Thank you very much. Good evening, everyone.

I welcome you all to our Q3 FY26 earnings call. I sincerely thank all of you for being there today.

Before we delve into the core of today's presentation, I'd like to share few significant developments that underscore Polymed's dynamic growth and execution capability. We are currently transitioning from low technology products to high complexity, high growth segments.

This isn't just a change in our product mix, it's a fundamental upgrade of our business model. Our expansion into cardiology, critical care, and more recently into orthopedics is a reflection of that transition.

Having said that, this doesn't mean that we are not focusing on our core infusion business, which is generating significant profits enabling us to invest into these new high growth areas. This transition is reflective of our intent to make Polymed as one-of-its-kind MedTech platform which is servicing patients across all key therapeutic areas and creating a larger entry barriers.

Some additional color to on this provided below. First, on strategic expansion, we had successfully completed the acquisitions of Pendracare and Plan 1 Health Group.

These are not just transactions, these are strategic additions to significantly enhance our portfolio and market reach. This European footprint provides us made-in-Europe advantage, access to high-end technologies, strong quality standards, faster regulatory approvals, and deeper engagement with European customers.

I'm happy to report that the integration process is underway and progressing very well, positioning us to realize synergies over next few years. Second, on the innovation and regulatory momentum, we have another exciting announcement.

We have recently received full regulatory approval from DCGI for two groundbreaking, next-generation products: intravenous lithotripsy system, IVL, and drug-eluting balloons, DEB. This approval equips us to address complex cardiovascular conditions with advanced, minimally invasive solutions here in India.

Both these products have been developed from the R&D platform of Polymed. I now take you through the quarter 3 and 9 months highlights for next 15-20 minutes, and then after that we'll open up for Q&A.

For quarter ended December '25, we have consolidated revenue of ₹494 crores, marking an overall year-on-year growth of approximately 16.4% and on a quarter-on-quarter growth of 11.2%. The gross profit in quarter 2 was ₹338 quarter 3 was ₹338 crores, reflecting a margin of gross margin of 68.4%, an increase of almost 300 bps as compared to quarter 3 last year.

The operating EBITDA for Q3 was ₹119 crores. It excludes acquisition-related cost of around ₹6 to ₹7 crores, delivering an operating EBITDA margin of 70 24.2%.

On a standalone basis, operating EBITDA is ₹112 crores, reflecting an EBITDA margin of 26.8%. On the bottom line, the profit after tax total ₹71 crores, impacted by ₹6.8 crores of extraordinary expenses due to implementation of labor code as well as acquisition-related expenses.

Both were one-time costs. Moving on to to 9 months ended December '25, we have a consolidated revenue of ₹1,341 crores, marking an overall year-on-year growth of approximately 9.1%.

Gross profit in 9 months was ₹922 crores, reflecting a margin of gross margin of 68.8%, an increase of almost 180 bps as compared to 9 months last year. Operating EBITDA for 9 months was ₹345 crores, excluding acquisition cost of ₹9.7 crores, delivering an operating EBITDA margin of 25.8%, slightly lowered lower down from 27.4% last year.

Here, also the operating EBITDA for 9 months has been taken for Pendracare and Plan 1 Health Group also. On the bottom line, profit after tax totaled ₹256 crores, impacted by ₹6.8 crores for extraordinary expenses due to implementation of labor code as well as acquisition-related costs, compared to ₹247 crores in 9 months last year, translating an YoY growth of 3.6% and a net margin of 17.7%.

Further, I'd like to share the business highlights of the two key geographical areas: domestic and international. In Q3 FY27 26, our domestic revenue grew year-on-year basis of 16.2% and 18% on 9 months basis.

Further in the domestic business, our private market, which is almost 90% of our current domestic business, grew by 22.5%, while the government business, which is around 10% to 12% of our current business, has witnessed a de-growth of 18%. Deliberately we are reducing our government business exposure, as the prices are lower in government business and also, of course when we supply to state governments, we also encounter a lot of payment delay.

Gradually, we've been decreasing this business over the year. I think, our the target is that private business should be close to 92% to 93% and government business maybe should stay around 6% to 7%.

Contribution of domestic revenue to our overall consolidated revenue has increased to 32% as as we have also increased this year more than around 80 to 90 people in the domestic team to grow our new businesses. We continue to outpace the competition in domestic market with quite significantly and hence our conviction to invest higher amounts in domestic market highly is only getting stronger.

This is reflected in the fact that we've added almost 80 to 90 new sales reps in last 9 months. Our international business segment delivered a revenue of ₹342 crores.

It has shown a 16.6% year-on-year growth. Our current international organic business is stabilizing while we start consolidating results of our two new acquisitions.

The performance in quarter 2 is quarter 3 is reflect reflective of stabilization of operating environment in international market, and we are hopeful that things will improve going forward. Having said that, there are still considerable uncertainties, specifically around aggressive China dumping as well as trade-related disruption.

The recent trade announcement with EU, UK, US creates good long-term opportunity for Indian companies in medical devices, and we are hopeful that we should be able to capitalize on them and when they get formalized on both sides. Revenue from Europe stood at INR ₹162 crores in Q3 FY26, showing a year-on-year growth of 25.7%.

Revenue from rest of the world region has grown at 9.5% from quarter 3 '25 to reach ₹181 crores in quarter 3 of FY26. Now let me give you an update on each business segment.

Renal business has not grown in line with our expectations due to pressure from Chinese suppliers. As I've told earlier that there's a lot of dumping, done by Chinese companies, and globally we have seen that data that Chinese exports have considerably increased, though they were -20% in US, but still they've grown 25% to 30% in all other global markets because they've been dumping and reducing pricing.

That's been their strategy for last 1, 1 and 1/2 years. Our Q3 FY26 revenue stands at ₹45 crores, up from ₹39 crores in the renal business, marking a year-on-year increase of 15.1%, though our quarter-on-quarter growth has been very miniscule, around 2%.

Further, our 9 months FY26 revenue stands at ₹133 crores, up from ₹106 crores in 9 months, marking a year-on-year increase of 24.7%. We have sold more than 300-plus machines till now, and hopefully we end the year close to around 450 machines, though this is slightly lower than what we projected, around 500 to 600 machines earlier.

Though growth slowed down a bit this quarter, we expect to end this year revenue of around ₹180 crores. Polymed holds 10% share of the dialysis market today, with a target of 15% to 17% over next 2 to 3 years.

We are already pushing hard, and I think also, we are going back to the government about, Chinese companies using FTA countries to to bring products into India at zero duty. I think probably that's a bigger concern today.

Even today I had a meeting, with the secretary in the in the Medical Device Department and Pharma Department, and we have clearly told them that what is happening today and what is actually hampering India's exports and India's manufacturing growth, what are these factors. Cardiology and orthopedic business, before we throw light on our cardiology business, I'd like to highlight that our recent acquisitions of Pendracare in cardiology and Plan 1 Health in orthopedics are getting consolidated in this quarter.

Where the full year impact will be their full year impact will be visible in FY27. Further, both entities are bringing valuable EU MDR, FDA-approved products and manufacturing facilities.

Currently, both the businesses are operating at just 50% to 60% of their current capacity, offering a clear and immediate pathway for growth as we integrate and scale. We will use India leverage to drive cost competitiveness in both these businesses and expand their market presence.

Coming back to domestic cardiology business, as of as on date, we have already implanted more than 7,000 drug-eluting stents, a strong signal that our product is gaining traction and earning favorable feedback from both patients and interventional cardiologists. Further, clinical study for our Rizzo stent is in progress.

More than 200-plus patients have been already enrolled across multiple sites in India. Along with this, I pointed out above, we have received approvals for intravenous lithotripsy system, IVL, and drug-eluting balloons, DEB.

Both are expected to be commercialized soon. Both these products are high-end technology products with ASP in excess of ₹1 lakh and ₹15,000 respectively.

This will further enhance our capabilities in this segment and deepen engagement with cardiologists. Strategically, these developments, along with our recent acquisition of Pendracare Group, positions us for global growth in cardiology space.

We are steadily moving up the technology chain in medical device market, and these initiatives place us well to capture meaningful market share initially to develop domestic market and over time in international arena. I just want to bring to your notice that both these products are currently imported in the country.

More than 90% of the demand is met through imports. I think we'll be one of the first companies to indigenously develop these technologies and sell in the Indian market.

On the infusion therapy front, yes, the business has been a little bit our laggard. We have just delivered a 5% year-on-year growth in Q3 despite the weakness in international markets earlier in this year.

We expect this segment to retain its historical growth momentum as international market conditions normalize. Leveraging our global leadership in infusion systems and delivery devices, we are poised to emerge stronger and capture additional market share.

Additionally, I would like to point out that we are also developing more products in this category to move up the value chain. Liquidity position and investment thesis, current turning to our balance sheet, we ended the quarter with a liquidity of ₹840 crores.

The strong cash position allows us to continue backing ambitious growth strategy, both organic and inorganic. As mentioned earlier, we have completed two acquisitions in this financial year, and further thesis focuses on technology acquisitions that complement our verticals: critical care, cardiology, and other adjacencies including orthopedics.

We will keep the market informed as and when we move forward with new opportunities. Now let me connect to this our forward-looking outlook.

We expect H2 to end at around 20% higher revenue, as I mentioned in the previous call, than H1 on a consolidated basis, as guided in the last quarter. At the same time, I'm pleased to share that our US business ambitions remain robust.

With the next 3 to 4 years, we expect meaningfully scale our US revenues driven by new contracts and regulatory approvals. With acquisition of Plan 1 Health and Pendracare Group, we are currently have 15 products approved under US FDA administration, with a further 5-7 products at various stages of approval process.

We are re-initiating conversations with our customers with whom we had already signed contracts after reduction of reciprocal tariffs to 18% to understand where they are on their project development. We will be in a better position to provide more clarity on this potential US revenue post this conversation.

It is worth emphasizing that US-India trade deal is a strong positive for Polymed, as this significantly enhances our competitiveness of Indian medical devices in the US by cutting tariffs from 50% to 18% and making products like disposables, where we have leadership position globally, far more cost-effective. It also unlocks major export growth potential in other key advanced markets while boosting investor confidence into MedTech manufacturing and R&D in India.

On a 9-month basis, our standalone EBITDA margin is 26.6%, which is at the higher end of the guidance as per what we have provided at the beginning of the year, and we expect to remain maintain it for the rest of the year. On a consolidated basis, EBITDA margin will be lower due to impact of full consolidation of the two acquisitions, which operate at lower EBITDA margins currently.

We continue to invest in future growth with the capex of ₹234 crores we have done in first 9 months of the current financial year. These funds will be deployed to set up new factories in Mithrol and Haridwar.

Mithrol is in Faridabad, Haryana; Haridwar also in in Uttarakhand. As well as to expand capacity at our existing plants.

Also, during the we have bought additional land at YEIDA Medical Devices Park near Noida in Jewar. This facility, once we get approvals from the local authorities, we will start, constructing a new facility there, and hopefully next 18 months to 24 months, this facility also will be operational.

We expect that three new plants to be fully operational within next 18 to 24 months. In summary, quarter 3 financials '26 has reaffirmed the fundamental strength of our business model.

We delivered double-digit growth domestically, maintained healthy margins, improved operating EBITDA performance, and drove significant product innovation, whilst continuing to invest in sustainability, scale, future capacity through R&D and green initiatives. Of course, for Q4, we definitely, will maintain a guidance that we should be able to, do a higher revenue in Q4 as compared to Q3, and and our guidance is between 9% to 10%.

Overall, when we compare H1 to H2 from H1 to H2, we should see a revenue increase of 20% overall, and that's what we have guided also in the in the last call. Thank you very much for your attention, and thank you very much for your time.

Now hand over the call back to the operator. Thank you very much.

Hello. Am I audible?

Yes, please. Please go ahead.

Yeah. Sir, thank you for the opportunity.

Just wanted an explanation on your standalone revenue growth is only 2%, and the consolidated revenue growth is 16%. Is the consolidated revenue growth basically because of the new acquisitions?

Yes, that is correct.

Okay. What about the standalone revenue growth?

What you are seeing going forward? See,

basically, as I've told earlier, I think that we faced certain headwinds on the export front, especially in the European markets. I think that was the main reason for lower growth for standalone revenue.

As I've been mentioning in my previous calls also, as markets are getting better, we see conditions changing. Of course, last year has been a quite difficult year, especially with the freight crisis and then, of course, China dumping excessively in various markets.

We saw muted or maybe almost small negative growth on the export front. Now things are looking better.

I think as we see this year, especially in Europe, we are adding 5 to 6 new customers starting April. Especially in developed markets, and we are also getting some new contracts in UK, especially with the NHS.

All that will help us to grow back the European business, which has been very laggard or lacking the growth, actually.

These customers will be for infusion therapy segment or renal or cardio, can you specify?

Mainly for infusion, because the business which has taken a little bit of a backstep is the infusion business. See, so that is what we are trying to grow and grow back this business.

So... Continue.

Initially you have seen that EU has transitioned to a new regulatory system from MDD to MDR. We had to drop many products initially in the bargain because it was taking long time to get the approvals.

Many products were pending, and now as time has progressed, we have added few more products in last quarter, which are EU MDR-approved, which helps us to sell those products in the European market. These are mainly critical care vascular access products.

We've got approvals recently. Within I think next 6 months, we hope that another 15 new products will be EU MDR-approved, which we can sell in the European markets with the same customer base and same market.

I think that is what we're targeting right now. All that is part of the regulatory work we have been doing in last 6 to 8 months.

Okay. Sir, these new products which you have got approval for cardiovascular, IVL and DEB, these are basically for the Indian market only, not for export, correct?

It will take at least 2 to 3 years to get regulatory approvals for global market. Our first task is to sell these products in India, like what we are doing for DES right now.

All the 7,000 stents which have been implanted are in India right now. Though we have clinical registry in Europe and India both, which is 50 to 60 people will be implanted stents out in Europe, and which have already finalized that process.

India, already, as part of that program, we have already 200 patients already enrolled in that clinical registry. Gradually, see, the regulatory cycle is very, very long for medical devices, especially for critical devices which are falling in class 3 devices, which are implantable, used for long term.

Mostly companies spend 3 to 5 years in getting approvals for global markets.

Can you specify how much will be the market for these products, the cardiovascular products which you have got the approval?

Basically, these are completely new technologies, like drug-eluting balloons are new technology, because these are used in angioplasty. Today in India, we are implanting almost 1.3 million stents.

While we are doing around close to 700,000 angioplasties today in India, average per patient is around 1.6, 1.7 stents. Basically, to remove the plaque and sometimes just to ensure that there are no stents, people use drug-eluting balloons.

Even IVL is basically used for cutting the plaque in the arteries. These are fairly new technologies in India and, I think, completely dominated by multinational companies.

I think we are one of the first companies, pioneers to launch this product. Market will grow, but I think I don't have any numbers because just got the approvals.

The market will keep on increasing, because as the stent market in last 5 years is almost doubled, similarly these products probably in India, I would say around 50,000 DEBs are sold or maybe around 10,000 IVLs are sold. Eventually these products will almost become 2x, 3x in next 3 to 5 years.

Okay. Sir.

I just want to clarify one thing. When Polymed exports to either US or Europe or UK, you sell directly to the hospitals or the doctors, or you sell to their pharma distribution players?

The business is very clear: we sell to distribution partners who specifically have their own teams, medical device distributors, who specifically have their own teams which can go to hospitals and promote the product. We work in collaboration with these distributors, and we continuously train these people.

Like last week, our team was in France visiting at least 10 to 15 hospitals and training with the local distributor, their reps, and the nurses and doctors in France. Or we have done in the previous month in Spain before that.

We continuously engage in those kind of programs so that they understand our product, the users get more familiar with the technologies and the products we are manufacturing. That's a continuous process.

It's actually done through distribution partners.

Okay. Just one last question.

Can you specify the revenue mix going forward in FY27, what you envision from cardio, renal, and infusion therapy?

See, in fact, we have not carved out those numbers, and I will be able to give you more clarity once we formalize the business plan for FY27, which should be in next maybe 3 to 5 weeks. I think I'll be in to give you a better position.

What we are seeing right now that domestic business overall should grow around 25% for next year. That's the plan for next year.

That's the plan we have been making and we are working on that. Export business should grow around 12% to 15%, because we had a, let's say a lower threshold, and I think now we should grow faster.

We are seeing probably growing at 12% to 15%. That is what we are calling out.

Overall, both the businesses will grow for definitely. Individually, I don't have the numbers to tell you right now.

Okay. Sir.

Thank you so much. Thank you.

Yeah. Sir, thank you for the opportunity.

Sir, if I heard correctly, you mentioned about the 20% growth in H2 compared to H1, right? In that case, in 4Q you have to grow at almost around 18% to 19% on a YoY basis.

I also heard you mentioned about a quarter-on-quarter growth of almost around 10% to 11% in 4Q. Am I missing something or can you please shed on that part?

Yeah. If you see, our H1 revenue was close to around ₹840-odd crores, that's what the number I remember.

We will end the H2 around ₹1,025, ₹1,030 crores, maybe that ballpark number, I don't remember exactly. When we look at the growth number, we are seeing almost 20% growth H1 over H2.

Now, if you see the quarter 3 numbers, the revenue is close to ₹493 crores, and quarter 4, the revenue will be close to ₹530 crores or something that number, close to that number. Basically, if you start computing the two details, it will come to that 20% growth number.

Okay. Sir, I see the employee costs increasing very sharply, and I assume that is largely because of the acquisition, the recently acquired company.

Because on a standalone level, the employee cost as a percentage of 50 is also 20%, but at the consular it's 23%. Going forward, should we assume this kind of employee costs for the purpose of that modeling or how do you see?

See, as we go deeper into higher technologies, we definitely need more skilled people. Like today, if I was hiring a person for my infusion business, it will cost me around ₹60 to ₹70,000, for example, ballpark.

If I'm hiring somebody for cardiology, it's going to cost me ₹2 lakh a month. Right?

Last year, if you've seen, just 9 months in this year, we have hired over 90-odd people. Actually, number Rahul is saying is 100, close to 100.

We have almost hired 100 people. Now, all these people will become productive.

We are building the whole operational structure, we are hiring clinical people. Because if I need to sell high-end medical devices, I need the skill set within the organization.

We have hired a lot of people in R&D because we are supporting the other two acquisitions we have done, a lot of R&D will happen at back-end in India. A lot of operational excellence we are building in India for those companies also.

A lot of hiring are happening, and we're going to build, and that is built in the model today. If you remember, in the beginning of the year, we had guided for 25% to 27% EBITDA, whereas we were already doing close to 27 and 1/2% EBITDA in FY25.

Why we guided, because we knew that we were working on these acquisitions, we knew that initially these companies work at lower EBITDA, the cost pressure will come in on the overall system. Now, as we have done the acquisitions, we have done one quarter, we know where we are heading, and we've still maintained on standalone basis 26.

8% EBITDA margin, this is very close to that 27% number higher spectrum. I think this will continue for a while because it's important that we build the competence in the organization.

These products need lot of skilling for selling to doctors, hospitals. If we don't have the skill, we can't sell a product for ₹1.5 lakhs.

From selling a product for ₹15, we are now moving to selling a product for ₹1.5 lakhs. We need those skill sets, and that's what we are doing right now.

Okay. Got it, sir.

Sir, if I correct, you mentioned about from earlier guidance of machine from 550 to now guided to 450, right? What caused the revised guidance downwards side, particularly in the dialysis machine and all?

Yeah. Dialysis machine again, if you see, we had guided 500 to 600 machines in the beginning of the year, but we may end around at 450.

Certain government contracts are delayed, because again, if you look at most of the larger companies are not just selling machines, they're placing machines into hospitals. Like Fresenius and Nipro, they place machines in the hospital, and because they have a larger balance sheet, they can do that.

Then they work on a 5-year, 7-year contract for supplying consumables. Here, what we are trying to do, we are trying to move away from this model, we say we're going to sell the machine to the user.

That is what we are doing. Of course dialysis program is very well funded by the central government and also state government.

So 80% to 90% 70%, 80% patients are going to government-driven dialysis centers. We are working on certain large I think contracts, and hopefully, we might get them before March.

Our current visibility is 450 machines, but we don't know, it can be 470 also. It is prudent that to give a number which we think can be done.

I think next year, as most of these contracts may go into next year because of budgeting issues, I think we may see a bigger number. Again, we can't predict too much.

Of course we have I think bidded in contracts which are more than 600 machines already, as of now, which are in pipeline. When they come is a question mark.

Okay. Thank you, sir.

Also, sir, just wanted to know by the end of the 9th 9 months FY26, what would be our ballpark if you can help me with the working capital numbers?

Working capital numbers?

Right, probably in terms of days or absolute numbers, either of the cases.

You want the net working capital number?

Ji, yes.

Our net working capital number for 9 months will be close to 140 days.

140 days. Okay.

Sir. Sir, just one last question if I can ask.

Sir, I see ROW portion it's not been picking up very fast. I see EU is now doing good, at least on a QoQ basis.

When we say from the ROW perspective, how should we see when can we pick up, what kind of concentrated efforts you are taking to get it done better?

See, I'll tell you how the business is into three parts: one is India, one is Europe, and one is rest of the world. Now, rest of the world also had Americas, rest of the world also has Latin America, Middle East, Asia.

In every market, see, let me also brief the people on the call, that we have also changed the way we used to do business. Today, it's not that you can make cheaper or you can sell a product.

If I need to compete with China, I have to be 10% cheaper than China if I have to break that market. Now that is not happening, because China's volume, numbers are very different than India, they are 10 times bigger than us.

How do we win the market? How do we win contracts?

How do we sell more products? We have to reorient ourselves towards clinical side of the business.

Today, we have now hired more than 25 people in the clinical team, which are now going globally. As I talked about earlier, that we've sent teams to France, to Spain, we are sending teams to different-different markets.

I think they have a limited time, but I think, and that is what is changing. Once we engage more deeply with clinicians, hospitals in those specific markets, we will see business growing.

I think that's the strategy we adopted 6 to 8 months ago, and we are now going to see more results from that strategy. That's the reason we are optimistic about Europe now because we have changed that traction, and I think rest of the world we're also doing similar exercise.

Got it, sir. Got it.

Just your broader sense on how do you see EU portion shaping up well for us when compared to the Chinese dumping, and how do you see the situation going on?

See, today it's not in my hands that I can change the situation. The only thing we can do is come with better technology products, products which perform better in performance, because these are mechanical devices, these are not pharmaceutical product that it's a pill that you pop it.

These are medical devices, these need training. We are focusing a lot, as I mentioned in my last meeting also, that we have started PACE Foundation, which is just for clinical training for doctors and nurses.

We just opened our PACE Academy in Delhi, and now we are going to open more in future. I think a lot of work is happening on the clinical side, development side.

We will see better results in coming times, because this industry has a very long gestation. You see MedTech industry overall, in last 20, 25, 30 years where we've been in existence, except Meril as an outlier because they've got cardiology and orthopedic products, we've just started, but there's not a single company which has come closer to what we are doing.

You have to see that this industry has complexities, this industry needs regulatory approvals, this industry needs innovation. We have been working very hard on that, and fortunately the cash flows are very good for us, and it's a proficient cash.

We keep on investing. I think it's a matter of patience.

Yes, the numbers will start looking much better next year. I definitely hope that we should get to our 20% growth number next year, and that is our core target, actually.

20% on FY27, you're saying, right?

20% over FY26 numbers.

Got it. Got it.

That is from my side. Thank you so much, sir.

Thank you to give me the opportunity. Sir, since last few concall, we are bullish, but nine 9 months data do not say something else.

How you compete with China in renal?

See, renal is probably today 10% of our total business. I can't just say that 10% business I'm going to compete with China, rest I'm not going to compete.

We have to continuously keep fighting for the business. I think we still are the only company making this products in India.

I think we have been pushing the government to put an anti-dumping on Chinese dumping, which is happening in India. They are getting products at zero duty in India.

Any industry forget about medical devices, any industry with a zero duty with Chinese manufacturing, can it survive in India? I don't think so.

None of the industries are surviving in India with a zero duty. Today even on iPhones, we have 20% duty coming from outside.

Or even cars have 100% duty, 120% duty. I think fundamentally government will have to take corrective steps to increase duties on Chinese products or products which are imported at low cost into India to ensure that the domestic market survives.

Otherwise, today we still are 70% import dependent in medical devices. The whole industry is dependent on imports.

The only way to come out of this is that, unless until the industry is protected, even after PLI, nothing has happened. I think fundamentally there has to be systemic change, and I think that is what we are working with the government on the policy side, that at least for the industries where we need self-dependency in India, at least there should be some protection and protection from dumping from China, because that has happened across every industry across the world.

It is not medical devices alone.

In renal we are in 10% only, you are saying. What is our main business?

Main business is vascular access, sir, infusion vascular access. Okay.

Which is around close to 62%, 63% of our main business.

In that business also, we are facing competition from China?

In every industry we are facing competition, why will not face competition from China? Every industry is facing competition from China.

I think it's a matter of time, and I think if you have heard my comments I've made to other participants earlier, next year we've already called out that we should come back to that 20% growth. Definitely domestic looks better, we may grow at 25%, but international business, especially exports, we are saying between 12% to 15%.

International overall number, yeah.

Margin will be there, nah? Because the drastically margin reduced, everything [laughter] being

bad sir. Why margin is bad sir?

We are at 26.8% EBITDA margin. How do you say margin is bad?

You see the net profit margin this quarter 17.5% instead of 19.7%.

It is because of two exceptional items which we called out in the beginning of the call. If you have not maybe heard that, part of

No, no. I heard, I heard.

This is ₹15 crores of exceptional cost in last quarter because of labor code adjustment which we had to do, every company has done that. Secondly, there was an acquisition cost which has been now expensed out in the last quarter, which we had done two acquisition offside.

It's a ₹15 crores. If you add back ₹15 crores, you will see a similar margin, sir.

Okay. Sir.

Thank you.

Thank you. The next question comes from the line of Naman Bagrecha from IIFL Capital Services.

Please go ahead.

Thanks for the opportunity. Sir, just one clarification.

Guided for Please

can you speak just slightly louder?

Yes, yes. Thanks for the opportunity.

You guided for export business for 12% to 15% kind of growth for FY27. I presume that this includes the acquisitions as well or this was own exports?

Okay.

The international business guidance was 10% to 15% growth, and if you see 9 months, we've grown around 9% on the international business Maybe Rahul can correct me on that numbers, but around 9% to 10%, and hopefully by the year end we should grow around 13-odd percent, I think.

Sir, can you call out the revenue contribution from these two acquisitions, Pendracare and Plan 1 Health, for the quarter?

Rahul can give you better clarity. These two acquisitions for Q3 have added about ₹48-49 crores to the top line.

Sir. Okay.

Sir, one more thing on the India business, given that renal is facing challenges and China being China, they might keep on dumping in every category that we are operating, how confident are you in terms of this 25% domestic business growth guidance if you could help us in terms of what will be the drivers, etc.?

See, if you see the numbers as I've said earlier, that domestic business, private business, which is around 88% of our current business, has grown around 23% odd. Government business, definitely, we have been trying to shrink it because of slow payments and payment cycle getting longer and also cost pressures there.

Because for us, more stable business, because also government is more tender-driven, we don't know what's happening. Domestic private business where we're going to corporate hospitals and large hospitals, that business is more steadier for us, and we've been gaining market share.

This year we have grown that business by 23%, that is 80% 88% of our domestic business. Next year, because as we have many more new contracts which have come in this year with private hospitals, today you can see Polymed products in every top private chain in the country.

This was not the case 5 years ago. We have done a lot of work internally to match our quality, performance with the top multinational players globally.

That has helped us to gain that market share. Next year also, that's the reason we are calling it out, next year because of what we have done this year and also some of the new businesses we have developed over last 6 to 8 months like cardiology, critical care, and so on and so forth, that will help us to grow our domestic business by 25%.

Okay. Fair enough.

One more thing on the acquisitions, what has been, let's say, your internal targets in terms of how much scale can we do for these two businesses, let's say, in next one or two years? Currently if you look

Naman, you're not very clear. Can you please repeat that, please?

Sorry.

Yes, yes. Sorry.

What could be the contribution of these two acquisitions going ahead, FY27, '28? Can it be, let's say, around 15%, 16% kind of contribution, top-line contribution?

Naman, if you recall the announcement that we made about these two acquisitions, Plan 1 Health when we acquired was about a €17.5 million business, and Pendracare was close to €10 million business on an annualized basis. We expect both these businesses to obviously grow in 2026 as well, and for FY27 effectively for us.

Both these businesses added about 16% to 17% of our revenue base of FY25, and we expect a similar portion, maybe slightly lower, because our core business hopefully will grow faster than them. Somewhere in the range of 15% or so is their revenue contribution to the overall consolidated revenue for next year.

Okay. On the own export business, if we look FY27, 10% to 15% guidance includes acquisitions, which implies that our own export business probably will see a single-digit kind of decline on FY26.

Am I getting this correct, or if you could help me on this one?

I think on the organic side, which is excluding the acquisitions, our international businesses currently are on a flattish trend, and depending on how quarter 4 will go. Basically, it's going to be a low growth here excluding the acquisition of the international business this year.

Could you also highlight in terms of what is the pricing differential between, let's say, Chinese products versus our products which we are selling in EU or, let's say, export markets? How can we, let's say, mitigate this risk going ahead?

I think, Naman, if you have heard earlier what I said, that we have won some new contracts in larger European markets, so that will help us to get back the revenue which we were missing. I think there were delay in lot of contracts, I think NHS has almost delayed every contract by 1, 1 and 1/2 years because of change in government in the UK.

Also, we have other, let's say markets we're trying to bring in more products as we're getting more CE-marked products, another 10 to 15 products in the pipeline. Few products have already been done recently.

That's the reason we are able to see that visibility. I think we will give your final number, let's say, maybe end of quarter 4 when we have a final business plan coming from all our, let's say business unit heads, and then we'll compile it, we'll come back to you.

This is what we see today.

You also called out some

Correct. I think, Naman, we have to talk to other people also.

Hi sir. You alluded that you've adopted a new strategy with respect to having a clinical study team especially for the international market.

Now, the geographies which we would have adopted this strategy let's say 8-9 months ago, are you seeing any early signs of success in those markets wherein even though we are a bit more expensive than the Chinese, we are able to gain market share or anything like that?

See, before that, we were more relying on our distributors to put our products in the market, right? Now what we have realized that they are not able to do justice in terms of the clinical advantage of the product vis-a-vis other products which are so in the market.

[cough] Pardon me. That is the reason we have started sending our own teams with the clinical expertise so that they can understand what exactly is happening in those markets, what are the nuances which are needed for this product, what people need to see as a differentiator, and we are able to bring them out.

That's the reason we have won new contracts in NHS, we have won new contracts in Europe, mainly in Germany. That's the reason for this change.

It's already happening, we're adding at least 4-5 new products in France as we speak, Spain we are adding 2-3 new products. Every market we have started adding new product after our clinical teams have started visiting.

Earlier we were only focusing with our distributor, this adds on to the continuity of the business and also enhances our presence in the market.

The size of this team in India is about 300-400 people, right? In

India we have close to 500-plus people in India.

Will we be looking to have such a large team in these markets, Europe, rest of the world, as well? Have a 700-member team and replicate our India strategy in the global market?

I don't think the idea is to have such a large team. India is, if you think about it, India is not one country, right?

It is, well, it is one country, but it's a mix of very different-different geographies and states, right? It's much difficult country to cover the number of hospitals, clinicians, etc.

We are reaching out to 8,000 hospitals today, and each 8,000 hospitals have each hospital has 10 to 15 departments, and then we have six verticals. You need expertise in every area.

You can't be a generalist. That's the reason you don't see too many medical device companies of that scale in India, because people have not invested in the clinical.

We are only trying to sell products and say I'm cheaper, buy my product. Nobody is going to buy the product if it's cheaper unless until you want to focus and compete with the large multinationals.

You have to talk about clinical advantages. Today Polymed is exporting to 125 countries, we have an advantage on the product.

We're learning certain product categories we have global leadership, like we are number three in IV catheter market globally. Tell me which company has 10% to 12% market share in one single product globally?

That is what we're trying to develop as a expertise, skill sets, and I think that is what we have done globally as we're trying to replicate back in India. That's why it's going to help us to increase our market share and build more and sell more products in India.

I was alluding that we'll replicate our India strategy in the global market wherein the clinical study team become so big that we cater to their varied requirements, do knowledge-based sessions, and so on and so forth.

Yeah. India, see, we have almost close to 40 to 45 clinical people in India, and also we are training a team which can now go overseas to different markets and also train, other, people, people who are working with our distributors, to train them also clinically.

That's a competence we are building. Of course, they are language barriers, they are there are, technical Every country there's a different usage pattern.

We are developing all that knowledge and skills which will help us to grow our business in future. We have done last 4-5 years 20% constant growth, I think we we think we can come back to that number easily.

Probably this year was a very difficult year, and and, not everything can be same, all the time. I think we have learned from what we have to do, and I think we've been implementing that very strongly.

Thank you.

Specially without compromising the margins. I think that is also a factor,

sir. Thank you sir.

Thank you.

Hi, Himanshu.

Good afternoon, Bharat bhai.

Good afternoon. A gentle comment.

I think right at the beginning of the call, there was so much of information loaded for 15-17 minutes and at a speed which is unmatched, it is really, really difficult to grasp all the things that are being said. I think it may be more helpful if there is an initial curtain raiser for a few brief minutes, a good amount of details are given in the presentation, and then I think the discussion can be elaborated.

Because when continuous 15-7 minutes of information being put out at a speed which is, at least for me, difficult to kind of cope with.

Taken, and I'll ensure that next time we'll ensure that we put more information in the presentation, for sure, and we'll keep more time for discussions. Of course we get very valuable comments, advice from people on the call, and I think we take every advice seriously, every suggestion seriously.

That helps us a lot to improve better in coming quarters coming years. Definitely, Bharat bhai.

No, because that way it allows a more meaningful discussion on strategy and outlook to happen, which is the reason as a well-wisher I thought I wanted to bring about.

Suggestion well taken.

Sure. Secondly, on one end, I heard for the next year, you are first time talking of the top line, I'll come to the profit pool separately.

On the top line, you said domestic business should probably grow around 20% to 25%, and international business should grow around 12% to 15%. On the other end, I also heard a comment that total business probably will grow by 20%.

I'm assuming say in the current year, about ₹1,850-odd crore of consolidated turnover based on your overall summation for second half versus the first half. Are we saying that ₹1,850 crore of consolidated turnover is likely to grow by 20%?

That's correct, Bharat bhai, more than I think, of course, what we're projecting right now, definitely the numbers look to be around 20% or even more.

Mathematically it doesn't seem to combine. For example, domestic piece is about 1/3, and if that grows at 25%, that will give you about 8% of the total growth.

If international piece is 2/3, even if it grows at 15%, then that will give you about 9-odd percent. The two together still can't yield more than 17%, even if I assume higher range of the growth, 25 and 15 instead of 20 and 12.

Bharat bhai, I think what you have not considered is the other key companies which we run outside India, and they will also contribute to the growth. One of the companies, Plan 1 Health, which is doing in oncology business, that is growing around 30%, 35% year-on-year.

Other companies will grow around 15% or so, odd percent. Overall, when you start calculating that, I think that's how we are saying we will be growing more than around 20% or so next financial year.

Rahul can give more comment on that.

Bharat bhai, just to add, obviously this year the ₹1,850 crore number that you mentioned includes the acquisitions only for the part period. As those numbers get accounted for the full-year basis, will also contribute to the growth.

I think what Himanshu mentioned, 20% on a consolidated revenue also will have an impact of the full-year consolidation of these two acquisitions.

If I include both the acquisitions for the full year and assuming both the acquisition themselves will grow, €17.5 million and €10 million, that gives you about €27.5 million. If they grow by even 10% or 15%, that should be €30 million.

Then virtually most of the growth next year would only come from these two.

No, Bharat bhai, we also had partial consolidation of these in this year also, right? That's in the base also.

₹1,850 that you mentioned also has the impact of the part-period consolidation here.

Okay. Just to clear the confusion, independent of these two entities which are sought to be consolidated, just hello?

Independent of the two acquisitions, can we say the domestic piece per se will grow at about 25%, and without these two acquisitions, our international business will grow around 12% to 15%? Is that something I'm right in my understanding?

Yes, absolutely.

Okay. Then I think the overall number should be higher than 20% is my understanding, but I hope

Bharat bhai, we are definitely going to go for higher growth, for sure. I think as prudence, that is what we're calling out, and hopefully we can deliver better numbers.

Definitely, we are working on lot of integration, lot of things which are happening, and hopefully the number will be better. I think it is just because we don't have a final number today which I can call out, say, Bharat bhai, this is the final number I'm calling out.

We're still finalizing business plans for FY27, for some ways we already finalized. India business and international business, we're finalizing the business plans.

I think next 3 to 4 weeks, 5 weeks, we'll have a better visibility. Definitely on the next call when we'll do, we'll have a very finite number to call out for all our investors.

Okay. Just one last thing, because the new subsidiary, new acquisitions have a different profit margin, our standalone domestic business, of course, is a far superior margin, and our international business also has a superior margin other than these acquisitions.

There is a differing competitive situation on all the three pieces right now. If I focus on the profit pool rather than trying to work on each of the different pieces, the overall profit pool of the current year, assuming at an operating profit level, last year we did about ₹450 crores, this is without counting other income and interest and depreciation.

About ₹450 crore of operating profit we made, and from what all it looks like, the FY26 probably will be something similar, a little bit here and there in terms of the operating profit, is my assumption. This operating profit pool in the FY26, what kind of growth do you believe for '27 is a fair assessment?

Bharat bhai, see, I don't have the, again, the finite numbers. I will be able to give more clarity, guidance in our next call.

I think once we do our Q4 call, we'll be able to give you more guidance for the final year, because I think it's too early to call out a number for next year when I don't have the final numbers. What I can guide is currently on the revenue side, because that is what we are seeing, and we are giving a range also.

I think once we see the quarter 4 going out, then we'll have a better visibility on that, better visibility on margins, products, everything. It'll be unfair to call out that number today.

Okay. Just last bit of question.

Can I assume the next year your operating profit pool will grow at a rate faster than the turnover, equal, or lower?

Bharat bhai, just on profit pool, right? You mean the absolute number, or you're talking about the margin?

Just for me to clarify, to be clear.

No, I am not talking of margin. I am saying current year our let's say turnover is 1,850, and we are saying hopefully we'll grow at the rate of 20% or more in the next year.

Our current year profit pool, I'm assuming at an operating level, is about ₹450-460 crores, let's say, without counting exceptional debit of ₹15-odd crores. I'm saying that operating profit pool, if top line will grow at 20%, whether operating profit pool will grow higher than 20, equal, or lower?

I think it will be more or less equal, Bharat bhai.

Okay. Fine.

Fine. Thank you, and I think we'll discuss in greater detail separately.

Sure, Bharat bhai. Absolutely, most welcome.

Hello, sir. Am I audible?

It's audible, yeah. Just closer to mic, please.

Yeah. Just one question from my end on the competitive side, that 2/3 of the revenue comes from international market, and in India, as you are saying, that Chinese competition is there and you're trying to get into we are hoping that there is some anti-dumping duty or anything of that sort in the domestic market.

What about the international market? How do you compete with China in the international markets?

Let me tell you, see, what happens is our basket is very large. We have a product basket of almost 200-plus products on manufacturing side, right?

Most of these products we export. When we see products which have more technological differentiation, those are the products where Chinese companies will be able to make cheaper and because their volumes are 10x, 20x of India today, manufacturing volumes.

Now, products where we have patents, today if you see, Polymed has around 375-plus patents as a company. Wherever we have technological advantage on the product, clinical advantage, that is where we can score.

It's not that our business has gone to zero international business. We are still maybe flattish, but we've still managed the market in spite of all the turmoil we have seen in the market.

It's not that markets will just go to zero. Polymed has sustained, we have sustained the market, and next year we are going to see the growth coming back because we are going to add so many new products.

Already we have launched 19 new products this year in 9 months, if you have read the document which we have put on as a presentation. We're continuously innovating, continuously bringing new technologies, and I think that's the USP of the company from last 10 years.

I understand that, but in terms of qualitative aspects, do you offer more margins to the distributors, or do you focus on educating on your product? More on the qualitative side is what I'm trying to understand.

Quality-wise also, we are at par. If you look at the qualitative side, today why would a European hospital use my product if it is not good in performance, or clinically is not equivalent or superior than what they are using?

That's the most important part. Even if my price is zero, nobody will use it if my quality fails.

I think that's very clear that qualitatively because we have many, many approvals globally, whether FDA's, CE marks, or Canadian approvals or TGA approvals in Australia or different markets. That helps us to stay in the market at the competitive levels in qualitative terms.

Okay. Secondly, as you're moving into more higher-end products, do you see margins to move northwards from here over 3 to 5 years perspective?

I think so, too. I think I agree with you on that front, and I think because, as I've told you, we are moving more in the technological side.

Initial part of the call was about that disclosure that how the company is moving up the value chain. Definitely when we sell orthopedic products or cardiology products or critical care products, our gross margin percentages should keep on improving, and that's what we think, and that's how we are planning ourselves for future.

One last if you can just add in a small question, are you looking at other regions like Middle East or anything of that sort?

Could you repeat that? Sorry, I was not able to hear you.

Are you looking at other regions as well, such as Middle East or Southeast Asia or anything of that sort?

We are present in 125 countries, most important markets in the world. We'll continue to expand our presence because, again, just by distribution partners having there is not going to improve our market share.

The only way is to put our clinical teams there, and that is what we're building. We're hiring more people internationally, we're hiring more people in India who can travel internationally and support the existing distribution network.

That will happen across the world. It is not going to happen in few markets, these are going to happen at least 25 to 30 important markets we are serving today.

Okay. Thank you so much.

I'd like to thank everybody on the call, and thank you for your questions. I think really these probing questions make us more resilient.

Also, I want to assure everybody that company is doing well and we are on the growth path, a lot of new technology. I also invite you to visit our facilities to get a better viewpoint of the company, what kind of technologies we are using in manufacturing.

Some of you have already visited, but I'll invite you other people. Rahul and his team will facilitate that visit to the plants, and that will help you to understand the technology roadmap we have laid out for future growth of Polymed.

Yes, I think we are looking forward to that higher growth numbers in coming future, and that's what I can assure you for. Thank you very much.