POLYMED Q2 FY26 earnings call.
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Revenue
₹444 Cr
verified against source
Revenue YoY
5.7%
reported change
EBITDA
₹119 Cr
latest reported figure
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Poly Medicure reported Q2 FY26 consolidated revenue of ₹444 crore (~5.7% YoY), with PAT at ₹92 crore and EBITDA margin at 26.8% (excluding ₹3.2 crore one-time acquisition cost). The domestic business delivered robust 17-18% YoY growth driven by 22.3% private segment expansion, now contributing 32% of consolidated revenue. International operations showed sequential recovery with 9.1% QoQ growth, though Europe remains pressured at -9.6% YoY. The company closed two strategic acquisitions (Italy-based CDF Group in orthopedics and Netherlands-based PendraCare in cardiology) adding ~₹280 crore annual revenue. H2 guidance targets ₹1,080-1,190 crore revenue (~25% above H1), with full-year growth guidance revised down to 15-16% from 20%. Capex of ₹150 crore deployed in H1 toward Faridabad gamma sterilization, Haridwar, and new Jhajjar facility—all operational by end-2026. Risks include US tariff headwinds delaying market entry, European inventory normalization still incomplete, and GST-related renal inventory correction impacting near-term growth trajectory.
Colored figures show movement against the previous available record.
Guidance to track
- Overall FY26 revenue growth guidance lowered from ~20% to 15-16% due to slower international recovery and GST-related renal inventory correction. H2 targeted at ₹1,080-1,190 crore (~25% above H1's ₹847 crore).
- Management reiterated strong domestic outlook despite Q2 renal softness from GST transition. 35+ sales associates added in H1; targeting 100+ hires for FY26.
- Revised upward from earlier guidance; ~10% of H2 ₹1,080-1,190 crore guidance (~₹108-119 crore) expected from PendraCare and CDF acquisitions; remainder organic domestic and international.
- H1 margins at 26.7%, near upper band of guidance. Management expects acquisitions to be 'margin dilutive' but 90% high-margin organic business to keep full-year margins in range.
Risks flagged
- FDA has stopped accepting Indian lab results for medical device approvals, forcing Poly Medicure to retest all products in US labs. This has reversed prior work and created 6-9 month delays in the approval pipeline.
- Chinese competitors increased dumping in Europe due to US tariff diversion; combined with Panama Canal normalization reducing transit times from 2 months to 1 month, customer inventory destocking accelerated unexpectedly.
- Full-year renal guidance lowered from ₹220-250 crore to ₹200 crore due to GST-related inventory realignment in Q2. Management expects recovery from Q3 onward but did not quantify impact.
- Analyst questioned whether 50% tariff on Indian medical devices is sustainable. Management acknowledged India is 'out of flavor' for US companies who are shifting to Vietnam, Thailand, Malaysia, Indonesia.
Key quotes
- We remain cautiously optimistic for H2 of the current financial year. While our international operations did face tougher backdrop this year especially across Europe which continues to show slightly growth 9.6% YoY basis in Q2 FI26 but sequentially business grows around 5% if you look around on quarter-to-quarter performance, we are seeing improvement in customer sentiment.
- Our margins in H1 are in excess of 26%. So we are at the upper end of the guidance that we had given and we are maintaining our margin guidance of between 25 to 27% and hoping that we will still remain at the higher end of the guidance.
- India still is out of flavor for most of the US companies. Still most of the people have gone to Vietnam, Thailand, Malaysia or Indonesia. So we are still out of that flavor because of tariff and current regulatory issues which were brought in very late in India.
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