Thank you. We will now begin the question-and-answer session. Our first question comes from the line of Suruchi Parmar from NX Wealth Management.

Am I audible?

Just want an explanation on your stand-alone revenue growth is only 2% and the consolidated revenue growth is 16%. So is the consolidated revenue growth basically because of the new acquisitions?

Yes, that is correct.

Okay. So what about the stand-alone revenue growth, like what you are seeing going forward?

See, basically, as I have told earlier, I think we face certain headwinds on the export front, especially in the European markets. And I think that was the main reason for lower growth of stand-alone revenue. But as I've been mentioning in my previous calls also, as markets are getting better, we see conditions changing. Of course, last year has been a difficult year, especially with the freight crisis and then, of course, China dumping excessively in various markets. So we saw a muted or maybe almost a small negative growth on the export front. But now things are looking better. And I think as we see this year, especially in Europe, we are adding 5 to 6 new customers starting April. So, this will and especially in developed markets. I think this time, we are also getting some new contracts in U.K., especially with the NHS. So all that will help us to grow back the European business, which has been very laggard or lacking the growth actually.

Okay. So these customers will be for infusion therapy segment or renal or cardio? Can you specify?

Mainly for infusion because the business which has taken a little bit of a backstep is the infusion business. See that is what we are trying to grow and grow this business. So initially, you have seen that EU has transitioned to a new regulatory system from MDD to MDR. And we had to drop many products initially in the bargain because it was taking a long time to get the approvals. So many products were pending. And now as time has progressed, we have ordered a few more products in last quarter, which are EU MDR approved, which helps us to sell those products in the European market. And these are mainly critical care vascular access products, they got approval recently. And within I think next 6 months, we hope that we get another 15 new products will be EU MDR approved, which we can sell in the European markets with the same customer base and sale market. So I think that is what we are targeting right now. And all that is part of the regulatory and work we have been doing in last 6 to 8 months.

Okay. Okay. And sir, these new products that you have got approval for cardiovascular IVL and DEB, these are basically for the Indian market only, not for exports, correct?

It will take at least 2 to 3 years to get regulatory approvals for global markets. Our first task is to sell these products in India like what we are doing for DES right now. All the 7,000 stents which have been implanted are in India right now. Though we have clinical registry in Europe and India both, which is 50 to 60 people will be implanted with stents out in Europe and which have already finalized that process. And India, already as part of that program, we have already 200 patients already enrolled in the clinical registry. So gradually, see, the regulatory cycle is very, very long for medical devices, especially for critical devices which are falling in Class 3 devices, which are implantable for long term. So mostly companies spend 3 to 5 years in getting approvals for global markets.

So can you specify how much will be the market for these products, the cardiovascular products which you have got the approval?

So basically, these are completely new technologies like drug-eluting balloon, our new technology because these are used in angioplasty. And today, in India, we are implanting almost 1.3 million stents. And while we are doing around close to 700,000 angioplasties today in India. Average per patient is around 1.6, 1.7 stents. So basically, to remove the plaque and sometimes just to ensure that there are no stents, people use drug-eluting balloons. And even IVL is basically used for cutting the plaque in the arteries. So these are fairly new technologies in India and I think completely dominated by multinational companies. So I think we are one of the first pioneers to launch this product. So, market will grow, but I think I don't have any numbers because I just got the approval. But the market will keep on increasing as the stent market in last 5 years has almost doubled. So similarly, these products, probably in India, I would say around 50,000 DEBs are sold or maybe around 10,000 IVLs are sold. So eventually, these products will almost become 2x, 3x in the next 3 to 5 years.

Okay. Okay, sir. I just want to clarify one thing. Like when Poly Medicure export to either U.S. or Europe or U.K. So you sell directly to the hospitals or the doctors or you sell to their pharma distribution players?

So the business is very clearly sell to distribution partners who specifically have their own teams, medical device distributors, who specifically have their own teams, which can go to hospitals and promote the products. So we work in collaboration with these distributors, and we continuously train these people. Like last week, our team was in France, visiting at least 10 to 15 hospitals and training with the local distributors, their reps and the clinical nurses and doctors in France or we have done in the previous month in Spain before that. So we continuously engage in those kinds of programs so that they understand our product, they get more the users get more friendlier with the technologies and the products we are manufacturing. And that's a continuous process. So it's actually done through distribution partners.

Just one last question. Can you specify the revenue mix going forward in FY '27, what you envision from cardio, renal and infusion therapy?

See, in fact, we have not carved out those numbers, and we'll be able to give you more clarity once we formalize the business plan for FY '27, which should be in the next maybe 3 to 5 weeks. I think that will be to give you a better position. But what we are seeing right now that domestic business overall should grow around 25% for next year. That's the plan for next that's the plan we have been making and we are working on that. And export business should grow around 12% to 15% because we had, let's say, a lower threshold, and I think now we should grow faster. So we are seeing probably growing at 12% to 15%. So that is what we are calling out. So overall, both the businesses will grow definitely. And this is but individually, I don't have the numbers to tell you right now.

Our next question comes from the line of Nilkhant from Aquirus Securties.

Yes. Sir, if I heard correctly, you mentioned about the 20% growth in H2 compared to H1, right sir, if that is the case?

Yes.

So if that is the case, in a 4Q, you have to grow it almost around 18% to 19% on a Y-o-Y basis. But I also heard you mentioned about the quarter-on-quarter growth of almost around 10% to 11% in 4Q. So am I missing something or like can you please guide on that part?

Yes. So if you see our H1 revenue was close around INR840-odd crores, that's what the number I remember. But we will end the H2 around INR1,025 crores, INR1,030 crores. So maybe that ballpark number. I don't remember exactly. And when we look at the growth number so we are seeing almost 20% growth H1 over H2. If you see the quarter 3 numbers the revenue is close to INR493 crores and quarter 4, the revenue was close to INR530 crores or something that number close to that number. So basically, if you start computing the 2 details, it will come to rev 20% growth number.

Okay. And sir, I see the employee cost increasing very sharply, and I assume that is largely because of the acquisition, the recently acquired company because at the stand-alone level, the employee cost as a percentage is close to 20%, but at the consol level, it's 23%. So going forward, should we assume this kind of employee cost for the purpose of that modeling? Or like how do you see it?

See, as we go deeper into higher technologies, we definitely need more skilled people. Like today, if I was hiring a person for my infusion business, it will cost around INR60,000 to INR70,000 for example, ballpark. But if I'm hiring somebody for cardiology, it's going to cost me INR2 lakh a month, right? So, because last year, if you see in just 9 months in this year, we have hired over 90-odd people. Actually, number Rahul was saying is 100, close to 100. So we have almost hired 100 people. Now all these people will become productive in the coming, so we are building the whole operational structure. We are hiring clinical people because if you're trying to sell high-end medical devices, I need the skill set within the organization. We have hired a lot of people in R&D because we are supporting the other 2 acquisitions we have done. So a lot of R&D will happen at back end in India. A lot of operational excellence we are building in India for those companies also. So a lot of hiring are happening, and we are going to build that. And that is built in the model today. If you remember in the beginning of the year, we had guided for 25% to 27% EBITDA, whereas we were already doing close to 27.5% EBITDA in FY '25. Why we guided? Because we knew that we were working on these acquisitions. We knew that initially, these companies work at lower EBITDA. So the cost pressure will come in on the overall system. But now as we have done the acquisitions, we have done 1 quarter, we know where we are heading, and we still maintained on stand-alone basis 26.8% EBITDA margin. So this is very close to that 27% number higher spectrum. And I think this will continue for a while because it's important that we build the competence in the organization. These products need a lot of skilling for selling to doctors, hospitals. And if we don't have the skills, we can't sell a product for INR1.5 lakhs. From selling a product of INR15, we are now moving to selling a product of INR1.5 lakhs. So we need a lot of skill sets. And that's what we are doing right now.

Okay. Got it, sir. And sir, I assume that if I'm correct, you mentioned about from earlier guidance of machines from 550 to you have now guided to 450, right? So what is that we revised in the guidance downward side, particularly in the dialysis machine?

Yes. So dialysis machine, again, if you see, we have guided 500 to 600 machines in the beginning of the year, but we may end around at 450, certain government contracts are delayed because, again, if you look at the big most of the larger companies are selling not just selling machines, they're placing machines into hospitals. Like Fresenius and Nipro, they place machines in the hospital and then because they have a larger balance sheet, they can do that. And then they work on a 5-year, 7-year contract for supplying consumables. Here, what we are trying to do, we are trying to move away from this model, where we are able to sell the machine to the user. And that is what we are doing. And certain of course dialysis program is very well funded by the central government and also state government. So, 80% to 90% ,70%-80% of patients are going to government-driven dialysis centers. And we are working on certain large, I think, contracts. And hopefully, we might get them before March, but our current visibility is 450 machines, but we don't know, it can be 470 also. But it is prudent that to give a number, which we think is, it can be done. And I think next year, as most of these contracts may go into next year because of budgeting issues. I think we may see a lot bigger number. But again, we can't predict too much. Of course, we have, I think bidded in contracts, we have more than 600 machines already as of now, which are in pipeline. But when they come is a question mark.

Okay. And also, sir, just wanted to know by the end of the 9 months FY '26, what would be our ballpark, if you can help me with the working capital numbers?

Working capital numbers?

You want the net working capital number?

Yes.

Our net working capital number for 9 months will be close to 140 days.

140 days. Okay. Okay, sir. And sir, just one last question, if I can ask. Sir, I see ROW portion has not been picking up very fast. So what are we doing to increase that kind of, I see you're now doing good at least on a Q-o-Q basis. But when we say from the ROW perspective, like how should we do see it like when it can pick, what kind of concentrated efforts we are taking to gaining it done?

See, I'll tell you how the business. Business into 3 parts, one is India, one is Europe and one is rest of the world. So rest of the world also had Americas, Rest of the world also has Latin America, Middle East, Asia. So in every market, we have may also change. let me also brief people on the call. We have also changed the way we used to do business. Today, it's not that you can make cheaper or you can sell a product. If I need to compete with China, I have to be 10% cheaper than China, if I had to break that market. But that is not happening because China's volume numbers are very different than India, they're 10x bigger than us. So how do we win the market? How do we win contracts? How do we sell more products? So we have to reorient ourselves towards clinical side of the business. So today, we have employed more than hired more than 25 people in the clinical team, which are not going globally. So as I talked about earlier that we sent teams to France to Spain. So we are sending teams to different, different markets. And I think we have limited time, but I think and that is what is changing. And once we engage more deeply with clinicians, hospitals, in those specific markets, we will see business growing. And I think that is the strategy we've adopted 6 to 8 months ago. And we are now going to see more results from that strategy. And that's the reason we are optimistic about Europe now because we have changed the traction. And I think rest of the world, we are also doing similar exercise.

Got it, sir. Got it. And sir, just your broader sense on how do you see the EU portion shaping up well for us when compared to the Chinese dumping? And how do you see the situation going on?

See, today, it's not in my hands that I can change the situation. The only thing we can do is come with better technology products. Products which perform better in performance because these are mechanical devices. These are not pharmaceutical products, it's not a pill that you pop it. So these are metal devices, needs training. So we are focusing a lot, as I mentioned in my last meeting also -- that we have started our PACE Foundation, which is just for clinical training for doctors and nurses. We opened the first PACE Academy in Delhi, and now we are going to open more in future. So I think a lot of work is happening on the clinical side development side. And we will see better results in coming times because this industry has a very long gestation. If you see medtech industry overall, in last 25, 30 years where we've been in existence, not -- except Meril is an outlier because they have got cardiology and orthopedic products, we've just started. So there's not a single company which has come closer to what we are doing. So you have to see that this industry has complexities. This industry needs regulatory approval. This industry needs innovation. And we have been working very hard on that. And fortunately, the cash flows are very good for us, it's had sufficient. We'll keep on investing. I think it's a matter of patience. But yes, the number will start looking much better next year. I definitely hope that we should get to a 20% growth number next year. And that is our core target actually.

20% on FY '27, you are saying, right?

20% over FY '26 number.

The next question comes from the line of Ravi Naredi from Naredi Investment.

Sir, since last few con call, we are bullish, but 9 months data do not say something else. So how you compete with China in renal?

Renal is probably today 10% of our total business. I can't just say that 10% business, I'm going to compete with China, rest I'm not going to compete. So we have to continually keep fighting for the business. And I think we still are the only company making these products in India. And I think we have been pushing the government to put an antidumping on Chinese dumping, which is happening in India. They are getting products at 0 duty in India. So any industry -- forget about medical devices, any industry which has 0 duty with Chinese manufacturing, can it survive in India? I don't think so. None of the industries will survive in India with a 0 duty. Today, even on iPhones, we have 20% duty coming from outside. So -- or even cars have 100% duty, on the 120% duty. So I think fundamentally, government will have to take corrective steps to increase duties on Chinese products or products which are imported at low cost into India to ensure that the domestic market survive. Otherwise, none of the any medical device industry, today, we still are 70% import dependent on medical devices. We are not the only, let's say, player in the whole industry is dependent on imports. So the only way to come out of this is that unless until the industry is protected, even after PLI, nothing has happened. So I think fundamentally, there has to be a systemic change. And I think that is what we are working with the government on the policy side that at least for the industry building itself dependency in India, at least there should be some protection and protection from dumping from China because that has happened across every industry across the world. It is not medical devices alone.

So in renal, we are 10% only you are saying. So what is our main business?

Main business is vascular access, sir infusion vascular access. It is around close to 62%, 63% of our main business.

And in that business also, we are facing competition from China?

Sir, every industry are facing competition. Why we'll not face competition from China? Every industry is facing competition from China. I think it's a matter of time. And I think if you have heard my comments I've made to other participants earlier. Next year, we have already called out that we should come back to that 20% growth. And definitely, domestic looks better. We may grow at 25%. But international business, especially exports, we are saying between 12% to 15%. International numbers, yes.

But margins should be there because drastically margin reduced, so everything is bad shape now.

Sir, why margin in bad shape, sir? We are at 26.8% EBITDA margin. How you say margin is bad?

You see the net profit margin this quarter, 17.5% in the street of 19.7%.

It is because of 2 exceptional items which we called out in the beginning of the call. If you have not maybe heard that part.

No, no. I heard.

Yes. So this is INR15 crores of exceptional cost in last quarter because of labor code adjustment, which we had to do. Every company has done that. And secondly, there is an acquisition cost, which has been now expensed out in the last quarter, which we have done 2 acquisition of. So it's a INR15 crores. If you add back INR15 crores, you will see a similar margin, sir.

The next question comes from the line of Naman Bagrecha from IIFL Capital Services.

Sir, just a clarification. You guided for.

Sir, slightly louder.

You guided for export business for 12% to 15% kind of growth for FY '27. I presume that this includes the acquisitions as well or this.

Yes.

Or this is like own export okay.

Yes. So the international business guidance about 10% to 15% growth. And if you see 9 months, we have grown around 9% on the international business close. So maybe Rahul can correct me on the numbers, but around 9% to 10%. And hopefully, by the year-end, we should grow around 13-odd percent, I think.

Sir, can you call out the revenue contribution from these 2 acquisitions, PendraCare and Citieffe for the quarter?

Rahul can give you.

These 2 acquisitions for quarter 3 have added about INR48 crores, INR49 crores to the top line.

Okay, sir. Okay. Sir, one more thing on the India business. Given that renal is facing challenges and China being China, they might keep on dumping in every category that we are operating. How confident are you in terms of this 25% domestic business growth guidance, if you could help us in terms of what would be the drivers, etcetera?

See, if you see the numbers, as I said earlier, that domestic business, private business, which is around 88% of our current business has grown around 23% odd. And government business deliberately, we have been trying to shrink it because of somehow payments and payment cycle getting longer and also caused pressures there. So, and we don't want that because for us, more stable business because also the government is more tender-driven, so you don't know what's happening. Domestic, private business is where we are going to corporate hospitals and large hospitals, that business is more steadier for us. And we've been gaining market share. And this year, we have grown that business by 23%. That is 88% of our domestic business. So next year, because as we have many more new contracts, which have come in this year with private hospitals, today, you can see Polymed products in every top private chain in the country. This was not the case 5 years ago. So we have done a lot of work internally to match our quality performance to the top multinational players globally. And that has helped us to gain that market share. So next year also, we will be the reason we are calling it out. The next year, because of what we have done this year and also some of the new businesses we have developed over the last 6 to 8 months like cardiology, critical care and so on and so forth, that will help us to grow our domestic business by 25%.

Okay. Fair enough. One more thing on the acquisitions. What has been, let's say, I mean, your internal target in terms of how much scale can we do for these 2 businesses, let's say, in next 1 or 2 years? So currently.

Naman you're not, can you please repeat that, please? Sorry.

Yes, sir. Sorry. What could be the contribution of these 2 acquisitions going ahead, FY '27, '28? Can it be, let's say, around 15%, 16% kind of contribution, top line contribution?

No, no. So Naman, if you recall the announcement that we made about these 2 acquisitions, Citieffe when we acquired was about a EUR 17.5 million business. PendraCare was close to EUR 10 million business on an annualized basis. So we expect both these businesses to obviously grow in 2026 as well and FY '27 effectively for us. And so both these businesses added about 16% to 17% of our revenue base of FY '25. And we expect a similar portion, maybe slightly lower because our core business, hopefully will grow faster than them. So somewhere in the range of 15% or so is their revenue contribution to the overall consolidated revenue for next year.

Okay. Okay. And on the own exports business, if we look FY '27, 10% to 15% guidance includes acquisition, which implies that our own export business probably will see a single-digit kind of decline on FY '26. Am I getting this correct? Or I mean, if you could help me on this one?

Yes. I think on the organic side, which is excluding the acquisitions, our international business is currently on a flattish trend. And depending on how quarter 4 goes will go. But basically, it's going to be a low growth year, excluding the acquisition of the international business this year.

So could you also highlight in terms of what is the pricing differential between, let's say, Chinese products versus our products which we are selling in EU or let's say, the export market? And I mean, how can we, let's say, mitigate this risk going ahead?

I think, Naman, if you've heard earlier, what I said that we have won some new contracts in larger European markets. So that will help us to get back the revenue, which we were missing. And I think there were delay in a lot of contracts. I think NHS has almost delayed every contract by 1, 1.5 years because of change in government in the U.K. And also, we have other, let's say, markets we are trying to bring in more products as we're getting more CE Mark products, another 10 to 15 products in the pipeline, a few products have already been done recently. So that's the reason we are able to see that visibility. And I think -- and we will give that number more final number, let's say, maybe end of quarter 4 when we have a final business plan coming from all our, let's say, business unit heads, and then we'll compile it and come back to you. But that is what we see today.

And sir, you also called out.

I would request you to rejoin the queue.

Yes, correct. I think Naman, we have to talk to other people also.

The next question comes from the line of Harsh Doshi from Marcellus Investment Managers.

You alluded that you have adopted a new strategy with respect to having a clinical study team, especially for the international market. Now in the geographies which we have would have adopted the strategy, let's say, 8, 9 months ago, are we seeing any early signs of success in those markets wherein even though we are a bit more expensive than the Chinese, we are able to gain market share or anything like that?

See, before that, we were more relying on our distributors to put our products in the market, right? So now what we realized that, it is they are not able to do justice in terms of the clinical advantage of the product vis-a-vis other products which are sold in the market. So that is the reason we have started sending our own teams to sit with a clinical expertise so that they can understand what exactly is happening in those markets. What are the nuances which are needed for this product, what people need to see as a differentiator. And we are able to bring them out. And that's the reason we have won new contracts in NHS, we have won new contracts in Europe, mainly in Germany, and that's the reason for this change. And it's already happening. We're adding at least 4, 5 new products in France, as we speak. Spain, we are adding 2, 3 new products. So every market, we have started adding new products after our clinical teams have started visiting. Earlier, we were only focusing on the distributors. So this adds on to the continuity of the business and also enhances our presence in the market.

And the size of this team in India is about 300, 400 people, right?

India, we have close to 500-plus people in India.

And when will we be looking to have such a large team in these markets, Europe, rest of the world as well? I mean, have a 700 member team and replicate our India strategy in the global market?

So I mean, I don't think the idea is to have such a large team. India if you think about it, India is not one country, right? it is one country, but it is a mix of very different, different geographies and states, right? So a much difficult country to cover the number of hospitals, the clinicians...

So we are reaching out 8,000 hospitals today and 8,000 hospitals have each hospital 10 to 15 departments. And then we have 6 verticals. So you need expertise in every area. It's not you can't be generalist. That's the reason you don't see too many medical device companies of that scale in India because people not invested in the clinical. We are only trying to sell products and say I'm cheaper so buy my product. Nobody is going to buy the product if it's cheaper, unless until you come with and want to focus and compete with the large multinationals. You have to talk about clinical advantages. And today, Polymed is exporting to 125 countries. So we have an advantage on the product. We in certain product categories, we have global leadership, like we are #3 in IV catheter market globally. And tell me which company has 10% to 12% market share in one single product globally? So that is what we are trying to develop as an expertise, skill set. And I think that will that's what we have done globally, and we're trying to replicate that in India. And that's how it's going to help us to increase our market share and build more, sell more products in India.

Yes, yes. So India, see we have almost close to 40 to 45 clinical people in India. And also, we are training a team which can now go overseas to different markets and also train other people who are working with our distributors to train them also clinically. So that's the competence we are building. Of course, there are language barriers. There are technical every country, there's a different usage pattern. So we are developing all that knowledge and skill, which will help us to grow our business in the future. We have done last 4, 5 years, 20% constant growth. So I think we think we can come back to that number easily. And probably this year was a very difficult year and not everything can be same all the time. So I think we have learned from what we have to do. And I think we have been implementing that very strongly. And especially without compromising the margins. I think that is also 5%.

The next question comes from the line of Bharat Shah from Shah Family Office.

First of all, a gentle comment. I think right at the beginning of the call, there was so much of information loaded for 15, 17 minutes and speed which is unmatched, it is really, really difficult to grasp all the things that are being said. I think it may be more helpful if there is an initial curtain raiser for a few brief minutes. Good amount of details are given in the presentation. And then I think the discussion can be elaborated because when continuous 15, 17 minutes of information being put out at a speed which is at least for me, difficult to...

Bharat, taken, and I'll ensure that next time, we will ensure that we put more information in the presentation for sure. And we'll keep more time for discussions. And of course, we get very valuable comments, advice from people on the call. And I think we take every advice seriously, every suggestion seriously. So that helps us a lot to improve better in coming quarters, coming years.

Sure. Because that way, it allows a more meaningful discussion on strategy and outlook to happen, which is the reason is a well-wisher I thought I wanted to bring about.

Well taken.

Sure. Secondly, on the on one end, I heard for the next year, your first time talking about the top line. I'll come to the profit pool separately. On the top line, you say domestic business should probably grow around 20% to 25%. And International business should grow around 12% to 15%. On the other end, I also heard a comment that total business probably will grow by 20%. So I'm assuming, say, in the current year, about INR1,850-odd crores of consolidated turnover based on your overall submission for second half versus the first half. So are we saying that INR1,850 crores of consolidated turnover is likely to grow by 20%?

But mathematically, it doesn't seem to combine. For example, domestic growth, domestic piece is about one-third. And if that grows at 25%, that will give you about 8% of the total growth. If international piece is two-third, even if it grows at 15%, then that will give you about 9-odd percent. So the 2 together still can't add more than 17%, even if I assume higher range of the growth 25% and 15% instead of 20% and 12%.

Bharat bhai, I think we you have not considered is the other companies which we run outside India, and they will also contribute to the growth. So one of the companies Plan1 Health, which is doing in oncology business, that is growing around 30%, 35% year-on-year. And other companies will grow around 15% or so odd percent. So overall, when you start calculating that, I think that's how we are saying we will be growing more than around 20% or so next financial year. Rahul can give more comment on that.

Bharat bhai, just to add, obviously, this year, the INR1,850 crores number that you mentioned includes the acquisitions only for the part period. As those numbers get accounted for the full year basis will also contribute to the growth. So I think what Himanshu mentioned 20% on the consolidated revenue also will have an impact of the full year consolidation of these 2 acquisitions.

But if I include both the acquisitions for a full year and assuming both the acquisitions themselves will grow, so EUR 17.5 million and EUR 10 million, that gives you about EUR 27.5 million. If they grow by even 10% or 15%, that should be EUR 30 million. Then virtually most of the growth next year would only come from these 2.

No, Bharat bhai, we also had partial consolidation of these in this year also, right? So that's in the base also. INR1,850 crores that you mentioned, also has the impact of the part period consolidation here.

Okay. Just to clear the confusion, independent of these 2 entities which are sought to be consolidated independent of the 2 acquisitions, can we say the stand-alone domestic the domestic piece per se will grow at about 25%. And without these 2 acquisitions, our international business will grow around 12% to 15%. Is that something I'm right in my understanding?

Yes, absolutely.

Okay. Then I think the overall number should be higher than 20% is my understanding. But I hope.

Bharat bhai, we are definitely going to go for higher growth for sure. But I think as prudence, that is what we are calling out. And hopefully, we can deliver better numbers. Definitely, we are working on a lot of integration, a lot of things which are happening. And hopefully, the number will be better. But I think it is just because we don't have a final number today, which I can call out, say, Bharat bhai, this is the final number I'm calling out. These are we're still finalizing the business plan for FY '27. For subsidiaries, we already finalized. India business and international business, we have finalized the business plan. So I think next 3 to 4 weeks, 5 weeks, we'll have a better visibility. So definitely, on the next call, when we'll do, we'll have a very finite number to call out for all our investors.

Okay. Just one last thing. Because the new subsidiary, new acquisitions have a different profit margin, our stand-alone domestic business, of course, is a far superior margin. And our international business also has a superior margin other than these acquisitions. And there is a differing competitive situation on all the 3 pieces right now. So if I focus on the profit pool rather than trying to work on each of the different pieces, the overall profit pool of the current year, assuming at an operating profit level, last year, we did about INR450 crores. This is without counting other income and interest and depreciation. So about INR450 crores of operating profit we made. And from both, it looks like the FY '26 probably will be something similar or a little bit here and there in terms of the operating profit is my assumption. These operating profit pool in the FY '26, what kind of growth do you believe for '27 is a fair assessment?

Bharat bhai, see, I don't have, again, the finite number. I will be able to give more clarity, guidance in our next call. But I think once we do our Q4 call, we'll be able to give you more guidance for the final year because I think it's too early to call out a number for next year when I don't have the final number. But what we, I can guide is currently on the revenue side because that is what we are seeing, and we are giving a range also. But I think once we see quarter 4 going out, then we will have a better visibility on that, better visibility margins, products, everything. So it will be unfair to call out that number today.

Okay. Just last bit of question. Can I assume the next year, your operating profit pool will grow at a rate faster than the turnover, equal or lower?

So Bharat bhai, just on profit pool, right, because as the impact of so you mean the absolute number or you're talking about the margin? Just for me to clarify, to be clear.

No. I'm not talking of margin. I'm saying, current year, our, let's say, turnover is INR1,850 crores, and we are saying, hopefully, we'll grow at the rate of 20% or more in the next year. Our current year profit pool, I'm assuming at an operating level is about INR450 crores, INR460 crores, let's say, without counting exceptional debit of INR15-odd crores. I'm saying that operating profit pool, if top line will grow at 20%, whether operating profit pool will grow higher than 20%, equal or lower?

I think it will be more or less equal, Bharat bhai.

Okay. Okay, fine. We'll discuss in greater detail separately.

The next question comes from the line of Jainis Chheda from Kemfin Family Office.

Yes. Just one question from my end on the competitive side that, our two-third of the revenue comes from international market. And in India, as you are saying that Chinese competition is still in here trying to get into like you are hoping that there is some antidumping duty I think of that sort in the domestic market. But what about the international market? How do you compete with China in the international markets?

So let me tell you, see, what happens is our basket is very large. We have a product basket of almost 200-plus products on manufacturing side, right? And most of these products we export. But when we see products which have more technological differentiation, those are the products where Chinese companies will be able to make cheaper and because their volumes are 10x, 20x from India today, manufacturing volumes. Now products where we have patents today, if you see Polymed is around 375-plus patents as a company. So wherever we have technological advantage on the product, clinical advantage, that is where we can score. It's not that a business has gone to 0 international business. We are still maybe flattish, but we have still managed the market in spite of all the turmoil we have seen in the market. So it's not that market will just go to 0. Polymed has sustenance. So we have sustained the market. And next year, we are going to see the growth coming back because we are going to add so many new products. Already we have launched 19 new products this year in 9 months, if you read the document, which we have put on as a presentation. So we're continuously innovating, continuously bringing new technologies. I think that's the USP of the company from last 10 years.

I understand that. But in terms of qualitative aspects, do you offer more margins to the distributors? Or do you focus on educating on your product superiority or like more on the qualitative side is what I'm trying to understand.

So quality-wise also, we are at par. If you look at the qualitative side, today, why would a European hospital use my product, if it is not good in performance or clinically is not equivalent or superior than what we are using. So that's the most important part. Even if my price is 0, nobody will use it if my quality fails. So I think that's very clear that qualitatively, because we have many, many approvals globally, whether FDA, CE Marks or Canadian approvals or TGA approvals in Australia or different markets. So that helps us to stay in the market at a competitive level in qualitative terms.

And secondly, as you are moving into more higher-end products, do you see margins to move northwards from here over 3 to 5 years perspective?

I think so, too. I think I agree with you on that front. And I think because as I have told you, we are moving more in the technological side if you initial part of the call was about that disclosure that how the company move up the value chain. So definitely, when we sell orthopedic products or cardiology products or critical care products, our gross margin percentage should keep on improving. And that's what we think, and that's how we are planning ourselves for future.

Could you repeat that? Sorry, it was very I was not able to hear it.

Are you looking at other regions as well, such as Middle East or Southeast Asia or anything of that sort?

We are present in 125 countries, most important markets in the world. So we'll continue to expand our presence because, again, just by distribution partners, having there is not going to improve our market share. So the only way is to put our clinical teams there, and that is what we are building. So we are hiring more people internationally. We're hiring more people in India who can travel internationally and support the existing distribution network. So -- and that's going to happen across the world. It is not going to happen in a few markets. These are going to happen at least 25 to 30 important markets we are serving today.

Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Himanshu Baid for the closing remarks.

I'd like to thank everybody on the call, and thank you for your questions. And I think really, these probing questions make us more resilient. And also I want to assure everybody that the company is doing well, and we are on the growth path, a lot of new technology. And I also invite you to visit our facilities to get a better viewpoint of the company, what kind of technologies we are using in manufacturing. Some of you have already visited, but I'll invite you other people, Rahul and his team, while we'll facilitate that visit the plants. And then we'll help you to understand the technology road map we have laid out for future, for growth of Poly Medicure. And yes, I think we are looking forward to that higher growth numbers in coming future. And that's what I can assure you.

Thank you, sir. Ladies and gentlemen, on behalf of Poly Medicure Limited, that concludes this conference call. Thank you for joining us. And you may now disconnect your lines.