Entero Healthcare Solutions Ltd

Meeting Details

• Date and time: September 02, 2026, 03:00 P.M. onward.
• Type: 1x1 / group meeting; Mode: Physical.
• Organized by: Elara Capital.
• Location: Mumbai.
• Key company participants: officials of the company attending.
• Purpose: investor interaction based on publicly available information.

Director tenure end

• Tenure of Rajesh Shashikant Dalal, Non-Executive Independent Director, ends Aug 24, 2026; ceases NRC/SRC chairmanship; Audit Committee seat.

AGM Details

• AGM held on 19 August 2026 at 12:30 IST via VC/OAVM.
• AGM concluded at 1:25 PM IST.
• Record/cut-off date: 12 August 2026.

Key Resolutions

• Ordinary: Adopt standalone financial statements for year ended 31 March 2026.
• Ordinary: Adopt consolidated financial statements for year ended 31 March 2026.
• Ordinary: Re-appoint a director by rotation.
• Special: Remuneration to MD & CEO for remaining tenure.
• Special: Remuneration to Whole-Time Director & COO for remaining tenure.
• Special: Re-appointment of independent director for second term.
• Special: Re-appointment of another independent director for second term.

Voting Results

• Resolution 1 passed; 99.9996% in favour, 0.0004% against.
• Resolution 2 passed; 99.9996% in favour, 0.0004% against.
• Resolution 3 passed; 99.9005% in favour, 0.0995% against.
• Resolution 4 passed; 93.5766% in favour, 6.4234% against.
• Resolution 5 passed; 93.9466% in favour, 6.0534% against.
• Resolution 6 passed; 94.3368% in favour, 5.6632% against.
• Resolution 7 passed; 94.3467% in favour, 5.6533% against.

Director Changes

• Ordinary resolution to re-appoint director by rotation.
• No new director appointments announced.

Auditors

• Statutory auditors’ report read; no qualifications.
• No changes to auditor appointments announced.

Financial Performance

• Consolidated revenue: INR 1,940 crores; up 38.2% YoY; like-for-like +40%.
• Gross margin 11.4%; up 147 bps YoY.
• EBITDA margin 5.0%; up 143 bps YoY; EBITDA growth ~94% YoY.
• PAT: INR 52 crores; up 72% YoY; PAT margin 2.7%.
• PAT to owners: INR 38 crores; up 37%; non-controlling interest INR 14 crores (27% of PBT).
• Net working capital days: 61 vs 66 previously; ROCE 21.1%; ROE 20.4%.

Operating Update

• MedTech is a key margin lever; higher gross and EBITDA margins vs pharma distribution.
• MedTech organic revenue target: cross INR 1,000 crores in FY27.
• Scale metrics: 72,000 retail customers, 2,300 hospital customers, 83,400 SKUs, 138 warehouses across 475 districts in 19 states.
• Organic quarterly growth: 17.8% reported, 19.6% like-for-like; inorganic growth 20.4% via calendarization.
• FY27 guidance: consolidated revenue growth ~23% YoY; EBITDA margin 5%; EBITDA-to-OCF 50%.

Balance Sheet and Cash Flow

• Subsidiaries funded via inter-company deposits/loans; cash flow repaid to parent to fund acquisitions.
• Non-wholly owned subsidiaries have defined path to acquire residual stake; horizon 2–5 years.
• Debt for acquisitions: about INR 200 crores; interest costs expected to stay in the same range.
• Balance sheet numbers are not quarterly audited; disclosures in September (biannual process).
• Minority share of profit reinvested in the business, not paid out.

Projects and Capex

• Depreciation run-rate expected to stay broadly in current level unless major new capex occurs.
• No major FY27 acquisitions planned; existing pipeline noted but focus remains organic.
• Defined minority buyout mechanics exist; typical horizon 2–5 years.

Guidance and Outlook

• FY27 guidance reiterated: ~23% revenue growth; 5% EBITDA margin; 50% EBITDA-to-OCF conversion.
• MedTech revenue target reaffirmed: organic growth path to cross INR 1,000 crores in FY27.
• Longer-term view: MedTech and platform scale to drive margin and ROCE expansion; returns seen improving.

Q&A Highlights

• Near-term inorganic pace muted; internal target to grow >20% organically over 3–4 years.
• ROCE target ~25–30% if no further acquisitions; EBITDA margins improve with scale and MedTech mix.
• Cash from subsidiaries via inter-company loans funds additional acquisitions; balance-sheet discipline maintained.
• No major FY27 acquisitions; pipeline exists; management prioritizes organic growth.
• IPM cyclicality: Q2 historically strongest; long-run IPM growth in 10–12% range; quarterly mix varies.
• Debt cost impacted by acquisition financing; interest costs expected to stay broadly in current range.

Meeting Details

• Quarter ended June 30, 2026 unaudited results earnings call.
• Type: group earnings call; mode: virtual conference.

Additional Notes

• Audio recording uploaded; transcript to be shared with stock exchanges and posted on the company website.

Business Overview

• Pan-India healthcare distribution and MedTech solutions platform.
• Differentiated model combining demand fulfilment and demand generation via a tech platform.
• Aims to consolidate fragmented Indian pharmaceutical distribution through acquisitions.
• Geographical reach across 19 states and 475+ districts.
• 138 warehouses nationwide.
• Hospitals served exceed 2,300; retailers exceed 72,000.
• SKUs handled exceed 83,400.

Operational Highlights

• Q1FY27 revenue 1,940.5 Cr; like-for-like growth 40% YoY.
• Hospitals served 2,300+; retailers 72,000+; districts 475.
• 138 warehouses; 83,400+ SKUs handled.
• MedTech revenue to cross Rs 1,000 Cr in FY27.
• No new acquisitions in quarter; organic growth ahead of IPM.
• 51 acquisitions since inception.

Financial Performance

• FY26 revenue Rs 6,591 Cr; EBITDA Rs 266 Cr; EBITDA margin 4.0%.
• Q1FY27 gross margin 11.4%; EBITDA margin 5.0%.
• ROCE 21.0%; ROE 20.4%.
• PAT to owners Rs 38.2 Cr; margin ~2%.
• NWC days improved to 61.

Capital Structure & Liquidity

• Cash and cash equivalents at end of period Rs 146.9 Cr.
• Borrowings: long-term Rs 122.6 Cr; current Rs 444.1 Cr.
• Equity share capital Rs 43.5 Cr; total equity Rs 1,752.5 Cr.
• Total assets Rs 3,600.2 Cr; total equity & liabilities Rs 3,600.2 Cr.

Strategic Priorities & Outlook

• MedTech trajectory with revenue crossing Rs 1,000 Cr; consolidation-led growth.
• Hub-and-spoke model to scale footprint cost-effectively.
• Continue technology investments to improve fulfilment and data insights.
• Acquire and expand across geographies and product categories.

Risks & Mitigation

• Market fragmentation and integration risk in acquisitions.
• Macro-economic and regulatory risks; mitigated by geographic diversification and tech enablement.

Governance & Leadership

• Board of 8 directors including promoter CEO and independent directors.
• Senior leadership includes CFO, GC, and growth-focused leaders.
• No major governance changes disclosed this quarter.

Standalone results

• Revenue from operations ₹832.66m; total income ₹1,064.11m.
• PBT ₹46.05m; tax ₹11.48m; PAT ₹34.57m.
• EPS basic ₹0.79; diluted ₹0.79.
• Paid-up equity capital ₹435.23m.
• Auditors' review unmodified; board approved results on 7 Aug 2026.

Consolidated results

• Revenue from operations ₹19,404.95m; total income ₹19,435.02m.
• PBT ₹671.20m; tax ₹150.69m; PAT ₹520.51m.
• Total comprehensive income ₹519.21m.
• EPS basic ₹8.77; diluted ₹8.76.
• Single reportable segment: trading of pharma and surgical products.

Corporate actions & disclosures

• Board reconstituted Audit, Nomination & Remuneration, and Stakeholders committees; effective Aug 25, 2026.
• Trading window to open 48 hours after results disclosure.
• OCD subscriptions to four subsidiaries; dates and issue prices listed.

Business model

• Operates in trading of pharmaceutical and surgical products.
• One reportable segment; Group results reflect standalone and consolidated pharma trading activities.

Target overview

• Qurovia Lifesciences Private Limited incorporated in India on July 25, 2026.

Business and sector

• Wholesale and retail distribution of pharmaceuticals and healthcare products.

Ownership and control

• Qurovia is a step-down subsidiary of Entero via RSM Pharma Private Limited.

Capital structure

• Authorised capital Rs 1.5 crore; paid-up capital Rs 1 lakh.

Shareholding and consideration

• Cash consideration; Rs 1 lakh paid for 10,000 shares.

Timeline

• Incorporation completed July 25, 2026; certificate received July 31, 2026.

Regulatory

• Not applicable.

Purpose and rationale

• To expand distribution and marketing of pharmaceuticals and healthcare products.

Background

• Business scope includes marketing, distribution, import/export of pharmaceuticals and healthcare products.

Industry

• Healthcare/pharmaceuticals distribution.

Key investor updates

• FY26 annual report updated due to Consolidated Note 52 error.
• FY26 consolidated revenue ₹66,104.49m; PAT ₹1,458.40m; margin ~2.2%.
• IPO proceeds ₹9,548m fully utilized by 31 Mar 2026.
• FY26 organic growth 13.4%; inorganic 16%; seven acquisitions completed.
• MedTech annualized revenue over ₹1,000 crore from FY27.
• MedTech acquisitions: Anand Chemiceutics; Ace Cardiopathy; Bioaide Technologies.
• ROCE 14.6%; ROE 12.5%; Net debt to equity 0.23x.
• CFO transition: Chebolu resigned 10 Apr 2025; Kaushik appointed 11 Apr 2025.
• Daftary redesignated as Nominee Director on 27 May 2025.
• 8th AGM scheduled for 19 August 2026 via VC/OAVM.