Entero Healthcare Solutions Limited reported a 36% year-on-year increase in profit after tax (PAT) to ₹146 crore for the financial year ended March 31, 2026, driven by robust operational performance and strategic acquisitions. Revenue from operations for FY26 grew by 31.5% on a like-for-like basis to ₹6,591 crore, while EBITDA improved to ₹266 crore with a margin expansion of 67 basis points to 4%. The company’s operating cash flow for the year stood at ₹96.2 crore, a significant turnaround from the previous year. The company released the transcript of the earnings call held on May 26, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Q4 & FY26 Financial Highlights

Entero Healthcare delivered significant improvement across key financial metrics during the quarter and full year. The consolidated net profit for Q4FY26 stood at ₹45.1 crore, compared to the corresponding period of the previous year. EBITDA for the quarter increased to ₹86 crore, with the EBITDA margin expanding to 4.5%.

For the full year FY26, revenue grew by 31.5% to ₹6,591 crore. The company achieved an EBITDA margin of 4%, up from 3.33% in FY25, and reported a net profit after tax of ₹146 crore. The operating cash flow for FY26 was recorded at ₹96.2 crore.

Operational and Strategic Updates

The company outperformed market growth, recording an organic growth of 15.6% against the industry IPM growth of 10% in FY26. Entero expanded its operational reach, covering 523 districts and serving over 100,000 retail customers. The company completed seven acquisitions during the year, including Sai RK Pharma Pvt Ltd and Ace Cardiopathy Solutions Pvt Ltd, to strengthen its presence in specialty pharma and MedTech segments. The MedTech segment now contributes more than ₹1,000 crore in annualized revenue.

FY27 Guidance and Outlook

Management provided guidance for FY27, targeting consolidated revenue growth of 23% year-on-year, excluding any new acquisitions. The company aims to achieve an EBITDA margin of 5%, driven by profitable revenue growth and operational efficiencies. Entero intends to maintain an EBITDA to operating cash flow conversion ratio of at least 50%. The MedTech segment is expected to contribute more than 15% to revenue, with potential to reach 20% in 2-3 years. The company expects the tax rate to be in the range of 22%-23% for FY27.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE010601016/d7bae6c07be64939.pdf

Entero Healthcare Solutions Limited has informed the stock exchanges that the Ministry of Corporate Affairs (MCA), through the Office of the Regional Director, Southern Region, Chennai, has approved the Scheme of Amalgamation involving two of its group subsidiaries. The confirmation order, dated April 17, 2026, was received by the company on May 05, 2026, and the disclosure was made under Regulation 30 and Regulation 37 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on May 06, 2026.

Scheme Overview

The approved scheme involves the amalgamation of Chethana Pharma Distributors Private Limited (Transferor Company-1) and CPD Pharma Private Limited (Transferor Company-2) with Rada Medisolutions Private Limited (Transferee Company) via the fast-track route under Section 233 of the Companies Act, 2013. The scheme was presented and approved by the respective members and creditors of all three companies as required under Section 233(1)(b) and (d) of the Companies Act, 2013.

Key details of the amalgamation are summarised below:

Share Capital of the Entities

All three entities are engaged in the distribution and marketing of pharmaceutical products, surgical products, and other allied services. As on the Appointed Date (April 15, 2025), both transferor companies were wholly owned subsidiaries of the Transferee Company. The share capital details of each entity, as on the date of Board approval of the scheme, are as follows:

Post-Amalgamation Capital Structure

Upon the scheme becoming effective, the authorized share capital of the Transferee Company will stand enhanced to INR 1,35,00,000/- (Indian Rupees One Crore Thirty Five Lakhs only), divided into 13,50,000 (Thirteen Lakhs Fifty Thousand) equity shares of INR 10/- each. Since both transferor companies were wholly owned subsidiaries of the Transferee Company, no new shares will be issued as consideration, and the share capital of the transferor companies shall stand cancelled upon the scheme becoming effective.

Rationale and Key Provisions

The Board of Directors of the transferor and transferee companies cited the following key rationale for the amalgamation:

• Increased operational efficiencies, economies of scale, and reduction in overheads and compliance costs
• Simplification of group structure by eliminating entities with similar objectives and businesses, thereby reducing corporate redundancies and duplication of administrative and regulatory compliance work
• Better supervision of group business, reduction of managerial overlaps, and prevention of cost duplications

Under the scheme, all assets, liabilities, employees, contracts, legal proceedings, and tax-related matters of the transferor companies will be transferred to and vested in Rada Medisolutions Private Limited with effect from the Appointed Date. The transferor companies shall stand dissolved without being wound up upon the scheme becoming effective, as provided under Section 233(8) of the Companies Act, 2013. Accounting treatment will be carried out in accordance with Indian Accounting Standards (Ind AS) 103 — Business Combinations.