💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations reached INR 106.53 Cr in FY2025, a marginal growth of 0.87% YoY from INR 105.61 Cr. Revenue is driven by JMS products (50-55% of total), renal care, radiology, and critical care equipment.

Geographic Revenue Split

Not disclosed in percentage terms; however, manufacturing and distribution are concentrated in Maharashtra (Mumbai, Atgaon, Bhiwandi, and Aurangabad) with some export activity.

Profitability Margins

Net Profit Margin for FY2025 was 7.6% (INR 8.13 Cr), down from 9.3% (INR 9.80 Cr) in FY2024. Operating Profit Margin (OPM) historically ranged between 4.0-5.0% but improved to 9.9% in FY2024 and 14.2% in H1 FY2025 due to better product mix and price hikes.

EBITDA Margin

OPM reached 14.2% in H1 FY2025 (excluding fire losses), representing a significant YoY improvement from 9.9% in FY2024, driven by higher value-added products and pricing power.

Capital Expenditure

Planned medium-term capex of INR 35-40 Cr. In FY2025, the company deployed INR 37.68 Cr for fixed assets, primarily for the new Aurangabad manufacturing facility.

Credit Rating & Borrowing

Assigned [ICRA]BBB- (Stable) and [ICRA]A3 in January 2025. Finance costs surged 127% YoY to INR 2.20 Cr in FY2025 due to increased debt for expansion.

⚙️ Operational Drivers

Raw Materials

Jumbo rolls (for medi-tape), equipment components for assembly (ultrasound, renal care), and surgical consumables.

Import Sources

Primarily imported from Japan (jumbo rolls) and China (equipment parts).

Key Suppliers

JMS Co. Limited (Japan) is the primary exclusive technical and supply partner.

Capacity Expansion

Current manufacturing at Atgaon and Bhiwandi; planned expansion includes the commissioning of the Aurangabad facility to transition from trading/assembly to high-value manufacturing.

Raw Material Costs

Raw material consumption was INR 94.06 Cr in FY2025, representing 88.3% of revenue from operations, up 17.3% YoY from INR 80.16 Cr.

Manufacturing Efficiency

Transitioning to higher value-added manufacturing at Aurangabad is expected to structurally improve operating margins from historical 4-5% levels.

Logistics & Distribution

Not specifically disclosed as a separate percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be achieved through the scale-up of the Aurangabad facility, which enables higher value-added manufacturing. The company is also diversifying its product portfolio beyond its exclusive JMS partnership into renal care and radiology segments.

Products & Services

Medi-tape, infusion sets, renal care equipment, ultrasound machines, critical care products, and respiratory therapy equipment.

Brand Portfolio

Hemant Surgical Industries Limited, JMS (exclusive distributor).

New Products/Services

Expansion into higher-end renal care and radiology equipment manufacturing at the new Aurangabad site.

Market Expansion

Scaling up manufacturing capacity in Maharashtra to serve domestic and export markets.

Market Share & Ranking

Not disclosed; industry is noted as highly fragmented.

Strategic Alliances

Exclusive technical and distribution collaboration with JMS Co. Limited (Japan).

🌍 External Factors

Industry Trends

The medical equipment industry is growing but remains fragmented. Future shifts involve moving from pure trading/assembly to local manufacturing under 'Make in India' initiatives, which HSIL is pursuing via its Aurangabad plant.

Competitive Landscape

Intense competition from both domestic players and international medical equipment manufacturers.

Competitive Moat

Moat is based on a 30-year promoter experience and an exclusive technical collaboration with global leader JMS Co. Limited. This provides a technical edge in a fragmented market, though sustainability depends on successful manufacturing scale-up.

Macro Economic Sensitivity

Sensitive to healthcare infrastructure spending and GDP growth; highly sensitive to JPY/INR and USD/INR exchange rates.

Consumer Behavior

Shift in demand from pandemic-specific respiratory equipment back to steady-state renal and radiology diagnostics.

Geopolitical Risks

Trade relations with China and Japan are critical for raw material security.

⚖️ Regulatory & Governance

Industry Regulations

Operations are CDSCO compliant; subject to stringent manufacturing standards and product quality certifications.

Environmental Compliance

Exposed to evolving guidelines on medical waste disposal and energy efficiency in manufacturing.

Taxation Policy Impact

Effective tax rate of 26.2% in FY2025 (INR 2.77 Cr current tax on INR 10.55 Cr PBT).

Legal Contingencies

Reported an extraordinary loss of INR 1.16 Cr due to a fire incident at the Bhiwandi manufacturing facility in FY2025.

⚠️ Risk Analysis

Key Uncertainties

Forex volatility and the timely, profitable scale-up of the Aurangabad manufacturing facility.

Geographic Concentration Risk

Manufacturing is 100% concentrated in Maharashtra, increasing vulnerability to regional disruptions.

Third Party Dependencies

50-55% revenue dependency on the JMS Co. Limited partnership.

Technology Obsolescence Risk

High risk due to rapid advancements in medical diagnostics; mitigated by technical collaborations.

Credit & Counterparty Risk

Trade receivables stood at INR 10.61 Cr in FY2025, approximately 10% of annual revenue.