Poly Medicure Limited — Q4 FY25 earnings call

Call held 7 May 2025

Management summary

Poly Medicure delivered a strong set of Q4 and FY25 numbers, meeting its previous guidance on both revenue and margins. The company is successfully pivoting towards high-growth verticals like Renal and Cardiology while maintaining a dominant position in Vascular Access. Despite geopolitical headwinds affecting export guidance (12-15%), the management remains highly optimistic about the domestic market and is aggressively expanding capacity and R&D headcount to support future growth.

Highlights

  • Consolidated Q4 revenue reached ₹440 crores, representing a 16.5% YoY growth.

  • Operating EBITDA for the quarter stood at ₹119.5 crores with margins expanding to 27.1% from 25.5% YoY.

  • PAT for Q4 improved significantly to ₹91.8 crores from ₹68.4 crores in the previous year.

  • Full-year FY25 consolidated revenue grew 21.5% to approximately ₹1,670 crores.

  • The Renal business was a major growth driver, surging 60% YoY to exceed ₹150 crores in annual revenue.

  • Management guided for 20% overall revenue growth in FY26, led by a bullish 30-32% domestic growth target.

  • Company is sitting on a substantial cash pile of ₹1,100 crores following a QIP, earmarked for ₹500 crores in Capex and potential M&A.

Concerns

  • Geopolitical Fluidity and Trade Turmoil

Key financials

  1. Revenue ₹440 Cr +16.5%YoY
  2. EBITDA ₹119.5 Cr +23.8%YoY
  3. EBITDA Margin 27.1%
  4. PAT ₹91.8 Cr +34.2%YoY

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

  • Renal Business
    ₹150 Cr Annual Revenue60% YoY Growth
  • Domestic Business (Standalone)
    18.6% Annual Growth
  • Export Business
    24% Annual Growth14% Q4 Growth

Guidance & targets

Revenue

  • Consolidated Revenue Growth Revenue · FY26 · High confidence 20%
    we have guided this year again for a 20% revenue growth.

    — Himanshu Baid, Managing Director

  • Domestic Revenue Growth Revenue · FY26 · High confidence 30-32%
    we are very bullish on the domestic market where we are expecting a growth of around 30% to 32% for the whole year.

    — Himanshu Baid, Managing Director

  • Export Revenue Growth Revenue · FY26 · Medium confidence 12-15%
    Exports, I think we will see a growth rate between 12%-15%. That is what we will see this year.

    — Himanshu Baid, Managing Director

Margin

  • EBITDA Margin Margin · FY26 · High confidence 25-27%
    we still expect margins to remain between 25%-27% of EBITDA. This is where we are guiding today.

    — Himanshu Baid, Managing Director

Capex

  • Total Capex Capex · next 2 years · High confidence ₹500 crores
    I think next 2 years, we have called out the CAPEX of around Rs. 500 crores across 3 new manufacturing facilities we are building right now.

    — Himanshu Baid, Managing Director

Volume

  • Renal Machine Sales Volume · FY26 · High confidence 500-600 machines

    From 350 machines today

    this year, our plans are to sell between 500 and 600 machines... last year over 350 machines were sold.

    — Himanshu Baid, Managing Director

Headcount

  • R&D Team Size Headcount · FY26 · High confidence 100+

    From 60-70 today

    we are hiring 40 more people in the R&D team this year. So from a present state of 60-70 people, we will move to around 100 plus people this year.

    — Himanshu Baid, Managing Director

Risks & concerns

  • Geopolitical Fluidity and Trade Turmoil

    high

    Management cited 'global turmoil' and 'fluid' geopolitical situations as the reason for conservative export guidance.

    Management acknowledged

  • Payment Delays from State Governments

    medium

    Payments from state governments can take over a year, leading the company to reduce its government business exposure to 10-12%.

    Management acknowledged

  • Aggressive Pricing from Chinese Competitors

    medium

    Chinese players are discounting heavily in the Renal segment; Polymed is countering this through superior local service and 'Make in India' benefits.

    Both acknowledged

Areas of evasion (2)

  • Specific product-level margins (called it the 'secret recipe')
  • Specific M&A targets or preferred verticals for acquisition

Q&A highlights

2 direct
Impact of UK FTA and US Tariffs Direct
I think India would be a winner... we are also getting a lot of inquiries from US customers who are looking at India as an alternate base.

Confirms that global trade shifts and 'China Plus One' are actively driving new inquiries for Polymed.

Asked by Nitin Gosar

Slowdown in Europe Business Partial
In general there was a slowdown coming mainly from countries in South Europe... combination of factors, and nobody knows where the tariffs are coming.

Explains the conservative 12-15% export guidance for FY26 due to inventory overstocking and geopolitical uncertainty.

Asked by Rashmi

Dividend Payout Ratio and Cash Utilization Direct
Board has taken a view that as we are going for a heavy CAPEX and also there are certain M&A opportunities to conserve cash.

Explains the reduction in dividend payout ratio (from 15-16% to ~10%) as a strategic move to fund aggressive expansion.

Asked by Girish Jain

2 min read 4 chapters

Detailed narrative

Renal Segment: A New Growth Engine

The Renal business emerged as the standout performer in FY25, growing 60% to surpass ₹150 crores in revenue. Management expects this momentum to continue with a 50% growth target for FY26, aiming to add ₹75 crores to the top line. The company plans to sell 500-600 dialysis machines this year, up from 350 in FY25, leveraging its 'Make in India' status to gain market share from established players like Fresenius and Nipro. Service infrastructure is being scaled with 30+ engineers to provide a competitive edge over Chinese importers who lack local support.

Domestic Market Bullishness vs. Export Caution

Polymed is pivoting its growth focus toward the domestic market, guiding for an aggressive 30-32% growth in FY26. This follows a strong recovery in the latter half of FY25 where domestic growth accelerated to 23-24% after a slow start. Conversely, export guidance has been tempered to 12-15% due to geopolitical 'flux' and a slowdown in Southern Europe. Despite this, management believes India is well-positioned to capture long-term market share as US and European customers seek alternatives to China.

Aggressive R&D and Capacity Expansion

The company is significantly ramping up its innovation engine, planning to increase R&D headcount from 70 to over 100 people this year. After launching 30 products in FY25, Polymed aims to add another 50-60 products over the next three years, particularly in high-margin verticals like Cardiology and Critical Care. To support this, a ₹500 crore Capex plan is underway to build three new manufacturing facilities in Haryana, Uttarakhand, and Rajasthan, with commercialization expected by the end of 2026.

Strategic Capital Allocation and M&A

Following a successful QIP, Polymed holds a cash balance of approximately ₹1,100 crores. While ₹500 crores is committed to organic Capex, the remaining capital is being preserved for strategic M&A opportunities in technology-led medical device companies. This focus on capital conservation for growth is the primary reason for the reduction in the dividend payout ratio to 10%. Management is actively scouting for technologies in Cardiology, Critical Care, and Renal portfolios that can be scaled globally.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Healthcare earnings calls