Sahajanand Medical Technologies Limited (SMT), a Surat-based manufacturer of cardiovascular medical devices, has filed its Draft Red Herring Prospectus (DRHP) for an IPO. The offering is structured exclusively as an Offer for Sale (OFS), meaning the company will not receive any proceeds from the issue. In Fiscal 2026, SMT reported revenue from operations of ₹1,210.50 crore, up from ₹901.60 crore in Fiscal 2024.

About the Company

Founded in 2001, Sahajanand Medical Technologies specializes in Class III and Class C/D medical devices, focusing on Vascular Intervention (VI) and Structural Heart (SH) segments. Its product portfolio includes Drug-Eluting Stents (DES), PTCA balloons, Coronary Drug-Coated Balloons (DCBs), Transcatheter Aortic Valve Implantation (TAVI) systems, and Occluders. The flagship product, Supraflex Cruz, is positioned as the 'most deliverable' stent in its class, supported by clinical trials involving 28,383 participants globally.

The company operates three manufacturing facilities in Surat and Hyderabad, India, and Nonthaburi, Thailand. These facilities hold accreditations including CE, ANVISA, TGA Australia, Korean GMP, and Health Canada. SMT markets its products in 77 countries, with international revenues accounting for 68.71% to 76.16% of total revenue from operations in recent periods. The company maintains two R&D centers with 156 professionals and holds 119 granted patents globally.

Financial Performance

SMT has demonstrated consistent top-line growth over the last two fiscal years. Revenue from operations increased by 13.68% in FY2025 and further by 18.11% in FY2026. Profitability improved significantly during this period, with Profit After Tax (PAT) rising from a loss of ₹7.35 crore in FY2024 to a profit of ₹69.08 crore in FY2026.

Operating cash flows have shown steady improvement, growing from ₹41.10 crore in FY2024 to ₹105.19 crore in FY2026. However, net cash flow turned negative in FY2026 at -₹36.88 crore, primarily driven by investing outflows of ₹130.03 crore related to capital deployment and M&A activities. The standalone entity reported a loss of ₹79.18 million in Fiscal 2025, while certain subsidiaries such as Vascular Innovations Co Ltd recorded losses in Fiscal 2026.

Why the Company Is Raising Funds

The IPO is structured entirely as an Offer for Sale by Selling Shareholders. Consequently, the company will not receive any proceeds from the offer. The stated objectives include providing liquidity to existing shareholders, enhancing brand visibility through listing on BSE and NSE, and covering offer-related expenses which are to be borne by the selling shareholders.

Business Strengths

SMT holds approximately 25% market share in India's DES segment by sales volume in Fiscal 2026. Internationally, it ranks among the top five DES players by sales volume in Germany, Spain, Poland, and Brazil. The company was the first globally to receive CE certification for a biodegradable polymer-based paclitaxel-eluting stent in December 2005. Its R&D expenditure stood at ₹1,041.64 million in Fiscal 2026, representing 8.61% of revenue. The Hyderabad facility currently utilizes only about 33% of its available area, offering significant headroom for scalable expansion without immediate major capital expenditure.

Key Risks

Revenue concentration remains a material risk, with the single product Supraflex Cruz contributing between 37.17% and 47.84% of total revenue. The company faces extensive regulatory requirements across multiple jurisdictions, including India's Medical Devices Rules, 2017 and EU MDR. Additionally, SMT is subject to price ceilings set by the National Pharmaceutical Pricing Authority (NPPA) for DES products in India. Supply chain vulnerabilities exist due to high import dependency, with 73% to 84% of total purchases imported from China, Netherlands, and Germany, often without long-term supply contracts for critical materials. Revenues from sanctioned jurisdictions like Iran and Russia also pose geopolitical risks.

Important IPO Dates

Bottom Line

Sahajanand Medical Technologies presents a case of strong operational growth and market leadership in the cardiovascular device sector, evidenced by a ~15.88% revenue CAGR and a turnaround to significant profitability in FY2026. The pure OFS structure implies no fresh capital infusion for the company, shifting the focus to shareholder exit and liquidity. While the business boasts robust global presence and R&D capabilities, investors must weigh these against risks related to product concentration, regulatory pricing controls, and subsidiary losses.