Sahajanand Medical Technologies Limited (SMT) is launching its ₹475.48 crore IPO from 15 October to 19 October 2026, with a price band of ₹327 to ₹344 per share. The issue is entirely an offer for sale (OFS), so the company will not receive any proceeds. In FY26, revenue grew 18.11% year-on-year to ₹1,210.50 crore, while profit after tax rose 174.66% to ₹69.08 crore.
This Sahajanand Medical Technologies IPO analysis examines its financial performance, valuation, business strengths, and key risks investors should assess before the issue opens.
Table of Contents
- Sahajanand Medical Technologies IPO Details
- IPO Dates and Timeline
- About Sahajanand Medical Technologies
- Business Model and Product Portfolio
- Revenue Breakdown by Business and Geography
- FY26 Financial Performance
- Why Profit Grew Faster Than Revenue
- Q1 FY27 Financial Performance
- Manufacturing, R&D and Market Position
- Cash Flow, Debt and Working Capital
- IPO Objectives and Selling Shareholders
- Sahajanand Medical Technologies IPO Valuation
- Competitive Strengths and Key Risks
- Sahajanand Medical Technologies IPO GMP and Subscription Status
- What Investors Should Watch Next
- Conclusion
The Sahajanand Medical Technologies IPO is a mainboard public issue through which existing shareholders will offer up to 1,38,22,116 equity shares. The issue size is calculated using the upper end of the price band and assumes that all offered shares are sold.
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IPO Particulars
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Details
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Company
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Sahajanand Medical Technologies Limited
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IPO issue size
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₹475.48 crore
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Price band
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₹327 to ₹344 per share
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Fresh issue
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Nil
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Offer for sale
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Up to 1,38,22,116 shares
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Face value
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₹1 per share
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Lot size
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43 shares
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Minimum retail investment
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₹14,792
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IPO opening date
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15 October 2026
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IPO closing date
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19 October 2026
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Tentative listing date
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23 October 2026
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Proposed exchanges
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NSE and BSE
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Registrar
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MUFG Intime India Private Limited
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Source: SEBI Red Herring Prospectus (RHP) and IPO schedules referenced in the supplied data. The issue size is based on the upper price band.
At the lower price band of ₹327, the total offer value would be approximately ₹451.98 crore. The difference between the two values reflects the price at which the offered shares are sold, not a change in the number of shares offered.
IPO Reservation
The net offer is allocated across investor categories under the book-building structure.
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Qualified Institutional Buyers (QIBs): Not more than 50% of the net offer.
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Non-Institutional Investors (NIIs): Not less than 15% of the net offer.
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Retail Individual Investors (RIIs): Not less than 35% of the net offer.
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Eligible employees: Reservation of up to 2,50,000 equity shares.
The final allocation depends on the applicable offer structure and allotment provisions.
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Get the latest details on the Sahajanand Medical Technologies IPO, including the price band, issue size, bidding schedule and key offer details, before the issue opens.
The Sahajanand Medical Technologies IPO date for opening is 15 October 2026, and the issue closes on 19 October 2026. Investors should distinguish the bidding period from the subsequent allotment, refund, and listing process.
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Event
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Date
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Anchor investor bidding
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14 October 2026
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IPO opens
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15 October 2026
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IPO closes
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19 October 2026
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Basis of allotment
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21 October 2026
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Refund initiation
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22 October 2026
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Shares credited to demat accounts
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22 October 2026
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Tentative listing
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23 October 2026
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The UPI mandate deadline is 5:00 PM on 19 October 2026. Dates after the issue closes are tentative and may change.
Minimum and Maximum Retail Investment
At the upper price band of ₹344, the investment amount depends on the number of lots applied for.
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Application
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Investment at ₹344
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1 lot, 43 shares
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₹14,792
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5 lots, 215 shares
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₹73,960
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10 lots, 430 shares
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₹1,47,920
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13 lots, 559 shares
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₹1,92,296
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One lot requires an investment of ₹14,792 at the upper price band. For a retail application subject to the ₹2 lakh threshold, 13 lots is the highest whole-lot quantity within that limit.
Sahajanand Medical Technologies Limited is an Indian medical technology company that develops and manufactures cardiovascular devices used to treat conditions affecting the heart and blood vessels.
The business traces its origins to a partnership formed in 1999 and was incorporated as a company in October 2001. Its registered office is in Surat, Gujarat, while its corporate office is in Mumbai.
SMT operates in two principal areas:
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Vascular intervention: Medical devices used to treat narrowed or blocked blood vessels, particularly coronary arteries.
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Structural heart: Devices used to treat certain heart valve conditions and structural abnormalities of the heart.
These products require specialised engineering, clinical evidence, manufacturing quality and regulatory approvals. Consequently, the company's ability to develop new products and maintain access to regulated markets is central to its business performance.
Promoters and Management
The promoters identified in the RHP are:
Bhargav Dhirajlal Kotadia serves as Managing Director and Chief Executive Officer, while Dhirajlal Vallabhbhai Kotadia serves as Chairman Emeritus and Non-Executive Director.
SMT has expanded from coronary stents into structural heart devices and other cardiovascular products, supported by research and development and an international distribution network.
SMT generates revenue by developing, manufacturing and selling cardiovascular medical devices to hospitals, healthcare institutions and distributors. Its portfolio comprises vascular intervention devices, structural heart products and other medical devices.
The mix matters because each product category can have different growth opportunities, manufacturing requirements, margins and regulatory considerations.
1. Vascular Intervention Devices
Vascular intervention is SMT's largest business segment, accounting for 61.14% of FY26 revenue, or ₹740.09 crore.
Its products include:
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Drug-eluting coronary stents.
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Coronary balloon catheters.
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Devices used in procedures to open narrowed or blocked blood vessels.
A drug-eluting stent (DES) is a small expandable device placed inside a narrowed artery. It releases medication intended to reduce the risk of the artery narrowing again.
The company's important products include the Supraflex family of coronary stents, particularly Supraflex Cruz. This product range provides an established revenue base, but its substantial contribution also creates product concentration risk.
2. Structural Heart Devices
Structural heart devices are used to treat certain heart valve conditions and congenital or acquired structural abnormalities.
SMT's key products include:
TAVI allows doctors to replace an aortic valve through a catheter-based procedure rather than conventional open-heart surgery in appropriately selected patients. Occluder devices are used to close certain openings or defects in the heart.
Structural heart products contributed 16.77% of FY26 revenue, compared with 12.26% in FY24. Their increasing contribution indicates that the business is gradually expanding beyond its core coronary stent portfolio.
3. Other Medical Devices and Products
The Others category includes:
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SMT's own-brand renal stents.
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Peripheral drug-coated balloons.
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Traded medical device products.
Not all revenue in this category comes from products manufactured by SMT. Traded goods may have different margin characteristics from proprietary products, so investors should not interpret higher category revenue as equivalent to growth in internally manufactured devices.
SMT's FY26 revenue reached ₹1,210.50 crore, supported by growth in structural heart products, other medical devices and international markets. Product and geographic revenue disclosures help identify the sources of this growth and the areas where concentration remains.
Revenue by Product Category in FY26
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Business category
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FY26 revenue and share
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Vascular intervention
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₹740.09 crore (61.14%)
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Structural heart
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₹203.06 crore (16.77%)
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Others
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₹267.35 crore (22.09%)
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Total
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₹1,210.50 crore (100%)
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Source: SEBI RHP, restated business revenue disclosures.
The product mix shows three important developments.
Vascular intervention remains the core business. Revenue increased from ₹674.97 crore in FY25 to ₹740.09 crore in FY26, representing growth of approximately 9.65%. The segment remains the largest contributor, making its performance important to overall revenue stability.
Structural heart is growing faster than overall revenue. Revenue rose from ₹157.32 crore in FY25 to ₹203.06 crore in FY26, an increase of approximately 29.08%. Sustained growth in this segment could gradually diversify the company's revenue base.
The Others category recorded the fastest growth among the three segments. Revenue increased from ₹192.59 crore to ₹267.35 crore, representing growth of approximately 38.82%. However, when assessing the profitability and sustainability of this growth, the contribution from traded goods needs to be considered.
Revenue by Geography
SMT generated nearly three-fourths of its FY26 revenue outside India. Europe was its largest geographic revenue contributor.
SMT Revenue FY25
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Geography
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FY25 Revenue
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India
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₹320.65 crore
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Europe
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₹337.76 crore
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Rest of the world
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₹366.47 crore
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Total
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₹1,024.88 crore
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SMT Revenue FY26
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Geography
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FY26 Revenue
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India
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₹316.30 crore
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Europe
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₹468.00 crore
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Rest of the world
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₹426.20 crore
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Total
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₹1,210.50 crore
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The geographic contribution to FY26 revenue was:
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India: 26.13%
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Europe: 38.66%
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Rest of world: 35.21%
European revenue increased by approximately 38.56% year-on-year, while Indian revenue declined by approximately 1.36%. This indicates that international business, particularly Europe, was the main contributor to FY26 revenue growth.
International exposure gives SMT access to a wider customer base, but it also creates risks relating to foreign exchange movements, overseas regulatory requirements, pricing conditions and country-specific healthcare demand.
Global Distribution Network
During FY26, SMT generated revenue from customers in 77 countries, including India. Its distribution structure combines direct operations, hybrid markets and distributor-led markets.
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Distribution metric
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Position as of 30 June 2026
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Direct markets
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6
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Hybrid markets
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20
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Distributor-led markets
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39
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Distributors in India
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118
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Distributors outside India
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265
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Its direct international markets include France, Germany, Poland, Spain, Switzerland and the United Kingdom.
The distribution network allows SMT to reach international customers without building an equally large direct sales infrastructure in every country. The RHP also reports revenue-generating customers in 65 countries during the quarter ended June 2026. This is a different reporting period from the full-year FY26 figure of 77 countries and should not be treated as a like-for-like decline in geographic reach.
Sahajanand Medical Technologies reported higher revenue, EBITDA and net profit in FY26. However, the improvement in net profit was substantially greater than revenue growth, making it important to distinguish recurring operating performance from the effects of exceptional expenses and tax adjustments.
FY26 vs FY25 Financial Results
The following table summarises the company's consolidated financial performance for the two financial years.
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Financial metric
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FY25
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FY26
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Revenue from operations
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₹1,024.88 crore
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₹1,210.50 crore
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Total income
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₹1,035.96 crore
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₹1,218.73 crore
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EBITDA
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₹128.02 crore
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₹170.66 crore
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EBITDA margin
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12.49%
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14.10%
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Profit before tax
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₹40.81 crore
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₹80.29 crore
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Profit after tax
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₹25.15 crore
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₹69.08 crore
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PAT margin
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2.45%
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5.71%
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Diluted EPS
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₹2.01
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₹6.48
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Return on capital employed
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10.37%
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11.57%
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Return on equity
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3.68%
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10.35%
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Source: Restated consolidated financial information in the October 2026 RHP. Figures are rounded to two decimal places.
Revenue Growth
SMT's revenue from operations increased from ₹1,024.88 crore in FY25 to ₹1,210.50 crore in FY26, representing 18.11% year-on-year growth.
Revenue also increased from ₹901.60 crore in FY24 to ₹1,210.50 crore in FY26, showing expansion over two completed financial years.
The key contributors to FY26 growth included:
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Higher revenue from European markets.
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Expansion of the structural heart product portfolio.
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Stronger sales in the Others category.
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Continued contribution from the core vascular intervention business.
The geographic figures indicate that growth was not evenly distributed. Europe expanded strongly, while revenue from India declined slightly. Investors should therefore monitor whether domestic performance improves and whether international growth remains broad-based.
EBITDA Growth and Margin Expansion
EBITDA increased from ₹128.02 crore in FY25 to ₹170.66 crore in FY26, representing growth of approximately 33.30%.
The EBITDA margin improved from 12.49% to 14.10%, an expansion of 161 basis points.
EBITDA grew faster than revenue, indicating improved operating profitability. This is a positive development because it suggests that the company generated more operating earnings for each rupee of revenue.
Nevertheless, SMT continues to spend on employee costs, clinical research, international business development and product innovation. Investors should assess whether the improved margin can be sustained as the company expands its product portfolio and markets.
Profit After Tax
SMT reported profit after tax of ₹69.08 crore in FY26, compared with ₹25.15 crore in FY25. This represents 174.66% year-on-year growth.
The PAT margin increased from 2.45% to 5.71%. The company had reported a net loss of ₹7.35 crore in FY24, so the three-year trend shows a transition from a loss to higher profitability.
However, the headline profit growth rate does not tell the whole story. FY26 earnings benefited from improved operating performance, the absence of certain FY25 exceptional expenses and a tax credit relating to earlier years.
Sahajanand Medical Technologies' 174.66% FY26 PAT growth was much higher than its 18.11% revenue growth. The difference reflects both improved operating performance and factors that may not recur in future periods.
1. Improved Operating Profitability
The EBITDA margin increased from 12.49% in FY25 to 14.10% in FY26. EBITDA therefore grew faster than revenue, supporting the improvement in operating earnings.
Profit before exceptional items and tax also increased, indicating that the improvement was not limited to the final net profit figure.
2. FY25 Included Exceptional Expenses
SMT recognised exceptional expenses of ₹15.03 crore in FY25, primarily relating to technical and commercial diligence costs and severance payments.
The absence of these expenses in FY26 improved the year-on-year comparison. As a result, part of the reported PAT growth reflects a lower comparison base rather than a corresponding increase in recurring earnings alone.
3. FY26 Benefited from a Prior-Year Tax Credit
The FY26 financial statements include a ₹8.71 crore tax credit relating to earlier years, following a reduction in tax demands for certain assessment years.
This reduced the tax expense reported for FY26 and supported net profit. Such adjustments should not automatically be treated as recurring earnings because similar credits may not arise every year.
4. Core Profit Growth Was Lower Than Headline PAT Growth
Profit before exceptional items and tax increased from approximately ₹55.84 crore in FY25 to ₹80.29 crore in FY26, representing growth of approximately 43.78%.
This is considerably lower than the 174.66% increase in reported PAT.
What this means for investors: SMT's underlying profitability improved in FY26, but the headline net profit growth rate was amplified by exceptional expenses in the previous year and a tax credit in the current year. Future performance should be assessed through operating margins, recurring profit growth, cash generation and sustainable tax expenses rather than PAT growth alone.
The Sahajanand Medical Technologies IPO prospectus also provides financial information for the three months ended 30 June 2026, corresponding to Q1 FY27. These figures offer an early view of performance in the current financial year.
Q1 FY27 Financial Highlights
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Financial metric
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Q1 FY27
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Revenue from operations
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₹351.67 crore
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EBITDA
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₹48.58 crore
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EBITDA margin
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13.81%
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Profit after tax
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₹15.09 crore
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PAT margin
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4.29%
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Diluted EPS
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₹1.45
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Total borrowings at quarter-end
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₹320.63 crore
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Operating cash flow
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-₹22.21 crore
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The quarter's revenue mix was as follows:
Geographically, India contributed 23.84% of revenue, Europe 37.69% and the rest of the world 38.47%.
What Stands Out in Q1 FY27?
Profitability: The EBITDA margin was 13.81%, compared with 14.10% for the full FY26 financial year. The PAT margin was 4.29%, against 5.71% in FY26. These are comparisons between one quarter and a full year, not year-on-year quarterly comparisons. Seasonality and changes in product or geographic mix may affect margins.
Borrowings: Total borrowings increased from ₹269.53 crore at the end of March 2026 to ₹320.63 crore at the end of June 2026, an increase of ₹51.10 crore based on the reported balances.
Cash generation: Operating cash flow was negative ₹22.21 crore despite positive net profit of ₹15.09 crore.
These figures make cash conversion, debt levels and quarterly profitability important indicators to monitor after listing. One quarter alone does not establish a long-term trend, but it highlights areas requiring further assessment.
SMT's competitive position depends on its ability to develop, test, manufacture and obtain regulatory approvals for specialised cardiovascular devices. Its manufacturing facilities, research capabilities, patents and position in selected markets are relevant to its growth prospects.
Manufacturing Facilities
The company operates three manufacturing facilities:
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Surat, Gujarat.
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Hyderabad, Telangana.
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Nonthaburi, Thailand.
Manufacturing operations in India and Thailand provide a production base across more than one country. However, these facilities require specialised equipment, quality controls, regulatory compliance and continued investment.
Manufacturing Capacity Utilisation
Capacity utilisation indicates how much of the available manufacturing capacity is being used. SMT's FY26 utilisation figures differ considerably across product categories.
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Product category
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FY26 capacity utilisation
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Coronary stents
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78.31%
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Catheters
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91.73%
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Drug-coated PTCA balloon catheters
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1.81%
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TAVI devices
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19.82%
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Occluders
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34.68%
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Catheter manufacturing had relatively high utilisation at 91.73%, leaving less unused capacity than several other categories.
By contrast, TAVI, occluder and drug-coated balloon manufacturing capacity had considerably lower utilisation. This may provide room to increase production without a proportionate expansion of installed capacity.
However, unused capacity does not automatically translate into higher sales or profit. The benefit depends on demand, product approvals, sales execution, manufacturing costs and the company's ability to increase utilisation efficiently.
Research and Development
Research and development is important to SMT because cardiovascular devices require specialised engineering, testing, clinical evidence and product validation.
FY25 R&D Expenditure
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R&D Metric
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FY25
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R&D expenditure
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₹92.99 crore
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R&D as a percentage of revenue
|
9.07%
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FY26 R&D Expenditure
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R&D Metric
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FY26
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R&D expenditure
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₹104.16 crore
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R&D as a percentage of revenue
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8.61%
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R&D expenditure increased in absolute terms, while its share of revenue declined because revenue grew faster than R&D spending.
For the three months ended June 2026, R&D expenditure was ₹34.74 crore, equivalent to 9.88% of revenue.
As of 30 June 2026, SMT had 156 R&D professionals, including four consultants, across its research operations in India and Thailand.
Continued R&D spending can support product development, but the commercial benefit depends on successful testing, regulatory approval, physician adoption and sales.
Patents and Intellectual Property
According to the RHP, SMT had the following intellectual property portfolio:
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119 patents granted globally.
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78 patent applications pending.
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Five design registrations in India.
Patents and design registrations may support product differentiation and create barriers to entry. However, intellectual property does not guarantee commercial success or eliminate competition. Medical devices must still demonstrate clinical performance, secure relevant approvals and gain acceptance among physicians and hospitals.
Market Position
According to the Frost & Sullivan market research report included in SMT's RHP, the company held nearly 25% of India's drug-eluting stent sales volume in FY26.
The report also placed SMT:
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Among the top five companies by drug-eluting stent sales volume in Germany, Spain, Poland and Brazil as of 31 March 2026.
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Among the top five companies by occluder sales volume in India, South Korea and Thailand.
These estimates come from a company-commissioned industry report. They relate to specific products, markets and reporting periods and should not be interpreted as independently reported market shares across the entire medical device industry.
SMT's annual operating cash flow improved between FY24 and FY26. However, borrowings also increased, and the company recorded negative operating cash flow in Q1 FY27. This makes the relationship between accounting profits, cash generation and funding requirements important for the IPO assessment.
Operating Cash Flow
Operating cash flow represents cash generated or consumed by the company's operating activities.
|
Period
|
Operating cash flow
|
|
FY24
|
₹41.10 crore
|
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FY25
|
₹73.52 crore
|
|
FY26
|
₹105.19 crore
|
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Q1 FY27
|
-₹22.21 crore
|
FY26 operating cash flow increased by approximately 43% from FY25. The improvement indicates that the company generated more cash from operations over the full financial year.
However, operating cash flow turned negative in the June 2026 quarter. Positive accounting profit does not always translate into immediate cash because cash can be tied up in receivables, inventory and other working capital requirements.
Investors should monitor whether this quarterly cash outflow reverses in subsequent periods or becomes a recurring funding concern.
Investing Cash Flow
SMT recorded a net investing cash outflow of approximately ₹130.03 crore in FY26, exceeding operating cash flow of ₹105.19 crore.
This difference highlights the importance of understanding how the company funds its investment activities. The investing cash outflow should not be treated entirely as capital expenditure without examining its components, which may include capital investment and other investing activities.
If operating cash generation remains below investment requirements, the company may need to rely on existing cash balances, borrowings or other funding sources.
Borrowings
SMT's total borrowings increased over the reported periods.
|
Reporting date
|
Total borrowings
|
|
March 2024
|
₹175.27 crore
|
|
March 2025
|
₹224.96 crore
|
|
March 2026
|
₹269.53 crore
|
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June 2026
|
₹320.63 crore
|
Borrowings increased by approximately ₹51.10 crore during Q1 FY27 based on the reported balances.
The company's net debt-to-EBITDA ratio was 1.12 times in FY26, compared with 0.91 times in FY25. The increase indicates higher net debt relative to annual EBITDA.
The RHP also reports a quarterly net debt-to-EBITDA figure. Because quarterly EBITDA is not annualised in that calculation, it should not be compared directly with the full-year ratios.
A key consideration is that the IPO is entirely an OFS. The proceeds will go to selling shareholders rather than the company, so the issue will not directly provide funds to reduce borrowings.
Working Capital Efficiency
Working capital is the funding required to support day-to-day business operations, including inventory and customer receivables. SMT's reported net working capital days improved between FY24 and Q1 FY27.
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Period
|
Net working capital days
|
|
FY24
|
144
|
|
FY25
|
144
|
|
FY26
|
138
|
|
Q1 FY27
|
130
|
The reduction indicates improved working capital efficiency under the company's calculation methodology.
However, the negative operating cash flow in Q1 FY27 shows why investors should also examine actual changes in receivables, inventory and other working capital balances. Lower reported working capital days do not by themselves guarantee consistent cash generation.
The Sahajanand Medical Technologies IPO is entirely an offer for sale. Existing shareholders will sell their shares to IPO applicants, and the company will not issue new equity shares through a fresh issue.
Where Will the IPO Proceeds Go?
The principal objectives disclosed in the RHP are:
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To facilitate the offer for sale of shares by existing shareholders.
-
To achieve the benefits associated with listing the company's equity shares on the stock exchanges.
SMT will not receive the OFS proceeds. Consequently, the IPO does not directly provide additional funds for manufacturing expansion, research and development, working capital or repayment of borrowings.
The company's future investment and financing requirements will need to be met through other sources, including internally generated cash and any available financing arrangements.
Who Is Selling Shares?
The RHP identifies the following selling shareholders and their maximum offered share quantities.
|
Selling shareholder
|
Shares offered, up to
|
|
Shree Hari Trust
|
27,00,000
|
|
Dhirajkumar Savjibhai Vasoya
|
20,00,000
|
|
Samara Capital Markets Holding Limited
|
64,79,063
|
|
Kotak Pre-IPO Opportunities Fund
|
13,07,875
|
|
NHPEA Sparkle Holding B.V.
|
13,35,178
|
|
Total
|
1,38,22,116
|
Samara Capital Markets Holding Limited is the largest selling shareholder by number of shares offered.
The offer represents approximately 13.60% of the company's pre-offer equity share capital, according to the RHP.
How Has the IPO Changed Since the Original Draft?
The July 2025 Draft Red Herring Prospectus proposed an OFS of up to 2,76,44,231 shares. The October 2026 RHP provides for up to 1,38,22,116 shares, approximately half the earlier proposed quantity.
Investors should use the latest RHP to assess the current IPO structure. The reason for the change in the number of shares offered should not be assumed without an explicit company disclosure.
The Sahajanand Medical Technologies IPO valuation should be assessed against its FY26 earnings, net asset value, growth profile, profitability and listed peers. At the upper price band, the implied earnings multiple is relatively high compared with the companies included in the RHP's peer group.
IPO Price-to-Earnings Ratio
The company's FY26 restated diluted earnings per share (EPS) was ₹6.48.
The price-to-earnings ratio is calculated by dividing the share price by earnings per share.
At the upper price band:
\[ \text{P/E}=\frac{₹344}{₹6.48}\approx53.09\text{ times} \]
At the lower price band of ₹327, the corresponding multiple is approximately 50.46 times.
These calculations use historical FY26 diluted EPS, not forecast earnings. The actual valuation after listing will also depend on the market price and the company's subsequent earnings performance.
Price-to-Book Value
The reported FY26 net asset value per equity share was ₹62.76.
At the upper price band of ₹344, the indicative price-to-NAV multiple is:
\[ \frac{₹344}{₹62.76}\approx5.48\text{ times} \]
The NAV per share follows the calculation defined in the RHP and should not be confused with a separately calculated market-capitalisation-to-total-equity ratio.
Implied Market Capitalisation
Based on the disclosed pre-offer fully diluted share count of 10,16,46,778 shares, SMT's implied equity market capitalisation at ₹344 per share is approximately ₹3,496.65 crore.
Because the IPO is entirely an OFS, it does not itself increase the share count through a fresh issuance.
Valuation Compared with Listed Peers
The RHP includes Poly Medicure and Laxmi Dental as listed industry comparators.
The following tables compare their FY26 diluted earnings per share (EPS) and price-to-earnings (P/E) ratios to show how Sahajanand Medical Technologies is valued against these listed peers.
FY26 Diluted EPS
|
Company
|
FY26 Diluted EPS
|
|
Sahajanand Medical Technologies
|
₹6.48
|
|
Poly Medicure
|
₹31.75
|
|
Laxmi Dental
|
₹5.26
|
P/E Ratio
|
Company
|
P/E Ratio
|
|
Sahajanand Medical Technologies
|
53.09x*
|
|
Poly Medicure
|
51.40x
|
|
Laxmi Dental
|
36.35x
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SMT's P/E is calculated using the IPO upper price band. Peer multiples are those disclosed in the RHP using closing share prices as of 6 October 2026.
SMT's indicative P/E of 53.09 times is higher than the multiples of both comparators in the prospectus peer group.
However, the companies operate in different areas of the medical technology market. Poly Medicure has a broader medical device portfolio, while Laxmi Dental operates in dental products and services. Differences in growth, profitability, product economics and capital requirements limit the usefulness of a direct comparison.
What Should Investors Assess in the Valuation?
The main questions are whether SMT's earnings growth and business performance can support the IPO valuation over time.
Investors should assess:
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Whether revenue growth remains strong across major product categories and geographic markets.
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Whether structural heart products increase their contribution to revenue and profit.
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Whether the FY26 improvement in EBITDA margin is sustainable.
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How much reported earnings growth came from recurring operations rather than tax or exceptional items.
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Whether operating cash flow can support R&D, manufacturing investment and debt servicing.
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Whether the company's growth prospects justify its valuation relative to other medical device businesses.
The valuation should therefore be considered alongside the quality of earnings, cash generation, product concentration and balance sheet requirements rather than in isolation.
SMT has an established cardiovascular device portfolio, international distribution capabilities and a growing structural heart business. At the same time, its financial and operating profile includes risks that could affect earnings growth, cash generation and valuation.
Competitive Strengths
1. Established position in coronary stents
According to the RHP's industry research, SMT held nearly 25% of India's drug-eluting stent market by sales volume in FY26. Its coronary stent business provides scale and an established market position.
2. Growing structural heart portfolio
Structural heart revenue grew approximately 29.08% in FY26, faster than overall revenue growth. Continued expansion could reduce reliance on the core coronary stent business over time.
3. International revenue diversification
Approximately 73.87% of FY26 revenue came from outside India. The company generated revenue from customers in 77 countries during FY26, giving it access to multiple international markets.
4. Research and intellectual property capabilities
SMT's granted patents, pending applications and dedicated R&D workforce support the development of specialised medical devices. Commercial success, however, depends on regulatory approval and market adoption.
5. Manufacturing facilities in more than one country
Manufacturing facilities in India and Thailand support production and international operations. These facilities also require ongoing investment and strict quality control.
6. Improving annual operating margins
The EBITDA margin increased from 12.49% in FY25 to 14.10% in FY26, indicating improved operating profitability during the year.
7. Lower distributor concentration
The top five distributors contributed 19.12% of revenue in FY24, compared with 9.77% in FY26. This indicates a lower share of revenue coming from the five largest distributors.
Key Risks Investors Should Monitor
1. Dependence on Supraflex Cruz
Supraflex Cruz accounted for 37.17% of total revenue in FY26 and 39.00% in Q1 FY27. Although its contribution declined from 47.84% in FY24, it remains a major source of revenue.
Adverse regulatory developments, unfavourable clinical outcomes, technological changes or loss of market share affecting this product could materially influence the company's performance.
2. Medical device regulatory risk
SMT operates in a regulated industry where product approvals, manufacturing quality, inspections and post-market surveillance are critical. Delays in approvals or adverse regulatory action could disrupt sales and market access.
3. Pricing controls on coronary stents
Coronary stent pricing in India is subject to regulatory controls, including price ceilings administered by the National Pharmaceutical Pricing Authority (NPPA). These controls may restrict the company's ability to pass higher input costs on to customers.
4. Supplier concentration
The top 10 suppliers represented 59.15% of purchases in FY26 and 63.61% in Q1 FY27. Dependence on key suppliers, including single-source suppliers for certain components, creates procurement, availability and cost risks.
5. Increasing borrowings
Total borrowings increased to ₹320.63 crore as of June 2026. Higher debt can increase finance costs and put pressure on cash flows, particularly if operating earnings or cash conversion weaken.
6. Quarterly cash flow volatility
Operating cash flow was negative ₹22.21 crore in Q1 FY27 despite positive net profit. If weak cash conversion persists, the company may need additional funding to support operations and investment.
7. Foreign exchange and international market risk
Nearly 74% of FY26 revenue came from international markets. Currency movements, overseas regulatory changes, pricing pressure and different healthcare procurement systems could affect revenue and profitability.
8. Research and product commercialisation risk
R&D expenditure represented 8.61% of FY26 revenue. Research spending does not guarantee successful product development, regulatory approval, clinical adoption or commercial returns.
9. Competitive and technological risk
SMT competes with established international medical device manufacturers and regional players. Advances in coronary stents, drug-coated balloons and structural heart devices could change physician preferences, product demand and pricing.
10. Litigation and tax proceedings
The October 2026 RHP discloses 98 tax proceedings involving the company, with aggregate reported amounts of approximately ₹131.97 crore across disclosed proceedings against the company, to the extent quantifiable.
These figures represent disputed or reported amounts and do not mean that the entire amount is admitted as payable.
Separately, the RHP reports contingent liabilities of approximately ₹10.76 crore as of June 2026 relating to income tax, GST and customs matters. Investors should examine the nature, status and potential financial implications of these proceedings.
11. Entirely OFS-based IPO
The company will not receive fresh funds from the issue. Future expenditure on R&D, manufacturing, working capital and debt reduction must therefore be financed through other sources.
12. Valuation risk
At the upper price band of ₹344, the IPO is valued at approximately 53.09 times FY26 diluted EPS. This multiple makes the valuation sensitive to future earnings performance, particularly if revenue growth or operating margins fall short of expectations.
The Sahajanand Medical Technologies IPO GMP and subscription status are separate indicators. GMP is an unofficial grey market quotation, while subscription figures reflect bids received during the formal IPO process.
Sahajanand Medical Technologies IPO GMP
The grey market premium (GMP) is an unofficial indication of the premium at which IPO shares may be traded outside the formal stock exchange system before listing. It is not an official price forecast or a regulated measure of investor demand.
As of 13 October 2026, this analysis does not provide a GMP figure because a sufficiently reliable basis for a current quotation is unavailable.
Investors should keep in mind that:
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GMP can change significantly before listing.
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It is not published or regulated by SEBI as an official IPO valuation measure.
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It does not guarantee the listing price or subsequent returns.
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It should not replace an assessment of financial performance, valuation and business risks.
Sahajanand Medical Technologies IPO Subscription Status
The public issue is scheduled to open on 15 October 2026. As of 13 October 2026, the subscription period has not started, so public bidding-day subscription figures are not yet available.
Once the issue opens, investors can track category-wise subscription figures from the NSE and BSE. QIB, NII and retail demand should be considered separately because the categories have different allocation requirements and investor profiles.
SMT's revenue and profitability improved in FY26, but its future performance will depend on sustained growth, cash generation and effective management of financial and operational risks.
Key factors investors should monitor after listing include:
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Revenue growth: Whether SMT can maintain sales growth across its major product categories.
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Structural heart business: Growth in TAVI and occluder sales and their contribution to total revenue.
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Supraflex Cruz concentration: Whether the company's dependence on its largest revenue-generating product declines.
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Geographic performance: Revenue trends across Europe, India and other international markets.
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EBITDA margin: Whether the improvement from 12.49% in FY25 to 14.10% in FY26 continues.
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Operating cash flow: Whether reported profits translate into positive and sustainable cash generation.
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Borrowings: Changes in debt levels and interest costs, particularly after borrowings reached ₹320.63 crore in June 2026.
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R&D and product development: New product launches, regulatory approvals and commercial adoption.
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Capacity utilisation: Whether demand improves for lower-utilisation products, particularly TAVI devices, occluders and drug-coated balloons.
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Regulatory developments: Changes in product approvals, quality requirements, inspections and pricing regulations.
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IPO valuation: Whether future earnings growth supports the valuation implied by the IPO price.
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Subscription and allotment: Official category-wise subscription figures and allotment updates published by NSE and BSE.
Among these, operating cash flow, borrowings, product concentration and recurring earnings growth deserve particular attention. These indicators will help investors assess whether SMT can sustain its business expansion while maintaining profitability and financial stability.
Sahajanand Medical Technologies enters the IPO market with an established cardiovascular device portfolio, international operations and improving annual profitability. In FY26, revenue increased 18.11% to ₹1,210.50 crore, while EBITDA grew approximately 33.30% to ₹170.66 crore.
Net profit rose 174.66% to ₹69.08 crore, although the comparison benefited from the absence of FY25 exceptional expenses and an ₹8.71 crore tax credit relating to earlier years. The underlying improvement in operating profitability is encouraging, but the headline PAT growth rate should not be assumed to represent a sustainable annual growth rate.
The company's international presence, structural heart portfolio, manufacturing capabilities and R&D investments provide avenues for expansion. However, reliance on Supraflex Cruz, rising borrowings, working capital requirements, supplier concentration and medical device regulatory risks remain important considerations.
At the upper price band of ₹344, the Sahajanand Medical Technologies IPO valuation is approximately 53.09 times FY26 diluted EPS. The entirely OFS-based issue will also provide no fresh capital to the company.
For investors evaluating the Sahajanand Medical Technologies IPO, the central question is whether future recurring earnings growth, product diversification and cash generation can support the valuation while meeting the company's financing requirements.
Want to compare Sahajanand Medical Technologies' valuation with other upcoming and recent public issues? Check the IPO dashboard for issue details, price bands and listing-related information across the market.
Frequently Asked Questions
1. What is the Sahajanand Medical Technologies IPO price band and date?
The Sahajanand Medical Technologies IPO price band is ₹327 to ₹344 per share. The issue is scheduled to open on 15 October 2026 and close on 19 October 2026, with tentative listing on 23 October 2026.
2. What is the Sahajanand Medical Technologies IPO issue size and lot size?
The IPO issue size is approximately ₹475.48 crore at the upper price band. The offer comprises up to 1,38,22,116 shares through an offer for sale. The lot size is 43 shares, requiring a minimum investment of ₹14,792 at ₹344 per share.
3. What are Sahajanand Medical Technologies' FY26 financial results?
SMT reported FY26 revenue from operations of ₹1,210.50 crore, EBITDA of ₹170.66 crore and profit after tax of ₹69.08 crore. Revenue increased 18.11% year-on-year, while PAT grew 174.66%, partly supported by the absence of prior-year exceptional expenses and a tax credit.
4. What is the Sahajanand Medical Technologies IPO valuation?
At the upper price band of ₹344, SMT's indicative price-to-earnings ratio is approximately 53.09 times FY26 diluted EPS of ₹6.48. Its indicative price-to-NAV multiple is approximately 5.48 times, based on reported NAV of ₹62.76 per share.
5. What are the main risks in the Sahajanand Medical Technologies IPO?
The main risks include dependence on Supraflex Cruz, medical device regulatory requirements, increasing borrowings, working capital needs, supplier concentration, overseas market exposure, litigation and tax proceedings, and valuation risk. Investors should also monitor operating cash flow and the sustainability of recurring earnings growth.