Poly Medicure

Poly Medicure is undergoing a strategic transition to become a globally recognized brand in high-end medical devices within the next five years. FY26 was marked by deliberate investments in high-technology verticals and R&D, despite a difficult external environment. The company launched 35 new products across the group, including 20 on a stand-alone basis, and expanded its Renal platform by placing 450 dialysis machines, bringing total installed capacity to 1,000. These initiatives are expected to drive synergies and consolidate growth in FY27.

For FY26, stand-alone revenue grew 4% to INR1,662 crores, with EBITDA at INR446 crores, achieving a 26.8% margin, at the higher end of the 25-27% guidance. Q4 FY26 was the highest ever stand-alone quarter, with revenue of INR443 crores, up 5.2% YoY and 6% sequentially, and an EBITDA margin of 27.3%. Consolidated revenue for FY26 increased by 12.3% to INR1,875 crores. However, Q4 consolidated EBITDA was INR112 crores, slightly lower than stand-alone due to the impact of lower-margin acquisitions and INR9 crores in one-time^📎 regulatory/cost provisions.

The company expanded its global footprint with the acquisition of Medyneo in Brazil for $40,000. This strategic move provides immediate access to the Brazilian market by leveraging existing ANVISA and import licenses, saving 18-24 months in regulatory timelines. Integration of previously acquired PendraCare and Citieffe is fully underway, focusing on cost savings through procurement and manufacturing optimization, and revenue growth via cross-selling. PendraCare and Citieffe contributed INR65 crores to Q4 FY26 consolidated revenue, with Citieffe accounting for INR43-44 crores.

Poly Medicure is actively shifting its revenue mix towards higher-technology segments. Infusion Therapy now accounts for 50% of revenue (down from 57% in Q4 FY25), while Renal contributes 11%, with Cardiology, Critical Care, and other acquisitions making up the remaining portion. The company is investing heavily in R&D, with teams in Europe and India collaborating on new devices. New products like drug-eluting balloons, developed indigenously, are 100% import substitutes, targeting high-value segments (INR1 lakh to INR10 lakh products) in cardiology, orthopaedics, oncology, and renal care.

FY26 was characterized by a difficult external environment, particularly for exports. The Gulf war created a 'logistics nightmare' for West Asia, impacting 6-8% of revenue due to shipping bottlenecks. Raw material prices, especially crude-linked plastics, increased by approximately 20%, posing a significant headwind to gross margins, though mitigated by adequate stock and price increases (3-5%). Chinese dumping continues to affect the Renal segment, with management actively working with the Indian government to address the issue, as Chinese companies benefit from 0% import duty from ASEAN countries.

Capex for FY26 was INR296 crores, allocated to plants in Haridwar, Faridabad, Mitrol, and YEIDA Medical Park. For FY27, capex is guided lower at INR200-225 crores, with a focus on automation to mitigate wage revisions. The company maintains a strong balance sheet with consolidated cash of INR842 crores, which serves as a strategic reserve for future initiatives. Capacity utilization post-QIP-1 is currently around 65-70%.

For FY27, Poly Medicure projects consolidated revenue of INR2,300-2,400 crores (25% growth) and stand-alone revenue of INR1,900-1,950 crores (15-16% growth). Stand-alone domestic business is expected to grow upwards of 20%, and international business upwards of 15%. Stand-alone EBITDA margin is targeted at 25-27%, while consolidated EBITDA margin is expected to be 23-25% due to lower margins from acquired entities. The company anticipates PendraCare and Citieffe to reach mid-teens EBITDA margins, eventually targeting 20% with synergies over the next 2-3 years.