Surgiwear IPO

Strengths · 8

• 01Revenue from operations grew 32.74% in FY2025 to Rs 223.98 crore, after 11.78% growth in FY2024.
• 02Profit after tax rose to Rs 57.95 crore in FY2025 from Rs 22.50 crore in FY2024 and Rs 13.54 crore in FY2023.
• 03EBITDA margin was 44.19% in FY2025, against 32.43% in FY2024 and 26.52% in FY2023. Gross margin was 79.47% in FY2025.
• 04Return on equity was 30.30% and return on capital employed 29.66% in FY2025.
• 05Operating cash flow was positive in all three years, at Rs 48.31 crore in FY2025 and Rs 53.52 crore in FY2024.
• 06The product range is wide: 1,619 products in FY2025, up from 1,253 in FY2023, across drapes, dressings, shunts, cranial fixation and bone cement.
• 07The plant has WHO-GMP, ISO 9001:2015 and ISO 13485:2016 certificates, and the company reports no product recalls or customer rejections since 1 April 2022.
• 08The distribution network covers 36 super-stockists and 554 distributors in 23 states and union territories, plus 58 export distributors.

Risks · 10

• 01All manufacturing is at one facility in Shahjahanpur, Uttar Pradesh. Any shutdown there would stop all production.
• 02Disposable drapes gave 38.58% of FY2025 revenue and the top three categories gave 83.29%.
• 03Disposable dressings revenue jumped to Rs 62.76 crore in FY2025 from Rs 17.45 crore in FY2024, and 'others' sales to the army and private hospitals were Rs 42.69 crore (19.06% of revenue) against Rs 1.82 crore the year before. The base is lumpy.
• 04Nearly all sales go through super-stockists and distributors. The top ten gave 27.14% of FY2025 revenue and 36.16% in FY2024. Sales are on purchase orders, not long-term contracts.
• 05Profit margin may not hold. PAT margin was 25.77% in FY2025 against 13.30% in FY2024, and EBITDA margin was 32.03% in the three months to 30 June 2025.
• 06Borrowings were Rs 121.62 crore as at 30 June 2025 and net working capital days rose from 123 in FY2023 to 135 in FY2025 and 149 at 30 June 2025.
• 07The company gave a corporate guarantee of Rs 20.75 crore to State Bank of India for Nenimemi Food Private Limited, a related party. Total contingent liabilities were Rs 27.83 crore, or 14.09% of net worth, at 30 June 2025.
• 08Advances to a related charitable foundation, Vimla Ishwar Charitable Foundation, stood at Rs 10.01 crore at 30 June 2025, against Rs 3.53 crore at 31 March 2025.
• 09Half of the offer is an offer for sale of up to Rs 370 crore by one promoter, so that money goes to the seller and not to the company.
• 10General corporate purposes has no stated amount, and can be up to 25% of gross proceeds. There are 29 tax proceedings and 1 criminal case against the company, with an aggregate amount of Rs 9.49 crore.

Surgiwear Limited is a medical device maker from Shahjahanpur in Uttar Pradesh. It designs, develops and manufactures surgical products, including disposable drapes and dressings, and implantable devices such as hydrocephalus shunts and orthopaedic implants. The company says it has over three decades of experience in the surgical products business.

As at 30 September 2025 it sold products in categories such as disposable drapes, andrology and shunt, disposable dressings, cranial fixation, apparels and hydroxy apatite (bone cement). In FY2025 it made 1,619 different products (SKUs). Disposable drapes were its largest category, with Rs 86.41 crore of sales, or 38.58% of revenue from operations in FY2025. The top three categories together gave 83.29% of revenue.

All products are made at one owned plant in Shahjahanpur, which also houses an in-house R&D unit. The plant holds WHO-GMP, ISO 9001:2015 and ISO 13485:2016 certificates. The company also has approvals for spinal cages and for manufacture of total hip replacement implants, and a test licence for total knee replacement. It had 881 permanent employees as at 30 June 2025.

Sales go mainly through distributors. As at 30 September 2025, the Indian network had 36 super-stockists and 554 distributors across 23 states and union territories. Super-stockists hold bulk stock and distributors deliver to hospitals and healthcare professionals. Export sales were Rs 10.93 crore in FY2025, to 56 countries in that year, through a network of 58 distributors.

The company is promoted by Ghanshyam Das Agarwal, Renu Agarwal, Vinamra Agarwal, Rishu Agarwal and Ghanshyam Das Agarwal HUF. The industry report cited in the document says Surgiwear had the highest FY2025 revenue from operations among its peers in India.

The industry

The industry report in the document (1Lattice) values the global surgical disposables market at US$ 109.5 billion in CY24 and expects US$ 151.0 billion by CY29, a CAGR of 6.6%. The Indian surgical disposables market was US$ 3.9 billion (INR 327.4 billion) in FY25 and is expected to grow at a CAGR of 10.5% from FY25 to FY30. The Indian disposable dressing market grew at 5.3% from FY20 to FY25 and is projected to grow at 6.1% from FY25 to FY30. The Indian implant market was US$ 7.2 billion in FY25 and is projected to reach US$ 10.6 billion in FY30, a CAGR of 8.2%. Orthopaedic implants are the largest part, at US$ 3.0 billion in FY25, with a projected CAGR of 14.7% to FY30.

Customer concentration: The top super-stockist or distributor gave 8.48% of FY2025 revenue, the top five gave 18.39% and the top ten gave 27.14% (36.16% in FY2024).