Poly Medicure Q1 FY27 Results (NSE: POLYMED)
Signal: Margin expansion
The read
The key inflection is the rebound in consolidated EBITDA margin to 30.2% from 21.0% in Q4FY26 and 26.0% YoY, after four consecutive quarters of margin contraction; however, the quality of the recovery is not yet fully proven because other income of ₹3,340.90 lakh represented 28.9% of PBT, PAT still fell 7.6% YoY, and finance cost rose 120.4%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹525.38 Cr | +30.2% | -1.7% |
| EBIT | ₹122.25 Cr | N/A | |
| Net profit | ₹86.03 Cr | -7.6% | |
| EPS | ₹8.49 | -7.6% | |
| EBIT margin | 30.2% |
P&L walk
Consolidated revenue increased to ₹52,537.55 lakh, +30.2% YoY, gross margin expanded 494bps to 73.4% as raw-material cost fell to 26.6% of revenue, and EBITDA margin recovered to 30.2% from 26.0%; however, PAT fell 7.6% to ₹8,602.52 lakh as other income declined 19.9% YoY and finance cost rose 120.4%.
Segments
The group is reported as a single medical-devices segment, but standalone revenue grew only 12.3% YoY versus consolidated revenue growth of 30.2%, indicating that overseas subsidiaries, the newly consolidated Himalayan Mineral Waters business and other group entities supplied the incremental growth; consolidated PAT of ₹8,602.52 lakh was below standalone PAT of ₹8,812.33 lakh.
Key positives
- Consolidated revenue rose 30.2% YoY to ₹52,537.55 lakh, accelerating from 21.3% YoY in Q4FY26.
- Gross margin expanded 494bps YoY to 73.4% as raw-material cost declined to 26.6% of revenue from 31.6%.
- Consolidated EBITDA margin recovered 420bps YoY to 30.2% and 920bps sequentially from 21.0% in Q4FY26.
- Employee benefits plus other expenses grew 20.8% YoY, 9.4 percentage points below revenue growth, supporting the margin recovery.
- PAT-to-EPS conversion was clean, with PAT and EPS both declining 7.6% YoY.
- The group acquired Medyneo Comercio De Produtos Para Saude LTDA for ₹34.08 lakh effective 29 April 2026, expanding the subsidiary footprint.
Key concerns
- Consolidated PAT declined 7.6% YoY to ₹8,602.52 lakh despite 30.2% revenue growth and a 420bps EBITDA-margin expansion.
- Other income fell 19.9% YoY to ₹3,340.90 lakh but still represented 28.9% of consolidated PBT, making reported profit sensitive to non-operating income.
- Finance cost increased 120.4% YoY to ₹650.14 lakh, materially faster than revenue growth.
- Depreciation rose 55.1% YoY to ₹3,625.28 lakh, outpacing revenue growth and increasing the burden below EBITDA.
- Standalone revenue growth of 12.3% YoY was substantially below consolidated growth of 30.2%, so group growth is increasingly dependent on subsidiaries and associates.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.