Poly Medicure Limited (POLYMED.NS) Q2 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Polymedicure Limited Q2 and H1 FY '26 Earnings Conference Call hosted by ICICI Securities Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Nisha Shetty from ICICI Securities. Thank you, and over to you, ma'am.

Thank you, Boomika. Good evening, everyone. On behalf of ICICI Securities, I welcome you all to Q2 and H1 FY '26 Earnings Conference Call of Poly Medicure Limited. Today, on this call, we have with us the senior management team of the company, represented by Mr. Himanshu Baid, Managing Director; Mr. Naresh Vijayvergiya, CFO; and Mr. Rahul Gautam, President, Strategy and Corporate Development. I would like to thank the management team of Polymedicure for giving us this opportunity to host the call. And with this, we will hand over the call to the management team. Over to you, sir.

Thank you, Nisha. Good evening to everyone. I welcome you all to quarter 2 FY '26 earnings call. I sincerely thank all of you for being here today. Before we get to financials, I'd like to highlight that on 6th November, we have closed the acquisition of Italy-based Citieffe Group, a leading player in orthopedic trauma space and in extremities business. With this move, we are venturing into ortho segment, expanding our total addressable market by around $70 billion globally. The other acquisition we contemplated was of the Netherlands-based PendraCare Group on 23rd September 2025. PendraCare Group is a specialist interventional cardiology solution catheters, which significantly strengthens the cardiology segment and gives us manufacturing and distribution footprint in Europe. We have already initiated the integration process of PendraCare Group and Citieffe, and I'm excited about the potential synergies. With these 2 acquisitions, we will add around close to INR 280 crores of revenue to our existing business on an annual basis. In this year, we have also launched Polymed Academy of Clinical Excellence PACE, a platform which is created to deepen engagement with KOLs through hands-on training using advanced medical devices. Through this, we aim to establish Polymed as a preferred partner for scientific training and learning and development with KOLs. We plan to open such academics in other parts of the country and overseas over the next few years. Another major update is the expansion of our SaaRC program, which is AI-powered initiative providing immersive training experience to improve performance efficiency across all divisions. I'm happy with the initial outcome of this initiative, and we are very happy with the initial outcome and remain positive to continue to refine the platform to make the training methods, our frontline team more efficient and engaging with the real-time feedback. I will now take you through the quarter 2 and half yearly highlights for the next few minutes. And after that, we can open up for Q&A. For quarter ended September '25, we have a consolidated revenue of INR 444 crores, marking an overall year-on-year growth of approximately 5.7% and a quarter-on-quarter growth of around 10.1%. Gross profit in Q2 was INR 308 crores, reflecting a margin of 69.4%, an increase of almost 900 bps as compared to quarter 2 last year. Operating EBITDA for Q2 was INR 119 crores, delivering an operating margin of -- EBITDA margin of 26.8%, slightly down from 26.76% last financial year. Here, the operating EBITDA for Q2 has been taken excluding onetime acquisition cost of INR 3.2 crores of PendraCare. On the bottom line, PAT totaled around INR 92 crores compared to INR 88 crores last year, translating a net margin of 19.2%. Moving to H1 ended September '25, we have consolidated revenue of INR 847 crores, marking an overall year-on-year growth of 5.3%. Gross profit in H1 was INR 584 crores, reflecting a margin of 69% -- a gross margin of 69%, an increase of almost 137 bps as compared to H1 last year. Operating EBITDA for H1 was INR 226 crores, delivering an operating margin -- EBITDA margin of 26.7%, slightly down from 27.4% last year. On the bottom line, the profit after tax totaled INR 185 crores compared to INR 162 crores in H1 last year, translating to a Y-o-Y growth of 14.5% and a net margin of 20%. Despite lower revenue growth, we have been able to improve our gross margin, which has helped us in maintaining operating margins at the higher end of the guidance of 25% to 27%, which we gave in the beginning of the year. Further, I would like to share that business highlights of two key geographical segments, domestic and international. In quarter 2 FY '26 and H1 FY '26, our domestic revenue on Y-o-Y basis has grown by 17% to 18%, respectively. This solid uptick reflects effective execution of our strategy and rising demand of our offerings locally. In addition to this, our private business has continued to grow overall 22.3% Y-o-Y basis in Q2 FY '26, while government business degrew by 14%. Contribution of domestic revenue to overall consolidated revenue has increased to 32%. We continue to outpace the competition in domestic market quite significantly, hence our conviction to invest higher amounts in the domestic market is only getting stronger. This is reflected in the fact that we added quite a number of sales associates, over 35 in H1. And hence, we are on the track to hire 100-plus sales associates in FY '26. Our International business segment is showing recovery. With a revenue of around INR 300 crores in Q2 FY '26, it has shown a 9.1% Q-on-Q growth, which is reflective of the fact that we are recovering from bottom that we witnessed in Q1. We are witnessing green shoots in recovering international markets and remain cautiously optimistic for H2 of the current financial year. While our international operations did face tougher backdrop this year, especially across Europe, which continues to show slight degrowth, 9.6% on a Y-o-Y basis in Q2 FY '26, but sequentially witnessed a growth of around 5%, if you look at onto quarter 1 to quarter 2 performance. We are seeing improvement in customer sentiment and base effect higher inventory building up customers last year is slowly getting resolved. To compensate with the degrowth in Europe, we are enhancing our presence in ROW markets and have made significant efforts in markets such as Southeast Asia, Africa and Middle East. In each submarkets in these regions, we are expanding our customer engagement through marketing efforts, clinical engagement and direct customer reach. All these efforts, along with underlying growth have seen a revenue growth from rest of the world regions growing to around 13% Y-o-Y basis sequentially. Let me give an update on each of the business segments. Renal business revenue stands at INR 44 crores, up from INR 37 crores in Q2 FY '25, marking a year-on-year increase by 18.1%. This is lower than expected due to some inventory realignment due to GST changes, which came up in early September. We expect that from Q3 onwards, this segment should resume growth journey, and we should be able to get over INR 200 crores of revenue on a full year basis. Our H1 revenue stands around close to INR 88 crores as compared to INR 67 crores as compared to last year, showing a respectable growth of around 30%. We sold up to around 200-plus dialysis machines across the country in the first H1 of the year, and I think we expect to sell another 300 machines in the H2 period. We continue to remain extremely excited about the growth prospects in the industry backed by large unmet demand and continued government support in reimbursement. And of course, the coverage, which is coming by large domestic players in the services side. Before throwing light on our cardiology business, I'm pleased to share a proud milestone. Poly Medicure Limited recently honored with the Emerging Medical Device Company of the Year in Cardiology segment at VOH, Voice of Healthcare Awards 2025. This recognition reinforces our ambition, and we fully respect -- expect to live up to the distinction in coming years. On the business side, we employed over 4,000-plus tenants in H1, a strong signal that our product is gaining traction and earning favorable feedback from patients and interventional cardiologists. Looking ahead, we are excited about our pipeline of advanced technology devices. We have drug-eluting balloons, PTC catheters and so on, and we anticipate launching and scaling these within this year. Along with this, our clinical study for RisoR has already been initiated in India and Europe. Strategically, these trials underline our commitments in India and Europe, which along with recent acquisition of PendraCare Group, positions us for global growth in cardiology space. We're steadily moving up the technology chain in medical devices market, and these initiatives place us well in a range to capture a winners' field market share initially in the domestic market as well as overall time in the international arena. Our Critical Care segment, which we launched last year, this vertical also remains a key pillar of growth strategy, driven by rising treatment need in segments such as oncology and pediatric care. And over the last 12 months, we've launched 20-plus new products, established presence in 500 hospitals. Our brand is now recognized, respected by top doctors across the country for key products. Further, Government of India is also playing an active role in ensuring greater treatment access for cancer care by setting up 200 stand-alone specialty oncology centers this financial year, eventually expanding to 700 centers nationwide over 3 years. U.S. market expansion continues to face headwinds due to current tariff situation. We continue to invest in that market from a larger long-term perspective, hoping that sometime in the next few months, the tariff situation will get resolved. We have slowly started business with one of our leading customers and a new product is getting launched in Q3. We have also received FDA clearance for a new design for IV catheters and expect to start commercial supplies in early Q4. Turning to our balance sheet. We ended the quarter with liquidity of INR 1,109 crores. This strong cash position allows us to continue backing off ambition growth strategy, both organic and inorganic. Of course, after completing the Citieffe acquisition, which we have done by 6 November, the net cash position as on date is close to around INR 800 crores. As mentioned earlier, we completed 2 acquisitions in this quarter and our further thesis focuses on technology acquisitions that complement our verticals, critical care, cardiology and adjacencies. We'll keep the market informed as we move forward with new opportunities. Now let me share the guidance for current quarters in H2. Let me -- if you look at the current domestic market, we are still very bullish that we will end almost with a growth of 28% to 30% by FY '26. So we currently reiterate our guidance. For international business, we are now guiding for revenue growth in the range of close to 10% includes the revenue from 2 acquisitions. This revised outlook reflects the current global market condition underlying uncertainties. We'll keep you all updated as we gain greater clarity on evolving environment. We maintain operating EBITDA guidance in the range of 25% to 27% for the year. As you've seen, we are close to around 26.5%. So we are on the upper segment of the band. We continue to invest in future growth. CapEx of INR 150-plus crores was done in H1, and we further inform that CapEx spend for the current financial year will be over INR 250 crores. This funds will be required to set up the facilities at [indiscernible] and Haridwar as well as to expand capacity at existing plants. We expect these plants to be fully operational within the next 12 to 18 months. It's worth emphasizing that the guidance is built with a measure of conservatism, particularly around exports given the current geopolitical macroeconomic headwinds. However, we remain confident with our strong product line, upcoming launches and domestic momentum, all of which we believe will comfortably offset these headwinds. In summary, Q2 FY '26 has reaffirmed the fundamental strength of our business model. We delivered double-digit growth domestically, maintained healthy margins, improved operating EBITDA performance and drove significant product innovation while continuing to invest in sustainability scale future capacity through R&D and green initiatives. For H2, we are providing a new guidance for H2. H2, we are looking at a revenue increase of around close to 25% over H1. So H1 revenue was close to around INR 850 crores. So H2 guidance is between INR 1,080 crores and INR 1,090 crores. That's the guidance we are providing for H2, which is around 25% increase -- more than 25% increase over H1. Overall, we aim to do a growth of close to between 15% to 16% when we end the current financial year FY '26, which is lower than the guidance we provided in the initial part of the year around 20%. But I think we are on the recovery phase. And hopefully, we will be on the upper side of the 15% to 16% guidance range. And we'll continue to build the company through resilience and with a strong product pipeline. Thank you once again very much, and now we open to questions.

The first question is from the line of Ravi Naredi from Naredi Investment.

Sir, your CapEx plan for next few years, can you tell the amount?

This is Rahul. Just to give you guidance, I think so far, we have given guidance for only FY '26 of about INR 250 crores. Having said that, obviously, we had raised money through QIP in August of 2024, out of which INR 500 crores was allocated for organic CapEx. And we expect that at least given those plants are already under construction or will be soon under construction, we expect a similar number to also be spent in FY '27 as well. We will have greater clarity on the final numbers, including for our subsidiaries by end of this financial year.

And how many -- how much CapEx you have already done by 30th September?

We have spent about INR 150 crores in H1.

And H2 INR 100 crores, right?

That's correct.

And your target for top line and bottom line for financial year '26 and '27?

No, we haven't given any guidance for '26, '27 as yet. We have only given guidance for the year FY '26, which was repeated by Himanshu in his opening commentary.

15%, right?

Yes. For this -- for the full year FY '26, we expect an overall revenue growth of 15%...

And anything you want to tell about margin for financial year '26?

Yes. So I think on our operating EBITDA margin, we had given at the beginning of the year a guidance of between 25% to 27%. Our margins in H1 are in excess of 26%. So we are at the upper end of the guidance that we had given. And we are maintaining our margin guidance of between 25% to 27% and hoping that we will still remain at the higher end of the guidance.

The next question comes from the line of Shamit Ashar from AMBIT Capital.

So if we look at the last 2 quarters, your growth was mainly led by the domestic segment and where now the growth has currently slowed down. Even if we look at the Renal segment, the growth has been hampered a bit. So for the Renal segment, are you on track to achieve your annual 50% growth guidance of around INR 220 crores to INR 250 crores in this particular division? And what factors can you attribute to the slowdown in the domestic growth?

Yes. No, I think this quarter, obviously, we had the GST transition across the country, right? And we were also impacted to some extent on that, right? So the -- there is some impact because of that inventory realignment, which has happened in the domestic business. We remain very bullish on the domestic market. And we still maintain our guidance that we will end up the year on the domestic side growing at between 28% to 30%. On the renal side, as Himanshu also mentioned in the early part of his commentary that renal business was impacted due to this GST transition specifically. And there is -- we hope that in quarter 3 and quarter 4, the business will come back. Our overall renal guidance now is at about INR 200 crores from a full year perspective.

And like coming into quarter 3, are you expecting the international business to pick up the pace? How is the inventory situation right now in Europe?

Yes. So I think we believe that the situation is getting better. The customer sentiment is getting better with every month passing. And if you see from quarter 2 to quarter 1, there is a sequential growth even in the markets of Europe, which have been obviously struggling for the last couple of quarters. And we are making new investments in geographies where we were not as strong. The idea is that we compensate for slower growth in the European market through investment in the newer markets. And yes, the expectation is that our H2 should be better than H1, and we should see improvement on a quarterly basis in Q3 and Q4 onwards.

The next question comes from the line of Amit Nigam from Invesco.

Just 2 quick questions. One, if I'm not wrong, Himanshu, you mentioned that the second half, we will see -- the aspiration is to hit INR 1,080 crores, INR 1,090 crores of top line. What percentage of that would come from the acquisitions, which we have recently closed? What is it that you're budgeting there?

Yes. So if you look at that INR 1,090 crores guidance which you are giving, INR 80 crores or INR 90 crores, only INR 120 crores will come from there. The rest will come from domestic and international business.

Understood. And therefore, it would not be wrong on our behalf to...

10% of that will be -- yes, roughly 10%.

Roughly 10% would be. And -- and this would be margin dilutive, if I'm not wrong, correct?

But still we are on the path of increasing more or less, if you look at margin improvement in the current financial year, you see gross margin has been improving, almost 125 bps gross margin improvement. So even if we take a small margin dip there, we should be able to still stay in that range of [indiscernible]. And that's the reason we have been guiding in the beginning of the year, 25% to 27% EBITDA margin. So we're still at around 26.5%. So even if we see a little bit of dip in margin in that 10% of business, still that 90% of the business will be still high margin.

Understood. And in how many years do you think that these international acquisitions would be able to migrate?

[indiscernible] companies, so it's very, I think, premature to comment. I would say I think we'll need to see a couple of quarters how things are and how integration happens. So I think it's a long haul. These things don't work overnight.

And therefore, you said that the number was when you closed...

November. A year ago, we have got the full control of the company, one of the larger companies, Citieffe. So it's going to take a while. I think we'll have more clarity in the coming quarters, and then we'll be able to give better guidance. But of course, the whole idea is for synergies to kick in, do India leverage of manufacturing and then also use global base of polymer to enhance sales of these companies. So I think we have a very clearly laid out plan. But I think the numbers and all -- we'll have to wait for a few quarters before we can really call out any numbers. These companies have been close to 15% EBITDA of both the companies. So it's not that we have a sinking ship. The ship is steady for a very long time. Only thing is we have to just make improvements over the next quarters or coming years where we can increase margins to plus 20%. Even if you look at our company in Italy, Plan 1 Health, which was our previous acquisition in 2018, '19, today is now around close to 16%, 17% EBITDA. It was a negative EBITDA company. So over years, we have turned around the company. There's a positive contribution for the company. So I think -- and there's also some margin creation at India level also because we are also supplying a lot of [indiscernible] components and everything. So we will see that happening over the years, but we are very hopeful about that.

No, no, sure. I'm pretty confident you'll be able to do that. And the last bit of color if you can give on the competitive intensity, especially in Europe, it will be helpful. And that's...

I think Europe is -- if you remember, I called out in quarter 1 that there was excessive competition from China because they have started dumping products because of the U.S. tariffs and all that. And that impacted. And of course -- and what has also happened is we have talked to a lot of customers where they have said the transit times have dropped dramatically. The Red Sea channel has -- sorry, the Suez Canal channel has opened now for transportation. So earlier, the goods were taking 2.5 months to reach, they're reaching in now around 1 month. So that has -- and because of that, the whole inventory realignment is happening. And I think early next year, we should get back to the similar numbers we were doing, let's say, last year with most of the customers. And then we have a lot of new projects coming in, in Europe right now. We are bidding for a lot of these new projects. Plus we have around 20 new products in pipeline, which will get CE marked within FY 2020 -- in calendar year 2026, 20 new products. So all these new products will start contributing. So because Europe is going through a change in regulation. So our first target was to protect our existing business and existing regulation certification that has been done, which we have already announced earlier. And now with 20 new products which are in pipeline, I think this will actually change. We've got around close to 75 products which are CE certified already for European market. 20 more are coming. That will also add into the revenue cycle next year. So a lot of things are happening. We had a small dip in the radar, but I think now we are in a much better position.

Okay. So the message that I should take home is that the competition from Chinese companies is abating. Is that the message that I should take home with me?

Yes, which is there in every market, today, for every company or every market is the same situation. is not unique to us to this industry. So I think that is going to happen, and we are all happy with that. Important thing is what things you can do better than them is that is where we are. And I think with that 20 new products coming in, some new projects which we are bidding, which are going to go live next year, all that will change the trajectory. That is what we have been doing.

[Operator Instructions] The next question comes from the line of Vihang Subramanian from Zaaba Capital.

Just to continue on the Europe piece. I think last time when you had mentioned that Europe had also seen a bit of regulatory transition. And you mentioned that it would take some time to launch products and so on. So I just wanted to check on that, how are we there? And has there been any progress on that front?

Yes. So on the regulatory front, I just mentioned, Vihang a few minutes ago that we have now got our existing -- the product range was existing before 2024 or 2023. All that has been now been reregulated. And we have got our certification under MDR, the new regulatory regime in Europe. And the new products, there are almost 20 new products in pipeline, which we have already applied for in early 2025 for getting regulatory clearances from EU authorities. And from early next year, we'll start receiving approvals for these products. So there will be additional 20 new products almost getting regulatory cleared from Europe in 2026. And that is a significant development for us.

Understood. Could you quantify how -- what would be the delta to growth from those products?

See, I don't have any idea once we launch these products, then we'll be going to the market. But again, it's an initial -- you can imagine that adding 20 new products on our portfolio of 75 new products. And most of these products will have a higher gross margin because these are all new developed products. See, earlier focus was to protect the current product line. But now from last 2, 3 years, what we have been spending and developing the new products across different critical care and cardiology and other segments. So all these products or in vascular access. So all these products are getting certified. So definitely have a better margin. But maybe more clarity, I can only give you once we receive the certification and once we have found customer contracts.

Understood. And just on the domestic business, if I heard you correctly, I think you mentioned that the government business declined 14%. So just wanted to check, is that out of the base now completely? And incrementally, can we see like a return to the 25%, 30% growth guidance that you had mentioned?

Yes. So government business is only 10% of the current total domestic business. And probably we have made a deliberate attempt to reduce it because of a lower-margin business because mostly tenders are L1 driven, significant quality advantage in domestic tender business. So we have deliberately been slowing that business down and increasing the private sector presence. And yes, we have again guided for the end of the year for 28% to 30% growth for domestic business.

Understood. And just my last question is on the U.S. piece. I know it's very small and a bit noisy as well currently, but how are the conversations going there? Like have there been like progress there or things have stalled in the face of tariffs and so on?

See, things continue to happen. It's not that nothing has stalled. But of course, customers are waiting with the current situation that what will happen and for -- because 50% tariff is completely untenable. But we have got a few products. We have started business with a new customer, which is one of the largest companies in the U.S. that has started. And with just one product, other products are put on hold by them for the moment because we were chosen a new supplier maybe a year ago. And one of the other products which we were waiting, we've got FDA clearance recently. And probably in quarter 4, we are going to start supply for that product. And again, it's an important product for us, as I called out in the opening comments, IV catheters. Again, a special design, which is developed for the U.S. market. So all that on the background is happening. A lot of testing is happening in the U.S. because as you remember, I told you in the last call or maybe a couple of calls ago that U.S. FDA has started disapproving Indian labs results. They are not taking the results which are generated by Indian labs, and they are rejecting those results. So now we have been forced to test all the products in the U.S. right now. So all work which we had done in the past was negated, and we had to start again by retesting the product. It is not only for us, it is for every med tech company which is operating out of India wants to sell in the U.S. market, they are facing this. And I think because of the change in administration in the U.S., this new policy decision was taken. And whatever labs were executed in India, they have been accredited. And because of that, things have slowed down in the U.S. for us and for everybody else actually also. So now we've initiated that maybe 3 or 4 months ago, this whole new testing. So by, I think, April, May, all the test results will happen. We'll apply again for the U.S. FDA. So mid of next year, we'll start getting some new approvals, which are in pipeline.

The next question comes from the line of Karan Gupta from ACMIL.

So my first question is regarding the new products. So that you're seeing 20 new products, can you tell us about the specialties they are covering or you are launching new products in the existing specialties?

So we are launching -- if you remember, we have launched 2 new specialties last year and which were cardiology and critical care. And most of the launches are happening in those 2 new specialties when you look at from the domestic market perspective. When you look from the international market perspective, vascular access infusion, which is our core business, most of the launches are happening there because there we have a global excellence on that product category. But again, 68% of revenue comes from exports, international business, and that is highly dominated by vascular access and infusion. So a lot of the development we're doing for international market is for those categories. And eventually, the next few years, maybe 2, 3 years, once we have all the regulatory approvals, clinical trials done for cardiology and critical care, most of these products will go global and will go to global customers.

So can we assume that you have covered maybe 80%, 85% of the specialty product which is required?

I'm not able to hear you well. Could you repeat the question?

Yes. Now I think it's clear. So I just wanted to ask, can we assume that you've covered, let's say, 80%, 85% of the specialties that is in the medical science and you have the products for them?

No, no. See, today, we have 50,000 products in medical technology industry. Only Polymed has only 250 products. So the field is super vast. And when you look at India market is only $15 billion, global market is $650 billion. So we are 2%, 3% of global market in terms of industry size, market size. So there are still hundreds of products more which can be made and which can be -- which are adjacent to our current business. And also, we have almost 60 to 80 products in pipeline, which we launched over the next 3 to 4 years from starting from, let's say, '26 to '29, we have close to 50 to 80 products in pipeline, new products under development. So there's a lot to do. And then we have added orthopedic, which is a huge area, which has gone into trauma, then we go to more into plates and then adjoining products in joints and so on and so forth, knee and hip and so on and so forth, spine. So there's a lot of lot of products today still pending to be made. So we have a huge runway for next 5 to 10 years, we have a huge runway. So I don't even see that at least in my tenure as MD, I don't know whether we will stop innovating or not.

Okay. Okay. No, so I was asking for the breadth-wise, the number of specialties we have in the medical science. So we've, I think, covered almost and then we'll go deeper down for a lot of treatments...

We have covered urology, gastroenterology, respiratory care and cardiac surgery and peripheral vascular and neurology, there are just so many of them actually.

Okay. So can you tell us about the wallet share as of now? If you are supplying these all products in a multi-specialty hospital or maybe some clinics. So what will be the wallet share of your products as of now, whatever you have, maybe 2 to 50 products?

See, wallet share because Indian market is very fragmented, and we don't have a real data because like pharma, we have no real data flowing out for medical devices consumption in the country. But just by an estimated guesstimate, maybe we could be between, let's say, 5% to 7% of the wallet share in a hospital. And plus, of course, potential is to double that wallet share maybe within the same hospital. So that's the runway available.

Okay. Okay. And the cost of these medical devices for a hospital is around same it was 2, 3 years ago, 20%, 22% something...

No, cost of medical devices is around close to 10%. In the whole treatment cost, the cost of medical devices is close to around 10% in any hospital infrastructure. That's what I know, but it could be -- number could be different, but that's what my estimate is.

The next question comes from the line of Vishal Manchanda from Systematix Group.

Sir, I wanted to check, so like you are expecting 20 new approvals, new CE marks in European market. If you could share how many we already have there, how many -- for how many products we already have a CE mark approval?

So Vishal, we have close to around -- it was done in 2 tranches. So we have close to around 75 products, which are CE certified as on date. And more or less we will get sometime in calendar year '26.

Okay. And would -- so any sense on how large these -- how large the markets would be for the 20 products that you would get?

They are all adjacent products to our current product range. Some products are from critical care range, some are from oncology, some are from neonatal, some are from vascular access. So it's and some are from pain management. So this is extension of existing range of products which we already offer to a customer. So we are completing basically basket. Whatever basket we have on the product side, we are enlarging that basket basically. And most of these products have a decent market in Europe. And that's the reason we have been developing these products and working on this for last couple of years. And now once we have done clinical studies and biopharm studies. And after that, we applied for CE mark. So these are important products. Of course, I can't quantify the number right now because only once we have the CE mark, I'll be able to quantify how much revenue volume, what is the customer. And of course, then there's an approval process in local hospitals. CE mark doesn't mean anything unless until you approvals in local market, local countries and then you bid in the contract, then only you know. So -- but it's a long journey. But again, having new products, 20 new products in pipe is again also a very important number.

And sir, would you like to give a target or guidance for the U.S. market for maybe 3 years down the line, where can we be?

Vishal, it's very hard to say in the current scenario. But I think let the headwinds clear. Of course, we still maintain that we have $50 million, $20 million product pipeline, a $15 million, $20 million product pipeline for U.S., which is earmarked, which we said in the beginning of the year. So we still stand by that number. So -- and we still have a lot of projects going on. But I think we'll have more clarity because if you see currently, India is still 50% tariff compared to all nearby countries. And when I was talking to a company, recent large company, they said India still is out of flavor for most of the U.S. companies. Still whether we have gone to Vietnam, Thailand, Malaysia or Indonesia. So we are still out of that flavor. So because of tariff and current law of regulatory, which was brought in very late in India. So still, we are working on it very hard on this. But we still maintain that on a 3-year basis, answer to your question is $15 million, $20 million.

Okay. Okay. And sir, among the new divisions you have launched in India, cardiac, critical care, so would you be more optimistic about the cardiac division for the next 2, 3 years in terms of the scale of potential?

Yes, definitely, definitely. So a lot of products which are getting imported into the country, we are locally manufacturing them here. And I think that is where we are trying to bring an import substitution. And that will help us to -- and once the product quality is established, of course, it's tough. This business is tough. But once we have inroads and as we have been getting inroads in the business, and we have done this acquisition of PendraCare also, and that's the reason we want to go front end in the European market. So I think cardiac, of course, offers a good promise for polymer. But yes, critical care is also a high growth segment because there are only 2, 3 players in the world which operate in this segment completely. So cardiology, we may have 20 companies we have to compete with critical care is only 4 to 5 companies. Critical would be more potential in terms of profitability. Even growth-wise also, once we have access to developed markets like Europe and U.S., this could also grow faster.

So if critical care would have more dependence on imports versus cardiac in India? And again, if you could again give a number as to like what percentage of the market would be import dependent for both these categories?

Cardiology, if you look at cardiac catheters, almost 80% to 90% cardiology, angiographic catheters, balloons have been imported into the country. Almost negligibly, anybody is manufacturing here. Most of the companies import bulk or manufacture or don't even manufacture the complete product. Here, we have manufacturing almost 80%, 90% import. Critical care also 90% import.

And you have been kind of been able to introduce the important products here, which constitute a large part of this value.

Critical care because it's a very closer segment of vascular access, you can also check with hospital groups where you cover whether it's Quality, Narayana, Max, all this Fortis, all are using our products. Our large hospital chains are using the products now.

You mean in cardiac and critical care, you have been to tap these larger hospitals?

Cardiology, still we are in Tier 2, Tier 3. We have not gone into Tier 1 because that will take some time because as we are doing also clinical because most of the hospitals ask for clinical studies. So we have already initiated that clinical study for our RisoR stent, 2,000-patient study. So -- but at least in Tier 2, Tier 3, we are doing fine. But in critical care, we have already entered Tier 1...

And sir, when do you kind of get data from the study, it's a stent study, 2015 study?

Vishal, it will take one year plus.

Who will take another one year?

Yes, because the last patient who gets the stent, then you have to wait 6 months to 1 year after the last patient has been implanted with the stent.

But do your competitors -- Indian domestic competitors in the segment have -- would have a European trial ongoing or European approval for their products or they just have a domestic approval for their products?

No, I think lots of domestic cardiology companies who have been operating in this segment for much longer than us already have clinical trial data on their products even in international markets. But the largest clinical trial is what we are doing. Right now, nobody has done a clinical trial over 2,000 patients. Most of the companies have done 500 patients, 1,000 patient trials. We are doing 2,000 patient trials. So that we have a much robust and more stable product. And of course, it's designed by us. So again, it's very important that clinicians understand that data point and then that's how the product will move in the future. But again, cardiology segment is one of the segment for us. Again, our core business, vascular, critical care, renal will all continue to grow and these are all growth segments. Renal, we haven't even gone out of India. So renal will have a huge potential once we receive all the certifications, I think that's a huge potential to even go outside India also.

This stent trial would be a double-blind placebo-controlled trial or it's a single-arm trial wherein...

We'll get back to you Vishal on that.

Vishal, it's a technical question. I will get back to you on that. I'll ask Rahul to respond to you on that question.

And just one final one. If we can hit double-digit growth in export markets next year, like on a Y-o-Y basis, will we be there?

100%...

The next question comes from the line of Shivam, an investor.

Hello. My question has been addressed.

The next question comes from the line of Girish Jain from KJMC Financial Services.

Just a couple of questions. In one of the earlier calls, we had mentioned about the status of the 3 new plants. Could you just update the investors, I think Uttarakhand, Jaipur and Faridabad?

Yes, sure, Girish. So the plants are already under construction. On the Faridabad [indiscernible] plant, we are establishing a Gamma sterilization facility. So initial licenses have been received from the government also from the CDSCO. So that facility partially is operational. But there we are also building some additional facility will be ready by end of 2026. So Phase 1 is ready. Phase 2 will be ready by end of 2026. Haridwar also Phase 1 is ready. Phase 2 will be ready by end of 2026. So that is also on. The Jaipur facility, we have already informed in the last call, we are dropping the Jaipur facility, and we have taken a piece of land in YEIDA, which is the Yamuna Expressway Authority, the new Medical Device Park, which is coming near the Jewar Airport, 3 kilometers from Jewar Airport. So we were lucky to take a land -- get a land parcel allotted to us around close to 7 acres. So that land has been acquired. And the Jaipur facility will be -- are now moving to YEIDA basically.

So the revenue from the Faridabad and Haridwar will be starting from -- primarily from FY '27.

Yes. By FY '27 partial revenue and FY '28, full revenue.

Okay. And recently, the company also made some acquisition through the NCLT process of a company, I think Himalayan Mineral Water.

So basically, in Haridwar, we have 2 premises. And on the second premise of this land, which the company acquired has a land bank of around close to 20,000 meters. So through NCLT, we have acquired the company, of course, and this is not that we are going to get into mineral water business. This is basically acquisition of adjacent land basically, which is with our currently phase -- second property, which we have in Haridwar. So this is adjacent to that. So now we have a full block of around 8 acres with acquisition of this. And we are still waiting for some clearance from income tax department. So we have paid the creditor basically. We have paid advance, but we are just waiting for the final clearance through NCLT. And once it comes through, then we'll have the full acquisition done for the company, which only has the land as an asset.

So this will give us further space to make more expansion in Faridabad?

Exactly. In Faridabad. That's correct, sir. So that is the Phase 2 we are talking in Haridwar, the Phase 2.

Right. And just one more bookkeeping question. Could you give some status of the debt currently on the books and the net working capital cycle?

Currently, as on today's date, we have INR 800 crores cash. And then we have almost a borrowing of close to INR 200 crores for working capital from the bank for various limits which are assigned for imports and for stocks and everything. So net cash would be still be close to INR 600 crores. And current working capital debtor cycle is close to around 80 days and cash conversion cycle is around 115 to 120 days.

[Operator Instructions] Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr. Himanshu Baid for closing comments. Please go ahead.

I'd like to thank all the participants for joining this call. And thank you very much for your questions. And I think I hope we were able to answer most of them. And some couple of open topics. Of course, we will respond back directly to the participants with answers. And what I can assure you is right now that our company also is on a growth track. And of course, we have seen some realignment. But I think now I think that is the past. And I think H2, again, as we have guided for a revenue of around close to INR 1,080 crores, which is almost 25% than H1 revenue. So we are now seeing the growth coming back. And of course, out of that 10% will come from the new acquisitions, but still 90% is from the organic growth, which is going to come in. So overall, we are seeing that kind of growth. And over -- in the full year, we will see overall growth of close to 15% to 16%. Of course, we had guided for around 20% odd, but we are slightly lower than the number. But I think in the coming years, and I think we will come back to that original growth of 20% we have been projecting earlier. So I think -- and with a lot of new products coming in and new plants going online, we'll have more and more capacity to offer to national, domestic and international markets. So I think now there's a lot of realignment happened, and we are in a much better situation. So thank you again for the trust in us, and I look forward to talking to you soon. Thank you.

On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.