- Its Biggest Advantage Is Clinical Research, Not Just Manufacturing
- Profits Are Growing Faster Than Revenue, but Margins Remain Modest
- International Expansion Offers Growth, but Regulation Creates Challenges
- The IPO Valuation Already Reflects Expectations of Better Profitability
- Author's Take: Should You Apply for Sahajanand Medical Technologies IPO?
Sahajanand Medical Technologies is entering the stock market with a business that benefits from rising demand for advanced heart treatments. The company manufactures medical devices such as coronary stents, balloons and heart valve systems that doctors use to treat blocked arteries and other cardiovascular conditions.
Unlike many Indian medical device manufacturers, Sahajanand has established a significant international presence. It operates across 77 countries, holds 119 granted patents and commands nearly 25% of India's drug-eluting stent market by sales volume. International markets contributed almost 74% of its FY26 revenue.
The financial performance is improving. Revenue grew 18.11% to ₹1,210.50 crore in FY26, while profit increased from ₹25.15 crore to ₹69.08 crore. However, operating margins remain lower than those of some listed peers, and the business requires substantial working capital to support its international expansion.
The ₹475.48 crore IPO opens on October 15, 2026, at a price band of ₹327–344. The entire issue is an offer for sale, meaning the company will receive no fresh capital. At the upper price, its valuation is approximately 53 times FY26 diluted earnings. The bigger question is whether Sahajanand can translate its growing international presence and medical technology capabilities into consistently higher profits.
Its Biggest Advantage Is Clinical Research, Not Just Manufacturing
Sahajanand Medical Technologies manufactures devices used in cardiovascular procedures, including drug-eluting stents that help keep blocked arteries open and structural heart devices used to treat heart-related conditions. Its vascular intervention business contributed ₹740.09 crore, or 61.14% of FY26 operational revenue. The flagship Supraflex Cruz stent alone generated ₹450 crore, representing 37.17% of revenue.
However, the company's competitive advantage extends beyond manufacturing these products. Sahajanand has invested in scientific research and clinical testing to establish the safety and effectiveness of its medical devices. It holds 119 granted patents and has conducted 75 clinical studies covering more than 35,000 patients.
Some trial results have been published in internationally recognised medical journals, including The Lancet and The New England Journal of Medicine. This matters because doctors and hospitals evaluate medical devices based on clinical evidence, regulatory approvals and treatment outcomes. Developing an affordable product is not enough if it cannot demonstrate acceptable safety and effectiveness.
These capabilities have helped the company expand internationally. In FY26, exports contributed ₹894.20 crore, or 73.87% of revenue, with Europe alone accounting for 38.66%. The opportunity is particularly interesting in structural heart devices. Revenue from this segment increased 29.08% to ₹203.06 crore in FY26, faster than the company's overall revenue growth.
For investors, the key question is whether Sahajanand can use its research capabilities and established distribution network to reduce dependence on coronary stents and expand into higher-value medical devices.
Profits Are Growing Faster Than Revenue, but Margins Remain Modest
Sahajanand's financial performance has improved considerably over the past three years.
Revenue increased from ₹901.60 crore in FY24 to ₹1,210.50 crore in FY26. More importantly, the company moved from a net loss of ₹7.35 crore in FY24 to a profit of ₹69.08 crore in FY26. In FY26 alone, revenue grew 18.11%, while profit increased approximately 175%. The improvement is also visible in operating profitability. EBITDA increased from ₹110.05 crore in FY24 to ₹170.66 crore in FY26, while EBITDA margins expanded from 12.21% to 14.10%.
This suggests the company is benefiting from higher sales volumes and better cost absorption as its operations expand. However, profitability still has room to improve. For comparison, Poly Medicure reported a 24.40% EBITDA margin in the supplied peer data, compared with Sahajanand's 14.10%. Although the companies operate across different medical device categories, the difference highlights the importance of future margin expansion.
Cash generation has been encouraging. Operating cash flow increased to ₹105.19 crore in FY26, exceeding reported profit of ₹69.08 crore. But the business also needs considerable working capital and inventory stood at ₹309.09 crore, trade receivables at ₹286.26 crore, and the net working capital cycle was 138 days. In simple terms, substantial money remains tied up in medical devices awaiting sale and payments due from customers.
The larger question is whether Sahajanand can continue increasing profits faster than revenue while managing inventory, customer collections and manufacturing costs.
International Expansion Offers Growth, but Regulation Creates Challenges
Sahajanand operates in an industry where medical approvals can create strong competitive advantages, but maintaining those approvals can also become expensive. The global cardiovascular medical devices market is projected in the supplied industry research to grow from $26.3 billion in 2025 to $37.8 billion by 2030. Sahajanand's presence across 77 countries positions it to participate in this growth.
However, international operations also introduce regulatory and supply chain challenges. Europe is the company's largest regional market, contributing ₹468 crore in FY26. Continued access to this market depends on meeting evolving European medical device requirements, including the transition to the EU Medical Device Regulation framework.
The company's raw material supply chain is another concern. Imports accounted for 77.18% of procurement in FY26, while its top 10 suppliers represented 59.15% of purchases. Any disruption involving specialised metals, polymers or medical components could affect production and increase costs.
There is also concentration in the distribution network. Some international product registrations are held under the names of third-party distributors, meaning changes in these relationships could affect the company's ability to market products in certain countries.
The interesting trade-off is that Sahajanand has developed a global medical device business, but sustaining international growth requires continued spending on clinical research, regulatory compliance and distribution relationships.
The IPO Valuation Already Reflects Expectations of Better Profitability
At the upper IPO price of ₹344, Sahajanand Medical Technologies is valued at approximately 53 times FY26 diluted earnings. This valuation reflects expectations that its product portfolio, international business and improving profitability can support future earnings growth.
However, the peer comparison deserves attention. In the supplied comparison, Poly Medicure trades at approximately 51.40 times earnings, while Laxmi Dental trades at 36.35 times. Sahajanand therefore commands a valuation broadly comparable to Poly Medicure despite reporting lower EBITDA margins and return ratios. Its FY26 return on equity stood at 10.35%, compared with 12.90% for Poly Medicure. This suggests Sahajanand still needs to demonstrate stronger returns from the capital invested in its business.
Another important consideration is the IPO structure. The entire ₹475.48 crore issue is an offer for sale by existing shareholders. The company will receive no fresh money for research, manufacturing expansion, debt repayment or working capital. This matters because Sahajanand had ₹269.53 crore in total debt in FY26, alongside significant inventory and receivables requirements. While existing cash generation provides some financial flexibility, future expansion will depend on operating cash flows and other funding sources rather than IPO proceeds.
Investors can compare the issue with other upcoming IPOs and refer to INDmoney's IPO analysis guide to understand how profitability, financial risks and valuation influence an IPO's investment case.
Author's Take: Should You Apply for Sahajanand Medical Technologies IPO?
Sahajanand Medical Technologies presents an interesting combination of established medical technology, international market access and improving financial performance. Its leadership in India's drug-eluting stent market, 119 granted patents and distribution network across 77 countries provide meaningful competitive advantages. The company's return to profitability and stronger operating cash flows also indicate financial progress.
However, investors should look beyond the recent earnings growth. The company remains dependent on its flagship stent business, international regulations and imported components. Its EBITDA margin of 14.10% is also considerably below that of some listed medical device peers, while working capital requirements remain substantial.
At approximately 53 times FY26 diluted earnings, the IPO valuation already reflects expectations of continued growth and higher profitability. Moreover, the entirely offer-for-sale structure means the company will not receive fresh funds to support expansion or reduce borrowings. For me, the central question is not whether Sahajanand has established a meaningful position in the cardiovascular medical device industry. Its market share, clinical research and international presence demonstrate that it has.
The bigger question is whether Sahajanand can turn its growing global business into sustainably higher profit margins and stronger returns on capital.
If structural heart products expand, operating margins improve and working capital remains under control, the company's earnings profile could strengthen. However, slower growth or increasing regulatory and supply chain costs could make its current valuation harder to justify. That is what investors should monitor over the coming quarters rather than focusing only on initial IPO demand or grey market sentiment.
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