Poly Medicure Limited — Q3 FY26 earnings call

Call held 6 Feb 2026

Management summary

Poly Medicure is undergoing a strategic transition from low-technology products to high-complexity, high-growth segments like cardiology and orthopedics. Despite headwinds in the export market and aggressive Chinese dumping, the company achieved double-digit consolidated revenue growth, largely aided by recent European acquisitions. Management is focused on the domestic private market and high-end R&D products to drive future margins and market share.

Highlights

  • Consolidated revenue reached ₹494 crores, representing a 16.4% YoY and 11.2% QoQ growth.

  • Gross margin expanded to 68.4%, an increase of 300 bps compared to the same quarter last year.

  • Operating EBITDA for Q3 stood at ₹119 crores (24.2% margin), excluding acquisition-related costs.

  • Domestic private market business grew by 22.5%, while government business saw a deliberate degrowth of 18%.

  • Acquisitions of PendraCare and Citieffe Group added approximately ₹48-49 crores to the top line in Q3.

  • Renal business revenue grew 15.1% YoY to ₹45 crores, with over 300 dialysis machines sold year-to-date.

  • Management guided for 20% overall revenue growth in FY27, driven by 25% domestic growth.

  • Liquidity remains strong with ₹840 crores in cash to support organic and inorganic growth strategies.

Concerns

  • Aggressive Chinese Dumping

Key financials

2 periods

Headline

  • Revenue
    ₹494 Cr
    YoY +16.4% QoQ +11.2%
  • Operating EBITDA Margin
    24.2%
  • PAT
    ₹71 Cr
  • Gross Margin
    68.4%

9M

  • Consolidated Revenue
    ₹1,341 Cr
    YoY +9.1%

What they filed

Q1 FY27: revenue up 30.3%, net profit down 8.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue420 424 441 403 444 +6%494 +17%535 +21%525 +30%
EBITDA115 114 119 106 115 +0%111 −3%110 −8%125 +18%
Net profit87 85 92 93 92 +6%71 −16%65 −29%85 −9%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentRevenue GrowthRevenue
Domestic Business16.2%—
International Business16.6%₹342 Cr
Renal Business15.1%₹45 Cr

Guidance & targets

Revenue

  • H2 Consolidated Revenue Growth vs H1 Revenue · H2 FY26 · High confidence 20%
    We expect H2 to end at around 20% higher revenue, as I mentioned in the previous call, than H1 on a consol basis.

    — Himanshu Baid, Managing Director

  • Total Business Revenue Growth Revenue · FY27 · Medium confidence 20%+
    I definitely hope that we should get to a 20% growth number next year. And that is our core target actually.

    — Himanshu Baid, Managing Director

  • Domestic Business Growth Revenue · FY27 · Medium confidence 25%
    Domestic business overall should grow around 25% for next year.

    — Himanshu Baid, Managing Director

  • Export Business Growth Revenue · FY27 · Medium confidence 12% to 15%
    And export business should grow around 12% to 15% because we had, let's say, a lower threshold, and I think now we should grow faster.

    — Himanshu Baid, Managing Director

Volume

  • Dialysis Machine Sales Volume · FY26 · Medium confidence 450

    Previously 500-600 → 450

    And hopefully, we end the year close to around 450 machines, though it is slightly lower than what is projected around 500 to 600 machines earlier.

    — Himanshu Baid, Managing Director

Market Share

  • Dialysis Market Share Market Share · next 2-3 years · Medium confidence 15% to 17%

    From 10% today

    Poly Medicure holds 10% share of the dialysis market today with a target of 15% to 17% over the next 2, 3 years.

    — Himanshu Baid, Managing Director

Capacity

  • New Plants Operational Capacity · next 18-24 months · High confidence 3
    We expect the 3 new plants to be fully operational within the next 18 to 24 months.

    — Himanshu Baid, Managing Director

Risks & concerns

  • Aggressive Chinese Dumping

    high

    Chinese suppliers are dumping products at low prices in global markets (excluding the US) and using FTA countries to enter India at 0% duty.

    Management acknowledged

  • Regulatory Transition (EU MDR)

    medium

    Transition from MDD to MDR in Europe caused delays and forced the company to drop some products temporarily while awaiting new approvals.

    Management acknowledged

  • Government Business Payment Delays

    medium

    Delays in state government payments and lower pricing have led the company to deliberately reduce its government business exposure.

    Management acknowledged

Areas of evasion (1)

  • Specific revenue mix for FY27 (cardio vs renal vs infusion) was not provided as the business plan is still being finalized.

Q&A highlights

3 direct
Standalone vs Consolidated Growth Discrepancy Direct
Yes, that is correct... we face certain headwinds on the export front, especially in the European markets. And I think that was the main reason for lower growth of stand-alone revenue.

Clarifies that the 16% consolidated growth was heavily inorganic, while the core standalone business faced significant export headwinds.

Asked by Suruchi Parmar

Math of FY27 Growth Guidance Direct
Bharat bhai, I think we you have not considered is the other companies which we run outside India... Plan1 Health... is growing around 30%, 35% year-on-year... So overall... we will be growing more than around 20% or so next financial year.

Management explains how the weighted average of domestic (25%) and international (15%) growth reaches a 20%+ consolidated target by including high-growth subsidiaries and full-year acquisition impacts.

Asked by Bharat Shah

Revision of Dialysis Machine Guidance Direct
So dialysis machine, again, if you see, we have guided 500 to 600 machines in the beginning of the year, but we may end around at 450, certain government contracts are delayed.

Reveals a slowdown in the renal segment due to government contract delays and competitive pressures from larger players like Fresenius.

Asked by Nilkhant

2 min read 5 chapters

Detailed narrative

Strategic Pivot to High-Complexity Medtech

Poly Medicure is aggressively transitioning from low-tech consumables to high-complexity segments like cardiology, critical care, and orthopedics. The company recently received DCGI approval for next-generation products, including Intravenous Lithotripsy (IVL) and Drug Eluting Balloons (DEB), which are currently 90% import-dependent in India. These products carry high Average Selling Prices (ASP) in excess of ₹1,15,000, signaling a move up the value chain to create higher entry barriers.

Acquisition Integration and European Footprint

The successful acquisitions of PendraCare and Citieffe Group have significantly expanded Polymed's European footprint, providing a 'Made in Europe' advantage and faster regulatory access. These entities added approximately ₹48-49 crores to the Q3 top line and are currently operating at 50-60% capacity. Management expects the full-year impact of these acquisitions to be visible in FY27, with synergies realized over the next few years as they leverage Indian manufacturing for cost competitiveness.

Domestic Market Dynamics and Private Sector Focus

The company is deliberately shifting away from government business, which saw an 18% degrowth, toward the more stable and higher-margin private market. The private domestic business grew by 22.5% in Q3 and now constitutes 88% of domestic revenue. Polymed has added 80-90 new sales representatives in the last 9 months to deepen engagement with corporate hospitals, aiming for a 25% domestic growth rate in FY27.

Navigating Global Headwinds and Chinese Competition

International business grew 16.6% YoY to ₹342 crores, but the organic standalone portion remained flattish due to aggressive Chinese dumping and freight crises. Management is countering this by shifting from a distributor-led model to a clinical-led model, deploying internal clinical teams to Europe to demonstrate product superiority. They have won new contracts with the NHS in the UK and in Germany, which are expected to drive a recovery in export growth to 12-15% in FY27.

Manufacturing Expansion and R&D Investment

Polymed invested ₹234 crores in capex during the first 9 months of FY26 to set up new factories in Mitrol, Haridwar, and Jewar. These facilities are expected to be fully operational within 18-24 months. Additionally, the company is investing heavily in R&D and clinical teams, hiring over 100 skilled professionals this year to support high-end product development and international clinical training through its PACE Academy.

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