Summary
Poly Medicure Limited - Q3 FY 2026 Earnings Call Summary Friday, February 06, 2026 04:00 P.M. IST
Event Participants
Executives 3 Himanshu Baid (Managing Director), Naresh Vijayvergiya (CFO), Rahul Gautam (President, Strategy and Corporate Development)
Analysts 5 Bharat Shah, Harsh Doshi, Jainis Chheda, Naman Bagrecha, Nilkhant, Ravi Naredi, Suruchi Parmar
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Consolidated) | ₹494 crores | +16.4% YoY; Driven by consolidation of PendraCare and Citieffe acquisitions. |
| Revenue (Standalone) | ₹445 crores | +2% YoY; Impacted by European headwinds and Chinese dumping in infusion markets. |
| Gross Profit | ₹338 crores | 68.4% margin; +300 bps YoY due to better product mix and cost efficiencies. |
| Operating EBITDA | ₹119 crores | 24.2% margin; Excludes ₹6-7 crores in onetime acquisition costs. |
| Profit After Tax | ₹71 crores | Adjusted for ₹15 crores onetime costs (Labor Code & Acquisitions); net margin at ~14.4%. |
| Net Working Capital | 140 days | Reflects ongoing integration of new businesses and inventory management. |
| Capex (9M FY26) | ₹234 crores | Invested in new facilities at Mitrol, Haridwar, and land in YEIDA Medical Park. |
| Cash & Liquidity | ₹840 crores | Strong position maintained to support organic expansion and future M&A. |
Geographic & Segment Commentary
- Domestic Market: Recorded 16.2% YoY growth in Q3 and 18% in 9M FY26. The private market (90% of domestic revenue) grew 22.5%, while the company deliberately reduced government tender exposure (down 18%) due to low pricing and payment delays.
- International Market: Generated ₹342 crores in revenue (+16.6% YoY). While organic growth in Europe was muted by regulatory transitions (MDD to MDR) and Chinese dumping, the segment is stabilizing with 5-6 new major customers expected in April 2026.
- Renal Business: Revenue stood at ₹45 crores for Q3 (+15.1% YoY) with 300+ dialysis machines sold year-to-date. Growth was slightly below expectations (target 450 machines vs 500-600) due to competitors placing machines for free to capture consumable sales.
- Cardiology & Orthopedics: Integration of PendraCare (Cardiology) and Citieffe (Orthopedics) is underway, contributing ₹48-49 crores to Q3 top line. Polymed has implanted 7,000+ drug-eluting stents to date and received DCGI approval for IVL and DEB systems.
Company-Specific & Strategic Commentary
- Value Chain Transition: Shifting from low-tech commodities to high-complexity segments (Cardiology, Oncology, Orthopedics) to build a multi-therapy “Medtech Platform” with higher entry barriers.
- Clinical Sales Transformation: Transitioning from a distributor-led model to a clinical-led model by hiring 100+ specialized sales and clinical reps globally to engage directly with hospitals on product technicalities.
- “Made in Europe” Edge: The PendraCare and Citieffe acquisitions provide immediate access to US FDA/EU MDR approved facilities and products, operating currently at only 50-60% capacity.
- Regulatory Progress: Secured DCGI approvals for Intravenous Lithotripsy (IVL) and Drug Eluting Balloons (DEB); commercialization will target the ₹1.15 lakh+ ASP segment currently dominated by imports.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth (H2 vs H1) | +20% | Expected surge in Q4 driven by normalization of exports and new domestic contracts. |
| FY 2027 Revenue Growth | ~20% + | Target includes 25% domestic growth and 12-15% organic export growth plus full-year acquisition impacts. |
| EBITDA Margin | 25% - 27% | Management aims to maintain margins despite higher costs for skilled clinical manpower. |
| New Capacity | 18 - 24 Months | 3 new plants (Mitrol, Haridwar, YEIDA) to become fully operational within this timeframe. |
Risks & Constraints
| Risk | Context |
|---|---|
| China Dumping | Chinese manufacturers are exporting at 20-30% lower prices, particularly in Renal and Infusion sectors; Polymed is lobbying the Indian government for anti-dumping duties. |
| Regulatory Lag | Transitioning to EU MDR and obtaining US FDA approvals for new Class 3 implants (stents/balloons) typically requires a 3-5 year gestation period. |
| Margin Pressure | Initial lower EBITDA margins of acquired European entities and high costs of specialized clinical teams may cap consolidated margin expansion in the short term. |
Q&A Highlights
Domestic Strategy
- Question: What explains the 25% domestic growth conviction given the Chinese competition? (Naman Bagrecha)
- Answer: Private business (88% of domestic) grew 23% this year. Polymed is now in every top private hospital chain, and new high-value verticals like Cardiology and Critical Care will provide the delta for FY27 (Himanshu Baid).
International Headwinds
- Question: Why is standalone growth only 2%? (Suruchi Parmar)
- Answer: Primarily due to European headwinds and aggressive Chinese pricing. However, 15 new products are awaiting EU MDR approval, and new contracts with the UK’s NHS are starting in April (Himanshu Baid).
Acquisition Impact
- Question: What is the revenue contribution of the two acquisitions? (Naman Bagrecha)
- Answer: They added ₹48-49 crores in Q3. On an annualized basis, Citieffe and PendraCare represent roughly 15% of the consolidated revenue base for the coming year (Rahul Gautam).
Margin Profile
- Question: Why have net margins declined this quarter? (Ravi Naredi)
- Answer: Margins were impacted by ₹15 crores in onetime costs related to Labor Code implementation and acquisition expenses. Normalized EBITDA remains healthy at 26.8% on a standalone basis (Himanshu Baid).
Key Takeaway
Poly Medicure is undergoing a structural pivot from being an infusion-focused commodity manufacturer to a high-technology medtech platform. Q3 FY26 consolidated revenue grew 16.4% to ₹494 crores, largely bolstered by the integration of European acquisitions PendraCare and Citieffe. While standalone export growth remained sluggish at 2% due to intense Chinese price competition and regulatory transitions in Europe, the domestic private market showed resilience with 23% growth. Strategically, the company is aggressively investing in clinical teams and R&D for high-value implants like drug-eluting balloons and orthopedics to insulate margins. Management has guided for a 20% growth in H2 FY26 compared to H1 and expects to maintain a 20%+ growth trajectory in FY27 as new capacity and regulatory approvals materialize. The primary watch point remains the impact of Chinese dumping on the Renal and Infusion segments and the speed of margin recovery in the newly acquired subsidiaries.
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