Sahajanand Medical Technologies Limited (SMT) has announced its financial results for the second quarter and first half of FY27, reporting record revenue, EBITDA, and PAT for the quarter. The company highlighted strong growth across all product categories and regions, improved operational efficiency, and a robust product pipeline. SMT anticipates continued EBITDA margin expansion, targeting a 20% EBITDA margin by FY29.
Record Financial Performance
Sahajanand Medical Technologies Limited (SMT) announced a record-breaking second quarter for FY27, achieving its highest-ever revenue, EBITDA, and Profit After Tax (PAT). Revenue for the quarter surged by 24.7% to approximately INR373 crore. EBITDA grew by 36.6% to INR65 crore, with the EBITDA margin improving to 17.6% from 16% in the prior year. PAT rose by 26.6% to INR26 crore.
Half-Year Highlights
For the first half of FY27, SMT reported revenue growth of 24.9% to INR725 crore. EBITDA increased by 43.4% to INR114 crore, achieving a margin of 15.7%. Reported H1 PAT grew 7.5% to INR41 crore. Excluding a one-off tax credit, underlying H1 PAT growth was approximately 39%.
Key Growth Drivers
Growth was broad-based across all product categories. Vascular intervention remains the core segment, contributing 58% of H1 revenue and growing by 16% year-on-year. Structural heart products saw accelerated growth of about 40% in Q2. Other products, driven by IVUS in Europe, grew by 52% in H1.
Geographically, the Rest of the World (ROW) region led growth at 37% in H1, now representing 40% of total revenue. Europe contributed a steady 23% growth, accounting for 36% of revenue, while India’s growth picked up from 6% in Q1 to 15% in Q2.
Operational Efficiency and Margins
The company emphasized operational efficiency, leading to EBITDA growing faster than revenue. EBITDA margin expanded by 154 basis points in Q2 due to a reduction in employee costs and other expenses. SMT aims for an annual EBITDA margin improvement of 150-200 basis points, targeting around 20% by FY29.
Product Pipeline and Strategy
SMT is focused on executing new product launches, including Sironity in India and advancing its TAVI platform. Key priorities include operational efficiency, improving margins, and building utilization at its Telangana plant. Products like the Hydra TAVI platform and AVDC delivery system are slated for launch within the financial year, with other major products in development for the next two to three years.
Capex and Working Capital
The company has guided for a capital expenditure (capex) of approximately INR70 crore for FY27 and FY28, focusing on vertical integration, automation, and maintenance capex. Working capital days have been reduced to 128 days as of Q1 FY27, with plans to further reduce them to 100-110 days over the next three years, primarily through inventory optimization.
Source: BSE
