Entero Healthcare's Profit Surge Outpaces Strong Revenue Growth
The healthcare distributor's profit jumped 72% year-on-year, with net profit margin improving for a third consecutive quarter.
Entero Healthcare reported a 38% rise in Q1 revenue and a 72% surge in profit. The company's net profit margin expanded to 2.7%, continuing an upward trend.
Entero Healthcare Solutions started FY27 with robust momentum, delivering a sharp acceleration in profitability on the back of strong revenue growth. The healthcare supply chain aggregator's profit surged 72.2% year-on-year, significantly outpacing its 38.2% revenue growth, indicating improved operating leverage.
The company's net profit margin expanded by 50 basis points compared to the same quarter last year, reaching 2.7%. This marks the third consecutive quarter of margin improvement, as shown in the table below.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 1,940.49YoY +38% | 1,909.93 | 1,403.82 |
| Profit (₹ Cr) | 52.05YoY +72% | 45.13 | 30.23 |
| Net Profit Margin | 2.7%YoY +23% | 2.4% | 2.2% |
Sequentially, revenue grew modestly by 1.6%, while profit increased by a stronger 15.3% from the previous quarter. This consistent quarterly uptrend in both top line and bottom line highlights a steady expansion in operations.
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 2.4%, slightly below the latest quarter's level.
- The company maintains a conservative balance sheet with a low debt-to-equity ratio of 0.34.
- Despite the strong earnings growth, the stock trades at a P/E of 47.1, a 26.8% premium to its industry peers.
While the stock has delivered a modest negative return over the past year, the latest quarterly numbers demonstrate a powerful earnings acceleration. The key question is whether Entero can sustain this high growth rate to justify its premium valuation.
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· ENTERO
(BSE)
ISIN: INE010601016
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