India's medical device manufacturing sector is experiencing significant growth driven by government policy initiatives. According to reports from The Financial Express, the Production Linked Incentive (PLI) scheme launched in 2020 targets high-value products including imaging systems, implants, anaesthesia equipment, and cardio-respiratory devices. The National Medical Devices Policy introduced in 2023 aims to scale up the sector and secure a 10-12% share of the global market over the next 25 years. By September 2025, 22 greenfield projects had been commissioned producing devices across 55 categories, with cumulative sales reaching ₹12,344 crore and exports accounting for nearly half at ₹5,869 crore. A joint report by Boston Consulting Group, the Association of Indian Medical Device Industry, and the Kalam Institute of Health Technology estimates India could emerge as a $7 billion contract manufacturing hub for global medical device companies by 2035.
Poly Medicure, founded in 1995, has established itself as a veteran in the medical device manufacturing space. As reported by The Financial Express, the company exports to more than 125 countries and manufactures over 225 medical devices from 15 manufacturing plants across five countries. In FY26, the company reported revenue of ₹1,875 crore with more than 65% coming from exports. The company's gross profit margin improved to 68.1% in FY26 from 66.7% in FY25, while EBITDA margin declined to 24.4% from 27.5% due to the acquisition of Italy's Citieffe SRL in 2025. ROCE decreased to 16.0% from 23.0% in FY25, primarily impacted by the Citieffe acquisition. The company launched 35 new products across the group in FY26 and plans more than 100 product launches in the next 3-4 years.
Shaily Engineering, founded in 1987, has transformed itself into a significant player in drug-delivery devices, particularly in the GLP-1 ecosystem. According to The Financial Express, the company's healthcare segment grew 139% to ₹393 crore in FY26, with healthcare's share of revenue rising to nearly 40% from 21% in FY25. The company reported revenue of ₹991 crore in FY26, representing 20.5% growth, with gross profit margin improving to 57.0% from 47.2% and EBITDA margin increasing to 29.0% from 22.7%. ROCE improved significantly to 35.8% from 24.4% in FY25. The company has expanded manufacturing capacity and secured new contracts, with plans to build additional capacity in Abu Dhabi. Shaily's growth is tied to the evolution of GLP-1 drugs such as Ozempic and Wegovy, which have become commercially successful pharmaceutical products driven by growing demand for diabetes and obesity treatments.
Both companies are trading at premium valuations relative to the broader medical equipment industry, reflecting investor enthusiasm for India's emerging medtech opportunity. According to Screener.in data, Poly Medicure trades at 51.1 times earnings with a 5-year median PE of 60.1, while Shaily Engineering trades at 81.2 times earnings with a 5-year median PE of 58.9. Management has guided FY27 revenue to around ₹2,300 crore for Poly Medicure, implying growth of more than 20%. The Confederation of Indian Industry (CII) projects the medtech sector could reach $50 billion by 2030, with exports alone reaching ₹1.7 lakh crore ($20 billion). Despite challenges including regulatory complexity, potential end of government incentives, and technological changes, the long-term opportunity remains significant as India's share of global medical device exports remains small at around 3% today.
