Sahajanand Medical plans ₹20-30 crore debt reduction in FY27, maintains focus on India, Europe

Mumbai-based R&D-driven multinational medical device manufacturer Sahajanand Medical Tech (SMT) will continue to focus on India and Europe as its key markets and plans to reduce debt by ₹20-30 crore in FY27, supported by improved cash generation and lower capital expenditure.

Bhargav Kotadia, Managing Director and Chief Executive Officer of Sahajanand Medical Tech, said the company would continue to focus on India and Europe, while investing in research and development and building its regulatory capabilities to support its business across markets.

He added, “As of today, we are still not commercially present in three of the big markets, namely US Japan, or China. And over the last several years, and for the foreseeable future, our focus remains quite in large part to India and Europe.

Sahajanand Medical Tech reported revenue of around ₹1,210 crore last year, with India contributing approximately 26% and Europe accounting for 38-39%. The remaining 35% came from other international markets, including Latin America, the Middle East and Asia Pacific.

The company spends around 9-10% of its revenue on research and development (R&D), including investments in technical operations and regulatory approvals. These investments have helped it build expertise in navigating regulatory requirements across markets such as India, Europe and Latin America, supporting its international operations and future growth plans.

The company’s ₹475 crore initial public offering (IPO) opened for subscription on October 15, with a price band of ₹327-344 per share. The issue is entirely an offer for sale (OFS), allowing existing investors to sell part of their holdings, with no proceeds going to the company.

Amit Kumar Khandelia, Chief Financial Officer of Sahajanand Medical Tech, said the company expects to reduce its debt by around ₹20-30 crore in FY27, backed by cash generated from operations.

The company's absolute debt stood at around ₹190 crore, while its net debt-to-EBITDA ratio was approximately one time. Its EBITDA-to-operating-cash conversion improved from around 40% in FY24 to 60% in FY26, indicating better cash generation.

Khandelia said further business growth and an improvement in EBITDA could help generate additional cash, which the company plans to use towards debt repayment.

Sahajanand Medical Tech has already invested around ₹250 crore in its Hyderabad manufacturing facility. Around one-third of the large plant is ready and operational, reducing the need for significant additional capital expenditure in the near term.

With major investments already made, the company expects future capital expenditure requirements to remain limited. This could allow it to direct more of its operating cash towards reducing debt.

For full interview, watch accompanying video



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