Polymed Q4 FY26 and FY26: Transition Year, Acquisitions Added Scale, FY27 Guidance Steps Up

Poly Medicure Limited reported FY26 consolidated revenue of INR 1,875.3 crore, up 12.3% year-on-year, supported by partial-period consolidation of PendraCare (from 23 Sep 2025) and Citieffe (from 7 Nov 2025). Q4 FY26 consolidated revenue grew 21.3% to INR 534.5 crore. Standalone performance was steadier, with FY26 revenue of INR 1,662.5 crore, up 3.8%, and Q4 revenue of INR 443.0 crore, up 5.2%.

Profitability trends diverged between standalone and consolidated. Standalone FY26 operating EBITDA was INR 446.1 crore with a 26.8% margin, near the upper end of management’s 25% to 27% guidance range. Consolidated FY26 operating EBITDA was broadly flat at INR 457.7 crore, but margin declined to 24.4% from 27.5% in FY25. Management attributed Q4 consolidated margin pressure to the inclusion of lower-margin acquired businesses and a one-time provision for regulatory and employee costs in a subsidiary. Separately, the company recognized an extraordinary expense of INR 6.8 crore in FY26 due to labour code notification related provisions.

Segment mix is shifting, renal and others are leading growth

The segment split highlights how growth drivers have shifted. In FY26, infusion therapy remained the largest segment at INR 997.3 crore, but was slightly lower than FY25. Renal grew 24.5% to INR 187.6 crore, supported by strong execution in dialysis, while the others segment grew 36.3% to INR 690.4 crore, reflecting a broader portfolio that includes newer therapies and acquisition-led expansion.

Management commentary reinforced the transition narrative. The company positioned FY26 as a deliberate investment year, focusing on higher-technology verticals, clinical engagement, and R&D. In cardiology, it reported cumulative stent deployments of about 11,000 units as of 30 April 2026 and noted that commercial sales of drug-eluting balloons have begun with positive clinician feedback. The PACIFER DES clinical registry of 2,000 patients had enrolled 650+ patients, with enrolment expected to complete in FY27.

Geography remains diversified, but working capital stretched

FY26 consolidated revenue continued to be export-led, with international revenue of INR 1,280.2 crore (about 69% of operating revenue) and domestic revenue of INR 581.7 crore (about 31%). Regionally, FY26 revenue was split across India (INR 581.7 crore), Europe (INR 597.0 crore), and Rest of World (INR 683.2 crore). This diversification is a structural strength, although management noted near-term volatility from global logistics.

Balance sheet liquidity remained high, with consolidated cash and cash equivalents of INR 842.2 crore as of 31 March 2026. However, FY26 cash flows reflect an investment-heavy year. Standalone operating cash flows were INR 246.8 crore, while investing cash flows were negative INR 749.7 crore, driven by capex of INR 295.5 crore and investment in subsidiaries of INR 439.9 crore, resulting in net cash outflow for the year.

Working capital metrics show a clear stretch on the standalone business. Debtor days increased to 98 from 78, inventory days rose to 152 from 136, and cash conversion cycle expanded to 215 days from 183. Management indicated inventory build was partly helpful as a cushion against raw material inflation, but acknowledged that receivables remained elevated due to the external environment.

Acquisitions and international expansion set the FY27 agenda

The company highlighted acquisitions as a key lever for moving up the technology curve. It described PlanHealth as a long-standing Italian acquisition that has grown at about 20% CAGR post-acquisition with margin improvement of about 600 bps. For FY26 acquisitions, management quantified Q4 contribution from Citieffe and PendraCare at about INR 65 crore, with Citieffe contributing INR 43 to 44 crore.

A new geography was added through the acquisition of Medyneo in Brazil, described as a company holding ANVISA and import licenses that can materially reduce entry timelines. Management disclosed that the acquisition consideration was about USD 40,000 and the entity did not have meaningful operations at the time. The strategic intent is to build direct clinical and sales capability in Brazil and use it as a gateway to the broader LATAM region.

On the US market, management stated it had reinitiated customer conversations after a prior setback related to tariffs, and that a revenue ramp-up is expected in FY27. Europe was described as having bounced back over the last few months, with new distributors added in markets including the UK and Germany.

FY27 guidance: higher revenue, margins maintained, capex moderates

Management provided explicit FY27 guidance. On a consolidated basis, revenue is guided at INR 2,300 crore to INR 2,400 crore, implying a step-up driven by full-year consolidation of PendraCare and Citieffe. Standalone revenue is guided at INR 1,900 crore to INR 1,950 crore, with domestic growth expected upwards of 20% and international growth upwards of 15%.

Margins are guided to remain stable on standalone operations at 25% to 27% operating EBITDA margin. On consolidated numbers, the company guided 23% to 25%, reflecting lower profitability in subsidiaries and ongoing cost-saving projects.

Capex guidance for FY27 is INR 200 crore to INR 225 crore, lower than FY26’s INR 296 crore, with the company indicating a greater emphasis on automation to mitigate wage revisions.

A key watch item for FY27 is input cost and logistics volatility. Management discussed disruption due to the Gulf situation, noting West Asia contributes about 6% to 8% of revenue and that demand remained intact but logistics and freight were challenging. It also stated raw materials and packaging are crude-linked and estimated a potential 200 to 300 bps gross margin headwind, partly mitigated by 3% to 5% price increases and rupee depreciation.

Takeaways

FY26 reflects a company in transition, with modest standalone growth, improving sequential revenue through the year, and consolidated scale-up aided by acquisitions. The strategy is now clearly centred on moving into higher-technology therapies, building clinical engagement, and integrating acquired European platforms for cross-selling and cost synergies.

FY27 will be judged on three tangible outcomes: delivery against the INR 2,300 crore to INR 2,400 crore consolidated revenue guidance, stability in margins amid crude-linked inflation and logistics disruption, and the pace of integration and regulatory approvals that allow acquired portfolios to be commercialized more widely in India and internationally.