• Event Type: Q2 & H1 FY27 financial results earnings conference call hosted by Motilal Oswal Financial Services Limited
  • Date and Time: Thursday, November 05, 2026 (time not specified)
  • Purpose: Discussion of quarterly financial results, operating KPIs, and product pipeline progress
  • Management Participants: Mr. Bhargav Kotadia (Managing Director and Chief Executive Officer), Mr. Amit Khandelia (Chief Financial Officer)
  • Moderator: Ms. Khyati Sonthalia from Motilal Oswal Financial Services Limited
  • Availability: Transcript was submitted to exchanges and is available on the company website at www.smtpl.com
  • Compliance: The discussion included forward-looking statements with reference to safe harbor statements

Financial Performance Highlights

Q2 FY27 Performance:

  • Revenue: INR373 crores, up 24.7% YoY (record quarter)
  • EBITDA: INR65 crores, up 36.6% YoY
  • EBITDA Margin: 17.6% vs 16.0% YoY (154 bps expansion)
  • PAT: INR26 crores, up 26.6% YoY

H1 FY27 Performance:

  • Revenue: INR725 crores, up 24.9% YoY
  • EBITDA: INR114 crores, up 43.4% YoY
  • EBITDA Margin: 15.7%
  • Reported PAT: INR41 crores, up 7.5% YoY (includes one-off tax credit of INR8.7 crores in H1 FY26)
  • Underlying PAT Growth: ~39% YoY excluding one-off items

Product Mix Analysis:

  • Vascular Intervention: 58% of H1 revenue, up 16% YoY
  • Structural Heart: ~40% growth in Q2 (both TAVI and occluders up ~40%)
  • Other Products: 52% growth in H1 (largely driven by IVUS in Europe)

Geographic Revenue Breakdown:

  • ROW: 40% of revenue, up 37% in H1 (largest region)
  • Europe: 36% of revenue, up 23% in H1
  • India: 15% growth in Q2 (improved from 6% in Q1)
  • Constant Currency Growth: ~16% in Q2, ~15% in H1

Margin Analysis:

  • Gross Margin: 74.3% in H1 vs 76.0% YoY (170 bps decline)
  • 150 bps due to product mix shift (traded products with lower margins growing faster)
  • Remainder from higher input and labor costs including quality investments
  • Cost Efficiency: Employee cost fell from 28.8% to 27.1% of revenue; Other expenses fell from 31.5% to 29.7% of revenue

Balance Sheet & Returns:

  • ROCE: 16.7% annualized (vs 12.2% in FY26)
  • ROE: 11.2% (vs 9.8% in FY26)
  • Capital Employed: Increased by INR72 crores in H1 (mainly working capital)
  • Total Equity: ~INR745 crores
  • Borrowings: INR300 crores
  • Cash & Liquid Investments: INR114 crores
  • Net Debt: ~INR223 crores (~1x net debt to EBITDA)

Cash Flow Metrics:

  • Cash Conversion Cycle: 128 days in H1 FY27 (improved from 144 days in FY25)
  • Cash from Operations: INR47 crores in H1 (41% of EBITDA)
  • Free Cash Flow: Slightly negative INR1.8 crores after INR41 crores capex
  • Cash Flow Conversion: Improved from 37% of EBITDA in FY24 to 62% in FY26

Operational KPIs

Commercial Presence:

  • 77 countries as of FY26, 70 countries in H1 FY27 (quarterly fluctuations due to distributor ordering patterns)

Capacity Utilization:

  • DES Utilization: 79% at Surat, 20% at Telangana
  • Balloon Utilization: 72% at Surat, 57% at Telangana
  • New DCB Line at Surat: 40% utilization

Fixed Asset Turnover:

  • Historically around 7x before Telangana plant
  • Expected to improve as Telangana plant ramps up utilization

Product Pipeline & Regulatory Updates

TAVI Platform (Hydra):

  • GENESIS-II showed 95% device success and 7.5% pacemaker implantation rate at 30 days
  • Hydra Elevate: Received CDSCO approval earlier in 2026 (adds polymer external skirt to reduce paravalvular leak)
  • AVDC 1.5 Delivery System: Received CE approval earlier in 2026 (improved ergonomics and deployment)

Other Products:

  • Sironity: Sirolimus drug-coated balloon now commercialized in India
  • Supraflex Cruz: EU MDR certified
  • Pipit NC and SC: Completed stage one and two audits for MDR
  • Hydra and Cocoon: Technical files submitted for MDR certification

R&D Capabilities:

  • Team of 156 people
  • R&D spending: 9-10% of revenues (all expensed, not capitalized)
  • 118 granted patents
  • 75 clinical studies

Management Guidance & Outlook

Revenue Guidance:

  • Mid-teens constant currency growth for FY27 and FY28
  • Structural heart expected to grow faster than vascular intervention

Margin Guidance:

  • 150-200 bps EBITDA margin expansion annually
  • Target of ~20% EBITDA margin by FY29
  • Driven by operating leverage in European markets where sales teams are already established

Capex Guidance:

  • INR70 crores annually for FY27 and FY28
  • H1 FY27 capex: INR44 crores
  • Focus areas: Vertical integration, automation, maintenance capex

Working Capital Guidance:

  • Current CCC: 128 days
  • Target: 100-110 days over next 3 years
  • Focus on inventory reduction (receivables already optimized at 75 days)

Tax Rate:

  • Effective tax rate: 32-35% for next 2-3 years
  • Due to higher tax rates in Spain, Brazil, Germany and loss-making subsidiaries

Additional Notes

  • The document is a complete transcript of the earnings call submitted to exchanges as a regulatory compliance requirement
  • The call included detailed Q&A session with analysts covering capacity utilization, product pipeline, geographic expansion, and margin drivers
  • Management emphasized transparency and consistent quarterly reporting of the same KPIs
  • The company manufactures across three plants: Surat, Telangana, and Thailand with critical components brought in-house