💰 Financial Performance

Revenue Growth by Segment

Consolidated revenues grew 120% YoY in H1 FY26 to INR 110 Cr. This was primarily driven by the Preventive Healthcare segment, which saw high adoption of wellness and mental health initiatives. The Radiology business sustained its performance levels from the previous fiscal year.

Geographic Revenue Split

The domestic Indian market remains the primary revenue contributor. Export sales accounted for approximately 5-10% of revenue in FY25, but the company is actively scaling this to capture higher margins in international markets.

Profitability Margins

Gross margins expanded to 30% (INR 35 Cr) in H1 FY26. PAT margins reached 16% (INR 19 Cr) in H1 FY26, a significant turnaround from the INR 0.2 Cr profit recorded in the same period the previous year.

EBITDA Margin

EBITDA margin stood at 25% (INR 30.5 Cr) for H1 FY26, representing a 22-fold increase YoY. This expansion is attributed to operating leverage following the FY24 reverse merger and cost-optimization strategies.

Capital Expenditure

In FY25, 100% of R&D investments were directed toward improving environmental and social impacts. While specific future INR Cr figures for expansion are not disclosed, the company is planning automation and capacity initiatives over the next 12-18 months.

Credit Rating & Borrowing

The company maintains a very low debt-to-equity ratio of 0.04 and holds a net cash position of INR 28 Cr, indicating minimal reliance on external borrowing and low interest sensitivity.

⚙️ Operational Drivers

Raw Materials

High-tech components for Radiology equipment, including energy-efficient magnets and air-cooled systems for MRI machines. Specific percentage of total cost per component is not disclosed.

Import Sources

Components are sourced globally to support the manufacturing facility located in the AP Medtech Zone, Visakhapatnam, India.

Key Suppliers

Time Medical is a key partner, providing exclusive technology and distribution rights for MRI systems in India and other regions.

Capacity Expansion

Manufacturing is established at the AP Medtech Zone in Visakhapatnam. Automation initiatives are planned for the next 12-18 months to enhance production efficiency, though specific unit capacity is not disclosed.

Raw Material Costs

Gross margins of 30% imply that raw material and direct production costs account for approximately 70% of revenue. The company uses a mix of outright sales and AMC/leasing models to manage cost recovery.

Manufacturing Efficiency

Profitability is driven by operating leverage, where fixed manufacturing costs are spread over a rapidly growing revenue base (120% growth).

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

The company aims to achieve a 50/50 revenue split between Imaging and Preventive Healthcare within 3 years. Strategy includes leveraging 'Make-in-India' for import replacement, expanding into mental health and wellness screening, and scaling export sales in MENA and SEA regions.

Products & Services

Time Medical MRI machines, Radiology equipment (CT scanners), FlynnCare connected healthcare solutions, mental health screening tools, and contactless health screening equipment.

Brand Portfolio

Fischer Medical Ventures, Time Medical (exclusive distribution), FlynnCare.

New Products/Services

New initiatives in mental health and wellness under the Preventive Healthcare segment, which was the primary driver for the 120% revenue growth in H1 FY26.

Market Expansion

Targeting growth in export markets, specifically leveraging distribution rights for MENA (Middle East and North Africa) and SEA (South East Asia).

Strategic Alliances

Exclusive distributorship and technology rights with Time Medical for MRIs and other Radiology equipment.

🌍 External Factors

Industry Trends

The Medtech sector is a 'sunrise sector' in India growing at 15-20%. Trends include a shift toward domestic manufacturing to replace imports and the rising adoption of contactless, AI-driven preventive screening.

Competitive Landscape

Competes with global medical imaging giants; positioned as a cost-effective domestic alternative under the 'Make-in-India' initiative.

Competitive Moat

Durable advantage through exclusive technology rights for Time Medical MRIs in specific regions and a manufacturing presence in the AP Medtech Zone, which provides regulatory and logistical benefits.

Macro Economic Sensitivity

Highly sensitive to Indian Medtech sector growth (15-20% CAGR) and government capital expenditure, which was allocated INR 11.1 Lakh Cr in the 2024-25 interim budget.

Consumer Behavior

Increasing consumer demand for preventive health, wellness, and mental health diagnostics following global health shifts.

Geopolitical Risks

Trade policies affecting the import of specialized medical components and the sustainability of 'Atmanirbhar Bharat' incentives.

⚖️ Regulatory & Governance

Industry Regulations

Subject to CDSCO standards and Medtech manufacturing norms in India; operations are influenced by Production Linked Incentive (PLI) schemes.

Environmental Compliance

Aligned with ISO 45001:2018; products designed with energy-efficient magnets and recyclable components to reduce environmental impact.

Taxation Policy Impact

Not disclosed; however, the company benefits from tax incentives related to the manufacturing sector and PLI schemes.

Legal Contingencies

No pending disciplinary actions, bribery, or corruption charges were reported for Directors or KMPs in the current financial year.

⚠️ Risk Analysis

Key Uncertainties

Dependence on government policy continuity for domestic manufacturing incentives and the 6-12 month long sales cycle for Radiology hardware which can lead to revenue volatility.

Geographic Concentration Risk

High concentration in the Indian domestic market, though exports are being scaled from a 5-10% base.

Third Party Dependencies

Significant dependency on Time Medical for MRI technology and exclusive distribution rights.

Technology Obsolescence Risk

Risk of rapid shifts in Radiology technology; mitigated by 100% R&D focus on sustainable and modern imaging solutions.

Credit & Counterparty Risk

Receivables management is reflected in a Debtors' Turnover of 0.351; the company uses AMC and leasing models to ensure recurring accruals.