Synopsis: Poly Medicure, with a market cap of ₹16,077 cr and 14 global manufacturing facilities, saw its stock fall ~44% due to moderated revenue growth of 5–6% in H1FY26. Strategic acquisitions and India–EU trade deal opportunities position it for 15–16% full-year growth.
Poly Medicure, a key player in India’s medical devices sector, has recently faced significant stock weakness, with its share price declining by around 44 percent, prompting questions from investors and industry watchers about the underlying causes and future prospects.
As the broader healthcare market evolves and demand dynamics shift across segments such as critical care, infusion therapy, and surgical products, the company’s performance trends, operational challenges, and strategic positioning have come under scrutiny, setting the stage for a closer look at what has driven the downturn and what could lie ahead.
Poly Medicure Limited, with a market capitalization of Rs. 16,076.63 crore, closed at Rs. 1,586.10 per equity share, up by 9.34 percent from its previous day’s close price of Rs. 1,450.60 per equity share.
Poly Medicure Limited has delivered returns across multiple timeframes, with a 1-month return of -10.29 percent, a 3-month return of -20.89 percent, and a 6-month return of -19.24 percent The stock has delivered a -34.21 percent return in the past 1 year, and in the longer frame of 5 years it has delivered a return of 211 percent. From the high of Rs. 2,835.20 as on 7 May, 2025, the shares have declined by around 44 percent.
Poly Medicure Limited is among India’s largest home-grown medical device manufacturers with a diversified presence across infusion therapy, vascular access, renal care, critical care, cardiology and, more recently, orthopaedics. The company manufactures over 200 medical devices and supplies to more than 125 countries, supported by a wide distributor network and a growing direct presence in key international markets. Exports remain a core pillar of the business, contributing close to 69 percent of consolidated revenue in H1 FY26, while the domestic market now accounts for about 31 percent, reflecting improving penetration in India.
Operationally, Poly Medicure has built a strong manufacturing ecosystem over the years. It operates 14 manufacturing facilities across five countries, with nine plants located in India and the remaining spread across China, Italy, Egypt and the Netherlands through subsidiaries and acquisitions. This global footprint gives the company flexibility across geographies, regulatory regimes and cost structures, while maintaining quality control and scalability.
Product Portfolio
Poly Medicure’s manufacturing strength lies in its vertically integrated setup, covering product design, tooling, moulding, assembly, sterilization and packaging. Its Indian plants in Faridabad, Haridwar and Jaipur form the backbone of its global supply chain, while international facilities support localized manufacturing and market access. The company has also invested heavily in automation and process efficiency, supported by over 400 moulding machines and extensive in-house tooling capabilities.
The company’s product portfolio spans critical hospital consumables such as IV cannulas, central venous catheters, infusion sets, dialysis systems, blood collection products and oncology solutions. This diversification increases its addressable market and reduces dependence on any single therapy area.
Why did the Stock Fall by 44% ?
Despite operational stability, Poly Medicure’s stock corrected sharply by around 44 percent over the last eight months, primarily due to valuation concerns. At its peak, the stock was trading at close to 103.4x earnings, a multiple that assumes sustained high growth over long periods. However, revenue growth moderated meaningfully, with Q2 FY26 revenue growing only 5.7 percent YoY and H1 FY26 growth at 5.3 percent, impacted by international inventory corrections, European market softness and GST-related disruptions in India.
While profitability remained resilient, with Q2 FY26 PAT increased by 5.74 percent, the combination of flat topline and bottomline growth and premium valuation proved unsustainable. Markets corrected the excess as growth expectations were reset. Simply put, a stock priced for perfection could not sustain a 103.4x multiple when revenue growth slowed to mid-single digits.
Recent Acquisitions
During Q2 FY26, Poly Medicure completed two strategic acquisitions that significantly broadened its business profile. In September 2025, it acquired PendraCare Group of the Netherlands, a specialized interventional cardiology catheter manufacturer with product registrations across more than 60 countries. This acquisition strengthens Poly Medicure’s cardiology vertical and provides manufacturing and distribution access across Europe.
In November 2025, the company closed the acquisition of Italy-based Citieffe Group, a well-established orthopedic trauma and extremities player. Citieffe operates in over 25 countries and adds a completely new therapeutic segment for Poly Medicure. Management has indicated that together, these two acquisitions can add around Rs. 280 crore of annual revenue to the existing business over time. In H2 FY26, acquisitions are expected to contribute roughly Rs. 120 crore, or about 10 percent of second-half revenue, with the remaining growth driven organically
India EU Trade Deal
The proposed India–EU Free Trade Agreement is particularly relevant for companies like Poly Medicure. Under the agreement, tariffs of up to 6.7 percent on medical instruments, devices and related products are expected to be removed across more than 99 percent of tariff lines. This is a meaningful structural change for Indian medical device exporters targeting Europe.
Importantly, Poly Medicure already has a presence in Europe and was not structurally blocked from selling into the region even before the deal. However, the real advantage emerges post-FTA, as the company can increasingly export directly from its Indian manufacturing facilities to the EU. This could reduce dependence on higher-cost overseas manufacturing, lower operating costs, and improve pricing competitiveness while protecting margins.
Financials
The company reported revenue of Rs. 444 crore in Q2FY26, reflecting a 5.7 percent year-on-year growth over Rs. 420 crore in Q2FY25 and a 10.2 percent quarter-on-quarter increase from Rs. 403 crore in Q1FY26, indicating steady improvement in topline performance across both comparisons.
On the profitability front, EBITDA stood at Rs. 115 crore, remaining flat YoY compared to Q2FY25, while growing 8.5 percent QoQ from Rs. 106 crore in Q1FY26. Net profit came in at Rs. 92 crore, up 5.7 percent YoY from Rs. 87 crore but marginally down 1.1 percent QoQ from Rs. 93 crore, suggesting stable operating performance with slight sequential pressure on the bottom line.
Over the past five years, the company has demonstrated strong growth, achieving a revenue CAGR of 19 percent, a profit CAGR of 28 percent and a price CAGR of 24 percent, reflecting both its operational performance and market confidence.
A return on equity (ROE) of about 15.8 percent and a return on capital employed (ROCE) of about 20.1 percent, and debt to equity ratio at 0.08 demonstrate the company’s financial position. The stock is currently trading at a P/E of 44.5x higher as compared to industry P/E of 33.5x.
Management Guidance
Looking ahead, Poly Medicure continues to invest aggressively in capacity expansion and innovation. The company has already spent Rs. 150 crore on capex in H1 FY26 and plans to exceed Rs. 250 crore of capex for the full year, primarily for facilities in Haridwar, Faridabad and YEIDA. These plants are expected to contribute partially from FY27 and fully from FY28, supporting future volume growth.
Management has guided for H2 FY26 revenue of Rs. 1,080–1,090 crore, representing over 25 percent growth compared to H1 FY26, and full-year revenue growth of 15–16 percent. Domestic revenue is expected to grow at 28–30 percent, while international growth is projected at around 10 percent, including acquisitions. With a strong balance sheet, net cash position of roughly Rs. 600 crore, and improving domestic momentum, Poly Medicure appears positioned for a recovery phase after a period of consolidation.
Poly Medicure’s recent stock drop reflects a pause in growth rather than problems in the business. The company remains strong with a wide range of medical devices, a global presence, and steady profitability. Strategic acquisitions in cardiology and orthopedics, along with opportunities from the India–EU trade deal, give it room to grow in the future. With ongoing investments in manufacturing and a healthy balance sheet, Poly Medicure is well-positioned to recover and continue its long-term growth, keeping it among India’s top medical device companies.
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