Skip to content

    Shalby Limited

    SHALBY
    Healthcare·14 Aug 2025
    Management Summary

    Shalby Limited delivered a strong Q1 FY26 with record consolidated revenue crossing INR300 crores and significant QoQ EBITDA recovery. The standalone hospital business showed healthy ARPOB growth, and the MedTech implant business demonstrated robust YoY revenue growth and turned EBITDA positive on a standalone basis. However, overall occupancy saw a YoY decline, and the Sanar hospital's performance was impacted by external factors, though management expects a rebound.

    Highlights

    5

    • Consolidated revenue of INR303 crores, up 5.1% YoY and 12.3% QoQ, marking the first time crossing INR300 crores.

    • Consolidated EBITDA of INR48.5 crores, an 85.6% QoQ growth, with margin at 16%.

    • Standalone hospital ARPOB grew 5.3% YoY to INR45,673.

    • Shalby MedTech consolidated revenue grew 74.2% YoY to INR30.8 crores, with standalone EBITDA turning positive at INR1.2 crores.

    • Mature hospitals (10+ years) contributed INR32 crores to EBITDA with a 36% margin, representing 55% of total EBITDA.

    Concerns

    3

    • Consolidated PAT declined 47% YoY to INR7.7 crores.

    • Overall occupancy rate decreased 4.5% YoY to 45% due to payer mix shift and doctor movements.

    • Shalby Sanar's revenue marginally decreased 2.2% YoY to INR23.25 crores, with occupancy at ~22%, impacted by Middle East geopolitical issues.

    What Changed2

    vs Q2 FY26

    Guidance items6 → 7 (+1)Risks discussed3 → 5 (+2)

    Key financials

    Single quarter

    14 metrics
    1. 01Consolidated Revenue₹303 Cr+5.1%YoY
    2. 02Consolidated EBITDA₹48.5 Cr-11.6%YoY
    3. 03Consolidated EBITDA Margin16%
    4. 04Consolidated PBT₹22.7 Cr-25.5%YoY
    5. 05Consolidated PAT₹7.7 Cr-47%YoY

    Segment breakdown

    Shalby Sanar (Delhi)
    ₹23.25 Cr Revenue90,000 Rs ARPOB3.38 days ALOS22% Occupancy56% International Revenue Contribution
    Mature Hospitals (10+ years)
    ₹32 Cr EBITDA36% EBITDA Margin55% Contribution to Total EBITDA
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Debt

    Gross ₹302 crores · 0.3x EBITDA

    Liquidity

    Cash ₹10 crores

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    Consolidated Revenue Growth
    12-15%
    		Medium
    Revenue
    MedTech Revenue
    $100 million
    		High
    Occupancy
    Overall Occupancy Rate
    50% plus
    		Medium
    Payer Mix
    Government Business Revenue Contribution
    below 20%
    		Medium
    Payer Mix
    TPA/Insurance Business Revenue Contribution
    80-81%
    		Medium
    Profitability
    MedTech EBITDA Margin
    single-digit (this year & next), 20-25% (4-5 years)
    		High
    Project Timeline
    Mumbai Hospital Project Completion
    3-3.5 years from handover
    		High

    Shalby Sanar Occupancy and Patient Flow

    next quarter
    Current~22% occupancy, impacted by Middle East issues
    TargetImproved occupancy as geopolitical issues resolve and new doctors settle

    Why it matters

    Sanar is a key acquisition, and its turnaround is important for overall consolidated growth and profitability.

    But we are seeing -- witnessing now the back in surge as the things have sorted out. So this quarter should be better as compared to the earlier one.

    How to verify

    key_financials.segment_breakdown[name='Shalby Sanar (Delhi)'].metrics[label='Occupancy']

    Risks & concerns

    5
    RiskSeverity

    Middle East Geopolitical Environment Impact on Sanar

    Geopolitical issues in the Middle East led to a dip in international patient flow for Shalby Sanar, impacting Q1 FY26 occupancy and revenue. — Management acknowledged

    medium

    Doctor Movement and Staffing Shortfalls

    Movement of some doctors contributed to lower occupancy, but the company is actively hiring new doctors to address the shortfall. — Management acknowledged

    medium

    Supply Chain Challenges for MedTech

    Past supply chain challenges and new product development efforts have slightly delayed the achievement of the $100 million revenue target for the implant business. — Management acknowledged

    medium

    Low-Profit Government Schemes

    The company has reduced business with low-profit government schemes like ESIC to improve overall profitability and payer mix. — Management acknowledged

    low

    Non-compliant Insurance Companies

    Some insurance companies delay payments or make arbitrary deductions, leading Shalby to manage these relationships carefully and reduce business where necessary. — Management acknowledged

    medium

    Q&A highlights

    8

    “The occupancy this quarter is less because, as we have mentioned, we are moving the payer mix. So we have reduced our government work, a little bit of government work as well as there are a few doctors which were on board have moved to some other place, and we are hiring new doctors. So the shortfall is because of that transit of doctors and coming in of new doctors.”

    Clarifies the reasons behind the YoY decline in occupancy, attributing it to strategic payer mix shifts and temporary doctor movements.

    asked by Neel Shah

    2 min read7 chapters

    Detailed Narrative

    01

    Consolidated Financial Performance Overview

    Shalby Limited achieved a consolidated revenue of INR303 crores in Q1 FY26, marking a 12.3% sequential growth and 5.1% year-on-year growth, crossing the INR300 crore quarterly performance threshold for the first time. Consolidated EBITDA saw a significant 85.6% QoQ growth, reaching INR48.5 crores with a margin of 16%. Despite this, consolidated PAT declined 47% YoY to INR7.7 crores, though it showed a substantial 163% QoQ increase from a negative base in the previous quarter.

    02

    Standalone Hospital Business Strength

    The standalone hospital business reported a revenue of INR242 crores, growing 13.1% QoQ. EBITDA for this segment was INR52.4 crores, up 37.9% QoQ, with a healthy margin of 21.6%. PAT stood at INR25.7 crores, reflecting a 71% QoQ jump. Key operational metrics showed improvement, with ARPOB increasing 5.3% YoY to INR45,673 and ALOS reducing to 3.53 days, indicating enhanced efficiency.

    03

    Shalby MedTech (Implant Business) Growth and Profitability

    Shalby MedTech demonstrated robust growth, with consolidated revenue reaching INR30.8 crores, a 74.2% YoY increase. On a standalone basis, revenue surged 271% YoY to INR18.24 crores, driven by a 228.4% increase in implant components sold (9,317 units). The segment achieved a standalone positive EBITDA of INR1.2 crores, a significant turnaround from a negative INR1.5 crores in Q1 FY25, with a long-term target of 20-25% EBITDA margin within 4-5 years.

    04

    Shalby Sanar (Delhi) Performance and International Patient Flow

    Shalby Sanar recorded INR23.25 crores in revenue, a marginal 2.2% YoY decrease, primarily due to geopolitical issues in the Middle East impacting international patient flow for approximately 30 days. Its occupancy rate was around 22%, with international patients contributing 56% of revenue. Management expects a recovery in upcoming quarters as the geopolitical situation stabilizes and newly hired doctors become operational, aiming to improve the hospital's performance.

    05

    Occupancy Rate and Payer Mix Strategy

    The overall occupancy rate for Shalby stood at 45% in Q1 FY26, a 4.5% YoY decrease. This was attributed to a strategic shift in payer mix, reducing reliance on low-profit government schemes (currently 24% of mix) and doctor movements. The company aims to bring government business contribution below 20% and increase TPA/insurance to 80-81% in the coming years, targeting an overall occupancy rate of 50% plus for FY26.

    06

    Mumbai Greenfield Project Update and Future Expansion

    Shalby provided an update on its Mumbai greenfield hospital project, confirming receipt of Charity Commission approval. The next steps involve submitting necessary documents and obtaining other regulatory approvals before construction can commence. The project is estimated to take 3 to 3.5 years from the date of handover, indicating a significant long-term investment in capacity expansion.

    07

    Clinical Excellence and Talent Development Initiatives

    The company highlighted its commitment to clinical excellence, successfully completing 25 transplants (8 kidney, 14 liver, and 3 BMT) during the quarter. Shalby Academy continues to play a crucial role in nurturing talent, with over 630 students enrolled in various healthcare disciplines. A new BBA HHM and MBA HHM program was launched in collaboration with Shri Vaishnav Vidyapeeth Vishwavidyalaya, further strengthening its educational outreach.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.