Sahajanand Medical Technologies Limited’s FY26 lines had no output

Sahajanand Medical Technologies Limited reported no FY26 production from Hyderabad lines for transcatheter aortic valve implantation, or TAVI, devices and occluders, despite annual capacities of 6,000 and 12,000 units. Sahajanand’s Surat drug-coated percutaneous transluminal coronary angioplasty, or PTCA, balloon catheter line produced 1,015 units from 56,000 units of annual capacity, a 1.81% utilisation rate.

Why did Sahajanand’s Hyderabad structural-heart lines have no FY26 output?

Sahajanand’s Hyderabad TAVI and occluder lines had installed capacity but recorded nil production in FY26. The TAVI line had annual capacity of 6,000 units, and the occluder line had 12,000 units, with no output shown for either category in the capacity table for the year. Both lines also recorded nil output in the three months ended June 30, 2026, when their stated annual capacities remained 6,000 and 12,000 units respectively.

The FY26 result extended a weak production record for Hyderabad TAVI devices but marked the first disclosed year for Hyderabad occluder capacity. Hyderabad had 6,000 units of annual TAVI capacity in FY25, produced 10 units and recorded 0.17% utilisation; capacity stayed unchanged in FY26 while production fell to nil. The 12,000-unit Hyderabad occluder line was not reported in FY25 or FY24, so the prospectus does not provide a prior-year utilisation comparison for that line.

The capacity disclosure does not state why the Hyderabad lines had no output, and it does not attribute the result to any one constraint. Sahajanand identifies less-than-optimal utilisation as a manufacturing risk that can arise from internal factors such as labour issues or external factors including raw-material shortages and lack of demand. It also states that prolonged under-utilisation, significant short-term under-utilisation, or failure to realise the benefits of recently implemented or contemplated expansion could adversely affect business, growth prospects and future financial performance.

How low was Sahajanand’s Surat drug-coated balloon utilisation?

Sahajanand used 1.81% of Surat’s drug-coated PTCA balloon catheter capacity in FY26. The line had annual capacity of 56,000 units and produced 1,015 units in FY26. In the three months ended June 30, 2026, it produced 1,866 units, equal to 3.33% of the same stated annual capacity; the prospectus specifies that output for the three-month period was not annualised.

The drug-coated balloon line did not appear in the FY25 or FY24 capacity table, making FY26 the first full-year data point disclosed for this category. Its FY26 rate was substantially below Surat’s established catheter line, which produced 636,783 units from 660,000 units of capacity, or 96.48%. Surat’s stent line produced 627,727 units from 780,000 units of capacity, or 80.48%, in the same year.

The comparison is product-specific because the capacity table lists drug-coated PTCA balloon catheters separately from Surat’s broader catheter category. The 56,000-unit balloon line therefore cannot be treated as capacity used by the 660,000-unit catheter line. Higher utilisation would require actual production to rise against the fixed installed capacity, subject to the demand, material availability, operating and regulatory factors described in Sahajanand’s risk disclosures.

Did Sahajanand make structural-heart devices at another facility in FY26?

Yes, Sahajanand’s Thailand facility produced both TAVI devices and occluders in FY26, unlike Hyderabad. The Thailand TAVI-device line had annual capacity of 3,000 units, output of 1,784 units and utilisation of 59.47%. Its occluder line had capacity of 30,000 units, output of 14,564 units and utilisation of 48.55%.

Thailand’s TAVI output rose from 1,116 units in FY25 to 1,784 units in FY26, but capacity increased from 1,800 to 3,000 units and utilisation declined from 62.00% to 59.47%. Thailand occluder output increased from 9,777 units in FY25 to 14,564 units in FY26, while capacity remained 30,000 units and utilisation increased from 32.59% to 48.55%. These figures show that FY26 inactivity was concentrated at Hyderabad rather than representing zero group production in both categories.

The prospectus measures utilisation as actual utilised capacity divided by installed capacity at the end of the relevant year or period. Installed capacity is based on assumptions and estimates, including 365 working days annually and the capacities of equipment and ancillary equipment. Actual utilised capacity takes account of operating periods, scheduled maintenance, unscheduled breakdowns and expected operational efficiencies.

What could limit Sahajanand’s ability to use the capacity?

Regulatory approvals can affect Sahajanand’s ability to market products and thereby support production for newer device categories. Sahajanand states that it sought approvals to market drug-eluting stents, PTCA balloon catheters, TAVI devices and occluders in countries including Brazil, South Korea, Australia and other South American markets. The prospectus says approvals can require pre-clinical and clinical testing, post-market surveillance and restrictions on indicated uses.

In June 2024, Australian authorities rejected Sahajanand’s registration application for its Hydra TAVI product and requested resubmission with additional clinical studies. A 2018 Taiwan registration application for Hydra TAVI was also rejected pending additional tests. Sahajanand says it is undertaking additional clinical studies for both applications, while disclosing no assurance that either authority will approve them; these cases do not establish the reason for nil Hyderabad output.

Material supply is a further disclosed dependency. Imports accounted for 77.18% of Sahajanand’s purchases in FY26, while its top 10 suppliers accounted for 59.15% of total purchases. Sahajanand relies on a limited number or a single supplier for some critical materials, including cobalt chromium tubes, aluminium pouches and polymers, and says a supplier disruption can require alternative sourcing, testing or fresh regulatory approvals.

Conclusion

The FY26 capacity data shows that Sahajanand had not converted Hyderabad’s 6,000-unit TAVI capacity or 12,000-unit occluder capacity into reported production. Surat’s 56,000-unit drug-coated PTCA balloon catheter line also operated at 1.81%, contrasting with FY26 utilisation of 96.48% for Surat catheters and 80.48% for Surat stents. Thailand, however, recorded 59.47% TAVI utilisation and 48.55% occluder utilisation, confirming production in both categories elsewhere in the group.

The next production disclosures will show whether Hyderabad begins making TAVI devices and occluders and whether Surat’s drug-coated balloon output moves above FY26’s 1,015 units. Regulatory progress is also relevant because Sahajanand has disclosed ongoing additional clinical studies following the Taiwan and June 2024 Australian Hydra TAVI application outcomes, while noting that approvals, component supply and demand can affect capacity use.