Thank you very much. Good evening everyone.

I welcome you all to our Q4 and full year FY26 earnings call. I sincerely thank you all for being here today.

Last financial year FY25-26 was a year of deliberate transition. In our fundamental upgrade from our business model towards high technology, high complexity, high-growth segments, a year in which we chose to invest through difficult external environment rather than wait it out.

We invested in high-technology verticals, built out clinical and R&D teams, and despite general headwinds we delivered every commitment we made you on Q3 call. Poly Medicure is currently under strategic transition where we intend to become a globally recognized brand in high-end medical devices over next 5 years.

FY26 was just the initiation in that journey, and FY27 will consolidate initiatives that we have undertaken, drive synergies across the group, and continue investments in higher and, high-end technology segments. Let me share how we intend to leverage Plan1 Health and Citi Health over next 2 years, the companies we acquired last year.

Integration work is in fully underway on the cost side through procurement and manufacturing processes, outsourcing, realize savings. We are working on those areas aggressively.

On the revenue side, will be, cross-selling both directions. India will introduce these products.

We are waiting for registrations to come through. It takes between 6 to 9 months to get import registrations.

We have also started leveraging Poly Medicure distribution network globally, for these products. I think as time progresses, you will see a lot of, work happening there.

Internationally, we are using our global presence to widen the reach in newer markets, and that's already happening as we speak. On the R&D front, our teams are collaborating for new products.

We are already working on a lot of new devices. The R&D team there in Europe and in India is working simultaneously to fast track a lot of projects which were stuck earlier.

A lot of work happening there. All these initiatives have already been undertaken, and I expect that post recovery and all the necessary regulatory approvals will start, they will start to reflect in the performance of FY27.

Before the numbers, I would like to update on your expansion of our global footprint in a new geography with an acquisition of Medinio in Brazil, a medical device company in Brazil being the, Brazil being the largest medical device market in South America close to around $13 billion to $15 billion, is a gateway to the LATAM region. Medinio comes with ANVISA and import licenses, which fast track our entry to the market with where approvals actually take years together.

Brazil is a very important market for Poly Medicure with a strong brand recall, and this is a step in this direction ensuring long-term success of our business in that region. We're in the process of hiring people there, building a team, clinical team, sales team directly in that market.

As we had, opened our own subsidiary, Polymed Brazil, last year, I think this is in continuation of that strategy that now we have a fully operating company with all the licenses needed to to start, going directly in that market. Each of these initiatives is already in motion, I think in 1 or 2 years, we'll knit these three businesses into a single global platform for growth.

We're already working in that direction. Some key business updates: We launched close to 35 new products across the group in FY26.

Of course, that also includes some products which came through acquisitions. On standalone basis, we have added around around 20 products last year.

On the renal platform, we have placed around 450 dialysis machines last year, taking our installed capacity to approximately 1,000 machines. On cardiology, now we have deployed close to around 11,000 stents.

Clinical registry is over now 650 patients, and I think by end of the year we'll complete the entire enrollment of 2,000-patient pool in India and outside India. US business is picking up momentum with a conversation with on multiple projects with customers again, getting active.

I think due to the, scenario which was created last year, especially because of tariffs, I think we had a setback, but now I think we are we are on track, and I think we're also getting some new products FDA approved. Some are in pipeline right now.

I think pretty positive about the US development, and I think we've taken a 1-year setback on this business, but I think now we're back on track, and I think a lot of new opportunities are coming up from the US after, the change in scenario. Let me share the financial performance.

Let me start with standalone performance. On a full-year basis, standalone revenue was around ₹1,662 crore, which was up by around 4% compared to previous year.

That last year was a tough year for us, especially on the export front. The low growth in standalone is due to tough, external environment and again, mainly impacted from international revenue.

Gross margin, though gross margin expanded by around 128 bps, and was up to around 68% from last year's, 66.8% or something like that. On the profitability, we had guided standalone EBITDA in the range of 25% to 27%.

We have delivered close to 26.8% at the higher end of the range, and standalone EBITDA was ₹446 crore. Standalone revenue for the quarter 4 was ₹443 crore, up 5.2% year-on-year, 6% sequentially.

It was highest ever standalone quarter, with Q4 gross profit of around ₹295 crore, EBITDA of ₹121 crore, with a healthy margin of 27.3%. As you can see, there's been a constant improvement.

When we started the year, we were at around, ₹384 crore for the quarter revenue standalone, now we have moved to almost close to ₹443 crore. It's a steady increase.

Every sequentially, we have been increasing the standalone business. Now on the consolidated picture, full-year consolidated revenue grew by 12.3% to ₹1,875 crore.

Domestic business were up 20%, international was about 9% year-on-year. Of course, that that includes, addition from our, acquisitions at the gross level.

Of course, these were not full-year revenue. These were one acquisition happened in September, one in November.

In FY27, we'll see a full impact of the revenue. On the Q3 call, if you recall, I had committed that H2 will be about 20% above H1, and we have exactly delivered that.

Group growth has been from ₹847 crore to ₹1,029 crore, increment of around 21%. Q4 consolidated revenue was ₹534 crore, up strong around 21% year-on-year, with a gross profit of ₹356 crore and 66.7% margin.

The growth in the quarter was broadly based on domestic growth of around 25%, international business around 19%. Q4 consolidated EBITDA was ₹112 crore, a little lower than the standalone numbers because there was impact of consolidation of lower-margin acquisitions and about ₹9 crore one-time regulatory and cost provisions in one of our international subsidiaries.

Other important point to highlight is shift in our revenue mix. In Q4 '26, Infusion Therapy now accounts for 50% of the revenue, down from 57% in Q4 '25, with Renal around 11%, steadily rising share coming from Cardiology, Critical Care, and other acquisitions.

In other words, our new higher-technology segments are now contributing towards 50% of our revenue, and I expect this proportion to to keep on, improving in coming years. That is also one of the reasons that gross margin has started looking upwards.

On the balance sheet, the liquidity remains strong, and consolidated cash of around ₹842 crore. This amount is a strategic reserve for our strategic initiatives in future, and we intend to use operating cash flows to meet regular capex requirements across the group.

For FY26, the capex was around ₹296 crore. It went to our plants in Haridwar, Faridabad, Mithrol, and and and also in Era Medical Park.

Current year, I'll give share the numbers slightly later. Let me give you the forward-looking guidance.

Again, there has been of course a huge shift in the external environment. We have seen the current disruption caused by, Gulf War, and I think the situation is quite challenging.

Let me manage tell you that we're managing every piece, and, working on a lot of initiatives inside the organization. I think West Asia, I just want to call it out, has around 6% to 8% of our revenue comes from there.

Though the demand seems to be quite intact, we don't see any drop in demand. I think it's a logistic nightmare right now, and I think there's a lot of bottlenecks which are causing some, disruption in, in shipping products out of India.

I think from the demand side, I think it's pretty much intact, and we have pending orders which we need to execute, but we are still waiting for supply chain and shipping routes to improve and, have better pricing. There's been a impact on raw materials because, and plastic packaging materials, all across, because most of them are crude-linked, and we see there was an impact of around 20% on aggregate basis in in raw materials, and a meaningful headwind to the gross margin.

Just let me tell you one thing that your company was was maintaining adequate stocks, almost inventory of close to 2.5 to 3 months, and because of that, we didn't see too much of an impact, in quarter 1 so far. We've been able to minimize it, and we are taking more steps to minimize this risk.

I think if the crude prices current business plan, we have looked at is been made on crude levels of around $100 and I think $100 to $110. I think, in times to come, crude prices will definitely soften up.

I think this headwind will will kind of, go down a little bit. Let me tell you that, the freight cost and minimum wage revision in Haryana has caused some disruption, but we are able to get our price increase from customers between range of 3% to 5% already.

Also, currency which has moved, rupee has currently depreciated against all major currencies and company's 60% to 70% business is international, export driven on a standalone basis. There we are able to, recover some costs back overall.

On the current situation based on where we are today, as on today, we may see some, erosion on gross margin going from, let's say, 68% to maybe around 66% or maybe in that region, maybe lower by 200, 300 bps. This is just a present estimation, and I think if the crude prices soften up, let's say in next let's say a few months, I think then this impact can also be minimized.

Also to minimize this risk, we are already working a lot of cost-saving projects, looking at alternate supplies, sources, a lot of, raw materials which were importing we are trying to buy from indigenous sources, a lot of parts and components which were coming from outside, third countries, we are also trying to make them in-house. We are working a lot, we are also seeing some savings through our gamma plant, which we have, established.

This year is now fully operational. A lot of, saving, optimization projects are already happening inside the organizations.

Hopefully by the end of the year, we may see this impact to be very, very negligible, not even this 200, 300, but I just want to, based on the current situation, I think we see today where we are, but going forward, it may further reduce. I think that's what we are looking at.

I just want to give you revenue guidance for FY27. On a consol basis, we are guiding a revenue of ₹2,300 crore to ₹2,400 crore, up from ₹1,875 crore we have done in FY26, which will include full-year consolidation of Plan1 Health and Plan Health.

On standalone basis, we are guiding on a revenue of ₹1,900 crore to ₹1,950 crore, with domestic business going upwards of 20% and international business growing upwards of 15%. This is our guidance for, the full year of FY27: standalone ₹1,900 crore to ₹1,950 crore, and for on consol basis between ₹2,300 crore to ₹2,400 crore.

Standalone EBITDA margin is expected to be again we're giving a guidance of 25% to 27% range. Of course, this year we're last year FY26 was the same range we have given.

We should be able to almost cover the same thing. On consolidated basis, EBITDA margin because our subsidiaries operate at lower EBITDA margin right now, and we are in on the phase of, doing a lot of cost-saving projects there, we expect this year consolidated EBITDA to be between 23% and 25%, but standalone will be between 25% and 27%.

We expect, to spend between ₹200 crore to ₹225 crore on capex this year. This is the guidance.

It is lower than last year, last year was ₹296 crore. This year, as most of these projects are getting ready, the plants are getting operational, the capex requirement will be a little lower, but of course we are pushing more on automation right now so that at least we can mitigate some wage revision which has happened, higher wage salary cost.

In summary, I think we have delivered every Q3 commitment we made: H2 20% of H1, standalone EBITDA in the higher range of the higher end of the range, around 450 renal, machine placements done in the year. Almost 35 new products launched in FY26.

I think we have a clear domestic import substitution strategy and international strategy accelerating in US, Europe, and with a prudent entry into Brazil. I can genuinely tell you that business is now adequately positioned for growth ahead.

As you can see, already the plan is to move from ₹1,875 crore to ₹2,300 crore to ₹2,400 crore. It's a substantial growth we're planning this year.

Again, I want to assure all of you that we're on the right track. We've been able to preserve margins, we're able to preserve growth in the organization.

In spite of all the headwinds and challenging situation, we are still guiding, high so that because today, demand is coming back, what what we had lost earlier in the last year, and also Indian market, I think we can see our presence now in all most of the corporate chains, larger hospitals, and even in standalone hospitals. I think that business is also bound to grow, in a higher percentage level.

Thank you again for your trust and time. I'll now hand over to the operator, and we'll be happy to take your questions.

Thanks again.

Hi, Mr. Baid.

Thank you for the opportunity. Three questions from my end.

If you could give us some details on the Brazil acquisition in terms of the categories the target operates in, what is the revenue and what's the acquisition cost that you've paid? On the current acquisitions that were made, Plan Health and Plan1 Health, is it fair to assume that most of their sales, which you highlighted broadly about ₹65 crore this quarter, are in EU itself, or is there a EU and ROW sort of split there?

If you could give us that and accordingly to understand what the organic performance on EU and ROW is. On your guidance of 15% to 17% standalone growth, could you give us a sense of how would that pan out domestically versus for exports and for the core Infusion Therapy versus the new therapies?

Yeah. Let me take the Brazilian acquisition and I'll request Himanshu to comment on the other questions.

The Brazilian acquisition is a small acquisition. It's a company which was registered last year as a medical devices storage and distribution company.

The company does not have currently any operations. As Himanshu mentioned during the opening remarks, the rationale for acquisition for this was to leapfrog the regulatory timelines that are required to get the importation license and the ANVISA license for us to be able to take the medical devices distribution business in Brazil.

From an acquisition standpoint, it was about $40,000, it's a small acquisition from a cash outlay perspective. It clearly saves us anywhere between 18 to 24 months to be able to operationalize the business.

Got it.

On the other two companies, yes, Plan1 Health and Plan Health, we have almost 50% sales in Europe and 50% rest of world. Plan Health has also business in North America, in US and Mexico, which is around 35%, 40% of the business right now, and 50% is in Europe.

Plan1 Health has majority business in Europe and some business in Middle East and Latin America. On the standalone business, basically we are seeing domestic business will grow around 20%.

That's what I've guided again. International business will grow around 15% also.

We're anticipating standalone business to grow to around ₹1,900 crore to ₹1,950 crore from a current base of around ₹1,665 crore ₹1,662 crore.

Got it. Just a follow-up on that.

Given how that's panned out, in terms of the headwinds that you saw this year in Europe, how are you seeing the situation on ground now, and at what point in time in FY27 or whenever do you expect this to normalize?

I think we have bounced back in Europe, that's what I can tell you right now. We have added quite a few customers in Europe.

Also the existing customers, where we had an over-inventory situation and we had a little slowdown in demand, I think that is come back. Currently last 3, 4 months, we are seeing a good offtake, and I think the pipeline is also very, very strong in Europe.

I think overall we are very positive about the current business in Europe what we are doing from Polymed standalone basis.

Got it. Thank you so much.

Thanks a lot. I'll get back in queue.

Hi, sir. Thanks for the opportunity.

I just wanted to know what kind of growth you are projecting in your renal segment because in the Q3, you had mentioned you are facing some competition from some domestic players as well as some Chinese players.

Chinese imports. Not domestic, there is nobody.

Except Polymed, there is nobody in the market today domestic-wise.

Okay. What kind of growth are you projecting for in FY27 in the renal segment?

20% growth in the renal segment again. Earlier we were targeting 30%, 35% growth, but I think these Chinese headwinds continue to kind of disrupt the market.

We are still seeing maybe a 20% growth or maybe over 20% growth this year also in this business. We have initiated certain actions against Chinese companies.

I can't tell you because that's confidential, but we are working with the Government of India to help us through this because many Chinese companies have set up bases in ASEAN countries where we have a zero import duty on medical products from ASEAN countries. That is hurting the current environment.

We are working with the government to arrest that point. I think hopefully we'll see some action.

In spite of all that, maybe it happens, doesn't happen, I think we're still targeting a growth of over 20% in renal. Got it.

Also in the European market, are you back projecting around 15% odd growth?

We are back. I think we have added some distributors in Northern Europe, we have added some distributors in UK, and also in Germany.

I think all that is helping out.

Are the Chinese players still dumping there? Is that situation resolving?

See, China is dumping in every industry. I think that is the problem across the industry.

Because Polymed, see, we have a lot of products which are very specific, there are certain patents, protections. I think we are not impacted.

See, demand which was impacted due to supply chain, last time, I mentioned very specifically that there was, let's say, maybe an oversupply because of the route opening from Red Sea and also containers were going around Africa to Europe. That was a mismatch there.

Now everything is smooth, I think now we are seeing more better demand coming from Europe, actually.

Got it, sir. Also, if I look at your inventory, how much of that would be under goods-in-transit if you could give some bifurcation because I'm sure some of that must have been because of the logistical issue?

How much do you expect to build it in the first quarter?

Inventory in transit? No, are you talking about export inventory?

Your overall inventory. If I look at your balance sheet, your inventories have increased from ₹285 crore to ₹430 odd crore.

Is there some inventory which is yet to be billed?

Is it consol number or you are looking at standalone?

Consol number.

Obviously got an impact of the acquisitions as well. If you look at the standalone balance sheet, that increases about ₹30 odd crore.

On the standalone, it's only ₹30 crore addition on inventory. Basically, finished good inventory as on 31st March was around ₹30 crore, ₹35 crore.

We don't keep so much of FG, and basically it's 5, 6 days inventory basically at the end of the year. It's very tightly managed.

Of course, there was enough raw material available, so that's the reason those first 2, 3 months we're not able feel that heavy impact of raw material price increase. That's where you see that.

Got it, sir. Thank you.

I'll come back in the queue for more questions.

Thank you.

Sir, hello. A very good evening to you.

Sir, my question would be that if the business is currently for FY26 grown at low double digits despite the earlier confidence of mid-teens growth, what specific levers give management confidence that the company can reaccelerate growth over the next 3 to 5 years?

See, I think we have to see that last year was more or less for us also a lot of transition here because there was a lot of focus on high technology, building new technology products. We are transitioning from low technology to medium to high technology, and that's a huge transition we are committing.

As I mentioned on my call initially, next 5 years, that's where the direction is, whether we focus more on orthopedics, on cardiology, neonatology, on oncology. These are 4, 5 key areas, renal care.

These are 4, 5 areas we're going to focus more and more in future. That helps us to even get the better gross margin in the business.

Also, what we have seen over last 1 year that wherever we had some lower revenue, we fix that. US was a big, I think, for us, I would say a red flag because of the current situation which was there in the US on tariff situation.

That delayed our launch to the US market quite a lot. All that is coming back.

India is coming back because, see, you have to see from two perspectives. Currency, which is Indian currency which is devaluating, is going to help us more in export, for sure, so that's a big advantage.

Secondly, medical device industry is still 70% import driven in India, 60%, 70%. Whatever companies they were importing products to India, they're getting expensive for them.

Being a local manufacturer, bringing in import substitution products, that makes our products more competitive to hospitals. Also, the whole scenario is changing in India.

The hospital sector, which was, let's say 50% cash driven, 50% insurance driven, now things are changing. I think there it's now 60%, 65% insurance and balance is cash.

That also is pushing them more towards domestically manufactured products. All these are tailwinds which are going to help us to grow our business.

Plus we are going direct markets, we talked about US a little bit earlier, we talked about Brazil, and going a little bit more direct in Europe with our subsidiaries. All that will happen in next coming years will help us to grow faster and increase our presence in important markets.

Sir, broadly at present, is it really safe to say that the worst is really behind us?

I can say that absolutely for the moment, yes. We don't know what is happening tomorrow morning.

That is my worry, and I'm sure it's everybody's worry. What happens tomorrow morning nobody knows.

I think if you see a steady state even at current crude level prices, I think we are in a good shape.

Sir, realistically, what would be the sustainable organic growth rate of the business over the next 5 years, excluding acquisitions? See,

if you see even on the guidance we have given this year, even when we say ₹2,300 crore to ₹2,400 crore revenue guidance for this year consol level, we're already talking about 25% growth rate, with over 25% growth rate. We are pushing the pedal again.

This is very clear. Even on standalone basis, when we say ₹1,900 crore to ₹1,950 crore, crore revenue from ₹1,662 crore, we are already guiding over 15% to 16% revenue increase.

I think gradually standalone will further increase as we launch more products in different segments we are working on as a lot of new launches are happening. I'm sure some of you have visited facilities, already know what we are doing.

Got it, sir. Got it.

The final question would be that over the years, what do you think has contributed most to customer stickiness in your business, especially in export markets where customers have multiple sourcing options?

Yeah. I think there are two important points here.

Most of our customer relationships outside of India have been for last 15, 20 years. We have hardly lost any large customer in last 15, 20 years.

That's number one. The stickiness is created because of two, three reasons.

One, because of quality, which we deliver, because the Polymed has almost every quality standard, our products comply to every possible global quality standard. Number two, in terms of performance, our products are performing at par with multinational products in global market.

Number three, the innovation we are able to do. Today at a group level we have around close to 399 patents.

We are able to innovate products at a much frugal cost compared to any other company, and then put those products in the market. That gives us a stickiness in the business.

All these factors contribute to that stickiness.

Sir, in the long run, what kind of revenue mix do you want to achieve in terms of Indian and international business?

It's a great question. Ideally, I would like it to be between 1/3 India and 2/3 ROW.

Sir. Really, really appreciate the answer.

Thank you very much.

Hi, sir. Thank you for the opportunity.

Couple of questions from my side. Sir, first, from the quarterly perspective, our subsidiary revenue stands roughly almost around ₹92 crore.

Can you please give the broad-based bifurcation of what kind of revenues will be from the Plan1 Health for the quarter and what kind of revenues from the Plan Health, and what would be the YoY percentage growth rate of these two? That's my first question, sir.

Yeah. Rahul can answer that question.

Neel, the total revenue of ₹65 crore that we've done from the two acquisitions, about ₹43 crore, ₹44 crore is from Plan Health and the balance is from Plan1 Health.

Sir, what would be that YoY growth rate of that on quarterly basis? I do not have

last year numbers. I will check on that and come back to you.

Okay. Sir, if I see from the standalone level, right, since you mentioned that ₹30 crore only increase in inventory just because if you see the FY26 our growth rate is close to around 4%, 5%, that's why probably it doesn't look so.

If you see from the perspective of the days, inventory days has increased from 50 to 58 days. How we are planning to reduce that?

Apart from inventory days, if you see the receivable side, which has increased drastically from, let's say, ₹340 crore to ₹440 crore. In the terms of days, it's 68 days to 86 days.

Can you throw some light on that how do we see that?

Neel, I think on the inventory side, we are not too concerned. In fact, it's currently helping us only because large part of our inventory is in raw materials, right, which is helping us cushion some of the price impact that we're seeing.

A ₹30 crore increase for a business of our size is probably not worrisome. On the debtor side, I think obviously there's been a significant jump on the debtor side, and that's primarily because of the external factors, right, because, as we mentioned, the international environment was quite troublesome, and we had to support our customers in terms of better terms for them to drive growth, right?

I think that's been primary reason bulk of the increase on the debtors have happened because of the international business. The domestic business receivable cycle continues to remain quite strong, and we don't see any challenge.

I think as the international environment becomes more malleable, I think the debtor cycle will come back. In the interim for us, ensuring our customer retention and ensuring growth, we are there when the growth comes back, we are willing to extend the help to the customers.

Great, sir. It is fair to say let's say from the perspective of FY27 this would be then at a normalized level of receivable days by the end of FY27?

I think at the moment looking at the environment, I would expect receivable cycle to be similar for FY27. Oh, okay.

Okay.

Sir, if we see from the export revenue from the perspective of full-year FY27, that we have roughly clocked almost around ₹362 crore. If I remove the Plan Health and Plan1 Health, or let's say remove the subsidiary revenues out of that, which is ₹90 crore kind of numbers, then the core export growth looks kind of slightly flattish or slight decline in that.

What we are doing to ramp up that we can command the growth going forward from the export market growth ex of Plan1 Health and Plan Health?

I think two things. You're right, export in fact were negative, not flattish also.

It was I think -3% or 4% on the export side. Again, what we're trying to do is, as I've said earlier, US, again, the doors are open and we see some new products getting added this year for export to US market.

We are in that process, so that will add something. Europe, we've added more distributors, I think that is helping us to regain that growth in the European market.

Then certain markets we'll go direct, as we've opened a subsidiary in Brazil, we're going direct there, so that will also open some doors there. I think all in all, I think and then our focus has been more on the clinical side, we have added a lot of people on the clinical team.

Now we are doing a lot of global clinical trainings, and we have increased our hospital visits internationally. Our team has been visiting globally all across from almost every country in Europe to in Middle East, or of course, or in Southeast Asia.

All these markets, we are putting a lot of clinical support, which is helping us to mitigate earlier challenges. Then this upsell is actually helping us to move into more products into the hospitals.

Perfect, sir. Just last two questions from my side.

Sir, I think we have done really good in terms of renal segment. Just wanted to know that would you like to put the number how much dialysis machines that we have sold for FY26 and how we see that number coming up in FY27?

That's my first question. Last question is that Gautam, sir, can you just help me with the EBITDA margin of Plan1 Health and Plan Health for the quarter?

That's it from my side. Thank you.

I think on the renal side, very quickly I said, we sold 450 machines last year. This year also we, as I said, renal business will grow close to around 20%.

We'll see maybe a sequentially 20% increase in the sales of machines also this year. That's the current plan.

I think on Plan Health and Plan1 Health, maybe I'll ask Rahul to very quickly chip in. Rahul, Neil, can you just repeat your question on this, please?

Yeah. Sir, I just wanted to know what kind of EBITDA margin that we have clocked for Plan1 Health and Plan Health individually for this quarter.

I think this quarter, the EBITDA margins, the acquisition has had a negative impact on EBITDA of about ₹2.6 crore. There are two, three reasons for it.

Number one, quarter 1 tends to be or quarter 1 of their calendar year tends to be a lower quarter because of shorter working period. Plus, for Plan1 Health, they had fairly large exposure to Middle East compared to what the overall group level is, which has gotten impacted a bit more.

For Plan Health, they had a sort of a product mix issue in terms of selling certain low-margin products, because of which EBITDA margins were lower. I think on a steady-state basis, once things become normal, we think both the business can operate at mid-teens in terms of EBITDA margin.

Obviously with benefits of synergies that we will drive over the course of next few years, we expect that number to go up to 20%. Quarter 4 or quarter 1 of their calendar year was a lower EBITDA margin for them.

Sir. Thank you so much.

That was really helpful, sir.

Thank you.

Thanks for the opportunity, sir. In intravascular lithotripsy and drug-eluting balloon, for these new products, is the complete product development done in-house?

Have the products been commercialized? Can we also know the utilization rate of the capacities that were expanded after QIP 1, sir?

Yeah.

After the QIP 1, I'll answer the last question first, we are seeing a capacity utilization of close to around 65% to 70% right now. On the products which are developed is fully developed in-house.

A lot of products are in pipeline right now, which we'll announce in due course. We have already launched drug-eluting balloons, again fully indigenously developed product.

This is a 100% import substitute product, and very, very few companies are able to make that kind of product. We are working on some high-level products, which will be around ₹1 lakh or ₹7 lakh, ₹8 lakh, ₹10 lakh products in times to come.

There are a lot of development projects going on in cardiology space, in orthopedic space, also in oncology, and also some new products are getting launched in renal space also.

Great to hear, sir. Sir, in a previous con-call, you mentioned there's a good opportunity to replace the MNCs in the stent segment.

We usually enter a market where there's no domestic player as a import substitution. Sir Hello?

Go ahead.

Here we have a couple of large domestic players along with other large MNCs. How are we planning to increase our market share in this competitive segment, sir?

Again, the focus is not in selling stents, we are not focusing. Our stent is a very small part of our business, maybe ₹10 crore, ₹12 crore out of ₹2,000 ₹1,800 crore.

I think that is not we are focusing on. Our focus is to develop products because you need the full basket when you're approaching a hospital with products.

We can't be just working on few products, and that doesn't complete the basket, and it's very hard to change the practice. We are moving up the value chain, as I told you earlier, on DES and some other new devices, DEBs, drug-eluting balloons, and some other specialized products.

That is where we are working on, and I think drug-eluting stents forms a part of that basket. I think import substitution, our focus is overall on the whole product category, whether it's renal or oncology, or whether it was neonatal, or it was vascular access.

We're working on across all categories to bring import substitution into the country.

Understood, sir. Thank you.

Thank you for the opportunity. Am I audible?

Yes, we can hear you well.

Hi, sir. Sir, first of all, congratulations on delivering good set of number on the top line as promised in the earlier con-call.

Sir, my question was first on gross margin. If I look at our 9 months gross margin, what we delivered in the first three quarter, it was roughly between 68.5% to 69%.

You did highlight on the call that it is because our Critical Care and Cardio vertical, which is our new vertical for us, which is ramping up nicely, and that is what you eventually want to grow in the next couple of years also. If I look at Q4 gross margin, there is a dip of almost 1.7% to 1.8% on a QoQ basis.

Despite these two product going up, let's say in terms of execution, and also full quarter consolidation of high-gross-margin business like Plan Health and Plan1 Health, just wanted to understand why there is a dip in the gross margin in Q4.

Deepak, I think the quarter 4 impact is primarily because of product mix issue. Obviously we have a large product portfolio, right, and in some cases, some of the products are lower margin on a gross basis.

I think the impact of that is primarily because of product mix rather than anything else.

Got it. You also had mentioned about this price hikes which we have taken 3% to 5% and gross margin of 66%.

Sir, do you think there is risk to this number since the inflation is quite a lot, and I do understand that we operate at fairly high gross margin because the nature of the business? Means just wanted to understand how much price hike we would need to take incrementally, let's say, to offset any more erosion in the gross margin going forward.

Basically, when we see it, today our raw material percentage around 32%, 33% basically, because that's where rest is the gross margin, basically. On that, we have seen almost a 20% increase in overall raw material pricing, when we spread across all the materials which we buy, from packaging to basic raw materials, which are a lot of them are polymers.

Already we see that around some of it is already mitigated by rupee depreciation across because we have almost 2/3 more than 2/3 revenue coming from international business. Then we have done some price increases with customers between 3% to 5%, so that will also help.

Today's situation is very fluid, and I think we'll have more clarity end of quarter 1 when we review everything. At the present state, I think with the high inventory of raw material which we were carrying on as of 30 31st March, we were to able to really manage it very well.

Hopefully, as we talk in next few months from now, the crude prices may soften from where they are today, and that will again help us to mitigate those risks which have been created today. Far, I think we are okay.

I don't see any huge risk, but let's wait for a few more months. Interim, I think we are okay in the interim situation.

Okay. Sir, your renal segment, last call you were sounding a little bit cautious because of this Chinese dumping, right?

This quarter you have done very well, like 25% QoQ growth in the renal revenue. Just wanted to understand has something changed between the quarter for the execution to pan out so well, and means how is the situation on that Chinese dumping?

See, Chinese dumping continues. I think, unless and until government things otherwise, the dumping continues.

You have to see from that angle that today Chinese are importing at 0% duty, only 5% GST they pay on the finished product. Whereas I'm importing, I'm buying all the raw materials, I'm importing some raw materials, I pay 18% duty, I pay 2.5% duty customs duty on my raw materials, 18% GST.

There's a lot of inverted duty plus the dumping from the Chinese. All that is actually, and that's the reason you see today hardly any renal player has come in last 5 to 7 years in the country.

In spite of the segment being very open, and the growth still there in this segment. I think that is a challenge.

Of course, Polymed being a large manufacturer, we are able to mitigate a lot of this because we have a lot of manufacturing excellence, we are able to mitigate that part. Again, our focus is to gain market share.

We are working on that. I think this dollar devaluation, rupee devaluation against the dollar will also maybe one of the factors which may help us in the long run because if somebody is importing products, they'll have to pay at a higher price.

I think and we are also pushing the government to put some counter duties on the product. Let's see what happens.

I think overall 20%, 25% growth is still attainable in this business.

Okay. One last question on the acquisitions.

Will you be able to call out what was the Plan Health and Plan1 Health let's say calendar year '25 full year revenue in terms of euro million?

Deepak, for Plan Health, that number was about €17.5 million, and for Plan1 Health, it was about €8 million.

Okay. Sir, in this terms, how much growth are we anticipating in this both in FY27 in euro terms?

In euro terms, I think we should be growing for Plan Health in low double digits, or 10% to 12%. For Plan1 Health, because of the Middle East situation and their exposure to that, I think we are restricting the guidance.

Okay. No worries, sir.

Very helpful and all the best.

Thank you.

Hi, Sidharth.

Hi. Thanks for the follow-up.

Just a couple of questions. On the ₹9 crore one-time cost that you mentioned in respect to the acquisitions, if you could give us some color around what that cost was.

That was question number one. Question two was if I had to sort of deduce basis the 50-50 split in Europe and rest of the world for your quarter 4 sales for Plan Health and Plan1 Health, right, then that means the rest of the world's sales in quarter 4 may have a slight degrowth.

A, is that the right inference? If so, could you share where that impact primarily was?

That was question two.

I think the acquisition cost question, Sidharth, is basically these are transaction-related costs, payments to advisors you have to do for undertaking the acquisition. That's the cost.

I think on your question, you're mentioning sequential degrowth or year-on-year you're mentioning?

No, year-on-year. Basically looking at your ₹65 crore split 50-50 into Europe and rest of the world and keeping that base, right, Europe seems to be more flat on Q4 FY26 versus '25, and rest of the world seems to be a minor degrowth.

Sidharth, I think it's important to understand that it's a B2B business, there are obviously on a quarter-on-quarter basis some differences on where the orders are coming from. It's not reflective of any significant trend in the business.

I think best for such businesses to be looked at from a full-year perspective. These quarter-on-quarter variations can always happen in which geography we're selling the product.

Got it. Sure.

Sorry, you had mentioned on the one-time cost being certain regulatory and employee costs. Is there already some manpower rationalization and cost savings that one can expect?

No, these were basically costs which were just accounted for at the end of the year in quarter 4, and which impacted the quarter 4 numbers. There is no manpower rationalization being done in any of these entities.

Got it. On Plan Health, just wanted to understand you mentioned €17.5 million this year, and the acquisition call had mentioned about €17 odd million in '24.

Was that performance also

It was a flat performance, and it was primarily because of one of the tenders that they had been won in the LATAM region was canceled and was pushed out, and because of which they lost a certain revenue in last calendar year.

Am I audible?

Yes, Girish ji, we can hear you very well, sir.

Thank you, Himanshu ji, for taking my question. In the opening remarks, you mentioned that FY26 was a year of transition.

I presume you're referring to the move from product focused to a therapy focused approach.

That's correct, Girish ji. You have actually understood very well.

You also mentioned about the breakup of the segment revenue. I think you mentioned Infusion vertical has come down to 52% and Renal gone up to 11%.

I could not capture the other percentages between Cardio and Onco.

Maybe you Girish ji, Onco, Cardio are very new businesses, we don't specifically call out those revenues. The whole idea is that company at one point of time was doing 65% business on Infusion, and we are trying to de-risk that and add more products in the other product categories.

I think that is really helping us to grow the business globally and also improve some gross margins. That's the whole idea.

We don't call out those numbers specifically because of confidentiality. We don't want to share what company is doing, and that information goes out publicly.

Safe to assume that Infusion as a percentage of the overall revenue will still be coming down, even though it may grow on a standalone basis, but as a percentage of the overall Infusion may come down and the other segments may go up and therefore pulling your gross margin higher? Again,

that is our core, core, core business. We think that it will stay around that 50% level, Infusion.

See, today if you see one of the products we manufacture, IV cannula, we have almost global 11% market share on that product. We produce 6 million 600 million of those pieces.

That means we have a global excellence on this product. There are hardly any companies in India which can claim a 10% global market share on any single product, and we have that today.

I think that still remains to be our core business, and all accessories we produce, we have a global excellence, we have a lot of patents on that product technology. That will be there.

As you move onto the higher-priced segments, when you look at orthopedics or cardiology, the price for product is very high. For that, infusion, which is let's say ₹10, ₹15, ₹20, these products are thousands of rupees or sometimes north of ₹20,000 also.

That is how the revenue mix is changing.

Hopefully once the raw material price becomes normal, then we can expect some expansion in the margin with this change in the revenue?

Today we are calling out those margins. If you see the guidance we have given for India business, still around 25%, 27% EBITDA margin despite of all the headwinds what you see today.

Overall, we have guided for 23% to 25% that we know that the international businesses operate at lower EBITDA margin. We are still guiding in these ranges because we know, and all this has been accounted for based on the current crude price level.

If we see some improvement in crude price level, let's say next few months, definitely those margins should get better. I think that's what we think.

At least from the current state, let's assume that we are in the band of 25%, 27%. Yes, we will try to deliver at a higher band what we have delivered in the past year also in FY26.

We delivered the numbers at a higher band of between 25% and 27%. We've delivered at 26.8% EBITDA at the standalone level.

Thank you. Just a related question on the margin.

I'm sure there must be a strategy which maybe you can highlight on how we plan to increase the margins in the companies which we recently acquired, Plan Health and Plan1 Health?

Girish ji, it's a good question. What we are trying to do is, we're trying to bring in a lot of synergies.

A lot of, engineering work we are doing in India right now. We are also looking at our global supply chain, helping them to secure materials at much lower price what they were buying earlier.

Also some part of manufacturing, we will probably shift to India at some point of time once we have all the regulatory clearances to do that. All that in the long run will help us to See, currently these companies will operate, let's say, around 12% to 14% margin, that is what we anticipate.

I think in next 2, 3 years, we could see that improvement going to around 18%

to 20%. That's wonderful.

Thank you and all the best.

Thank you, sir.

I'd like to thank all of you for being on the call today and hearing us, our updates on the company. Let me assure you again, we are in medical devices healthcare business, it's bound to grow.

Last year was a was a challenging year. Of course, again a lot of strategic planning went in last year in terms of acquisitions and, capex spend.

I think in terms of the infrastructure, today today the company has one of the best infrastructure. Some of you have visited plant already know that that Polymed has one of the best infrastructure, in terms of MedTech manufacturing.

We continue to build very strongly. As we are seeing more and more registrations coming through in in many countries in in the current year and also in following years, we'll see our business increasing globally.

In India also, we are pushing hard, and and a lot of these corporates Today, the brand is very well known. People see this brand as a quality product, and it is taken, quite a while to do that.

I think we are at a very safe space, I can tell you that. I I'm pretty sure that, once you'll see our performance which we have already guided today, I think you will see that happening.

I think we'll see much better results in coming years. Thank you very much.