ENTERO
Micro CapEntero Healthcare Solutions Limited
Pharma
Entero Healthcare is a leading Indian healthcare supply chain specialist, among the top three distributors by revenue. It offers demand fulfillment and generation solutions for pharma and MedTech products, operating pan-India with 136 warehouses across 520+ districts. The company has a track record of 51 acquisitions.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 72/100Rev +43% YoY · PAT +45% YoY · +12% QoQ · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,910 Cr | +42.6% | +11.9% |
| EBITDA | ₹86 Cr | +75.5% | +26.5% |
| Operating margin | 4.0% | +0 bps | +0 bps |
| PAT | ₹45 Cr | +45.2% | +32.4% |
| PAT margin | 2.4% | +4 bps | +37 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Entero Healthcare reported strong Q4FY26 and FY26 results, with LFL revenue growth of 43.1% and 31.5% respectively. EBITDA margins expanded to 4.5% in Q4 and 4.0% for FY26, driven by improved working capital efficiency and operating cash flow generation of INR 96.2 Cr for the full year.
The company demonstrated strong execution, meeting its FY26 guidance across key financial metrics. Organic growth significantly outpaced the market, and strategic acquisitions, particularly in MedTech, are expanding the addressable market and margin profile. Operational efficiencies are improving, supporting cash flow generation.
Market Consolidation
PositiveManagement expects to benefit from market consolidation, with large/national distributors' share rising to 20-30% by FY28.
Strategic Acquisitions
PositiveThe company closed 7 acquisitions in FY26, including 3 in MedTech, contributing to a track record of 51 acquisitions since inception.
MedTech Expansion
PositiveExpanded beyond pharma into MedTech, broadening addressable opportunity. MedTech revenue is expected to cross INR 1,000 Cr in FY27.
Proprietary Technology Platform
PositiveLeveraging its proprietary technology platform with integrated business intelligence tools to drive efficiencies and growth.
Warehouses
PositiveIncreased to 136 in FY26 from 101 in FY25.
Retail Customers
PositiveIncreased to 105,300+ in FY26 from 95,300+ in FY25.
Districts Covered
PositiveIncreased to 523 in FY26 from 500 in FY25.
SKUs Handled
PositiveIncreased to 97,500+ in FY26 from 80,600+ in FY25.
MedTech Market Growth
PositiveThe MedTech market is large (USD 33.2bn FY23) and growing (10-11% CAGR FY23-FY28), offering higher margin profiles.
Shift to Large Distributors
PositiveIndia is witnessing a shift from standalone/traditional distributors to large/national distributors with wider presence.
Technological Advances
PositiveTechnological advances are supporting operational efficiencies in distribution.
Economic Performance
NeutralThe company's performance is subject to the performance of the Indian economy and various international markets.
Competition
NeutralThe company operates in a highly fragmented and competitive market, both in India and worldwide.
Strategy Implementation
NeutralRisks include the company’s ability to successfully implement its strategy and achieve future levels of growth and expansion.
Technological Changes
NeutralThe company is exposed to risks related to technological implementation, changes, and advancements.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company provides both annual (FY26 vs FY25) and quarterly (Q4FY26 vs Q4FY25, and sequential Q4FY26 vs Q3FY26) comparisons. YoY is crucial for assessing overall annual performance and growth trends, while QoQ highlights sequential momentum, especially in operating cash flow and working capital efficiency improvements.
Domestic Formulations Growth (Organic LFL)
PositiveOrganic revenue growth on LFL basis was 15.6% YoY for FY26, outperforming IPM growth by 1.6x. Q4FY26 organic LFL growth was 17.1% YoY, 1.4x IPM growth.
Gross Margin
PositiveGross margin improved by 78bps YoY to 10.3% for FY26. In Q4FY26, gross margin improved by 109bps YoY to 10.9%.
EBITDA Margin
PositiveEBITDA Margin improved by 67bps YoY to 4.0% for FY26. In Q4FY26, EBITDA Margin improved by 85bps YoY to 4.5%.
Net Operating Working Capital (Days)
PositiveNWC days improved to 59 days in Q4FY26 from 64 days in Q3FY26. For FY26, NWC days improved to 68 from 70 in FY25.
FY26 Performance
PositiveManagement states FY26 was a year of significant progress, delivering on all guidance parameters for revenue growth, EBITDA margin, and operating cash flow.
FY27 Outlook
PositiveManagement expresses renewed confidence for FY27 to build on momentum and capture the massive consolidation opportunity in the healthcare supply chain.
MedTech Contribution
PositiveManagement expects the MedTech segment, including FY26 acquisitions, to contribute over INR 1,000 Cr in FY27.
FY27 Guidance
PositiveManagement guides for 23.0% YoY revenue growth (excluding new acquisitions), 5.0% EBITDA Margin, and 50% Operating Cashflow to EBITDA Conversion Ratio for FY27.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth (YoY) | 29.3% (FY26 reported), 42.6% (Q4FY26 reported) | FY27 guidance of 23.0% YoY (excluding new acquisitions) |
| EBITDA Margin | 4.0% (FY26), 4.5% (Q4FY26) | FY27 guidance of 5.0% |
| Operating Cashflow to EBITDA Conversion | 36.2% (INR 96.2 Cr OCF vs INR 266 Cr EBITDA for FY26) | FY27 guidance of 50% |
| MedTech Revenue Contribution | Expected to cross INR 1,000 Cr in FY27 | Actual contribution and growth from the MedTech segment |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
54NeutralSMA20 +10.5% / mo
Technical chart
ENTEROweekly · 5Y-23.7%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 47.
- SMA20 rising (~9.5% over last month) — short-term momentum positive.
- RSI(14) at 47 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 17% off 52W high · 22% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Growth contributes 24/25 to the score.
- Balance sheet contributes 10/15 to the score.
Main drags
- Fair-value margin of safety is negative at -4.0%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 2/30; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 49th percentile of the scored universe and 39th percentile within Pharma. Main check: cash conversion is weak at 38/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-77 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Pharma: 39th pctile, median 70 · Micro: 33rd pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.8%.
- ▸8/8 recent quarters had positive YoY revenue growth.
- ▸7/7 recent quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-77 Cr.
- ▸Only 1 years of positive FCF.
- ▸ROE is low at 5.6%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 40.80
- P/B
- 2.88
- EV/EBITDA
- 17.96
- Market Cap
- 4873.00Cr
Profitability
- ROE
- 6.99%
- ROCE
- 10.60%
- ROA
- 4.06%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 30.00%
- EPS 5Y
- 57.00%
- Revenue 3Y
- 26.00%
- EPS 3Y
- 131.00%
Balance Sheet
- Debt/Equity
- 0.40
- Interest Coverage
- 4.93×
- Altman Z
- 4.41
- Book Value
- 388.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- 96.00 Cr
- EPS TTM
- 26.44
Shareholding
- Promoter Hold
- 52.42%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 39%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.