Future Outlook: Healthcare stock that sees 22–25% revenue growth in H2 FY26 despite global challenges

Synopsis: Poly Medicure expects a strong H2 rebound with 22–25% growth, improved exports, and FY26 revenue growth of 15–16%. Backed by acquisitions and over Rs. 750 crore cash, it plans expansion in orthopaedics, cardiology, and oncology while eyeing full export recovery by FY27.

This company is an India-based manufacturer and exporter of medical devices. The Company exports plastic medical disposables/surgical devices, and is now in the spotlight after the company sees a rebound in the second half of the financial year. With a market capitalisation of Rs. 18,080 cr, the shares of Poly Medicure Ltd closed at Rs. 1,783.80 per share, from its previous close of Rs. 1,798.25 per share.

Management Commentary and Guidance

Poly​‍​‌‍​‍‌​‍​‌‍​‍‌ Medicure Ltd intends to experience a significant turnaround in H2 and is forecasting a revenue increase of approximately 22-25% as compared to H1. Mr Himanshu Baid, Managing Director, stated that the international markets are full of new energy, whereas the domestic market is also doing well and is steadily progressing.

In the first half of the year, the domestic business of Poly Medicure grew by 18-19%, and the exports were almost flat. Baid explained that the main reason for the reduction in exports was a Europe-oriented situation where the Chinese manufacturers were intensely cutting prices and dumping products, and on the other hand, the waiting or stocking of the European customers was going on.

However, the company has great confidence that it will be able to meet its revenue target of 15-16% growth for the year 2026, which is lower than its initial guidance of 20% due to a short-term global demand drag. He said that most of these problems have now been resolved, thus the company is expecting better export results in the upcoming quarters.

Despite the company availing of inorganic growth, it still has a substantial cash reserve of over Rs. 750 crore, which in itself is a great advantage in the stock market scenario and can be used for further acquisitions of adjacent businesses next year. Nevertheless, he also pointed to the difficulties the Indian domestic medical device industry is facing, such as the inverted duty structure and the lower GST on imported devices.

When thinking of the year 2026 as a calendar event, the company has the ambitious plan of focusing most of its efforts firstly on the orthopaedics and cardiology divisions, then by introducing new products from the recently-acquired companies in India and lastly by starting local manufacturing.

One more principal point will be the improvement of the oncology portfolio, especially through biopsy-related products, which is in line with the long-term strategy of Poly Medicure aimed at identifying non-communicable diseases with high ​‍​‌‍​‍‌​‍​‌‍​‍‌prevalence.

The company is looking forward to a complete recovery of its export business in FY27, the return of Europe being the main driver and an India-US trade agreement, if any, opening the American market to them. Although these acquisitions will contribute only about Rs. 100 crore to FY26 revenue, their full-year contribution is likely to increase considerably to around Rs. 300 crore in FY27.

About the company 

Poly Medicure Ltd is a leading Indian medical device manufacturer based in Delhi, known for its extensive range of disposable medical products used in critical care, infusion therapy, dialysis, oncology, and blood management. With a strong presence in both domestic and international markets, the company exports to over 100 countries and operates multiple manufacturing facilities equipped with advanced automation. 

As of Q2FY26, sales rose from Rs. 420 crore to Rs. 444 crore, an increase of about 5.7%. EBITDA remained flat at Rs. 115 crore. Net profit improved from Rs. 87.4 crore to Rs. 91.8 crore, marking a 5% increase, while EPS also grew by roughly 5%, moving from Rs. 8.63 to Rs. 9.06.

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