Avience Biomedicals FY26: Scaling an IVD platform with a new plant and a PSU order

Avience Biomedicals Limited is building a combined manufacturing and distribution model in India’s in vitro diagnostics (IVD) and medical devices space. In FY26, the company reported consolidated revenue from operations of INR 52.51 crore, up from INR 45.24 crore in FY25. Profitability improved faster than revenue. EBITDA rose to INR 14.94 crore (EBITDA margin 28.45% versus 25.35% in FY25) and PAT increased to INR 8.75 crore versus INR 7.10 crore in FY25.

The FY26 communication is centred on two near-term levers. First is an expansion project at the YEIDA Medical Device Park that is intended to increase manufacturing capacity and enable participation in larger tenders. Second is a disclosed PSU order of about INR 47.46 crore, which management expects to execute in 3 to 4 months. Management also guided for at least 60% revenue growth in FY27, with the potential for higher growth depending on execution.

How the model works: instruments plus recurring reagents

Avience operates across manufacturing, trading and distribution, and service support. Management described two ways instruments reach customers. Some instruments are sold outright, typically smaller ones. A larger share of instruments are placed under a reagent-rental arrangement, where the analyzer is installed at the customer site and revenue is generated from ongoing reagent and consumables consumption rather than from a one-time instrument sale.

This commercial structure is tied to service capability. Management stated that maintaining a well-trained service team and providing round-the-clock support is a key challenge in this industry, and positioned the company’s service response as a competitive differentiator, aiming to restore installed machines within four hours of a breakdown.

FY26 financial summary

What the revenue mix indicates

The concall provided a turnover mix that helps explain the current stage of the business. Trading remains the dominant contributor. The CFO stated that manufacturing contributed about 26.99% of total turnover, trading about 72%, and the balance came from service income such as paid repairs, maintenance, AMC and CMC.

Within total turnover, traded reagents and consumables were the largest component at about 59.83%. Manufactured reagents and consumables were about 14.62%. Rapid cards contributed about 9.15%. Traded instruments contributed about 12.55%, while manufactured instruments contributed about 3.21%.

This mix matters because management expects a shift over time. Management stated the current manufacturing to trading mix is roughly 30:70 and the company is targeting a mix closer to 50:50 as in-house manufacturing scales. The implication is that capacity expansion is not just for volume, but also to change the business composition.

Capex and commissioning: YEIDA Medical Device Park facility

The presentation outlines an expansion plan with a total project investment of INR 30.18 crore. The funding mix is disclosed as IPO proceeds of INR 15.95 crore, SIDBI funding of INR 12.00 crore, and internal accruals of INR 2.23 crore. The project is located at Plot No. 70, Sector 28, YEIDA Medical Device Park, with a land area of 2,100 square meters. The stated manufacturing focus is biochemistry analyzer manufacturing, and the facility is described as fully automated with a target commissioning timeline of October 2026.

On the concall, management stated the facility was substantially complete, with remaining work expected to be completed by September and manufacturing targeted to commence from October. Management also indicated that the new facility can support peak revenue of around INR 250 crore (subject to product mix, approvals, demand and execution). Management added that once the new facility stabilises, it intends to discontinue the existing rented facility after a transition period of about three to four months.

Beyond capacity, management linked the new facility to tender eligibility and delivery performance. Management stated that government tenders often require delivery within 45 to 60 days, and delays can lead to penalties and other adverse consequences. Scale and execution capability are positioned as prerequisites for meaningful tender participation.

Product approvals and pipeline execution

Regulatory approvals are a central theme in both the presentation and the call. Avience reported 88 CDSCO manufacturing licenses and stated that 200+ product applications are under process. The presentation describes the CDSCO licensing process as a 9 to 12 month journey on average, spanning test licenses, manufacturing, third-party testing, and final manufacturing license issuance.

In the concall, management said that while a typical approval timeline may be six to nine months, their experience has been about three months in several cases, though timelines can vary by product and process. Management also stated an expectation of reaching around 175 products by the end of FY27, describing the ramp as phased due to development, validation and in-house manufacturing requirements.

FY27 and beyond: what management is explicitly guiding

Management guidance in the disclosed documents is specific on a few points. Management guided for at least 60% revenue growth in FY27. They linked confidence to a recurring base business and to an order of about INR 47.46 crore. Management stated revenue could exceed INR 100 crore during FY27, positioning that as achievable given the order and ongoing business, but still dependent on execution.

The company also discussed exports, though the base is currently small in FY26. The presentation shows FY26 exports at 1.01% of revenue from operations versus 18.15% in FY25. In the concall, management stated it had exported around INR 0.70 to 0.80 crore in the first three months and is targeting exports of around INR 5 to 7 crore during the year.

On a longer horizon, management shared an aspiration of INR 160 to 165 crore revenue in FY28 and reiterated the capacity potential of the new facility, while noting the dependence on approvals, demand and execution.

Key investor takeaways from the FY26 communication

Avience’s FY26 messaging is coherent: build manufacturing scale, broaden the approved portfolio, and use service and reagent-rental models to keep consumables-led repeat revenue at the centre. The FY26 financials show margin expansion, but management is not promising immediate further margin gains during the expansion phase. Instead, the stated near-term objective is to maintain EBITDA margins while scaling.

The next 12 months are likely to be shaped by three execution variables that management itself highlighted: commissioning and ramp-up of the YEIDA plant, timely execution of the INR 47.46 crore PSU order within the stated 3 to 4 month window, and conversion of the 200+ application pipeline into approved and commercialised products. If these elements track as stated, FY27 becomes a year where the business moves from a trading-heavy base toward a higher manufacturing contribution, with a larger opportunity set in government and export channels.