Poly Medicure Ltd Q4 FY26 Results Analysis: PAT Plunges 29%, EBITDA Margin Misses Targets

Poly Medicure Ltd's Q4 FY26 numbers came in soft, with revenue of Rs. 5,345.11 Cr (+21.20% YoY) and PAT growth of -29.20% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

POLYMED's Q4 FY26 consolidated revenue grew 21.2% YoY, but PAT plunged 29.2% YoY as employee costs, depreciation, and finance charges far outpaced revenue. FY26 revenue of 12.3% and EBITDA margin of 23.9% both missed management's own targets of 15% and 25-27% respectively. Acquired subsidiaries remain dilutive and working capital deterioration (receivables up 52% vs 12% revenue growth) raises earnings-quality concerns.

Key Investment Insights

Key Positives

• Consolidated revenue grew 21.2% YoY in Q4 FY26, accelerating from 16.4% in Q3, driven by domestic momentum and acquisition contributions
• FY26 standalone PAT grew 1.4% YoY to Rs.33,598 Lakh with EBITDA margin of 26.42%, significantly outperforming consolidated margins
• Material cost grew only 4.9% YoY vs revenue growth of 12.3%, indicating input cost efficiency
• QIP proceeds of Rs.50,102 Lakh utilized, with Rs.48,428 Lakh still available for deployment

Risk Factors

• FY26 revenue growth of 12.3% missed management's 15% guidance target by 270 bps
• FY26 adjusted EBITDA margin of 23.9% fell 110 bps below the 25% floor of management's 25-27% guidance range
• Consolidated PAT declined 29.2% YoY in Q4 and 5.3% YoY for FY26 due to cost spikes in employee benefits (+33.4%), depreciation (+38.9%), and finance costs (+52.5%)
• Free cash flow was negative Rs.6,202 Lakh as CFO of Rs.24,637 Lakh was fully absorbed by capex; working capital outflow of Rs.12,427 Lakh compressed cash generation
• Trade receivables grew 51.9% YoY, far outpacing revenue growth of 12.3%, indicating extended credit terms
• Acquired subsidiaries contributed 11.3% of revenue but created a 4.3% drag on PAT, with NCI losses of Rs.141 Lakh