Anondita Medicare Ltd

Anondita Medicare Ltd reported robust financial growth for H2 and FY26. H2 FY26 revenue from operations surged by 82.77% to INR 83.32 crores, while full-year FY26 revenue grew by 78.48% to INR 137.42 crores. This strong top-line performance translated into significant profitability, with FY26 EBITDA increasing by 99.97% to INR 51.51 crores and net profit soaring by 107% to INR 34.30 crores. The company highlighted these as record growth figures, demonstrating strong operational leverage.

The company completed a major expansion by the end of FY26, increasing its male condom manufacturing capacity from 562 million to 806 million pieces annually. This expansion was facilitated by the company's unique capability to fabricate manufacturing machines in-house, a patented process that reduces investment and time-to-market. An initial utilization rate of up to 75% is expected for this expanded capacity, contributing to future growth. Approximately INR 24 crores of capex has already expanded capacity by 307 million pieces, with further WIP expected to add 250 million pieces and generate INR 325 crores in turnover.

FY26 marked a significant shift towards international markets, following the company's IPO listing on the NSE SME platform. Anondita Medicare successfully obtained MDSAP certification, opening doors to key markets like Brazil, South Africa, Canada, U.S., and Australia. Additionally, the company completed a SABS audit, becoming SABS certified. Notably, Anondita Medicare is the world's first company to register in Brazil for the supply of both latex and non-latex female condoms, with this achievement uploaded on the Brazilian government site.

Anondita Medicare is entering the female condom manufacturing segment, which it views as a significant future opportunity due to limited global supply and rapidly increasing demand. The estimated annual market for female condoms ranges from 700 million to 1.5 billion pieces. The company's current capacity for female condoms is 5 million pieces (2.5 million latex, 2.5 million non-latex), with plans to expand this to 120 million pieces for both latex and non-latex types. Management projects that securing just 25% of the orders from this expanded capacity could generate INR 330 crores in revenue and INR 150 crores in profit for 2027.

Despite strong PAT of INR 34 crores, operating cash flow stood at INR 10.6 crores, resulting in a 31% cash conversion ratio. This was primarily attributed to the maximum turnover occurring in the last quarter and the 120-day realization period for government sales. To address this, the company is strategically focusing on export markets, where payments are often received in advance or via LC, offering better margins and resolving GST issues. This shift is expected to significantly improve cash flows and the overall working capital cycle.

The company plans to cap its government business at 40-45% of total revenue, a slight increase from the previous year's 40%. The Cobra brand, which previously accounted for 60% of turnover, will maintain its share as the company prioritizes improving payments. The primary focus is now on international markets and own-brand sales, where the company anticipates better payment terms and higher margins. The company has already entered 8 states domestically for its Cobra brand and is expanding its distribution network.

The expansion in EBITDA margins was driven by several factors. The company benefits from higher margins on its own brands, which constituted 58% of last year's turnover. Maximized capacity utilization led to a reduction in fixed costs. Furthermore, energy savings and changes in the raw material composition contributed to lower costs of consumption. While other expenses, including rent, professional fees, and advertisement, increased significantly, the overall operational efficiencies and strategic product mix helped in expanding profitability.