Poly Medicure's margin rebounds, but higher costs cut into year-on-year profit
Revenue grew 30.30% year on year, yet faster expense growth and higher interest costs pushed net profit down 8.39%.
Filed 07 Aug 2026, 14:56 IST · Poly Medicure Ltd (POLYMED)
Key takeaways
- Consolidated revenue rose 30.30% year on year, but expenses grew faster at 34.74%, narrowing operating margin by 2.51 percentage points.
- Operating margin recovered 3.16 percentage points sequentially as expenses fell 5.62% against a 1.71% revenue decline.
- Other income contributed 29.80% of pre-tax profit, while the higher 27.31% tax rate and 120.34% increase in interest weighed on year-on-year net profit.
Price around the results
Revenue growth did not convert into higher profit
Consolidated revenue grew 30.30% year on year, but operating profit increased only 17.86% because expenses rose faster than revenue. Pre-tax profit fell 4.59% and net profit declined 8.39%, with interest up 120.34% and depreciation up 55.85%. Other income still supplied 29.80% of pre-tax profit, making reported profit less reliant on operating earnings than the revenue growth alone suggests.
Sequential margin recovery followed lower costs
Quarter on quarter, revenue slipped 1.71% while expenses fell 5.62%, lifting operating margin by 3.16 percentage points. The improvement reversed four consecutive quarterly margin declines from 27.10% in Q4FY25 to 20.65% in Q4FY26. The tax rate rose 3.63 percentage points sequentially, limiting the conversion of the operating recovery into net profit growth.
Margin remains above the reported Healthcare peer median
Poly Medicure's operating margin was 0.86 percentage points above the 22.95% median for the 49 Healthcare peers that had reported the same quarter. The year-on-year comparison is less favourable than the sector snapshot because the company's margin is still 2.51 percentage points below Q1FY26.
Management links expansion to products and capacity
Management said six new products were launched across infusion therapy and critical care in Q1FY27, while cumulative stent deployments surpassed approximately 13,000 units in July 2026 and dialysis machine installations reached approximately 1,100 units. The company said growth capital from the INR 14 billion institutional equity raise is being used for capacity expansion and deeper penetration in renal and critical care, alongside entry into cardiology and orthopedics. Management also said it plans 25–30 new product launches, more than 100 new sales associates annually and two upcoming plants.
Past result-day moves have mostly been negative
After the previous eight results, the stock rose twice and fell six times, with a median absolute move of 1.94%. The historical pattern is therefore more often negative than positive, although the current result-day response is not covered here.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹525 cr | ₹535 cr | -1.71% | +30.30% |
| Other income | ₹35 cr | ₹19 cr | +79.56% | -18.74% |
| Expenses | ₹400 cr | ₹424 cr | -5.62% | +34.74% |
| Operating profit | ₹125 cr | ₹110 cr | +13.32% | +17.86% |
| Operating margin (%) | 23.81% | 20.65% | — | — |
| Interest | ₹7 cr | ₹6 cr | +1.40% | +120.34% |
| Depreciation | ₹36 cr | ₹38 cr | -5.18% | +55.85% |
| Profit before tax | ₹117 cr | ₹85 cr | +37.66% | -4.59% |
| Tax | ₹32 cr | ₹20 cr | +58.72% | +7.27% |
| Net profit | ₹85 cr | ₹65 cr | +31.10% | -8.39% |
| EPS (₹) | ₹8.49 | ₹6.54 | +29.82% | -7.62% |
Operating margin of 23.81% compares with a Healthcare sector median of 22.95% across 49 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Cumulative stent deployments surpassed approximately 13,000 units in July 2026.
- Cumulative dialysis machine installations reached approximately 1,100 units.
Guidance & outlook
- Vision 2030 targets doubling revenue, industry-leading margins and globalization of the business model.
- The company plans to launch 25–30 new products.
- The company plans to add more than 100 new sales associates annually.
- The company has 15 approvals and expects 11–13 more approvals in the pipeline.
- Consolidated operating EBITDA margin guidance is 23–25%.
Expansion
- INR 14 billion of institutional equity was raised for portfolio expansion and capacity expansion.
- Growth capital is being used for capacity expansion and deeper penetration in renal and critical care.
- The company plans to have two upcoming plants.
New products
- Six new products were launched across infusion therapy and critical care in Q1 FY27.
New initiatives
- The company plans to double its R&D spend.
- The company plans greater clinical-led engagement with end-stakeholders.
Competition
- Poly Medicure is the third-largest IV cannula manufacturer globally.
Problems & risks
- The company raised prices to cushion the impact of raw-material price increases.
What to watch
- Whether operating margin holds above 23.81% after the sequential recovery of 3.16 percentage points.
- Whether expenses continue to grow more slowly than revenue after rising 34.74% year on year this quarter.
- Whether interest growth moderates from 120.34% year on year and other income remains below 29.80% of pre-tax profit.