Entero Healthcar Q2 FY27 Results (NSE: ENTERO)
Signal: Margin expansion
The read
The trajectory remains margin-positive: consolidated revenue grew 32.9% YoY while operating profit grew approximately 78.3% and EBITDA margin expanded 210bps to 5.3%; the key watchpoint is whether subsidiary-led scale can offset finance costs that rose 86.6% YoY and the weaker comparability from acquired entities.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,087.07 Cr | +32.9% | +7.6% |
| Net profit | ₹45.54 Cr | +44.1% | |
| EPS | ₹10.47 | +44.2% | |
| EBIT margin | 5.3% |
P&L walk
Revenue increased to ₹20,870.75 million, +32.9% YoY and +7.6% QoQ, while gross margin rose to 11.5% and EBITDA margin expanded to 5.3%; employee costs grew 19.4% YoY, supporting operating leverage, although finance costs rose 86.6% YoY.
Segments
The consolidated group is substantially larger than the parent: consolidated revenue was ₹20,870.75 million and owner PAT ₹455.43 million versus standalone revenue of ₹1,145.71 million and PAT ₹191.44 million, indicating subsidiaries are driving both scale and the earnings base.
Key positives
- Consolidated revenue reached ₹20,870.75 million, +32.9% YoY and +7.6% QoQ, sustaining the company’s high-growth trajectory.
- Operating margin expanded to 5.3% from approximately 3.2% a year earlier; operating profit grew approximately 78.3% versus revenue growth of 32.9%, a +45.4 percentage-point growth gap.
- Employee benefits rose 19.4% YoY to ₹707.21 million, materially slower than revenue growth, supporting operating leverage.
- Owner PAT increased 44.1% YoY to ₹455.43 million and EPS increased 44.2% to ₹10.47, with EPS tracking profit growth.
- Consolidated property, plant and equipment increased to ₹336.48 million from ₹269.69 million while depreciation rose 33.5% YoY, a clean capex-to-depreciation signal.
Key concerns
- Finance costs rose 86.6% YoY to ₹231.38 million, materially faster than revenue growth and reducing the conversion of operating gains into profit.
- The quarter includes recently acquired subsidiaries from their respective acquisition dates, and the filing explicitly states that the comparative periods are not fully comparable.
- Standalone revenue of ₹1,145.71 million was only a fraction of consolidated revenue of ₹20,870.75 million, increasing dependence on subsidiary execution and integration.
- Other expenses increased 48.2% YoY to ₹585.95 million, faster than revenue growth and offsetting part of the employee-cost benefit.
Research and educational content only. Not investment advice.