Medical devices manufacturer Poly Medicure is targeting nearly 20% consolidated revenue growth in FY27 as it shifts focus towards high-technology medical devices and expands global presence. According to Managing Director Himanshu Baid speaking to CNBC-TV18, the company is moving away from low-technology products and building a portfolio centred on advanced medical devices, particularly in cardiology and orthopaedics. The company expects its international business to grow by 15% in FY27, while consolidated revenue growth could approach 20%, supported by recovery in Europe and contributions from acquired businesses. Baid emphasized this represents a "transition for the company, moving from low-technology to medium- and high-technology products" over the next four to five years, with the goal of transforming from a low- and medium-technology platform to a high-technology platform.
The company is developing a range of advanced cardiology products, including intravascular lithotripsy (IVL) devices, drug-coated balloons and other specialised devices, many of which are expected to be launched in the coming months. As reported by CNBC-TV18, some products are set for launch shortly, while others are scheduled for release by the end of the year, subject to regulatory approvals and market access timelines. Baid indicated that products like drug-coated balloons, IVLs and high-end devices are the focus of current research and development efforts, with in-house R&D remaining central to the company's strategy. The cardiology business is particularly attractive as it addresses a high-TAM (Total Addressable Market) business where India depends heavily on imports, providing significant growth opportunities for the company's advanced product portfolio.
Baid said Poly Medicure is currently focused on trauma products and completing the product portfolio at its acquired European business before moving into joint replacement devices over the next few years. According to the company's strategy outlined to CNBC-TV18, the orthopaedics expansion aims to reduce India's dependence on imported medical devices while tapping larger global markets for advanced products. The company indicated that generating around ₹150 crore in revenue from these newer high-end products over the next three years is achievable. While the infusion therapy business has historically accounted for a large share of Poly Medicure's portfolio, its contribution is expected to remain at around 50% in FY27 as the company prioritises newer categories, reflecting the strategic shift towards high-technology products.
Recently reported Q4 results showed a 27.8% year-on-year decline in net profit to ₹66.3 crore, compared with ₹91.8 crore a year earlier, while revenue for the January-March quarter rose 21.3% to ₹534.5 crore. As reported by CNBC-TV18, EBITDA declined 7.8% to ₹110.3 crore with margins at 20.6%, down from 27.1% in the corresponding period last year. However, Baid noted that "Quarter four was much better for us compared to the other quarters" with standalone EBITDA margins reaching their highest level at around 27%. Despite quarterly pressure, the company expects improvement in international business after supply chain disruptions affected exports, particularly in Europe. The company also faces external challenges including higher crude-linked raw material prices that could pressure margins from the second quarter onwards, though currency depreciation may partly offset the impact.
The company faces external challenges including higher crude-linked raw material prices that could pressure margins from the second quarter onwards, though currency depreciation may partly offset the impact. According to Baid's comments to CNBC-TV18, the West Asia business remains under pressure due to elevated freight costs and shipment delays, with orders worth ₹20-30 crore deferred in March and similar delays continuing into Q1. However, Baid indicated that "we were caught a little off guard on that, but over the last three to four months we have seen things picking up" with the company adding more distributors in Europe and expecting recovery after growth slowed in FY26. The company may consider another round of price increases towards the end of the second quarter or beginning of third quarter to address margin pressures from raw material costs.
