Entero Healthcar Q1 FY27 Results (NSE: ENTERO)
Signal: Growth decelerated
The read
The trajectory strengthened at the operating level: consolidated revenue accelerated to +38.2% YoY from +25.6% in Q3FY26 and +42.6% in Q4FY26 remained elevated, while EBITDA margin reached 5.2% versus the recent 4% series; however, finance costs rose 93.1% YoY and ₹13.89 Cr of PAT accrued to non-controlling interests, so group growth is increasingly acquisition-led and must convert into owner earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹194.05 Cr | +38.2% | +1.6% |
| EBIT | ₹8.77 Cr | N/A | |
| Net profit | ₹3.82 Cr | +37.3% | |
| EPS | ₹8.77 | +37.3% | |
| EBIT margin | 5.2% |
P&L walk
Consolidated revenue rose to ₹1940.5 Cr, +38.2% YoY and +1.6% QoQ, while EBITDA reached ₹100 Cr and EBITDA margin was 5.2%; PAT attributable to owners increased to ₹38.16 Cr, +37.3% YoY, but ₹13.89 Cr was attributable to non-controlling interests.
Segments
The group operates as one reportable pharmaceutical and surgical-products segment, but the consolidated-versus-standalone gap is material: consolidated revenue was ₹1940.5 Cr and owner PAT ₹38.16 Cr versus standalone revenue of ₹83.27 Cr and PAT of ₹3.46 Cr, confirming that earnings are generated predominantly by subsidiaries.
Key positives
- Consolidated revenue of ₹1940.5 Cr grew 38.2% YoY, accelerating from 25.6% YoY in Q3FY26 and remaining strong after 42.6% growth in Q4FY26.
- EBITDA was ₹100 Cr at a 5.2% margin, above the recent 4% OPM run-rate, indicating an operating-margin inflection.
- Employee benefits and other expenses rose only 3.2% YoY to ₹124.37 Cr versus 38.2% revenue growth, supporting margin expansion.
- Owner EPS of ₹8.77 grew 37.3% YoY and tracked owner PAT growth, with no material dilution signal in the PAT-to-EPS cross-check.
Key concerns
- Finance costs increased 93.1% YoY to ₹20.57 Cr, materially faster than revenue and reducing operating-to-PAT conversion.
- Non-controlling interests received ₹13.89 Cr of the ₹52.05 Cr consolidated PAT, leaving only ₹38.16 Cr attributable to owners.
- The consolidated comparison is not fully like-for-like because subsidiaries acquired during FY26 were consolidated from their respective acquisition dates.
- Standalone PAT fell 74.2% YoY to ₹3.46 Cr despite ₹23.15 Cr of other income, underscoring the dependence of reported group earnings on subsidiaries.
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