Poly Medicure Limited (NSE: POLYMED) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Himanshu Baid — Managing Director
Rahul Gautam — President- Strategy & Corporate Development
Analysts:
Unidentified Participant
Ravi Naredi — Analyst
Naman Bagrecha — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Poly Medicure Limited Q3 and 9 months FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded today. On this call we have with us the senior management team of the company represented by Mr. Himanshu Bed, the Managing Director, Mr. Naresh Vijay Vargia, CFO Mr. Rahul Gautam, President Strategy and Corporate Development. I would now like to hand the conference over to Mr. Himanshu bed. Thank you. And over to you sir.
Himanshu Baid — Managing Director
Thank you very much. Good evening everyone. I welcome you all to our Q3 FY26 earnings call. I sincerely thank all of you for being there today. Before we delve into the core of today’s presentation, I’d like to share a few significant developments that underscore Polymer’s dynamic growth and execution capability. We are currently transitioning from low technology products to high complexity high growth segments. This isn’t just a change in our product list, it’s a fundamental upgrade of a business model. Our expansion into Cardiology, Critical Care and more recently into Orthopedics is a reflection of that transition.
Having said that, this doesn’t mean that we are not focusing on our core infusion business which is generating significant profits enabling us to invest into these new high growth areas. This transition is reflective of our intent to make Polymed as one of its kind. Med Tech platform which is servicing patients across all key therapeutic areas including a larger entry barrier. Some additional color on this provided below. First, on strategic expansion, we had successfully completed the acquisitions of Pendrocare and CTIB Group. These are not just transactions, these are strategic additions to significantly enhance our portfolio and market reach.
This European footprint provides us made in Europe advantage, access to high end technologies, strong quality standards, faster regulatory approvals and deeper engagement with European customers. I’m happy to report that the integration process is underway and progressing very well positioning us to realize synergies over next few years. Second, on the innovation and regulatory momentum we have another exciting announcement. We have recently received full regulatory approval from DCGI for two groundbreaking next generation products. Intravenous Lithotropy system, IVL and drug eluting balloons. This approval equips us to address complex cardiovascular conditions with advanced minimally invasive solutions here in India.
Both these products have been developed from the R and D Platform of Polymath I now take you through the quarter three and nine month highlight for next 1520 minutes and then after that we are open up for Q and A. For quarter ended December 25th we have consolidated revenue of 494 crores marking an overall year on earth growth of approximately 16.4% and on a quarter on quarter growth of 11.2% the gross profit in quarter two was 338. Quarter three was 338 crores reflecting a margin of gross margin of 68.4%, an increase of almost 300bps as compared to quarter three last year.
The operating EBITDA for Q3 119 crores. It excludes acquisition related costs of around 6 to 7 crore delivering an operating EBITDA margin of 24.2%. On a standalone basis, operating EBITDA is 112 crores reflecting an EBITDA margin of 26.8%. On the bottom line the profit after tax totaled 71 crores impacted by 6.8 crores of extraordinary expenses due to implementation of Labor Code as well as acquisition related expenses. Both were one time costs. Moving on to nine months end of December 25th we have a consolidated revenue of 1341 crore marking an overall year on growth of approximately 9.1%.
Gross profit in nine months was 922 crores affecting a margin of gross margin of 68.8%, an increase of almost 190bps as compared to nine months last year. Operating EBITDA for nine months was 345 crore excluding acquisition costs of 9.7 crores delivering an operating EBITDA margin of 25.8%, slightly lower down from 27.4% last year. Here also the operating EBITDA for nine months has been taken for Pendrake and CTFC Group. Also on the bottom line, profit after tax total to 56 crores impacted by 6.8 crores for extraordinary expenses due to implementation of labour good as well as acquisition related costs compared to 247 crore in nine months last year, translating a YoY growth of 3.6% and a net margin of 17.7%.
Further, I’d like to share the business highlights of two key geographical areas, domestic and international. In Q3FY26 our domestic revenue grew year on year basis of 16.2% and 18% on nine months basis. Further, in the domestic business, our private market, which is almost 90% of our current domestic business grew by 22.5% while the government business which is around 10% to 12% of our current business and witness a degrowth of 18%. And deliberately we are reducing our government business exposure. You know, as the prices are lower in government business. And also you know, of course when we supply to state governments we also encounter a lot of payment delays.
So gradually we have been decreasing this business over the years and I think you know the target is that private business should be close to 92 to 93% and government business will stay around 6 to 7%. Contribution of domestic revenue to our overall consultant revenue has increased to 32% as we have also increased this year more than around 80 to 90 people in the domestic team to grow our new businesses. We continue to outpace the competition in domestic market with quite significantly and hence our conviction to invest higher amounts in domestic market is only getting stronger.
This is reflected in the fact that We’ve added almost 80 to 90 new sales reps in last nine months. Our international business segment delivered a revenue of 342 crore. It has shown a 16.6% year on year growth. Our current international organic business is stabilizing while we start consolidating reserves of our 2 new acquisitions. The performance in quarter 3 is. Quarter 3 is reflective of stabilization of operating environment in international markets and we are hopeful that things will improve going forward. Having said that, there are still considerable uncertainties specifically around aggressive China dumping as well as trade related disruption.
The recent trade announcement with EU UK US creates good long term opportunities for Indian companies in medical devices and we are hopeful that we should be able to capitalize on them and when they get formalized on both sides. The revenue from Europe stood at INR162 crores in quarter three. FY26 showing a year on growth of 25.7%. Revenue from rest of the world region has grown at 9.5% from quarter 325 to reach 181 crore in quarter 3 of FY26. Now let me give you an update on each business segment. Greenhal business has not grown in line with our expectation due to pressure from Chinese suppliers.
As I told earlier that there’s a lot of dumping done by Chinese companies and globally. I’ve seen that data that Chinese exports have considerably increased though they were minus 20% in the US but still they have grown 25 to 30% in all other global markets because they have been dumping and reducing pricing. That’s been their strategy for last one and a half years. Our Q3 FY26 revenue stands at 45 crores up from 39 crores in regional business marking a year on increase of 15.1%. Though our quarter on quarter growth has been very minuscule around 2%.
Further our nine months FY26 revenue stands at 133 crore up from 106 crore in nine months marking a year on year increase of 24.7%. We have sold more than 300 plus machines till now and hopefully we end the year close to around 450 machines though it is slightly lower than what is projected around 500 to 600 machines. Earlier the growth slowed down a bit this quarter. We expect to end this year a revenue of around 180 crores or Polymedica holds 10% share of the dialysis market today with a target of 15 to 17% over the next 23 years.
So we are already pushing hard and I think also we are going back to the government about Chinese companies using FTA countries to bring products India at zero duty and I think probably that’s a bigger concern today and even today I had a meeting with the secretary in the Medical Device department and Pharmaceutical department and we have clearly told them that what is happening today and what is actually hampering India’s exports and India’s manufacturing growth, you know what are these factors Cardiology and Orthopedic Business before we throw light on our cardiology business, I’d like to highlight that our recent acquisition of Pendra Care in Cardiology and CTSE in Orthopedics are getting consolidated in this quarter there is a full year impact.
The full year impact will be visible in FY27. Further, both entities are bringing valuable EU MDR, FDA approved products and manufacturing facilities. Currently, both the businesses are operating at just 50 to 60% of the current capacity, offering a clear and immediate pathway for growth. As we integrate and scale. We will use India leverage to drive cost competitiveness in both these business and expand their market presence. Coming back to domestic cardiology business, as of date we have already implanted more than 7,000 degrading stents, a strong signal that our product is gaining traction and earning favorable feedback from both patients and intervention cardiologists.
Further, our clinical study for our rhizome trend is in Progress. More than 200 plus patients have been already enrolled across multiple sites in India. Along with this I pointed out above, we have received approvals for intravenous lithotripsy system, IVL and drug eluting balloons deb. Both are expected to be commercialized soon. Both these products are high end technology with ASP in excess of 1 lakhs and 15,000 respectively. This will further enhance our capabilities in this segment and deepen engagement with cardiologists strategically. These developments along with the recent acquisition of Pendra Care Group positions us for global growth in cardiology space.
We are steadily moving up the technology chain in medical device market and these initiatives plus as well to capture meaningful market share initially to develop domestic market and over time in international arena. And I just want to bring to a notice that both these products are currently imported in the country. More than 90% of the demand is met through imports and I think we’ll be one of the first companies to indigenously develop these technologies and sell it in the Indian market. On the infusion the front, yes, the business has been a little bit laggard. We have just delivered a 5% year on growth in Q2 despite the weakness in international markets earlier in this year.
We expect this segment to retain historical growth momentum as international market conditions normalize. Leveraging our global leadership and intuition system and delivery devices, we are poised to emerge stronger and capture additional markets. Additionally, I would like to point out that we are also developing more products in this category to move the value chain Liquidity position Investment thesis. Turning to our balance sheet, we ended the quarter with a liquidity of 840 crores. This strong cash position allows us to continue backing ambitious growth strategy both organic and inorganic. As mentioned earlier, we have completed two acquisitions in this financial year and further thesis focuses on technology acquisitions that complement our verticals, critical care, cardiology and other adjacencies including orthopedics.
We will keep the market informed as and when we move forward with new opportunities. Now let me connect to this our forward looking outlook. We expect H2 to end at around 20% higher revenue as I mentioned in the previous call, than H1 on a control basis as guided in the last quarter. At the same time, I’m pleased to share that our US business emissions remain robust with the next three to four years. We expect minimally scale our US revenues driven by new contracts and regulatory approvals. With acquisition of CDSE and Pendra Care Group, we currently have 15 products approved under US FDA administration with a further five seven products at various stages of approval process.
We are reinitiating conversations with our customers with whom we had already signed contracts after reduction in reciprocal tariffs to 18% to understand where they are on their project development. We have been in a better position to provide more clarity on this potential year’s revenue. It is worth emphasizing that US India trade deal is a strong positive for polymer as this significantly enhances our competitiveness of Indian medical devices in the US by cutting tariffs from 50 to 18% and making products like disposables where we have a leadership position globally far more cost effective. It also unlocks major export good potential in other key advanced markets while boosting investor confidence into medtech, manufacturing, R and D and India.
On a nine month basis our sell on EBITDA margin is 26.6% which is at the higher end of the guidance as per what we have provided at the beginning of the year and we expect to remain maintain it for the rest of the year. On a consolidated basis, EBITDA margin will be lower due to impact of full consolidation of the two acquisitions which operate at lower EBITDA margins. Currently we continue to invest in future growth with a capex of 234 crores we have done in first nine months of the current financial year. These funds will be deployed to a set of new factories in Mitral and Haridwar.
Mitral is in Faridabad, Haryana, Haridwar also in Drakhan as well as the expand capacity at our existing plants. Also during that we have bought additional land at Yeda Medical Devices park near Noida in Jaiwar and this facility. Once we get approvals from the local authorities we will start constructing a new facility there and hopefully next 18 months to 24 months this facility also will be we expect the three new plants to be fully operational within next 18 to 24 months. In summary quarter three financial 26 has reaffirmed that fundamental strength of our business model. We deliver double digit growth domestically, maintain healthy margins, improved operating EBITDA performance and drove significant product innovation, thus continuing to invest in sustainability scale future capacity through R and D and green initiatives.
Of course for Q4 we definitely will maintain guidance that we should be able to do a higher revenue in Q4 as compared to Q3 and our guidance is between 9 to 10%. So overall when we compare H1 to H2 from H1 to H2 we should see a revenue increase of 20% overall and that’s what we have guided also in the last call. Thank you very much for your attention and thank you very much for your time and now hand over the call back to operator. Thank you very much.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while Asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Suruchi Parmar from NX Wealth Management. Please go ahead.
Unidentified Participant
Hello, Am I audible?
Himanshu Baid
Yes, please, please go ahead.
Unidentified Participant
Yeah, yeah. Sir, thank you for the opportunity. Just want an explanation on your standalone revenue growth is only 2% and the consolidated revenue growth is 16%. So is the consolidated revenue growth basically because of the new acquisitions?
Himanshu Baid
Yes, that is correct.
Unidentified Participant
Okay, so what about the standalone revenue growth like what you are seeing going forward?
Himanshu Baid
Basically, as I’ve told earlier, I think we face certain headwinds on the export front, especially in the European markets. And I think that was the main reason for low growth of standalone revenue. But as I’ve been mentioning in my previous calls, also as markets are getting better, we see conditions changing. Of course last year has been a very difficult year, especially with the freight crisis and then of course China dumping excessively in various markets. So we saw muted or maybe almost small negative growth on the export front. But now things are looking better. And I think as we see this year, especially in Europe, we are adding five to six new customers starting April.
So this will. And especially in developed markets. So I think this. And we are also getting some new contracts in UK especially with the nhs. So all that will help us to grow back the European business which has been very laggard or lacking the growth actually.
Unidentified Participant
Okay, so so these customers will be for infusion therapy segment or renal or cardio. Can you specify mainly for infusion?
Himanshu Baid
Because the business which has taken a little bit of a backing, you know, backstab is the infusion business. See, so that is what we are trying to grow and back, grow back this business.
Unidentified Participant
Okay, so.
Himanshu Baid
So initially we have seen that EU has transitioned to a new regulatory system from MDD to MDR and we had to drop many products initially, you know, in the bargain because, you know, it was taking long time to get the approvals, so many products were pending and now as time has progressed we have ordered few more products in last quarter, you know, which are EU MDR approved, which helps us to sell those products in the European market. These are mainly critical care vascular access products. They’ve got approvals recently and within I think next six months we hope that we get another 15 new products with the EU MDR approved which we can sell in the European markets with the same customer base and same market.
So I think that is what we are targeting right now. And all that is part of the work regulatory and you know what we have been doing in last six to eight months.
Unidentified Participant
Okay, okay. And sir, this, these new products that you have got approval for cardiovascular IVL and deb, these are basically for the Indian market only. No, not for exports. Correct.
Himanshu Baid
It will take at least two to three years to get regulatory approval for global market. Our first task is to sell these products in India like what we are doing for DES right now all the 7000 stents which have been planted are in India right now though we have a clinical registry in Europe and India Both which is 50 to 60 people will be implanted stents out in Europe which have already finalized that process. And India already as part of that program, we have already 200 patients already enrolled in the clinical registry. So gradually the regulatory cycle is very, very long for medical devices, especially for critical devices which are falling in Class 3 devices which are implantable long term.
So mostly companies spend three to five years in getting approvals for global markets.
Unidentified Participant
So can you specify how much will be the market for these products, the cardiovascular products which you have got the approval?
Himanshu Baid
So basically these are completely new technologies like drug loading balloons are new technology because these are used in angioplasty. And today in India we are implanting almost 1.3 million stents and in my view doing around close to 700,000 angioplasties. Today in India, average per patient is around 1.6, 1.7 stents. So basically to remove the plaque and sometimes just to ensure that there are no stents, people use drug loading balloons and even IVL is basically used for cutting the plaque in the arteries. So these are fairly new technologies in India and I think completely dominated by multinational companies.
So I think we are one of the first pioneers to launch this product. So market will grow. But I think I don’t have any numbers because I just got the approvals. But the market will keep on increasing as the trend market in last five years has almost doubled. So similarly these products probably in India, I would say around 50,000 DBs are sold or maybe around 10,000 IVLs are sold. So eventually these products will almost become 2x3x in next three to five years.
Unidentified Participant
Okay, okay, okay Sir, I just want to clarify one thing. Like the. When polymedicals export export to either US or Europe or uk so you sell directly to the hospitals or the doctors or you sell to pharma distribution, their, their pharma distribution players.
Himanshu Baid
So the business is very clear. We sell to distribution partners who specifically have their own teams, medical device distributors who specifically have their own teams which can go to hospitals and promote the product. So we work in collaboration with these distributors and we continuously train these people. Like last week our team was in France visiting at least 10 to 15 hospitals and training with the local distributor, their reps and the clinical nurses and doctors in France or we have done in the previous month in Spain before that. So we continuously engage in those kind of programs so that they understand our products.
They get more user, you know, the users get more friendlier with the technologies and the products we are manufacturing. And that’s a continuous process. So it’s actually done through distribution partners.
Unidentified Participant
Okay, just one last question. Can you specify the revenue mix going forward in FY27, what you envision from cardio, renal and infusion therapy?
Himanshu Baid
In fact, you know, we have not called out those numbers and it will be able to give you more clarity once we formalize the business plan for FY27 which should be next maybe three to five weeks. I think that will give you a better position. But what we are seeing right now that domestic business overall should grow around 25% for next year. That’s the plan for next year. That’s the plan we have been making and we are working on that. And export business should grow around 12 to 15% because we had, let’s say a lower threshold and I think now we should grow faster.
So we are seeing probably going at 12 to 15%. So that is what we are calling out. Overall, both the businesses will grow for definitely. And this is. But individually I don’t have the numbers to tell you right now.
Unidentified Participant
Okay. Okay, sir. Okay. Thank you so much. Thank you.
operator
Thank you. Participants, please restrict yourselves to two questions. If you have any more questions, kindly rejoin the queue. Our next question comes from the line of Neelkant from Aquarius securities. Please go ahead.
Unidentified Participant
Yeah, sir, thank you for the opportunity. Sir, if I heard correctly, you mentioned about the 20% growth in H2 compared to H1, right? That is the case, yeah. So in that case in a 4 3, you have to grow it almost around 18 to 19% on a yoy basis. But I also heard you mentioned about the quarter on quarter growth of almost around 10 to 11% in 4Q. So am I missing something or like can you please add on that part?
Himanshu Baid
Yeah. So if you see our H1 revenue was closer on 840 odd crores. That’s what the number I remember. But we will end the H2 around 1025, 1030 crores maybe that ballpark number, I don’t remember exactly. And when we look at the growth Numbers we are seeing 20% growth H1 over H2. If you see the quarter three numbers, the revenue is close to 493 crores. And quarter four, you know the number the revenue will be close to 530 crores or something. That number also close to that number. So basically if you start computing the two details, it will come to that 20% growth number.
Unidentified Participant
Okay. And sir, I see the employee cost increasing very sharply and I assume that is largely because of the requisition, you know, the recently acquired company. Because on the standalone level the employee causes a percentage of 20% but at the consular it’s 23%. So going forward, should we assume this kind of employee cost, you know, for the purpose of that modeling or like how do you see it?
Himanshu Baid
See as we go deeper into higher technologies, we definitely need more skilled people. Like today, if I was hiring a person for my infusion business, it will cost me around 60 to 70,000 for example, ballpark. But if I’m hiring 70 for cardiology, it’s going to cost me 2 lakh rupees a month. Correct. So because of end to end last year, if you see in just nine months in this year we have hired over 90 odd people. Actually the number Rahul is saying is 100, close to 100. So we have almost hired 100 people now. All these people will become productive in the coming.
So we are building the whole operational structure. We are hiring clinical people. If I need to sell high end medical devices, I need the skill set within the organization. We hired a lot of people in R and D because we are supporting the other two acquisitions we have done. So a lot of R and D will happen at back end in India. A lot of operational excellence we are building in India for those companies. Also a lot of hiring are happening and we are going to build that is built in the model today. If you remember in the beginning of the year we are guided for 25 to 27% whereas we were already doing close to 27 and a half percent EBITDA in FY25.
Why we got it because we knew that we were working on these acquisitions. We knew that initially these companies work at lower ebitda. So the cost pressure will come in on the overall system. But now as we have done the acquisitions, we have done one quarter, we know where we are heading and we still maintain on salon versus 26.8% EBITDA margin. So this is very close to that 27% number higher. And I think this will continue for a while because it’s important that we build the competence in the organization. These products need lot of skilling for selling to doctors, hospitals.
And if we don’t have the skill, we can’t sell a product for 1.5 lakhs. From selling a product, 15 rupees, we are now moving to selling a product 1.5 lakhs. So we need a lot of skill sets and that’s what we are doing right now.
Unidentified Participant
Okay, go ahead sir. And sir, I assume that I, if I correct you mentioned about, you know your from earlier guidance of machine from 550 to have now guided to 450. Right. So what process, you know, the revising the guidance downward side particularly in the dialysis machine.
Himanshu Baid
Yeah, so dialysis again, you know, if you see we have guided 500 to 600 machines in the beginning of the year but we may end, you know, around at 450. Certain government contracts are delayed because again, you know, if you look at a big, you know most of the larger companies are selling, not selling machines, they’re placing machines into hospitals like Fresenius and Nipro. They place machines in the hospital and then because they have a larger balance sheet they can do that and then they work on a five year, seven year contract by supplying consumables here.
What we are trying to do, we are trying to move away from this model. We say we are able to sell the machine to the user and that is what we are doing. And certain, you know, of course dialysis program is very well funded by the central government and also state government. So 80 to 90, 70, 80% patients are going to government driven dialysis centers. And we are working on certain large I think contracts and hopefully we might get them before March. But our current visibility is 450 machines. But we don’t know it can be 470 also.
But it is prudent that to give a number which we think can be done. And I think next year, as most of these contracts may go into next year because of budgeting issues, I think we may see a lot bigger number. But again we can’t predict too much. Of course I think bidded in contract we have more than 600 machines already as of now which are in pipeline. But when they come is a question mark.
Unidentified Participant
Okay. And thank you sir. And also sir, we just wanted to know by the end of the 9th, 9 months, FY26, what would be a ballpark if you can help me with the working capital numbers.
Himanshu Baid
Working capital numbers,
Unidentified Participant
right. Probably in terms of days or numbers, either of the things
Himanshu Baid
you want the. Net working capital number G?
Unidentified Participant
Yes.
Himanshu Baid
Our networking Capital number for nine months will be close to 140 days.
Unidentified Participant
140 days. Okay. Okay, sir. And suggest one last question if I can ask. I see row portion is not been picking up very fast. So what are we doing to increase that kind of. I see you is now doing good, at least on a Q. Okay, but when we say from the RL perspective, like how should we see like when it can. Because what kind of concentrated efforts we are taking to, you know, get it done better.
Himanshu Baid
See, I’ll tell you how the business into three parts. One is India, one is Europe and one is rest of the world. The rest of the world also had America. Rest of the world also has Latin America, Middle East, Asia. So in every market we have also changed our. Let me also, you know, brief, you know, people on the call. We have also changed the way we used to do business. Today it’s not that you can make cheaper or you can sell a product, you know, if I need to compete with China, I have to be 10% cheaper than China if I have to break that market.
But that is not happening. China’s volume numbers are very different than India. Their time is bigger than us. So how do we win the market? How do we win contracts? How do we sell more product? So we have to reroute ourselves towards clinical side of the business. So today we have employed more than hired more than 25 people in the clinical team which are not going globally. So as I talked about earlier that we sent teams to France, to Spain. So we are sending teams to different, different markets, you know, and I think we have limited time, but I think.
And that is what is changing. And once we engage more deeply with clinicians, you know, hospitals in those specific markets, we will see business growing. And I think that is the strategy we adopted six to eight months ago. And we are now going to see more results from that strategy. And that’s the reason we are optimistic about Europe now because we have changed the traction. And I think rest of the world, we are also doing similar exercise.
Unidentified Participant
Got it, sir, got it. And just your broader sense on how do you see EU portion shaping up well for us compared to the Chinese dumping and how do you see the situation going on.
Himanshu Baid
Today? It’s not in my hands that I can change the situation. The only thing we can do is come with better technology products, products which perform better in performance because these are, you know, mechanical devices, you know, you know, these are not pharmaceutical products. It’s a pill that you know, pop it. So these are mechanical training. So we are focusing a lot. You know, as I mentioned in my last meeting or that we have started a Pace foundation which is just for clinical training for doctors and nurses. We opened the first Pace academy in Delhi and now we are going to open more in future.
So I think a lot of work is happening on the clinical side, development side and we will see better results in coming times. Because this industry has a very long cat station. You see medtech industry overall in last 25, 30 years where we have been existence not accept Merrell is an outlier because they have got cardiology and orthopedic products. We have just started. But there’s not a single company which has come closer to what we are doing. So you have to see that this industry has complexities. This industry needs regulatory approval. This industry needs innovation and we have been working very hard on that.
And fortunately the cash flows are very good for us and we have sufficient cash. We keep on investing. I think it’s a matter of patience. But yes, the number will start looking much better next year. I definitely hope that we should get to our 20% growth number next year and that is our core target actually.
Unidentified Participant
20% on FY27 you are saying right?
Himanshu Baid
20% on FY26 numbers.
Unidentified Participant
Okay, got it, got it. That is from my side. Thank you so much sir.
operator
Thank you. The next question comes from the line of Ravi Naridi from Narendi Investment. Please go ahead.
Ravi Naredi
Thank you. To give me the opportunity sir. Since last few conqueror we are bullish but 9 bit 9 months data. Do not say something else. So how you compete with China in Renault.
Himanshu Baid
Renal is probably today 10% of our total business. I can’t just say that 10% business. I’m going to compete with China rest I’m not going to compete. So we have to continually keep fighting for the business. And I think we still are the only company making these products in India. And I think we have been pushing the government to put an anti dumping on Chinese dumping which is happening in India. They are getting products at zero duty in India. So any industry, forget about medical devices, any industry which has zero duty with Chinese manufacturing, can it survive in India? I don’t think so.
None of the industries have survived in India. It has zero duty today one on iPhones. They have 20% duty coming from outside. So even cars have 100% duty under 20% duty. So I think fundamentally government will have to take corrective steps to increase duties on Chinese products or products which are Imported at low cost into India to ensure that the domestic market survives. Otherwise none of the. In any medical device industry today we still are 70% import dependent on medical devices. We are not the only, let’s say player. The whole industry is dependent on import.
So the only way to come out of this is that unless until the industry is protected, even after pli, nothing has happened. So I think fundamentally there has to be systemic change. And I think that is what we are working with the government on the policy side that at least for the industries where we need self dependency in India at least there should be some protection and protection from dumping from China. Because that has happened across every industry across the world. It is not medical devices alone.
Ravi Naredi
So in renal we are in 10% only. You are saying so what is our main business?
Himanshu Baid
Main reason? Vascular accessories, Infusion, vascular access.
Ravi Naredi
Okay, okay.
Himanshu Baid
It is around also 60 to 63% of our main business.
Ravi Naredi
And in that that business also we. Are facing competition from China every year.
Himanshu Baid
We are facing competition. Why will not face competition on China? Every industry is facing competition from China. I think it’s a matter of time and I think if you have heard my comments I’ve made to other participants earlier next year we’ve already called out that you know, we should come back to that 20% growth. And definitely domestic looks better. We may grow at 25% but international business, you know, especially exports, we are seeing between 12 to 15% international.
Ravi Naredi
But margin would be there now because drastically margin reduced. So everything.
Himanshu Baid
26.8% EBITDA margin. How do you say margin is bad?
Ravi Naredi
You see the net profit margin this quarter 17 and up in its state of 19.7.
Himanshu Baid
It is because of two exceptional items which we called out in the beginning of the call. If you have not maybe heard that.
Ravi Naredi
I don’t know. I heard, I heard.
Himanshu Baid
Yeah. So this is 15 crores of exceptional cost in last quarter because of labor code adjustment which we had to do. Every company has done that. And secondly there was acquisition cost which has been now expensed out in the last quarter which we have done to acquisition upside. So it’s a 15 crore. If you add that you will see a similar margin, sir.
Ravi Naredi
Okay, okay, thank you.
operator
Thank you. The next question comes from the line of Naman Bagrecha from IIFL Capital Services. Please go ahead.
Naman Bagrecha
Thanks for the opportunity. So just one clarification.
Himanshu Baid
Slightly louder.
Naman Bagrecha
Yes, yes. Thanks for the opportunity. Guided for export business for 12 to 15 kind of growth for FY27. I. I presum that this includes the acquisitions as well. Or this was like own inputs. Okay.
Himanshu Baid
Yeah. So the international business guidance was 10 to 15% growth. And if you see nine months we have grown around 9% on the international business growth. So maybe Rahul can correct me on our numbers but around 9 to 10% and hopefully by the year end we should grow around 13 odd percentage.
Naman Bagrecha
And I think, can you call out the revenue contribution from these two acquisitions, Venda Care and CTFE for the quarter.
Rahul Gautam
These two acquisitions for quarter three have added about 48, 49 crores to the top line.
Naman Bagrecha
Okay, sir. Okay. Okay. Okay sir. One more thing on the India business, given that Neal is facing challenges and China being China, they might keep on dumping in every category that we are operating. How confident are you in terms of this 25% domestic business growth guidance? If you could help us in terms of what would be the driver, etc.
Himanshu Baid
If you see the number, as I said earlier, that domestic business, private business which is around 88% of our current business has grown around 23. And government business deliberately we have been trying to shrink it because of, you know, you know, some of payments and payment cycle getting longer and also cost pressures there. So. And we don’t want that because for us more stable business because also government is more tender driven. We don’t know what’s happening. Domestic, you know, private businesses where we are going to corporate hospitals and large hospitals, that business is more steadier for us and they’ve been gaining market share.
And this year we have grown that business by 23%. That is 88% of our domestic business. So next year, because as we have many more new contracts which have come in this year with private hospitals today you can see polymet products in every top private chain in the country. This was not the case five years ago. So we have done a lot of work internally to match our quality performance. The top multinational player globally and that has helped us to gain that market share. So next year also we will. That’s the reason we are calling it out next year because of what we have done this year.
And also some of the new businesses we have developed over last six to eight months like cardiology, critical care and so on and so forth that will help us to grow our domestic business by 25%.
Naman Bagrecha
Okay, fair enough. One more thing on the acquisitions. What has been, let’s say, I mean your internal target in terms of how much scale can we do for these two businesses, let’s say next one or two years. So currently, currently.
Himanshu Baid
Can you please repeat that, please? Sorry.
Naman Bagrecha
Yes, yes, sorry. What could be the contribution of these two acquisitions going ahead FY27, 28. Can it be, let’s say around 15, 16% kind of contribution, top line contribution?
Rahul Gautam
No, no. So if you, if you recall the announcement that we made about these two acquisitions, CTF when we acquired was about a 17 and a half million euro business and Pendra was close to 10 million euro business on an annualized basis. So we expect both these businesses to obviously grow in 2026 as well and FY27 effectively for us. And so both these businesses added about 16 to 17% of our revenue base of FY25 and we expect a similar portion may be slightly lower because our core business hopefully will grow faster than them. So, you know, somewhere in the range of 15% or so is their revenue contribution to the overall consolidated revenue for next year.
Naman Bagrecha
And on the own exports business, if you look FY27, you know, 10 to 15% guidance includes acquisition, which implies that our own export business probably will see a single digit kind of decline on FY26. Am I getting this correct or. I mean, if you could help me on this point.
Rahul Gautam
Yeah, I think on the organic side, which is excluding the acquisitions, our international business is currently on a flattish trend and depending on how quarter four goes, will go, but basically it’s going to be a low growth year excluding the acquisition of the international business this year.
Naman Bagrecha
So could you also highlight in terms of what is the pricing differential between, let’s say Chinese products versus our products which we are selling in EU or let’s say the export markets? And I mean. How can we, let’s say, mitigate this risk going ahead?
Himanshu Baid
I think if you heard earlier what I said that we have won some new contracts in larger European markets so that will help us to get back the revenue which we were missing. And I think there were delay in a lot of contracts. I think NHS has almost delayed every contract by one 1.5 years because of change in government in the UK. And also, you know, we have other, you know, let’s say markets. We are trying to, you know, bring in more products as we’re getting more CE Mark products, you know, another 10 to 15 products in the pipeline.
Few products have already been done recently. So that’s the reason we are able to see that visibility. And I think one, and we will give that number more final number, let’s say maybe end of quarter four when we, you know, have a final business plan coming from all our, you know, you know, let’s say business unit heads and then we’ll compile it and come back to you. But this is what we see today.
Naman Bagrecha
And you also called out, you know someone.
operator
I would request you to rejoin the queue. Thank you.
Himanshu Baid
Yeah, correct. I think we have to talk to other people also.
operator
The next question comes from the line of Harsh Doshi from Marcellus Investment Management. Managers, please go ahead.
Unidentified Participant
Yeah. Hi sir. You alluded that we have adopted a new strategy with respect to having a clinical study team, especially for the international market. Now in the geographies which we have would have adopted this strategy, let’s say eight, nine months ago, are we seeing. Any signs of success in those markets wherein even though we are a bit. More expensive than a Chinese, we are able to gain market share or anything like that.
Himanshu Baid
Before that we were more relying on our distributors to put our products in the market. So now what we realize that maybe they are not able to do justice in terms of the clinical advantage of the product, but the Visa with other products which are sold in the market. So that is the reason, you know, we have started sending our own teams with the clinical expertise so that they can understand what exactly is happening in those markets, what are the which are needed for this product, what people need to see as a differentiator and we are able to bring them out.
And that’s the reason we have one new contract in nhs. We have won new contracts in Europe, mainly in Germany and that’s the reason for this change. And it’s already happening. We’re adding at least four or five new products in France as we speak. Spain we are adding two, three new products. So every market we have started adding new products after our cleaning teams have started visiting. Earlier we were only focusing with our distributors. This adds on to the continuity of the business and also enhances our presence in the market.
Unidentified Participant
And the size of this team in India is about 300, 400 people, right?
Himanshu Baid
India, we have close to 500 plus people in India.
Unidentified Participant
And will we be looking to have. Such a large team in these markets, Europe, rest of the world as well? I mean have a 700 member team. And replicate our India strategy in the global market?
Rahul Gautam
I mean, I don’t think the idea is to have such a large team. India is, if you think about it, India is not one country, right? It is or it is one country, but it is a mix of very different, different geographies and states. Right. In much difficult, difficult country to cover. You know, the number of hospitals, we.
Himanshu Baid
Are up to 8,000 hospitals today and 8,000 hospitals of each hospital have 10 to 15 departments and then we have six verticals. So you need expertise in every area. It’s not, you can’t be a generalist, you know, that’s the reason you don’t see too many medical device companies of that scale in India because people not invested in the clinical, you know, we have only tried to sell products and say I’m cheaper to buy my product. Nobody want to buy the product with cheap unless until you come with and want to focus and compete with the large multinationals you have to talk about clinical advantages.
And today Polymeter is exporting to 125 countries. So we have an advantage on the product. We led in certain product categories. We have global leadership like we are number three in IV catheter market globally. And tell me which company has 10 to 12% market share in one single product globally. So that is what we are trying to develop as an expertise skill set and I think that will that what we have done globally as we’re trying to replicate back in India and that’s why it’s going to help us to increase our market share and build more, sell more products in India.
Unidentified Participant
I was alluding that. We will replicate our in depth strategy. In the global market wherein the clinical study team becomes so big that we. Cater to their period requirements, do knowledge. Based sessions and so on and so forth.
Himanshu Baid
Yeah. So India, we are almost close to 40 to 45 clinical people in India and also we are training a team which can now go overseas to different markets and also train, you know, other, you know, people, distribute people who are working with our distributors to train them also clinically. So that’s the competence we are building. Of course there are language barriers, there are, you know, technical. Every country there’s a different usage pattern. So we are developing all that knowledge and skill which will help us to grow our business in future. We have done last four, five years, 20% constant growth.
So I think we think we can come back to that number easily. And probably this year was a very difficult year and you know, not everything can be same, you know, all the time. So I think we have learned from what we have to do and I think we have been implementing that very strongly.
Unidentified Participant
Thank you.
Himanshu Baid
And especially without compromising the margins. I think that is also a fact.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question comes from the line of Bharat Shah from Shah family office. Please go ahead.
Unidentified Participant
Yeah, hi Himain sho.
Himanshu Baid
Good afternoon.
Unidentified Participant
Hi, good afternoon. First of all a gentle comment. I think right at the beginning of the call there was so much of information loaded for 15, 17 minutes. And at a speed which is unmatched it is really really difficult to grasp all the things that are being said. I think it may be more helpful if there is an initial curtain raiser for a few brief minutes. Good amount of details are given in the presentation and then I think the discussion can be elaborated because when continuous 15, 7 minutes of information being put out at a speed which is at least for me difficult to.
Himanshu Baid
And I’ll ensure that next time, you know, we’ll ensure that we put more information in the presentation for sure and we’ll keep more time for discussion. And of course we get very valuable comments advice from people on the call and I think we take every advice seriously, every suggestion seriously. So that helps us a lot to improve better in coming quarters coming years.
Unidentified Participant
Because that way it allows a more meaningful discussion on strategy and outlook to happen. Which is a reason is a well wisher I thought I wanted to bring about. Certainly on the on one end I heard for the next year your first time talking of the top line, I’ll come to the profit pool separately. On the top line you say domestic business should probably grow around 20 to 25%. International business should grow around 12 to 15%. On the other end I also heard a comment that total business probably will grow by 20%. So I’m assuming say in the current year about 1850 odd crore of consolidated turnover based on your overall summation for second half versus the first half.
So are we saying that 1850 crore of consolidated turnover is likely to grow by 20%?
Himanshu Baid
That’s correct. More than that I think of course what we are projecting right now, definitely the numbers look to be around 20% or even more.
Unidentified Participant
But mathematically doesn’t seem to combine for example domestic growth, domestic peace is about 1/3 and if that grows at 25% that will give you about 8% of the total growth. If international peace is 2/3, even if it grows at 15% then that will give you about 9 odd percent. So the two together still can’t age more than 17% even if I assume higher range of the growth 25 and 15 instead of 20 and 12.
Himanshu Baid
I think what we have not considered is the other companies which we run outside India and they will also contribute to the growth. So one of the companies Plan One Health which is doing in an oncology business that is growing around 30 35% year on year and that is other companies will grow around 15% or so odd percent. So overall when you start calculating that I think that’s how we are saying we will be growing more than around 20% or so next financial year.
Rahul Gautam
Just to add obviously this year the 1850 crore number that you mentioned includes the acquisitions only for the part period. As those numbers get accounted for, the full year basis will also contribute to the growth. So I think what I want to mention, 20% on a consolidated revenue also will have an impact of the full year consolidation of these two acquisitions.
Unidentified Participant
But if I include both the acquisitions for a full year in assuming both the acquisition themselves will grow so 17 and a half million euro and 10 million euro, that gives you about 27 and a half million euros. If they grow by even 10 or 15%, that should be 30 million euro, then virtually most of the growth next year would only come from these two.
Rahul Gautam
We also had partial consolidation of these in this year also. Right. So that’s in the base also 1850 that you mentioned also has the effect of the part period consolidation here.
Unidentified Participant
Okay, just to clear the confusion, independent of these two entities which are sought to be consolidated. Hello. Independent of the two. Independent of the two acquisitions. Can we say the standalone domestic, the domestic teams per se will grow at about 25%. And without these two acquisitions, our international business will grow around 12 to 15%. Is that something I’m right in my understanding?
Himanshu Baid
Yes, absolutely.
Unidentified Participant
Okay, then I think the overall number should be higher than 20% is my understanding. But I hope.
Himanshu Baid
We are definitely going to go for higher growth for sure. But I think prudence, that is what we are calling out and hopefully we can deliver better numbers. Definitely we are working on lot of integration, lot of things which are happening and hopefully the number will be better. But I think it is just because we don’t have a final number today which I can call out, say Bharat Bhai is the final number I’m calling out. These are. We’re still, you know, finalizing business plans for FY27, you know, for subsidies. We already finalized India business and international business.
We have finalized the business plan. So I think next three to four weeks, five weeks, we’ll have a better visibility. So definitely on the next call, when we’ll do, we’ll have a very finite number to call out for all our investors.
Unidentified Participant
Okay, just one last thing. Because the new subsidiary, new acquisition, they have a different profit margin. Our standalone domestic business of course is a far superior margin and our international business also has superior margin other than these acquisitions. And there is a differing competitive situation on all the three PCs right now. So if I focus on the profit pool rather than you’re not trying to work on each of the different pieces, the overall profit pool of the current year, assuming it in operating profit level, last year we did about 450crores. This is without counting other income and interest and depreciation.
So about operating profit we made and from bottom it looks like the FY26 probably will be something similar or a little bit here and there. In terms of the operating profit is my assumption the operating profit pool in the FY26, what kind of growth do you believe for 27 is a fair assessment?
Himanshu Baid
I don’t have again the finite number. I will be able to give more clarity, guidance, you know, in our next call. But you know, I think once we do a Q4, you know, call, we’ll be able to give you more guidance for the final year. I think it’s too early to call out a number for next year when I don’t have the final numbers. But what we I can guide is currently on the revenue side because that is what we are about talking and we are giving a range also. But I think once we see a quarter four going out then we will have better visibility on that, better visited margins, products, everything.
So it will be unfair to call out that number today.
Unidentified Participant
Okay, just last bit of question. Can I assume the next year your operating profit pool will grow at a rate faster than the turnover equal or lower?
Rahul Gautam
Yeah. So just on profit pool, right? Because as the impact of. So you, you mean the absolute number or you’re talking about the margin? Just for me to clarify.
Unidentified Participant
No, I’m not talking of margin. I’m saying current year, our, let’s say turnover is 1850. And we are saying hopefully we’ll grow at the rate of 20% or more in the next year. Our current year profit pool, I’m assuming it in operating level is about 450. 460 crores, let’s say without counting exceptional debit of 50 not cross. I’m saying that operating profit pool if top line will grow at 20% with the operating profit will grow higher than 20. Equal or lower.
Himanshu Baid
I think it will be more or less equal.
Unidentified Participant
Okay, okay, fine, fine. Thank you. And I think we’ll discuss in greater detail separately.
Himanshu Baid
Absolutely, most welcome.
operator
Thank you. The next question comes from the line of Janice Cheddar from Chem Finn family office. Please go ahead.
Unidentified Participant
Hello sir. Am I audible?
Himanshu Baid
Yes, audible. Yeah, just closer to mic please.
Unidentified Participant
Yeah. Just one question for mind on the competitive side that. Two thirds of the. Revenue comes from international market. And in India, as you are saying that Chinese competition is there and you’re. Trying to get into like you are. You are hoping that there is some. Anti dub in neutral, I think of that sort in the domestic market. But what about the international market? How do you compete with China in the international markets?
Himanshu Baid
So let me tell you, see what happens is, you know, our basket is very large. You know, we have a product basket of almost 200 plus products on manufacturing side, right? And most of these products we export. But when we see products which have more technological differentiation, those are the products where Chinese companies will be able to make cheaper. And you know, because their volumes are 10x20x of India today, manufacturing volumes now, products where we have patents today, if you see polymers, around 375plus patents as a company. So wherever we have technological advantage on the product, clinical advantage, that is where we can score.
It’s not that our business has gone to zero. International business we are still maybe flattish, but we still manage the market in spite of all the turmoil we have seen in the market. So it’s not that, you know, market will just go to zero. Polymad has sustainance, so we have sustained the market and next year we are going to see the growth coming back because we are going to add so many new products. You know, already we have launched 19 new products this year in nine months. If you read the document which we have, you know, put on, you know, as a presentation.
So we are continuously innovating, continuously bringing new technologies. And I think that’s the USP of the company from last 10 years. Years.
Unidentified Participant
I understand that. But in terms of qualitative aspects, or. Do you offer more. Margins to the. Distributors or do you focus on educating. On your product superiority or more on. The qualitative side is what I’m trying to understand.
Himanshu Baid
We are at par, you know, if you look at the quality side today, why would a European hospital use my product if it is not good in performance or clinically, it’s not equivalent or superior than what they are using. So that’s the most important part. Even if my price is zero, nobody will use it if my quality fails. So I think that’s very clear that qualitatively because we have many, many approvals globally, whether it’s FDA’s CE marks or Canadian approvals or TG approvals in Australia or different markets. So that helps us to stay in the market at the competitive level in qualitative terms.
Unidentified Participant
And secondly, as you are moving into. More higher end products, do you see margins to move northwards from here over the three to five years perspective?
Himanshu Baid
I think so. Too. I think I agree with you on that front and I think because as I’ve told you, we are moving more in the technology to side. If you initial part of the quarter was about that, you know, disclosure that how the companies move up the value chain, you know, so definitely when we sell orthopedic products or cardiology products or critical care products, our gross margin percentage should keep on improving. And that’s what we think and that’s how we are, you know, planning ourselves for future.
Unidentified Participant
Yeah. And one last. If you can just add in a small question. Are you looking at other regions like. Middle Eastern, anything of that sort of.
Himanshu Baid
Could you repeat that? Sorry, I was not able to hear it.
Unidentified Participant
Are you looking at other regions as. Well, such as Middle east or Southeast Asia or anything of that sort?
Himanshu Baid
We are present in 125 countries, most important markets in the world. So we will continue to expand our presence because again just by distribution partners having there is not going to improve our market share. So the only way is to put our clinical teams there. And that is what we are building. So we are hiring more people internationally, we are hiring more people in India who can travel internationally and support the existing distribution network and that will happen across the world. It is not going to happen in few markets. These are going to happen at least 25 or 30 important markets we are serving today.
Unidentified Participant
Okay, thank you so much.
Himanshu Baid
Thank you.
operator
Thank you. Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to Mr. Himanshu bed for the closing remarks.
Himanshu Baid
I’d like to thank everybody on the call and thank you for your questions. And I think really these probing questions make us more resilient. And also I want to assure everybody that the company is doing well and we are on the growth path. A lot of new technology and I also invite you to visit our facilities to get a better viewpoint on the company, what kind of technologies we are using in manufacturing. Some of you have already visited but I’ll invite you other people. Rahul and his team will facilitate that visit the plants and then we’ll help you to understand the technology roadmap you have laid out for future growth of Polymedicure.
And yes, I think we are looking forward to that higher growth numbers in coming future. That’s what I can assure you. Thank you very much.
operator
Thank you sir. Ladies and gentlemen, on behalf of Poly Medicure Ltd. That concludes this conference call. Thank you for joining us and you may now disconnect your lines.