moat's reported scale under scrutiny. What proves it keeps working: Pharma Distribution Moat — Organic Growth 1.42x IPM, Network Contraction Watch. It stops working if Two consecutive quarters of organic growth below IPM rate (not acquisition-timing driven), confirmed by management; OR network contraction validated as genuine customer exits with no recovery by Q3 FY27.

Lever 6 · Order-book wins — BUILDING. FY26 Rs 96.2 Cr OCF marks the first positive fiscal year; Q4 alone Rs 104.6 Cr; FY27 50% EBITDA-to-OCF commitment at Rs 400+ Cr EBITDA implies Rs 200+ Cr OCF target. What proves it keeps working: OCF Inflection — FY26 Turned Positive, FY27 50% Conversion Target. It stops working if FY27 full-year OCF falls below Rs 150 Cr (below 40% EBITDA conversion), indicating payables have reached structural limits and WC absorption resumes.

Lever 12 · New product launch — BUILDING. Rs 10-12 Cr/month GLP-1 run-rate (5% of industry value) with cold-chain advantage across all warehouses; semaglutide patent expiry brings generic entry and higher unit volumes at lower prices — total category grows faster than individual price erosion. What proves it keeps working: GLP-1 Distribution Optionality — Category Building, Semaglutide Patent Tailwind. It stops working if GLP-1 market share falls further without explanation and category growth does not offset; or cold-chain competitors emerge and capture disproportionate new-entrant share.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Entero Healthcare Solutions Ltd reported ₹1,940 Cr of revenue in the Jun 26 quarter, +38.2% year on year. That is the 11th straight quarter of year-on-year growth. Over 6 years it has compounded at 30.2% a year. The last full year, FY26, came in at ₹6,591 Cr. The last four reported quarters add to ₹7,128 Cr.

Why this happened. Organic outperformance has been sustained for 5+ consecutive quarters. The business participates in patented drugs, branded generics, and trade generics. Wallet-share gains from existing customers are the dominant growth driver, not just net new customer adds. The network contraction (C014) creates a binary uncertainty: if definitional change, moat is intact and the reported count is misleading; if genuine customer exits, the moat thesis requires re-examination. Q2 FY27 is the test.

FY26 revenue came in at ₹6,591 Cr (+29.3% on the year), capping 6 years at 30.2% compound. The latest quarter (Jun 26) printed ₹1,940 Cr, +38.2% year on year — the 11th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +31.8% growth against the decade's 30.2% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +31.9% over the last 4 quarters against +31.5%/yr over the last 8 — stabilising; TTM profit +44.8% vs +76.4%/yr — rolling over.

FY26-Q4. revenue ₹1,910 Cr and profit ₹45 Cr as reported.

FY27-Q1. revenue ₹1,940 Cr and profit ₹52 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Entero Healthcare Solutions Ltd's operating margin is 5.0% in the Jun 26 quarter, +1.4 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 7 fiscal years the operating margin has ranged 0.8% to 4.0%. The current quarter is running above every full year in that window.

Why this happened. Q1 FY27 delivered 5% EBITDA margin — full-year FY27 target achieved in Q1. No further MedTech M&A in FY27; focus is organic capability building (deepening existing manufacturer relationships). CEO aspiration is explicitly >6% medium-term. Gross margin 11.4% (+147bps YoY) confirms the mix shift is already appearing in the numbers. IVD reagent rental model creates non-cash depreciation headwind but improves customer stickiness via 5-year contractual visibility.

The latest quarter's operating margin is 5.0%, +1.4 pp against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 0.8%–4.0%, and FY26's 4.0% is the top of that band — a record year.

Why the margin moved: operating margin went +1.4 pp year on year while gross margin went +1.5 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

FY26-Q4. revenue ₹1,910 Cr and profit ₹45 Cr as reported.

FY27-Q1. revenue ₹1,940 Cr and profit ₹52 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Entero Healthcare Solutions Ltd earned ₹52.0 Cr of net profit in the Jun 26 quarter, +73.3% year on year. It is the 9th consecutive quarter of growth. Full-year FY26 profit was ₹146 Cr. The 6-year compound rate is 129.5%. That is 2.7% of the quarter's revenue. The same quarter a year earlier earned ₹30.0 Cr.

Jun 26 profit was ₹52.0 Cr, +73.3% year on year — the 9th consecutive quarter of growth. On the full year, FY26 printed ₹146 Cr (+36.4%), and the 6-year compound rate is 129.5%.

Why profit moved: revenue contributed +38.2% and the margin +1.4 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +44.5% vs revenue +31.8%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q4. revenue ₹1,910 Cr and profit ₹45 Cr as reported.

FY27-Q1. revenue ₹1,940 Cr and profit ₹52 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years −6% of Entero Healthcare Solutions Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹96.0 Cr of operating cash against ₹146 Cr of profit. After ₹444 Cr of capital spending, ₹−348 Cr was left as free cash.

FY26: operating cash of ₹96.0 Cr against reported profit of ₹146 Cr, leaving free cash of ₹−348 Cr after ₹444 Cr of capital spending. Across the last 3 fiscal years the conversion rate is −6% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −6%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: the bigger cash user is investment — capital spending ran 8.0× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Entero Healthcare Solutions Ltd's cash conversion cycle runs 74 days in FY26, down from 82 days in FY21. Capital spending ran ₹791 Cr over the last 3 years. At FY26 sales of ₹6,591 Cr each day of that cycle holds about ₹18.1 Cr, so roughly ₹1,336 Cr sits inside the business at any moment.

FY26: debtors at 67 days, inventory at 52 days — roughly 1.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 74 days, tighter than FY21's 82.

The full loop: cash goes out to suppliers and production on day 0; stock waits 52 days to sell; customers pay about 67 days after that; and suppliers themselves are paid at 45 days — netting out to the 74-day cycle.

In money terms: at FY26 sales of ₹6,591 Cr, each day of the cycle holds about ₹18.1 Cr — so the 74-day loop keeps roughly ₹1,336 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹791 Cr over the last 3 fiscal years against ₹99.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹2.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Entero Healthcare Solutions Ltd earns a ROCE of 10% in FY26. That is up from a trough of 1% in FY21. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 2.2% net margin on 1.83× asset turns.

FY26 ROCE is 10%, recovered from a FY21 trough of 1% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 2.2% net margin × 1.83× asset turns × 2.13× balance-sheet leverage ≈ 8.6% on equity. Margin does its share; leverage is a meaningful part of the equation.

The quarterly return curves and the return-on-invested-capital overlay, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 37% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Entero Healthcare Solutions Ltd carries ₹677 Cr of borrowings against ₹1,689 Cr of equity in FY26, a debt-to-equity of 0.40. Operating profit covers the interest bill 5×. Over 5 years borrowings went from ₹720 Cr to ₹677 Cr. Capital spending ran ₹791 Cr across the last 3 of those years.

FY26: borrowings of ₹677 Cr against equity of ₹1,689 Cr — a debt-to-equity of 0.40. Operating profit covers the interest bill 5×. Over 5 years borrowings went from ₹720 Cr to ₹677 Cr while capital spending ran ₹791 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

The total-debt and debt-to-equity series, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 37% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 19.0 points of Entero Healthcare Solutions Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 4.4% of the company. Domestic institutions moved +13.4 points over the same window, to 15.5%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −19.0 points over 8 quarters to 4.4%; Domestic institutions: +13.4 points over 8 quarters to 15.5%; Promoters: +0.0 points over 8 quarters to 52.4%.

Why the register moved: rotation — foreign institutions −19.0 points against domestic institutions +13.4 points over 8 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Entero Healthcare Solutions Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Entero Healthcare Solutions Ltd trades at 60.2× P/E, mid-range by its own standards (66th percentile). Its long-run median P/E is 51.3×, measured across 2.1 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 60.2× is mid-range by its own standards (66th percentile), against a long-run median of 51.3× measured over 2.1 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +21.3% against a +68.2% price move — the price outran earnings, pushing the multiple UP its own range.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

The PEG ratio and its quarterly curve, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 37% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 25 August 2026 price, Entero Healthcare Solutions Ltd was paying for profit growth of about 22.7% a year. Profit itself has compounded 129.5% a year over the past 6 years. Today the market pays 60.2× P/E, the 66th percentile of its own 2-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 25 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 28 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Entero Healthcare Solutions Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: profit growth has eased from +581.8% at its peak to +44.8% but is still expanding, ROCE lifting at 10.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

58.7/100 — rank 1 of 1 in Pharma Distribution · 72% evidence confidence

Entero Healthcare Solutions Ltd scores 58.7 out of 100 against the 1 companies it is compared with in Pharma Distribution, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 27.9 + 8.3 + 10 + 12.5 = 58.7. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Entero Healthcare Solutions Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

FY27 Revenue Guidance Is Internally Unreconciled · 10 August 2026. May 2026 set FY27 consolidated revenue growth at 23% excluding new acquisitions. The latest call's prepared remarks instead state approximately 25%, while the Q&A repeats 23%, creating an approximately 9% difference in the growth assumption with no explanation. This is material for revenue forecasts and valuation models.

Reported Distribution Network Has Contracted Without Reconciliation · 10 August 2026. The latest call reports materially fewer retail customers, hospital customers, SKUs, and districts than both prior calls, despite describing the platform as continuing to scale and reporting more warehouses. Management does not explain whether the definitions changed, whether customers were exited, or why the network metrics declined; this is material because the network is presented as the company's core moat and growth foundation.

GLP-1 Stated Market Share Halved · 26 May 2026. In the Feb 2026 call, management claimed they were capturing almost 10% of the GLP drug market due to their pan-India presence and unique value proposition. However, in the May 2026 call, they stated they are capturing only about 5% of the overall industry value for GLP drugs, halving their claimed market share without explaining the sudden apparent drop.

MedTech Acquisition Count Discrepancy · 26 May 2026. In the Feb 2026 call, management explicitly named four acquisitions closed within the MedTech segment for the year. However, in the May 2026 earnings call, management summarized the full-year M&A activity by stating they closed only three acquisitions in the MedTech segment, altering some entity names and completely dropping one from the MedTech tally.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions