Revenue
Margin
Demand
Guidance
Tone
Avience Biomedicals Limited - H2 & FY26 Earnings Call Summary
Friday, July 24, 2026 4:00 PM IST
Event Participants
Executives
2
Dharam Deo Choudhary, Saurabh Verma
Analysts
5
Ashwani Agarwal (CASA Capital), Manav Kothari (Individual Investor), Nitin (Individual Investor), Praneeth (Spangel Advisors), Yogansh Jeswani (Mittal Analytics)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹52.51 crore (FY26) | Up 16.1% YoY from ₹45.24 crore in FY25 |
| EBITDA Margin | 28.45% | Improved 310 bps from 25.35% in FY25, reflecting operating leverage |
| Profit After Tax | ₹8.75 crore | Grew 23.31% YoY from ₹7.10 crore in FY25 |
| Order Book | ~₹47 crore | Includes a large Uttarakhand order; supports guided FY27 growth |
| Product Licences | 88 approved | 17 recently added; >200 products in development/approval pipeline |
| Manufacturing/Trading Mix | Manufacturing 26.99%, Trading ~72% | Balance is service income; targeting 50:50 as in-house manufacturing scales |
Geographic & Segment Commentary
- Geographic Coverage & Expansion: Pan-India presence with current distribution focus on Delhi NCR and eastern Uttar Pradesh as a Mindray channel partner; the large order extends into Uttarakhand, a new territory. Management plans sequential expansion into eastern, southern and western India.
- Business Segments & Turnover Split: Manufacturing contributes ~26.99% of total turnover, trading ~72%, and service income the balance. Within turnover: manufactured reagents/consumables 14.62%, rapid cards 9.15%, manufactured instruments 3.21%, traded reagents/consumables 59.83%, and traded instruments 12.55%.
- Instrument Business Models: 80–85% of instruments are placed under reagent-rental arrangements (typically 5-year agreements) generating recurring reagent/consumable revenue; 10–15% are sold outright. 80–90% of reagent/consumables business derives from closed systems, with 10–15% from open systems.
- Key Customers: Max Healthcare, Sarvodaya Hospital and Dr. Lal PathLabs among marquee clients, served on strength of product quality and 4-hour service response commitment.
Company-Specific & Strategic Commentary
- Manufacturing Expansion: New facility is substantially complete, with balance work by September and manufacturing targeted from October 2026. Indicated capacity is ~₹250–265 crore, dependent on product mix, approvals and demand; the existing rented facility will be phased out after a 3–4 month transition.
- Product Pipeline & Approvals: Expects ~175 products by end-FY27; average approval time has been ~3 months in several cases versus a normal 6–9 month timeline, enabling faster portfolio expansion.
- Distribution & OEM Arrangements: Expanding Mindray partnership with discussions for exclusive North India products and OEM/private-label supply under the Avience brand; wider distribution network and manpower addition planned.
- Exports & Global Registration: Exported ~₹70–80 lakh in the first three months of FY27; targeting exports of ~₹5–7 crore for the year. New facility is designed keeping WHO prequalification requirements in mind to strengthen multi-market export capability.
- Government Business & Managed Labs: Engaging with several state governments; new capacity enables participation in large tenders with 45–60 day delivery commitments. Evaluating entry into managed laboratory/testing services model, billing at CGHS rates, subject to funding availability.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth (FY27) | At least 60% YoY; potentially exceeding ₹100 crore | Backed by ~₹47 crore order book, recurring business base, and new facility ramp-up |
| Revenue Aspiration (FY28) | ~₹160–165 crore | Based on manufacturing scale-up, product approvals and distribution expansion |
| EBITDA Margin | Maintain current levels while scaling | Expansion expenses will rise; improvement expected as operating leverage develops in FY28/FY29 |
| Manufacturing/Trading Mix | Target closer to 50:50 | As in-house manufacturing scales with new facility |
| Exports (FY27) | ~₹5–7 crore | Supported by overseas registrations and WHO prequalification-oriented facility |
| Product Count (FY27 end) | ~175 products | Phased ramp-up dependent on approvals and commercialisation |
| New Facility Utilisation (FY27) | ~15–20% initial | Gradual ramp-up tied to approvals, order conversion and distribution network expansion |
Risks & Constraints
| Risk | Context |
|---|---|
| Working Capital Funding | At ~₹100 crore revenue, working capital requirement could be ₹35–40 crore; entire requirement is not currently available. Management is evaluating debt, cash-credit limits and bill discounting; bankers have indicated readiness subject to normal approvals. Government receivable cycles average 90–120 days for large projects. |
| Execution Risks | 60%+ growth target depends on timely order conversion, product approvals, new facility commissioning (October) and distribution expansion. Government tenders impose 45–60 day delivery timelines, with penalties/blacklisting/EMD forfeiture risk on delays. |
| Competitive Differentiation | Management acknowledged it does not yet claim a product competitors cannot offer; current USP is quality, timely delivery and 4-hour service response. Product-level differentiation is still under development. |
| Regulatory/Approval Timelines | Approval timelines vary by product and regulatory process; despite average ~3 months in several cases, ramp-up is phased. ~175 product target by FY27 assumes timely approvals. |
| Facility Transition Risk | Existing rented facility will be discontinued after the new facility stabilises; the 3–4 month transition period carries operational continuity risk. |
Q&A Highlights
Distribution Partnerships & Channel Strategy
- Question: Are the traded equipment arrangements exclusive, and how do these relationships work? (Yogansh Jeswani - Mittal Analytics)
- Answer: Distribution arrangements are typically defined by geography and product category. Avience is a Mindray channel partner for Delhi NCR and eastern Uttar Pradesh; discussions are underway for selected products on an exclusive basis for North India and an OEM/private-label arrangement under the Avience name. (Dharam Deo Choudhary)
Growth Guidance & Order Book
- Question: What gives confidence in at least 60% FY27 growth—existing regions or new territories? (Yogansh Jeswani - Mittal Analytics)
- Answer: Recurring business provides a base, and the ~₹47 crore order book (including a large Uttarakhand order that enters a new territory) supports confidence; revenue can exceed ₹100 crore during FY27. (Dharam Deo Choudhary)
Product Approvals & Pipeline
- Question: What is the approval success rate and how many products can be commercially launched by end-FY27? (Praneeth - Spangel Advisors)
- Answer: Average approval time has been ~3 months in several cases versus a normal 6–9 months; expect ~175 products by end-FY27, with ramp-up phased due to development, validation and in-house manufacturing timelines. (Dharam Deo Choudhary)
Margin Outlook During Expansion
- Question: Can EBITDA margins improve by 1–2 percentage points? (Nitin - Individual Investor)
- Answer: Higher revenue supports margins, but the company is entering an expansion phase with higher expenses; immediate objective is to maintain EBITDA margin while scaling, with improvement expected in FY28/FY29 as manufacturing utilisation and operating leverage develop. (Dharam Deo Choudhary)
Working Capital & Receivables
- Question: At ~₹100 crore revenue, what working capital requirement and receivable cycle should investors expect? (Manav Kothari - Individual Investor)
- Answer: Large government projects may take 90–120 days for payment, smaller payments 30–60 days; working capital requirement could be ₹35–40 crore. Banks are prepared to provide cash-credit, bill discounting and collateral-backed facilities subject to normal approvals. (Dharam Deo Choudhary)
Business Mix & Instrument Economics
- Question: Can you provide the turnover split between manufacturing and trading, and instrument-related margins? (Manav Kothari - Individual Investor)
- Answer: Manufacturing is ~26.99%, trading ~72%, balance service income; manufactured instruments are only 3.21% of turnover and traded instruments 12.55%. Manufacturing margins can range from ~30% to 70%+ depending on product; reagent-rental model margins are ~40–60%. (Saurabh Verma, Dharam Deo Choudhary)
Order Book Contribution Margin
- Question: Does the large ₹47–50 crore order with a substantial equipment component carry lower contribution margin? (Ashwani Agarwal - CASA Capital)
- Answer: No, the expected contribution margin on this order is higher than normal business. (Dharam Deo Choudhary)
New Facility Capabilities & Government Incentives
- Question: What additional capability does the new unit provide, and what subsidies are available? (Ashwani Agarwal - CASA Capital)
- Answer: Scale enables participation in large tenders with 45–60 day delivery requirements; facility is designed for WHO prequalification. Medical device park benefits include concessional land, electricity at ~₹3.50/unit, ESI/PF employer contribution support, ~7% interest subsidy on plant/machinery, and support for international exhibitions, training and NABL testing, subject to scheme conditions. (Dharam Deo Choudhary)
Key Takeaway
Avience Biomedicals delivered FY26 revenue of ₹52.51 crore (up 16.1% YoY), EBITDA margin of 28.45% (up 310 bps) and PAT of ₹8.75 crore (up 23.31%). Management guided for at least 60% revenue growth in FY27, potentially exceeding ₹100 crore, anchored by a ₹47 crore order book—including a large Uttarakhand project—and new facility commissioning from October 2026 with indicated capacity of ~₹250–265 crore. Manufacturing share of turnover (currently ~27%) is targeted toward 50:50 as product count scales to ~175 by FY27 end; exports of ₹5–7 crore are targeted leveraging a WHO prequalification-ready facility. Key watchpoints include working-capital funding (₹35–40 crore requirement), EBITDA margin maintenance during the expansion phase, and execution on approvals, order conversion and facility ramp-up. Management remains confident of scaling responsibly, with Mindray partnership expansion and managed laboratory entry under evaluation.