Jeena Sikho kills Entero deal, guides ₹300 cr profit for FY27
The health-care chain walked away from a distribution partnership covering one lakh pharmacies after the partner demanded extra money. FY26 profit jumped 177% to ₹222 crore.
— 1 earlier story on Jeena Sikho Lifecare Ltd. →What's new
- Jeena Sikho abandoned its exclusive distribution tie-up with Entero after the partner demanded additional expenses.
- FY26 revenue rose 71% to ₹801 crore; net profit surged 177% to ₹222 crore with EBITDA margin expanding 1,360 bps to 44%.
- Bed expansion to 3,000 beds is delayed by 3-4 months; unit economics remain strong with 71% ROCE.
Why this matters
Dropping the Entero deal, which was meant to place products across one lakh pharmacies, removes a specific growth channel but suggests management is unwilling to overpay for distribution. The ₹300 crore profit floor for FY27 is a 35% jump from FY26, signalling confidence in organic execution even without the pharmacy partnership.
What we're watching
- How the company plans to replace the Entero pharmacy network reach.
- Progress on the delayed 3,000-bed expansion and its impact on the multi-year revenue target.
- Whether EBITDA margins hold near 44% as the business scales.
The full read
Jeena Sikho Lifecare's FY26 results are strong. Revenue climbed 71% to ₹801 crore, net profit surged 177% to ₹222 crore, and EBITDA margins widened 1,360 bps to 44%. But the headline is the decision to scrap its exclusive distribution partnership with Entero. The tie-up was meant to place products across one lakh pharmacies. It ended because Entero wanted more money, and Jeena Sikho said no. That's a deliberate trade: give up scale for cost control. Management now guides for at least ₹300 crore in profit for FY27 and reiterated longer-term targets of ₹3,000 crore in revenue. The growth story now hinges on its own network, not a partner's. The delayed bed expansion to 3,000 beds by 3-4 months is a minor hiccup; 71% ROCE and a sub-six-month payback suggest the core model is working.
Questions answered
- Why did Jeena Sikho walk away from the Entero deal?
- The partnership was expected to cover one lakh pharmacies, but Jeena Sikho abandoned it after Entero demanded additional expenses. The company chose not to proceed on those terms.
- How strong were FY26 financials?
- Revenue grew 71% to ₹801 crore, and net profit jumped 177% to ₹222 crore. EBITDA margins expanded 1,360 basis points to 44%, and ROCE stood at 71% with a sub-six-month payback on new beds.
- What is the guidance for FY27?
- Management guided for a minimum PAT of ₹300 crore in FY27. This represents a 35% increase over FY26's ₹222 crore profit.
- What are the long-term targets?
- The company reiterated multi-year targets of ₹900-1,100 crore in profit and ₹3,000 crore in revenue to be achieved within 3-5 years.
- Is the bed expansion on track?
- No, the expansion to 3,000 beds is delayed by 3-4 months from earlier expectations. However, management says unit economics remain strong.
Story so far
All notes on JSLL →- 2 Jun 2026 · 3:12 PM IST Jeena Sikho kills Entero deal, guides ₹300 cr profit for FY27
- 4d ago Jeena Sikho profit jumps 178% to ₹222 cr as costs lag revenue surge