Entero Healthcare Solutions Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Entero Healthcare Solutions Ltd filed with BSE on 02 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Entero Healthcare Solutions reported full year FY26 revenue of Rs 6,591 crores, growing 31.5% year-on-year on a like-for-like basis, with EBITDA margin of 4% and PAT of Rs 146 crores. Quarter 4 revenue grew 42.6% year-on-year with EBITDA margin at 4.5% and PAT growing 44% to Rs 45.1 crores. Management gave FY27 guidance of 23% revenue growth excluding new acquisitions, 5% EBITDA margin, and at least 50% EBITDA to operating cash flow conversion.
Numbers mentioned
Revenue: INR6,591 crores (FY26)
p. 4
“In line with the guidance, our full year revenue on a like-for-like basis grew by 31.5% with top line at INR6,591 crores.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
EBITDA margin: 4% (FY26)
p. 4
“Again, I'm pleased to share that we delivered 4% EBITDA margin, which is +67 basis points year-on-year with EBITDA at INR266 crores.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
Gross margin: 10.3% (FY26)
p. 4
“This came on the back of gross margin expansion of 78 basis points year-on-year to 10.3%, driven by better product mix and procurement efficiencies.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
Gross profit: INR680 crores (FY26)
p. 4
“Gross profit came in at INR680 crores, up 40% year-on-year.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
PAT: INR146 crores (FY26)
p. 4
“Full year PAT stood at INR146 crores with PAT margin of 2.2%.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
Operating cash flow: INR96.2 crores (FY26)
p. 4
“Our optimization efforts, especially on inventory and accounts receivable side, along with improved EBITDA margin drove operating cash flow of INR96.2 crores for the full year.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
Return on capital employed: 14.6% (FY26)
p. 4
“Return on capital employed improved to 14.6% in FY '26 from 10.7% in FY '25 and return on equity increased to 12.5% from 7.7% in FY '25.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
Revenue growth: 42.6% (Q4 FY26)
p. 4
“Revenue grew 42.6% year-on-year with organic growth on like-for-like basis at 17.1% and growth led by new acquisitions at 26%.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
Gross margin: 10.9% (Q4 FY26)
p. 4
“Gross margin expanded by 110 basis points to 10.9% during the quarter, with gross profit growing by 59% year-on-year to INR207 crores.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
EBITDA margin: 4.5% (Q4 FY26)
p. 4
“Our EBITDA margin was at 4.5%, that is 85 basis points plus year-on-year with EBITDA at INR86 crores, growing by 76%.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
PAT: INR45.1 crores (Q4 FY26)
p. 4
“PAT margin was 2.4%. PAT grew by 44% year-on-year to INR45.1 crores.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
ROCE: 18.4% (Q4 FY26)
p. 4
“Our ROCE on a quarterly basis improved to 18.4% from 14.8% in the last quarter.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
Operating cash flow: INR104.6 crores (Q4 FY26)
p. 4
“We achieved operating cash flow of INR104.6 crores with net working capital days at 59 days versus 64 days in the previous quarter.”
Prabhat Agrawal, page 4 of the filed PDF · View the filing
MedTech segment revenue: more than INR1,000 crores annualized
p. 5
“The segment now contributes more than INR1,000 crores in annualized revenue for us.”
Prabhat Agrawal, page 5 of the filed PDF · View the filing
Total gross margin: 10.9% (Q4 FY26)
p. 17
“What the total gross margin for this quarter was 10.9%.”
Prabhat Agrawal, page 17 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 23% year-on-year · FY27
stated firmly by Prabhat Agrawal
p. 5
“We aim for consolidated revenue growth of 23% year-on-year, excluding any new acquisitions with 5% EBITDA margins.”
Prabhat Agrawal, page 5 of the filed PDF · View the filing
EBITDA margin — 5% · FY27
stated firmly by Prabhat Agrawal
p. 5
“We aim for consolidated revenue growth of 23% year-on-year, excluding any new acquisitions with 5% EBITDA margins.”
Prabhat Agrawal, page 5 of the filed PDF · View the filing
EBITDA to operating cash flow conversion — at least 50% · FY27
stated firmly by Prabhat Agrawal
p. 5
“We aim to deliver EBITDA to operating cash flow conversion ratio to be at least 50% to ensure sustainable growth path for future.”
Prabhat Agrawal, page 5 of the filed PDF · View the filing
Minority interest as % of PAT before minority interest — 25% to 27% · FY27
stated firmly by Prabhat Agrawal
p. 6
“So what we can say for next year, you can take around 25% to 27% of PAT before minority interest to be contribution from minority interest.”
Prabhat Agrawal, page 6 of the filed PDF · View the filing
Tax rate — 22% to 23% · FY27
stated firmly by Balakrishnan Kaushik
p. 8
“So we expect it to be in the range of about 22% - 23% for FY '27.”
Balakrishnan Kaushik, page 8 of the filed PDF · View the filing
Finance cost — next couple of years
stated firmly by Balakrishnan Kaushik
p. 10
“So because in the earlier years, we had the IPO funds, which were also parked pending investment into acquisitions, which has happened in the last year.”
Balakrishnan Kaushik, page 10 of the filed PDF · View the filing
MedTech contribution to revenue — up to 20% · 2-3 years
stated as an aspiration by Prabhat Agrawal
p. 9
“It can go up to 20%. See, pharma will still remain a core part of our business, right, because that's where we have massive scale as well.”
Prabhat Agrawal, page 9 of the filed PDF · View the filing
ROCE — exceed 20% · FY27
stated firmly by Prabhat Agrawal
p. 18
“So the ROCE for this quarter was 1.4%, right? And with the margin expansion to next year by another 0.5% from the current quarter, definitely the ROCE for next year will exceed 20%...”
Prabhat Agrawal, page 18 of the filed PDF · View the filing
New acquisitions — none included in FY27 guidance · FY27
stated conditionally by Prabhat Agrawal
p. 9
“But as we say, we are not walking away from looking at any new acquisition opportunity. If something interesting comes up, we would definitely look at it.”
Prabhat Agrawal, page 9 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said one subsidiary had an abnormal contribution and minority interest would normalize going forward.
Answered by Prabhat Agrawal
Asked by Govindarajan Chellappa: Why did minority interest jump sharply in Q4 relative to incremental EBITDA?
p. 5
“In the last quarter of financial year '26, we had an abnormal contribution from one of our subsidiaries, which -- where we have partial stake, not full stake.”
Prabhat Agrawal, page 5 of the filed PDF · View the filing
Management said GLP-1 is a small part of the portfolio but they have disproportionate share due to cold chain infrastructure, and it's built into guidance.
Answered by Prabhat Agrawal
Asked by Chintan Sheth: Does the 23% organic growth guidance factor in a full-year GLP-1 impact?
p. 6
“So given the fact that we have the cold chain facility in all of our warehouses and there are a few specific companies doing GLP-1. So we would get a disproportionate share of GLP-1 distribution for sure.”
Prabhat Agrawal, page 6 of the filed PDF · View the filing
Management said the timeline varies by contract, from 3 to 5 years.
Answered by Prabhat Agrawal
Asked by Chintan Sheth: What is the typical timeline to buy out remaining minority stakes in acquisitions?
p. 7
“So in some of the cases, it's a 3-year period. In some cases, it could be 5 year.”
Prabhat Agrawal, page 7 of the filed PDF · View the filing
CFO explained this was due to first-time recognition of put option liability under IndAS for entities that are not 100% owned.
Answered by Balakrishnan Kaushik
Asked by Chintan Sheth: Why did net worth appear flattish despite strong profitability?
p. 7
“This is basically the impact of the first-time recognition of put option liability.”
Balakrishnan Kaushik, page 7 of the filed PDF · View the filing
Management attributed growth to calendarization of acquisitions and organic growth, with margin driven by MedTech contribution and giving up low-margin businesses.
Answered by Prabhat Agrawal
Asked by Akshat Mehta: What is driving the 23% revenue growth and 5% margin guidance?
p. 7
“So 23% revenue guidance basically based on two, three things. One is, of course, the calendarization impact of the acquisitions done during the last year, right?”
Prabhat Agrawal, page 7 of the filed PDF · View the filing
CFO guided to 22-23%.
Answered by Balakrishnan Kaushik
Asked by Akshat Mehta: What tax rate should be expected for FY27?
p. 8
“So we expect it to be in the range of about 22% - 23% for FY '27.”
Balakrishnan Kaushik, page 8 of the filed PDF · View the filing
Management said the focus for the next 6-8 months will be organic growth rather than new acquisitions.
Answered by Prabhat Agrawal
Asked by Sudarshan Padmanabhan: What is the M&A strategy going forward given rising minority interest?
p. 9
“So for next 6 to 8 months, we are only going to focus on delivering organic growth because there are a lot of opportunities that is available to us given that huge platform that we have built.”
Prabhat Agrawal, page 9 of the filed PDF · View the filing
Management acknowledged IPM growth rate rose sharply, reducing the multiplier, but said organic growth rate itself remained steady around 15-17%.
Answered by Prabhat Agrawal
Asked by Shubham Aggarwal: Has the company's outperformance versus IPM structurally reset lower?
p. 12
“But the denominator has increased significantly from 7% to 9%, it has gone to now 12% for last two quarters. And that's why you see this 1.4x against 1.7, 1.8x that we used to have earlier, okay.”
Prabhat Agrawal, page 12 of the filed PDF · View the filing
Management said FY27 margin guidance of 5% is higher than Q4's 4.5%, driven by multiple factors beyond MedTech.
Answered by Prabhat Agrawal
Asked by Shubham Aggarwal: Was the Q4 EBITDA margin inflated by the abnormal minority interest subsidiary, and will margins face a headwind next year?
p. 13
“So on an overall margin basis, I'm revising my guidance upwards, not reducing, right.”
Prabhat Agrawal, page 13 of the filed PDF · View the filing
Management confirmed the base is already achieved and will grow organically without new acquisitions.
Answered by Prabhat Agrawal
Asked by Divya Agrawal: Is the INR1,000 crore MedTech revenue target achievable without further acquisitions?
p. 13
“INR1,000 crores is just based on what we have today, what we are delivering today. We don't need more companies to take to INR1000, 1,000 crores base already achieved.”
Prabhat Agrawal, page 13 of the filed PDF · View the filing
Management said direct imports are a very small portion of sales and the company is largely insulated as a domestic player.
Answered by Prabhat Agrawal
Asked by Sidharth Negandhi: Is the company exposed to Middle East crisis-related import challenges?
p. 11
“Largely, we are insulated. To be honest, like if you look at the last quarter, the conflict started in end of February, our numbers for the quarter was good.”
Prabhat Agrawal, page 11 of the filed PDF · View the filing
Management said recent acquisitions retain all key people because they have skin in the game via retained stakes.
Answered by Prabhat Agrawal
Asked by Kumar Saurabh: What percentage of acquired companies still have original key management retained?
p. 15
“But the recent acquisitions, everyone is with us because they want to be with us.”
Prabhat Agrawal, page 15 of the filed PDF · View the filing
Management described a two-way network effect between 100,000 customers and 3,000+ supplier companies as a difficult-to-replicate moat.
Answered by Prabhat Agrawal
Asked by Bharat Shah: What is the sustainable competitive moat behind the company's returns?
p. 18
“We have 100,000 customers in India, right? -- and we have more than 3,000 companies that -- for which we are the distributors in the country, right? Nobody has that kind of a network.”
Prabhat Agrawal, page 18 of the filed PDF · View the filing
CFO explained FY25 had elevated other income from IPO funds parked in deposits/mutual funds, which have since been deployed.
Answered by Balakrishnan Kaushik
Asked by Bharat Shah: Why did other income decline from FY25 to FY26?
p. 19
“So basically, FY '25, we had a large other income mainly because we had funds from the IPO that were there during -- that were invested during FY '25 in deposits, mutual funds, etcetera.”
Balakrishnan Kaushik, page 19 of the filed PDF · View the filing
Risks flagged
Rising debt and interest costs from IPO fund utilization for acquisitions
p. 16
“Interest cost will go up because we have acquired many entities for which we are paying up. And we have already finished up the IPO funds, right?”
Prabhat Agrawal, page 16 of the filed PDF · View the filing
Potential impact from Middle East conflict on industry-wide critical imports
p. 11
“but if the whole industry faces a challenge like the pharma industry faces challenge or MedTech industry faces challenge in terms of their own typical critical imports, then we might -- we will be impacted by that as well.”
Prabhat Agrawal, page 11 of the filed PDF · View the filing
Departure of promoters/selling shareholders after lock-in periods
p. 15
“So if you look at our earlier acquisitions, the ones that we did in FY '19, '20, '21, some of the promoters have left because the lock-in period is over.”
Prabhat Agrawal, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.