Entero Healthcare Solutions Limited has reported robust financial performance for the second quarter of fiscal year 2025-26, along with plans for strategic acquisitions to further strengthen its market position in the healthcare distribution sector.

Q2 Financial Highlights

For the quarter ended September 30, 2025, Entero Healthcare Solutions posted impressive results:

• Consolidated net profit rose to Rs 316.00 million, up from Rs 236.00 million in the same quarter last year, marking a 33.90% year-over-year increase.
• Revenue surged to Rs 15.71 billion from Rs 13.00 billion in the corresponding period, representing a 20.80% growth.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to Rs 621.00 million from Rs 425.00 million year-over-year.
• EBITDA margin improved to 3.95% from 3.26% in the same quarter last year.

Strategic Acquisitions

In a move to expand its market reach and product portfolio, Entero Healthcare Solutions announced plans for two significant acquisitions:

1. Bioaide Technologies Private Limited: The company has entered into definitive agreements to acquire an 80% stake in Bioaide Technologies. The acquisition, valued between Rs 311.30 million to Rs 360.00 million, is expected to be completed by February 15, 2026. Bioaide specializes in the wholesale distribution of medical devices and healthcare products.

2. Anand Chemiceutics Private Limited: Entero has signed a binding Memorandum of Understanding to acquire a 51% stake in Anand Chemiceutics. The deal, estimated between Rs 2.10 billion to Rs 2.30 billion, is subject to due diligence and final agreements. Anand Chemiceutics is engaged in wholesale distribution of medical devices and turnkey projects for healthcare institutions.

Management Commentary

Prabhat Agrawal, CEO & Managing Director of Entero Healthcare Solutions, stated, "Our strong Q2 performance reflects the robust demand in the healthcare sector and our ability to efficiently meet market needs. The planned acquisitions of Bioaide Technologies and Anand Chemiceutics align with our growth strategy and will significantly enhance our distribution capabilities and product offerings."

Organizational Changes

The company also announced the elevation of Mr. Abhitesh Kumar to the position of Chief Growth Officer. Previously serving as President – Retail Business & New Initiatives, Mr. Kumar's new role is expected to drive Entero's expansion plans further.

Market Outlook

With these strategic moves, Entero Healthcare Solutions is positioning itself for continued growth in the competitive healthcare distribution market. The acquisitions are expected to complement the company's existing operations and contribute to its long-term revenue and profitability goals.

Investors and industry observers will be watching closely to see how these acquisitions integrate with Entero's operations and impact its market position in the coming quarters.

Entero Healthcare Solutions has announced significant strategic moves that are set to reshape its business portfolio. The company's board of directors has approved two major transactions: the complete divestment of its subsidiary Suprabhat Pharmaceutical Private Limited and the acquisition of a majority stake in Ace Cardiopathy Solutions Private Limited.

Divestment of Suprabhat Pharmaceutical

In a board meeting held on September 29, 2025, Entero Healthcare Solutions approved the sale of its entire 100% stake in Suprabhat Pharmaceutical Private Limited. The company has entered into a Share Purchase Agreement (SPA) for this transaction on the same day.

Key details of the divestment include:

• Buyers: Mr. Yash Sudhir Biradar and Ms. Kavita Sudhir Biradar, who were the erstwhile promoters of Suprabhat Pharmaceutical.
• Consideration: The sale is expected to fetch up to INR 37,00,000.
• Completion Timeline: The divestment is anticipated to be completed during the financial year 2025-26.

It's worth noting that Suprabhat Pharmaceutical contributed marginally to Entero's consolidated financials in the last fiscal year:

Acquisition of Ace Cardiopathy Solutions

In a strategic move to expand its presence in the medical devices distribution sector, Entero Healthcare Solutions has also approved the acquisition of a 60% stake in Ace Cardiopathy Solutions Private Limited.

Highlights of the proposed acquisition:

• Target Company: Ace Cardiopathy Solutions Private Limited, incorporated on December 1, 2009, in Delhi, India.
• Business Profile: Wholesale distribution of medical devices and other healthcare and allied products.
• Acquisition Cost: The deal is valued between INR 59.30 crore to INR 77.10 crore, subject to adjustments for net debt, normalized working capital, and achievement of certain conditions.
• Completion Timeline: The acquisition is expected to be finalized by January 31, 2026.

Ace Cardiopathy has shown consistent revenue performance over the past three fiscal years:

*Unaudited figures

Strategic Implications

These transactions represent significant portfolio restructuring for Entero Healthcare Solutions. By divesting Suprabhat Pharmaceutical, which had a minimal contribution to the company's financials, Entero appears to be streamlining its operations. Simultaneously, the acquisition of a majority stake in Ace Cardiopathy Solutions aligns with Entero's core business of wholesale distribution in the healthcare sector and could potentially boost its market presence in the medical devices segment.

The company's Vice President - General Counsel, Company Secretary & Compliance Officer, Sanu Kapoor, confirmed that these decisions were made in compliance with SEBI regulations and have been duly reported to the stock exchanges.