Poly Medicure Limited

Strategic Business Updates

  • Optimization of Medyneo subsidiary in Brazil is on track, with Mr. Renato Rocha joining as CEO of Polymed Brazil operations
  • First shipments of goods dispatched to Brazil in October 2026 to service customers in this key market
  • Established direct presence in the UK to capture new opportunities under the India-UK FTA agreement
  • Three important projects underway in UK market: first project expected in Q1, second in Q4 FY27, third in Q3 FY28
  • Exploring similar opportunities in other parts of Europe under upcoming India-EU trade agreement

Financial Performance - Standalone (H1 FY27)

  • Revenue: ₹919 crores, up 15% YoY
  • Domestic revenue: ₹318 crores, growing 20% YoY
  • International revenue: ₹595 crores, growing 12.5% YoY
  • Gross profit: ₹645 crores, up 17% YoY
  • Gross margin: 70.1%, expanding by 111 basis points
  • Operating EBITDA: ₹255 crores, up 20% YoY
  • Profit after tax: ₹180 crores
  • PAT margin: 18.6%

Financial Performance - Standalone (Q2 FY27)

  • Revenue: ₹488 crores, up 17% YoY
  • Domestic revenue: ₹172 crores, growing 22% YoY
  • International revenue: ₹313 crores, growing 15% YoY
  • Gross profit: ₹336 crores, up 16% YoY
  • Gross margin: 68.9%
  • Operating EBITDA: ₹134 crores, up 20% YoY
  • EBITDA margin: 27.4%
  • Profit after tax: ₹92 crores
  • PAT margin: 18.1%

Financial Performance - Consolidated (H1 FY27)

  • Revenue: ₹1,106 crores, up 31% YoY
  • Organic consolidated revenue growth: 14% (excluding acquisition impact)
  • Gross profit: ₹793 crores, up 36% YoY
  • Gross margin: 71.7%, expanding by 270 basis points
  • Operating EBITDA: ₹266 crores, up 19% YoY
  • Profit after tax: ₹180 crores
  • Operating EBITDA includes setup costs for new UK and Brazil subsidiaries

Financial Performance - Consolidated (Q2 FY27)

  • Revenue: ₹581 crores, up 31% YoY
  • Gross profit: ₹407 crores, up 32% YoY
  • Operating EBITDA: ₹139 crores, up 20% YoY
  • Profit after tax: ₹95 crores

Business Segment Performance (H1 FY27)

  • Infusion therapy: ₹542 crores, up 11% YoY (domestic growing 20%)
  • Orthopaedics: ₹92 crores (reflecting Citieffe consolidation)
  • Renal business: ₹94 crores, up 7.5% YoY
  • Dialysis machines: Cumulative sales of approximately 1,250 machines to date
  • Cardiology: ₹56 crores (led by PendraCare acquisition)
  • Drug-eluting stents: Close to 18,000 implants as of October 2026
  • PACIFIER DES clinical registry: 1,150 patients enrolled (target: 2,000 patients by end FY27)
  • Other segments: ₹317 crores, up 23% YoY (critical care, transfusion systems)

Business Segment Performance (Q2 FY27)

  • Infusion therapy: ₹284 crores, up 12% YoY
  • Orthopaedics: ₹43 crores
  • Renal business: ₹51 crores, up 20% YoY
  • Cardiology: ₹27 crores
  • Other segments: ₹173 crores, up 26% YoY

New Product Launches

  • Launched IVL (intravascular lithotripsy) technology in August 2026 - a minimally invasive technology using sonic pressure waves to break up calcium in heavily calcified arteries

Liquidity Position and Capex

  • Liquidity position: ₹839 crores as of 30th September 2026
  • Consolidated debt: ₹377 crores
  • Net cash position: ₹460 crores
  • Capex spent in H1: ₹124 crores (₹124 crores in India business, ₹15 crores in overseas businesses)
  • Annual capex guidance: ₹200-225 crores

Forward-Looking Guidance

  • Consolidated revenue guidance maintained: ₹2,300-2,400 crores for FY27
  • Standalone revenue guidance maintained: ₹1,900-1,950 crores for FY27
  • Domestic growth guidance: 20%
  • International growth guidance: 15%
  • Standalone EBITDA margin guidance increased: from 25%-27% to 26%-27.5% for FY27
  • Consolidated EBITDA guidance maintained: 23%-25% for FY27
  • Capex guidance maintained: ₹200-225 crores

Operational Highlights

  • Added 30 new customers in last six months in international markets
  • Deepened relationships with existing customers by increasing revenue share and cross-selling new products
  • Effectively mitigated raw material price impact (200-300 basis points guided impact reduced through inventory management, price hikes, and focus on high-value products)
  • Anti-dumping case filed in end of June 2026 against Chinese players in dialysis segment - awaiting government action

Subsidiary Performance Details

  • PendraCare: Grew ~10% YoY till September 2026; currently making EBITDA losses due to Middle East exposure (20% of 2025 revenue) and raw material price increases
  • Citieffe: Up 3%-4% YoY between April-September 2026; challenges due to delay in Italian tendering
  • Plan 1 Health: Operating in mid-teens EBITDA margin
  • PendraCare missed earnout milestone due to shelved project that didn't pass regulatory and clinical trials, resulting in reversal of contingent consideration of ₹96 million

Regional Performance

  • Europe organic growth: ~40% in Q2, 29% in H1
  • ROW markets: Down 7% in Q2, down 1.8% in H1 due to West Asia geopolitical challenges
  • US business: Targeting USD 7-8 million group level sales in FY27; recent 510(k) approval for irrigation set; expecting USD 15-25 million in next 3-4 years

Regulatory and Market Developments

  • DGHS notification issued end October 2026 mandating single-use of medical devices (immediate effect), expected to benefit dialysis business long-term
  • Potential additional PLI scheme for MedTech sector being considered by Government of India
  • R&D promotion scheme for MedTech under consideration

Future Outlook

  • Expecting benefits from synergy projects with subsidiaries from Q1 calendar year 2027
  • 30 new product registrations coming up in European markets
  • Targeting doubling revenue by FY30 under Polymed 3.0 vision
  • Infusion business expected to maintain 45%-50% contribution over next 4-5 years
  • Exploring Southeast Asia markets for renal business expansion