POLYMED - Poly Medicure Ltd Share Price

Poly Medicure Limited's management provided a positive outlook during the Q3 FY26 earnings call. They anticipate a strong performance in the second half of the fiscal year, projecting a consolidated revenue increase of approximately 20% compared to the first half. The company expects to achieve a profit after tax of around INR 256 crores for the nine months ended December 2025. The domestic business, which has been a significant growth driver, is forecasted to grow about 25% over the next financial year, bolstered by new contracts in private hospitals.

Key points highlighted include:

1. Acquisitions and Integration: The company has successfully integrated PendraCare and Citieffe Group into its operations, contributing to growth. These units are expected to enhance the product portfolio and sales capabilities, with approximately INR 49 crores added to the top line during Q3 from these acquisitions.

2. Product Innovation: Full regulatory approvals for two advanced products, the Intravenous Lithotripsy System (IVL) and Drug Eluting Balloon (DEB), are set to address complex cardiovascular conditions in India, with both products having an average selling price exceeding INR 1,15,000.

3. Financial Performance: Q3 FY26 consolidated revenue was INR 494 crores, showing a year-on-year growth of about 16.4%. The consolidated operating EBITDA was INR 119 crores, translating to an EBITDA margin of 24.2%.

4. Liquidity Position: The company concluded the quarter with a robust liquidity position of INR 840 crores, which supports ongoing investments in growth strategies, with a capex of INR 234 crores in the first nine months of FY26 targeted towards expanding production capabilities.

5. International Business Outlook: The international revenue segment is predicted to stabilize, and management is optimistic about capitalizing on upcoming regulatory approvals and contracts, expecting a 12-15% growth in the export business for FY27.

Overall, the proactive strategic expansions, robust integration of recent acquisitions, strong domestic growth, and innovative product launches position Poly Medicure for favorable growth in upcoming quarters.

1. Suruchi Parmar: Just want an explanation on your stand-alone revenue growth is only 2% and the consolidated revenue growth is 16%. So is the consolidated revenue growth basically because of the new acquisitions?

Himanshu Baid: Yes, that is correct. The stand-alone revenue growth was affected by headwinds in exports, especially in Europe. We faced challenges last year, but with the market improving and new customers being added, we expect growth in the future. We're optimistic as we add 5 to 6 new customers in April, primarily in the infusion segment.

2. Suruchi Parmar: These new products that you have got approval for cardiovascular IVL and DEB, these are basically for the Indian market only, not for exports, correct?

Himanshu Baid: Yes, it will take 2 to 3 years to gain global regulatory approvals, so our immediate focus is on selling these products in India. We have already implanted over 7,000 drug-eluting stents, and the clinical registry includes 200 enrolled patients in India and Europe.

3. Nilkhant: You mentioned about the 20% growth in H2 compared to H1, right?

Himanshu Baid: Yes. If H1 revenue was around INR 840 crores, we expect H2 to be INR 1,025-1,030 crores. Looking at Q3 revenues of INR 493 crores, we project Q4 to be around INR 530 crores, reinforcing the targeted 20% growth.

4. Nilkhant: I see employee costs increasing sharply post-acquisitions. Should we assume this cost for future modelling?

Himanshu Baid: Yes, as we scale and move towards higher technologies, skilled personnel are essential. We've hired close to 100 people recently for R&D and operational roles to enable our transition into advanced markets, which will impact costs but also build competency.

5. Ravi Naredi: So how you compete with China in renal?

Himanshu Baid: Renal represents about 10% of our business. Competing with zero-duty imports from China is tough, but we are advocating for anti-dumping regulations. No industry can thrive with such pricing mismatch, and we are pushing for a supportive policy shift.

6. Jainis Chheda: In terms of competing with China in international markets, do you offer more margins to the distributors?

Himanshu Baid: We maintain quality standards that assure European hospitals of our product's performance. Our strategy focuses on providing technology that meets or exceeds expectations, ensuring the value of our products justifies any price differential.

7. Bharat Shah: I heard your domestic business should grow around 25%, and international at around 12% to 15%. How does this combine?

Himanshu Baid: The combined growth could exceed 20%. Our guidance reflects the anticipated contributions from our recent acquisitions and our existing portfolio performance. We are optimizing contributions across all fronts, including our oncology business which is growing.

8. Naman Bagrecha: The revenue contribution from acquisitions for the quarter?

Rahul Gautam: The two acquisitions have contributed about INR 48-49 crores to the top line for Q3.

9. Jainis Chheda: Are you looking at other regions such as the Middle East or Southeast Asia?

Himanshu Baid: We currently operate in 125 countries and plan to significantly expand our presence. It's essential to engage on a clinical level, hiring more personnel globally and enhancing our distribution strategies to grow market share.