Sahajanand Medical Technologies is a medical devices company focused on Class III devices under the EU Medical Device Regulations and Class C/D devices under India's Medical Devices Rules, 2017, primarily in the fields of vascular and structural heart intervention. Founded by Dhirajlal Kotadia in 2001, the company focuses on research and development (R&D), precision manufacturing, and product innovation.

Its portfolio spans three categories: (1) vascular intervention (VI) products, including coronary stents, which help keep narrowed heart arteries open, and balloons used to widen them; (2) structural heart (SH) products, including transcatheter aortic valve implantation (TAVI) devices, replacing a narrowed aortic valve without open-heart surgery, and occluders, used to close abnormal openings in the heart; and (3) other products, including renal stents used to keep kidney drainage pathways open, peripheral drug-coated balloons (DCBs) that help treat narrowed blood vessels outside the heart, and trading products.

In Q1 FY27, sale of vascular intervention devices contributed 60.4% to revenue, sale of structural heart devices 16.05%, and others 23.55%.

The company marketed its products in 77 countries, including India, in FY26 through direct, hybrid and distributor-led models, adapting its approach to local regulatory requirements and market conditions. In India, it follows a hybrid model to serve large hospitals, including Narayana Hrudayalaya. As of June 30, 2026, the company had presence in six direct markets, 20 hybrid markets, and 39 distributor-led markets, each supported by region-specific strategies designed to maximize market penetration and operational efficiency.

In Q1 FY27, India contributed 23.84% to revenue, Europe 37.69%, and Rest of world (RoW) 38.47%.

The company had nearly 25% market share by sales volume in India's drug-eluting stent (DES) market in FY26. As of March 31, 2026, it ranked among the top five companies by DES sales volume in Germany, Spain, Poland, and Brazil. It also ranked among the top five companies by occluder sales volume in Thailand, South Korea, and India.

Innovations include Infinnium, for which it was the first globally to receive CE certification in December 2005 for an internally developed stent using a biodegradable polymer to release paclitaxel, a drug that helps prevent arteries from narrowing again.

The company operates three manufacturing facilities, two in India and one in Thailand. As of June 30, 2026, its annual manufacturing capacity included 1,260,000 catheters, 56,000 drug-coated PTCA balloon catheters, 9,600 TAVI devices and 42,000 occluders.

Its Hyderabad facility offers scope for capacity expansion, with 33% of the available area currently utilized, enabling scaling up with limited additional capital expenditure.

As of June 30, 2026, it operated two R&D centres in India and Thailand, supported by 156 professionals, including four consultants. Its intellectual property portfolio comprised 119 granted patents globally, 78 pending patent applications and five design registrations in India, as of 9 October 2026. Its R&D activities include improving existing products and manufacturing processes, developing new devices and technologies, expanding product indications, and conducting clinical trials to support entry into new markets.

The company has expanded its product portfolio and geographical reach through acquisitions and strategic partnerships. Acquisitions of distributors Imex in Spain and Zarek in Brazil enabled it to transition to a direct model in Spain and a hybrid model in Brazil. Acquisitions of Vascular Concepts and Vascular Innovations facilitated its entry into occluders and TAVI, respectively, expanding its addressable market. The company has also partnered with Philips India and Insight Lifetech to offer imaging solutions for interventional cardiologists and strengthen its capabilities in complex percutaneous coronary intervention (PCI). In addition, it has an exclusive distribution arrangement with another company for peripheral and coronary vascular thrombectomy technologies in select Indian markets.

The company intends to continue evaluating strategic acquisitions to add new product categories, technologies, and market access.

The company aims to strengthen its drug-eluting stent (DES) presence in Tier 2 and Tier 3 cities and grow TAVI and occluder sales through hospital relationships, government tenders and engagement with doctors. Internationally, it plans to expand the reach of DES, TAVI and occluders, using a distributor-led, asset-light model to enter new markets. Recent product approvals in Australia, Taiwan, Canada and Mexico support these efforts.

The company continues to develop high-value products, including coronary drug-coated balloons (DCBs) and specialty balloons, while enhancing existing offerings.

The company is also investing in vertical integration and automation to improve manufacturing efficiency and reduce import dependence.

Offer and its objects

The IPO is a complete offer for sale (OFS) of 1,38,22,116 equity shares, aggregating up to Rs 475.48 crore, by existing shareholders Shree Hari Trust, Dhirajkumar Savjibhai Vasoya, Samara Capital Markets Holding, Kotak Pre-IPO Opportunities Fund, and NHPEA Sparkle Holding B.V.

The price band for the IPO is Rs 327 to Rs 344 per equity share of face value Re 1 each.

The company will not receive any proceeds from the offer. All the offer proceeds will be received by the selling shareholders, in proportion to the shares sold by them.

The promoters are Bhargav Dhirajlal Kotadia, Dhirajlal Vallabhbhai Kotadia, Priyanka Dhirajlal Cohen, and Shree Hari Trust. The promoters and promoter group hold an aggregate of 4,14,92,500 equity shares, aggregating 40.82% of the pre-offer issued and paid-up equity share capital. Their post IPO shareholding is expected to be around 36.2%.

The issue, through the book-building process, will open on 15 October 2026 and will close on 19 October 2026.

Strengths

Offers technologically advanced products in segments with high barriers to entry.

Strong market position, with nearly 25% share of India's drug-eluting stent (DES) market by sales volume in FY26 and a top five position in DES markets across Germany, Spain, Poland, and Brazil, and occluders in Thailand, South Korea, and India.

Integrated manufacturing capabilities provide greater control over the value chain, from components to finished products. Its in-house manufacturing of key components, including balloon catheters, helps reduce costs, improve quality, and accelerate product development, while enabling shorter time to market.

Strong R&D capabilities, supported by two R&D centres and R&D spending of 9.88% of Q1 FY27 revenue. Its intellectual property portfolio includes 119 granted patents globally, 78 pending patent applications and five design registrations in India.

Established sales and distribution network across international markets, with region-specific strategies to improve market penetration and operational efficiency.

Successfully integrated acquisitions and strategic collaborations to expand its product portfolio. Acquired businesses Imex and Zarek recorded a combined revenue CAGR of 34.3% since FY20.

Its manufacturing facilities and products hold certifications from multiple international regulatory bodies, including CE, ANVISA, TGA Australia, Korean GMP and Health Canada.

Extensive experience of promoters and senior management personnel.

Weaknesses

Subject to stringent and evolving regulatory requirements across markets, which may delay product approvals, increase compliance costs and restrict sales. Certain product registrations have faced challenges, including the cancellation of a registration in Brazil and rejection of Hydra TAVI applications in Taiwan and Australia.

International sales contributed 76.16% of revenue in Q1 FY27.

A significant portion of revenue comes from a single product, Supraflex Cruz, which contributed 39% of revenue in Q1 FY27. Moreover, the vascular intervention segment accounted for 60.40%.

High dependence on imported raw materials and components, which accounted for 84.01% of total purchases in Q1 FY27.

All drug-eluting stents are subject to price ceilings in India, limiting the company's ability to increase prices and protect margins.

Operations are subject to high working capital requirements. The company reported negative operating cash flow of Rs 22.20 crore in Q1 FY27 and had working capital loans of Rs 240.99 crore as of June 30, 2026, increasing its reliance on external funding.

The company and certain of its subsidiaries have incurred losses in the past.

There are litigations (including criminal) against the company, its directors, and promoters.

Valuation

Net sales increased 18% to Rs 1,210.5 crore in FY26 as compared with FY25. OPM increased 161 bps to 14.1%, leading to 33% increase in OP to Rs 170.65 crore. OI fell 26% to Rs 8.22 crore. Interest cost rose 18% to Rs 24.43 crore. Depreciation costs went up 19% to Rs 74.16 crore. PBT surged 44% to Rs 80.29 crore. Exceptional items were nil compared to an expense of Rs 15.03 crore. Tax expenses were Rs 11.21 crore as compared with Rs 15.66 crore. Minority interest was Rs 3.8 crore compared with Rs 4.79 crore. Net profit soared 221% to Rs 65.28 crore.

In Q1 FY27, the company reported net sales of Rs 351.67 crore with an OPM of 13.81%. Operating profit stood at Rs 48.58 crore, while other income was Rs 2.67 crore. Interest expense and depreciation amounted to Rs 6.55 crore and Rs 20.41 crore, respectively. As a result, PBT came in at Rs 24.28 crore. After accounting for tax expenses of Rs 9.19 crore, net profit stood at Rs 15.09 crore. EPS has not been annualized, as annualizing quarterly earnings may not accurately reflect the company's full-year performance.

The FY26 EPS on post-issue equity works out to Rs 6.4. At the upper price band of Rs 344, P/E is 54.

The listed peers considered for valuation are Poly Medicure and Laxmi Dental. Poly Medicure is the more relevant benchmark as it operates in the medical devices industry, although its product portfolio differs from SMT's focus on cardiovascular devices. Laxmi Dental is a less direct peer, given its focus on dental products. As neither company closely matches SMT's business mix, their valuations should be interpreted with caution. Poly Medicure traded at FY26 P/E of 51, and Laxmi Dental at FY26 P/E of 31 as on 12 October 2026.

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