1 week ago
Entero and Medplus Target India’s Expanding Pharmacy Market
India has a very large market for selling and delivering medicines.
Entero Healthcare supplies medicines, medical devices, and other healthcare products to pharmacies and hospitals.
It is also helping healthcare brands promote products, especially medical devices.
Entero grew faster and earned higher margins in the quarter discussed.
Medplus runs thousands of medicine stores and also offers diagnostic testing.
It plans to open many more stores, using both company-owned and franchise locations.
Medplus is selling more of its own private-label products, which can potentially support profitability.
However, its sales grew while its margins and profit fell in Q1FY27.
Investors will be watching whether both companies can turn expansion into stronger profits and cash flow.
India’s pharmacy retail and distribution market is valued at roughly $24–27 billion, or about ₹2.3 lakh crore at the lower end, and is growing at approximately 10% annually.
Entero Healthcare serves more than 72,000 pharmacies and 2,300 hospitals, with Q1FY27 revenue up 38.2% to ₹1,940 crore.
Entero’s Q1FY27 EBITDA margin rose to 5%, while net profit increased 73.3% to ₹52 crore, supported by distribution and MedTech growth.
Medplus operated 5,476 stores across 13 states and one union territory as of June 30, 2026, and aims to reach 20,000–40,000 stores over time.
Medplus’s Q1FY27 revenue grew 21.8% to ₹1,879.6 crore, but EBITDA margin fell to 3.5% and net profit declined 21.7% to ₹33.2 crore.
- Who
- Entero Healthcare Solutions and Medplus Health Services, two listed Indian healthcare businesses.
- What
- The companies are pursuing different opportunities in India’s pharmacy market: Entero through distribution and MedTech, and Medplus through pharmacy stores, private labels, and diagnostics.
- Where
- India, with Medplus operating across 13 states and one union territory and Entero serving pharmacies and hospitals nationwide.
- When
- The reported operating period is Q1FY27; Medplus’s store count was given as of June 30, 2026, and valuation data was dated August 24, 2026.
- Why
- Rising healthcare spending, chronic disease, health awareness, organized retail, technology, and supply-chain efficiencies are supporting market growth and industry organization.
Entero’s Distribution and MedTech Approach
Medplus’s Retail and Franchise Approach
Primary growth engine
Entero’s Distribution and MedTech Approach
Entero is emphasizing organic healthcare distribution and MedTech, including diagnostics, cardiovascular, orthopedic, imaging, and surgical products.
Medplus’s Retail and Franchise Approach
Medplus is emphasizing store expansion, cluster-based densification, private-label products, and diagnostics.
Current financial performance
Entero’s Distribution and MedTech Approach
Entero reported faster Q1FY27 revenue growth of 38.2%, a 5.0% EBITDA margin, and 73.3% net-profit growth.
Medplus’s Retail and Franchise Approach
Medplus reported 21.8% Q1FY27 revenue growth, but its consolidated EBITDA margin declined to 3.5% and net profit fell 21.7%.
Scale versus returns
Entero’s Distribution and MedTech Approach
Entero is consolidating after completing 51 acquisitions since inception and made no new acquisitions in Q1FY27, aiming to improve margins and cash conversion.
Medplus’s Retail and Franchise Approach
Medplus has stronger reported return ratios and a lower valuation multiple than Entero, while using franchises to expand with less inventory capital expenditure.
Key facts
- Market size
- India’s pharmacy retail and distribution market is estimated at US$24–27 billion, or approximately ₹2.3 lakh crore at the lower end.
- Market growth
- The market is growing at about 10% CAGR.
- Entero network
- Entero serves more than 72,000 retail pharmacies and over 2,300 hospitals as of Q1FY27.
- Entero Q1FY27
- Revenue rose 38.2% year over year to ₹1,940 crore; EBITDA margin was 5.0% and net profit was ₹52 crore.
- Medplus network
- Medplus operated 5,476 stores across 13 states and one union territory as of June 30, 2026.
- Medplus Q1FY27
- Consolidated revenue rose 21.8% to ₹1,879.6 crore, while operating EBITDA fell 10.6% to ₹65.1 crore and net profit fell 21.7% to ₹33.2 crore.
- Expansion plans
- Entero guided for 23% FY27 revenue growth excluding new acquisitions, while Medplus maintained guidance for 800 net store additions in FY27.
Sources
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