Sahajanand Medical Technologies IPO (15-19 October) Analysis

Sahajanand Medical Technologies Limited, commonly known as SMT, is a global medical devices company specialising in cardiovascular and endovascular interventional products.

According to an industry report cited in the RHP, the company holds a leading market share of nearly 25.00% by sales volume in the drug eluting stent (DES) market in India in Fiscal 2026, and is among the top five companies by sales volume of DES in Germany, Spain, Poland and Brazil, and of Occluders in Thailand, South Korea and India, as of March 31, 2026.

The company's flagship product is Supraflex Cruz, a biodegradable polymer based drug eluting stent, which it claims is the most deliverable stent in its class, supported by clinical studies published in journals such as The Lancet and the New England Journal of Medicine.

SMT was the first company in the world to receive CE certification for an in house developed biodegradable polymer based paclitaxel eluting stent, Infinnium, in December 2005.

Its broader product portfolio includes the Hydra transcatheter aortic valve implantation system, the Cocoon range of occluders, the Pipit range and the Sironity drug coated PTCA balloon.

The company markets its products in 77 countries, including India, through a mix of direct, hybrid and distributor led models, with direct operations in major European markets such as Germany, Spain, France and the United Kingdom.

As of June 30, 2026, the company operates two R&D centres, one in India and another in Thailand, supported by 156 professionals, and holds 119 patents granted globally with a further 78 patent applications pending.

Key Basics

This is an Offer for Sale (OFS) of 1,38,22,116 Equity Shares of face value Rs.1 each by the Selling Shareholders, constituting 13.60% of the pre Offer Equity Share capital of the company. There is no fresh issue component, and the company will not receive any proceeds from the Offer.

Particulars	Details	Particulars	Details
Issue Type	Offer for Sale (OFS) only	Face Value	Rs.1 per Equity Share
Fresh Issue	Not Applicable	Offer for Sale	1,38,22,116 Equity Shares (13.60% of pre Offer capital)
Price Band	[TBD]	Lot Size	[TBD]
Bid or Offer Opens	[TBD]	Bid or Offer Closes	[TBD]
Listing At	BSE and NSE	RHP Date	October 9, 2026

The RHP discloses a weighted average cost of acquisition of Rs.365.00 per Equity Share for primary issuances and Rs.360.02 per Equity Share for secondary transactions in the periods specified, a reasonably recent cost basis compared with several other recent mainboard offers for sale where the selling shareholders' cost basis was close to nil.

How Will the IPO Money Be Used?

As this Offer consists entirely of an Offer for Sale, the company will not receive any proceeds from the Offer. The entire Offer proceeds, net of Offer related expenses and relevant taxes, will be received by the Selling Shareholders in proportion to the Equity Shares sold by each.

The company's stated rationale for participating in the listing process is to enhance visibility and brand recognition, provide liquidity to existing shareholders, and create a public market for its Equity Shares in India.

Since the company itself receives no funds from this Offer, there is no object wise utilisation table for business purposes, and no monitoring agency has been appointed for the Offer proceeds.

Financial Performance

Revenue, EBITDA and Profitability

The table below sets out SMT's restated consolidated financial performance for the three Fiscals ended March 31, 2026, converted from Rs. Millions to Rs. Lakhs.

Particulars (Rs. Lakhs)	FY2026	FY2025	FY2024
Revenue from Operations	1,21,050.4	1,02,487.9	90,160.4
EBITDA	17,887.6	12,407.6	11,703.7
EBITDA Margin	14.78%	12.11%	12.98%
Profit After Tax (PAT, Consolidated)	6,908.2	2,515.2	(735.4)
PAT Margin	5.67%	2.43%	(0.81%)
Basic EPS (Rs.)	6.67	2.09	(1.31)
Return on Net Worth (RoNW)	10.60%	3.73%	(2.43%)

SMT reported a consolidated net loss of Rs.735.4 Lakhs in FY2024, before returning to profitability with PAT of Rs.2,515.2 Lakhs in FY2025 and Rs.6,908.2 Lakhs in FY2026. Revenue grew consistently across all three years, from Rs.90,160.4 Lakhs in FY2024 to Rs.1,21,050.4 Lakhs in FY2026, and EBITDA margin has also trended upward over the period.

Investors should note that both the parent company on a standalone basis and several subsidiaries, including SMT Cardiovascular Private Limited and Vascular Innovations Co Ltd, have individually recorded losses in one or more of the periods presented, even as the consolidated picture has improved.

The company is heavily dependent on its Vascular Intervention device category, which contributed 61.14% of revenue from operations in FY2026, and within that category, its single flagship product, Supraflex Cruz, alone contributed 37.17% of total revenue from operations in FY2026, down from 47.84% in FY2024 as the company's other product lines have grown.

Balance Sheet and Cash Flow

Particulars (Rs. Lakhs)	FY2026	FY2025	FY2024
Total Assets	1,27,643.1	1,09,489.9	97,057.7
Total Equity (incl. Non Controlling Interest)	70,229.4	59,046.8	56,631.9
Trade Receivables	28,625.5	26,347.6	21,516.8
Net Asset Value per Share (Rs.)	62.76	NA	NA
Net Cash from Operating Activities	10,518.9	7,352.3	4,110.1

Operating cash flow has improved steadily over the three Fiscals and remained positive throughout, which is a reassuring sign given the net loss reported in FY2024. Trade receivables have grown broadly in line with revenue.

The company's borrowings remain modest relative to its asset base, and it carries contingent liabilities, largely relating to income tax, goods and services tax and customs matters, aggregating Rs.1,076.1 Lakhs as at June 30, 2026.

How Does It Compare to Peers?

The RHP discloses a comparison with two Indian listed medical devices peers: Poly Medicure Limited and Laxmi Dental Limited.

Company	Revenue (Rs. Lakhs, FY2026)	RoNW (%)	NAV per Share (Rs.)
Sahajanand Medical Technologies Limited	1,21,050.4	10.60%	62.76
Poly Medicure Limited	1,87,525.9	10.37%	306.40
Laxmi Dental Limited	27,785.8	11.91%	44.27

On Return on Net Worth, SMT's 10.60% in FY2026 is broadly comparable to Poly Medicure's 10.37%, though both trail Laxmi Dental's 11.91%. SMT's revenue scale sits between the two disclosed peers. The disclosed industry average P/E of 43.87, drawn from this two company peer set, is a thin sample and should be treated as indicative rather than a reliable industry benchmark.

Key Risks

● Pure Offer for Sale with no proceeds to the company. The company will not receive any proceeds from this Offer. The entire Offer proceeds will go to the Selling Shareholders, and the Offer does not fund any business expansion, debt repayment or working capital requirement of the company.

● Consolidated net loss reported as recently as FY2024, with several subsidiaries, including SMT Cardiovascular Private Limited, SMT Switzerland AG and Vascular Innovations Co Ltd, individually loss making in one or more of the periods presented through the quarter ended June 30, 2026, and no assurance that these subsidiaries will not continue to incur losses.

● High concentration in a single flagship product. Supraflex Cruz alone contributed 37.17% of revenue from operations in FY2026, and the broader Vascular Intervention category contributed 61.14%. Certain trademark oppositions have been filed against the Supraflex trademark, and the product is also subject to price ceilings under the National Pharmaceutical Pricing Authority, which may limit the company's ability to pass on rising input costs.

● A prior Income Tax Department search under Section 132 was conducted on the company and its erstwhile subsidiary Vascular Concepts Limited in June 2022, covering head office, corporate office, factory premises and the residences of key managerial personnel, in relation to which the company has made a provision of Rs.2,045.0 Lakhs for assessment years 2015 16 through 2023 24, with the timing of any cash outflow still not determinable pending resolution.

● The company has, in the past, regularised and compounded certain non compliances with foreign exchange control regulations relating to downstream investments in subsidiaries and a corporate guarantee provided for a foreign subsidiary's borrowing, with late filing fees and compounding fees paid, and a further compounding application in relation to a separate matter disclosed as pending.

● The company has been unable to locate certain of its historical corporate records, and there have been certain instances of delay in payment of statutory dues in the past, as disclosed in the RHP's risk factors.

● Pricing of the company's medical devices in India is regulated by the National Pharmaceutical Pricing Authority, which has set price ceilings for cardiac stents and drug eluting stents among other devices, and there are reports that this list of regulated devices could be extended further.

● The company carries an unsecured loan that may be recalled by the lender at any time, and certain of its financing agreements include restrictive covenants, non compliance with which could affect its financial flexibility.

● One of the company's Promoters may have limited work experience in the business of the company as on the date of the RHP, as separately disclosed.

Positives to Note

● Leading market position in a large and growing category, with a nearly 25.00% share of the Indian drug eluting stent market by sales volume in Fiscal 2026, and a top five market position by sales volume in several other geographies including Germany, Spain, Poland and Brazil for DES and Thailand, South Korea and India for Occluders.

● Consistent revenue growth and improving profitability across the three Fiscals presented, with the company returning to consolidated profitability in FY2025 after a net loss in FY2024, and both EBITDA margin and Return on Net Worth improving in each subsequent year through FY2026.

● Established global clinical and regulatory credentials, including clinical trial results published in top tier journals such as The Lancet and the New England Journal of Medicine, and a broad intellectual property portfolio of 119 patents granted globally with 78 further applications pending.

● Diversified and growing international footprint, with products marketed in 77 countries and international revenue share growing steadily over the past three years, reducing reliance on any single geography.

● Consistently positive and improving operating cash flow across all three Fiscals presented, including the loss making FY2024, indicating that the company's core operations generated cash even when reported accounting profit was negative.

A Note on Figures

The financial figures disclosed in the Red Herring Prospectus for Sahajanand Medical Technologies Limited are stated in Rs. Millions. For consistency with our standard reporting format, all monetary figures in this article have been converted to Rs. Lakhs (1 Million equals 10 Lakhs) unless stated otherwise.