Revenue rose 30.79% YoY, but costs cut operating margin by 2.14 points
Net profit grew only 3.63% as higher interest and depreciation offset the sales increase, while other income remained material.
Filed 05 Nov 2026, 14:15 IST · Poly Medicure Ltd (POLYMED)
Key takeaways
- Consolidated revenue grew 30.79% year on year, but expenses grew faster at 34.56%, reducing operating margin by 2.14 percentage points.
- Net profit increased only 3.63% year on year as interest costs rose 140.74% and other income contributed 23.98% of pre-tax profit.
- Operating margin at 23.70% remained 2.02 percentage points above the 21.68% median for 82 healthcare peers reporting the quarter.
Price around the results
Sales growth did not fully reach net profit
Poly Medicure's consolidated revenue rose to Rs 580.53 cr in Q2FY27, up 30.79% year on year and 10.50% sequentially. Operating profit grew 19.96% year on year, but profit before tax increased only 3.10% as interest rose 140.74% and depreciation increased 40.59%. The lower sequential tax rate, down 3.13 percentage points, helped net profit rise 11.56% quarter on quarter.
Costs are still limiting margin recovery
Expenses grew 34.56% year on year against 30.79% revenue growth, narrowing operating margin by 2.14 percentage points to 23.70%. Sequentially, the gap was smaller: expenses grew 10.66% against 10.50% revenue growth, trimming margin by 0.11 percentage points. Other income represented 23.98% of pre-tax profit, making reported earnings less dependent on operations than the headline sales growth suggests.
Margin recovery has paused after the FY26 low
Operating margin had recovered from 20.65% in Q4FY26 to 23.81% in Q1FY27, but slipped to 23.70% in Q2FY27. It remained above the 21.68% healthcare-peer median among 82 companies reporting the same quarter. Management said consolidated operating EBITDA margin was 24.0%, within its 23%-25% guidance range.
Management is linking growth to capacity and new products
Management said it is targeting 2.0x revenue, industry-leading margins and a more global business model. The company said construction of three new plants began in 2025, with two more plants planned, while its Brazil subsidiary's first shipment was dispatched in October. Management also said 12 products had been launched in FY27 to date and that more than 30 products were under registration in Europe.
No immediate market move; history has been mixed
There is no post-results market reaction to assess yet. After its last eight results, the stock rose three times and fell five times, with a median absolute move of 2.10%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹581 cr | ₹525 cr | +10.50% | +30.79% |
| Other income | ₹30 cr | ₹35 cr | -13.93% | -13.81% |
| Expenses | ₹443 cr | ₹400 cr | +10.66% | +34.56% |
| Operating profit | ₹138 cr | ₹125 cr | +9.97% | +19.96% |
| Operating margin (%) | 23.70% | 23.81% | — | — |
| Interest | ₹7 cr | ₹7 cr | +10.00% | +140.74% |
| Depreciation | ₹35 cr | ₹36 cr | -3.31% | +40.59% |
| Profit before tax | ₹125 cr | ₹117 cr | +6.95% | +3.10% |
| Tax | ₹30 cr | ₹32 cr | -5.31% | +1.47% |
| Net profit | ₹95 cr | ₹85 cr | +11.56% | +3.63% |
| EPS (₹) | ₹9.38 | ₹8.49 | +10.48% | +3.53% |
Operating margin of 23.70% compares with a Healthcare sector median of 21.68% across 82 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.10% | -0.91% |
Volume on the results session was 1.54× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Clinical deployment improved month on month during the quarter.
Guidance & outlook
- Poly Medicure targets 2.0x revenue, industry-leading margins and globalization of its business model.
- The company targets full enrolment of the 2,000-patient PACIFIER DES clinical registry by the end of FY27.
- Standalone operating EBITDA margin guidance is 25%-27%.
- Consolidated operating EBITDA margin guidance is 23%-25%.
Expansion
- The company initiated construction of three new plants in 2025.
- The company plans two upcoming plants.
- Medyneo's operationalisation in Brazil is on track, with its first shipment dispatched in October.
New products
- The company launched 12 new products in FY27 to date.
New initiatives
- The company plans to double R&D spending.
- The company has more than 30 new products under registration in Europe.
- The company plans to add over 100 new sales associates annually.
- Poly Medicure established a direct UK presence to capture opportunities under the India-UK FTA.
What to watch
- Whether consolidated operating EBITDA margin remains within management's 23%-25% guidance range.
- Whether other income's 23.98% share of pre-tax profit declines as operating profit grows.