Entero Healthcare Solutions Limited announced its unaudited financial results for the third quarter of fiscal year 2026, ended December 31, 2025. The pharmaceutical trading company reported mixed performance with revenue growth offset by profitability challenges due to regulatory changes.

Financial Performance Overview

The company's standalone financial results showed revenue growth but significant impact on profitability. Key metrics demonstrate the effect of exceptional items on the quarter's performance.

Consolidated Results Show Strong Growth

On a consolidated basis, the company demonstrated robust revenue performance across its expanded operations. The consolidated results reflect the impact of recent acquisitions and organic growth.

Impact of New Labour Codes

The company's profitability was significantly affected by the implementation of new labour legislation. The Ministry of Labour and Employment consolidated multiple existing labour legislations into four unified Labour Codes, which became effective from November 21, 2025.

This regulatory change resulted in exceptional items worth ₹44.97 million (net of tax ₹33.65 million) for the standalone entity and ₹81.78 million (net of tax ₹61.14 million) on a consolidated basis. The company reassessed its employee benefit obligations in accordance with the revised definition of wages under the new framework.

Nine-Month Performance

For the nine months ended December 31, 2025, the standalone entity reported revenue of ₹2,693.09 million compared to ₹3,363.68 million in the corresponding period of the previous year. Net profit for the nine-month period stood at ₹134.59 million versus ₹469.87 million in the previous year.

Corporate Actions and Strategic Updates

The board of directors approved several key decisions during their meeting held on February 12, 2026:

Employee Stock Options:

• Grant of 5,000 fresh employee stock options under the existing "Entero Employee Stock Option Plan 2023"
• Exercise price set at ₹804 per option
• Vesting period between 1-4 years from grant date
• Exercise period of 8 years from vesting date

Acquisition Updates:

• Cancelled proposed acquisitions of Khera Medisolutions Private Limited and AV Medisolutions Private Limited due to commercial reasons
• These acquisitions were previously announced in May and August 2025

Recent Acquisitions and Subsidiaries

During the nine months ended December 31, 2025, the company acquired controlling stakes in six entities, expanding its distribution network:

Subsequent to the quarter end, the company acquired 51.51% stake in Anand Chemiceuticals Private Limited on February 7, 2026.

IPO Proceeds Utilization

The company has fully utilized its IPO proceeds of ₹9,548.00 million as of December 31, 2025. The funds were deployed across debt repayment (₹1,425.00 million), working capital requirements (₹4,800.00 million), inorganic growth initiatives (₹2,370.00 million), and general corporate purposes (₹953.00 million).

Entero Healthcare Solutions Limited has successfully completed its acquisition of a 51.5% majority equity stake in Anand Chemiceutics Private Limited, marking a significant expansion into the high-growth MedTech market. The company announced this development through regulatory filings and a comprehensive press release dated February 09, 2026.

Acquisition Overview

The pharmaceutical distributor has completed the acquisition of a controlling stake in Anand Chemiceutics Private Limited, a leading distributor of diagnostic products and preferred channel partner for global diagnostic and MedTech companies. This transaction was initially announced to the exchanges on November 12, 2025.

Strategic Value and Market Position

Anand Chemiceutics brings over two decades of established trust, legacy, and technical expertise in diagnostic and MedTech products. The company operates a strong pan-India presence with a customer service network spanning more than 1,500 laboratories, hospitals and government institutions. Its specialized capabilities include distribution, marketing, application and service support for diagnostic equipment and reagents including advanced genomics.

Management Commentary

Commenting on the development, Mr. Prabhat Agrawal, MD and CEO of Entero Healthcare, stated: "I am pleased to welcome Anand Chemiceutics to Entero group. Its extensive track record, partnerships with global diagnostics players and expertise in MedTech combined with our distribution reach, capabilities and resources strategically positions us to build scale in this attractive segment."

Mr. Jayesh Sancheti, MD of Anand Chemiceutics, added: "This is more than a partnership — it's the strategic integration of Anand Chemiceutics legacy trust in diagnostics and MedTech distribution with Entero's scale and technology, creating a powerhouse that creates meaningful difference in patients' lifecycle."

Financial Impact and Growth Prospects

With this acquisition, the MedTech segment is expected to contribute more than approximately INR 1,000 Cr in annualised revenue in the next financial year. The transaction aligns with Entero's vision to create an integrated and comprehensive healthcare supply chain solutions provider, leveraging collective distribution strength, partnerships, geographical reach and expertise.

The regulatory filing was signed by Sanu Kapoor, Vice President-General Counsel, Company Secretary & Compliance Officer, confirming compliance with SEBI regulations and successful completion of this strategic acquisition.