Sahajanand Medical Technologies FY26 profit nearly triples

Sahajanand Medical Technologies reported restated consolidated profit after tax of Rs 69.082 crore in FY26, about 2.75 times the Rs 25.152 crore reported in FY25, as revenue from operations rose 18.1% to Rs 1,210.504 crore. Net investing outflow was Rs 130.030 crore, exceeding Rs 105.189 crore of operating cash flow.

Did Sahajanand Medical’s FY26 profit nearly triple?

Yes. Sahajanand Medical reported restated consolidated profit after tax of Rs 69.082 crore for the year ended March 31, 2026, against Rs 25.152 crore in FY25 and a Rs 7.354 crore loss in FY24. The FY26 result was approximately 2.75 times FY25 profit and extended the recovery from the FY24 loss into a second profitable year.

Revenue from operations rose by Rs 185.625 crore to Rs 1,210.504 crore in FY26 from Rs 1,024.879 crore in FY25. Total income increased to Rs 1,218.725 crore from Rs 1,035.963 crore, while total expenses rose to Rs 1,138.433 crore from Rs 980.123 crore. As a result, profit before tax increased to Rs 80.292 crore in FY26 from Rs 40.811 crore in FY25.

The reported net profit increase was larger than the pre-tax increase partly because total tax expense fell to Rs 11.210 crore in FY26 from Rs 15.659 crore in FY25. FY26 included a Rs 8.711 crore tax credit related to earlier years and a Rs 11.584 crore deferred-tax credit, while current tax was Rs 31.505 crore, compared with Rs 31.203 crore in FY25.

What drove Sahajanand Medical’s FY26 profit increase?

Sahajanand Medical’s FY26 profit increase arose because total income grew by Rs 182.762 crore while total expenses rose by Rs 158.831 crore. The Rs 23.931 crore difference increased profit before exceptional items and tax to Rs 80.292 crore from Rs 55.840 crore in FY25. FY25 included Rs 15.029 crore of exceptional items, whereas FY26 reported none.

Employee-benefit expense increased to Rs 351.791 crore in FY26 from Rs 292.335 crore in FY25, and other expenses increased to Rs 394.079 crore from Rs 354.122 crore. Finance costs rose to Rs 24.428 crore from Rs 20.731 crore, while depreciation and amortisation increased to Rs 74.156 crore from Rs 62.534 crore. These cost movements meant that continued revenue growth and the level of tax credits recorded in FY26 affected the conversion of income into reported profit.

Other income declined to Rs 8.221 crore in FY26 from Rs 11.084 crore in FY25, even as revenue increased. Cost of materials consumed rose to Rs 258.232 crore from Rs 218.439 crore, while purchases of stock-in-trade fell to Rs 45.753 crore from Rs 51.456 crore. The FY26 earnings outcome therefore reflected changes across operating income, expenses and the tax line rather than revenue growth alone.

Did Sahajanand Medical’s capital spending exceed operating cash flow?

No. Sahajanand Medical paid Rs 97.982 crore for property, plant and equipment, capital work-in-progress, other intangible assets and intangible assets under development in FY26, below its Rs 105.189 crore of net cash generated from operating activities. However, total net cash used in investing activities was Rs 130.030 crore, exceeding operating cash flow by Rs 24.841 crore.

The difference between capital spending and total investing outflow was caused by additional investment items. Sahajanand Medical spent Rs 21.126 crore on equity instruments designated at fair value through other comprehensive income and recorded Rs 28.532 crore of net investments in current debt securities. Those outflows were partly offset by Rs 9.607 crore of proceeds from sales of property, plant and equipment and capital work-in-progress, Rs 4.593 crore from net bank-deposit withdrawals and Rs 3.265 crore of interest received.

Capital spending nearly doubled from Rs 48.997 crore in FY25 to Rs 97.982 crore in FY26, an increase of Rs 48.985 crore. Operating cash flow rose by a smaller Rs 31.666 crore, from Rs 73.523 crore in FY25 to Rs 105.189 crore in FY26. The investment outflow was therefore higher despite the increase in operating cash generation.

How did working capital affect Sahajanand Medical’s operating cash flow?

Working-capital movements reduced Sahajanand Medical’s FY26 operating cash generation by Rs 33.567 crore before income-tax payments. Operating cash flow before working-capital movements was Rs 168.127 crore, while cash generated from operating activities after those movements was Rs 134.560 crore. Net income-tax payments of Rs 29.371 crore then reduced net operating cash flow to Rs 105.189 crore.

Inventories used Rs 18.707 crore of cash in FY26, and trade payables and other liabilities used a further Rs 16.257 crore. Trade receivables and other assets generated Rs 1.397 crore of cash, compared with a Rs 56.710 crore use of cash in FY25. The receivables movement improved year on year, but the payables and other-liabilities line changed from providing Rs 41.299 crore in FY25 to using cash in FY26.

The cash conversion pattern differed from the profit trend because profit before tax was Rs 80.292 crore while operating cash flow before working-capital changes was Rs 168.127 crore after non-cash adjustments. Depreciation and amortisation of Rs 74.156 crore, finance costs of Rs 24.428 crore and a Rs 15.146 crore net impairment reversal were among the FY26 adjustments. Inventory, receivable and liability movements then determined how much of this pre-working-capital amount became cash.

What happened to Sahajanand Medical’s borrowings and cash balances?

Sahajanand Medical’s total borrowings increased by Rs 44.569 crore during FY26 to Rs 269.526 crore at March 31, 2026. Current borrowings increased to Rs 220.044 crore from Rs 189.127 crore, while non-current borrowings rose to Rs 49.482 crore from Rs 35.830 crore. The balance-sheet movement occurred alongside Rs 130.030 crore of net investing outflow and a Rs 12.036 crore net financing cash outflow.

The financing cash-flow statement recorded Rs 32.320 crore of net short-term borrowing proceeds and Rs 26.722 crore of long-term borrowing proceeds in FY26. It also recorded Rs 20.052 crore of long-term debt repayments, Rs 20.761 crore of finance-cost payments, Rs 12.860 crore of lease-principal payments and Rs 2.385 crore of lease-interest payments. These financing uses exceeded the reported borrowing inflows after including the Rs 0.960 crore proceeds from issue of shares.

Cash and cash equivalents were Rs 74.094 crore at March 31, 2026, compared with Rs 100.520 crore at March 31, 2025. Property, plant and equipment increased to Rs 239.029 crore from Rs 181.191 crore, and capital work-in-progress increased to Rs 7.520 crore from Rs 5.657 crore. The balance-sheet changes show that the FY26 investment programme coincided with a larger fixed-asset base, lower reported cash and higher borrowings.

Conclusion

Sahajanand Medical’s FY26 financial information shows a marked earnings recovery, with revenue rising 18.1%, profit after tax increasing to Rs 69.082 crore and operating cash flow reaching Rs 105.189 crore. Capital spending of Rs 97.982 crore remained below operating cash flow, but wider investment activity produced a Rs 130.030 crore net investing outflow that exceeded operating cash generation.

The next disclosed period is the three months ended June 30, 2026, when Sahajanand Medical reported Rs 351.669 crore of revenue from operations, Rs 15.087 crore of profit after tax and Rs 22.208 crore of operating cash flow. At June 30, 2026, current borrowings were Rs 254.385 crore and non-current borrowings were Rs 66.248 crore, making subsequent movements in investment outflows, operating cash and borrowings the reported items to watch.