Skip to content

    Shalby Q1 FY27 earnings call

    SHALBY
    Healthcare·13 Aug 2026
    Management Summary

    Shalby Limited reported a mixed Q1 FY27, with strong consolidated revenue growth driven by robust performance in both hospital and MedTech segments. The hospital segment saw increased occupied beds and the Gurgaon unit achieved EBITDA break-even. However, consolidated and standalone hospital EBITDA margins compressed, and MedTech US remained marginally negative. Management expressed confidence in future margin improvement and ROCE expansion.

    Highlights

    5

    • Consolidated revenues stood at ₹338.6 crores, a strong growth of 11.6% on year-on-year basis.

    • Hospital segment occupied beds increased to 701, showing a growth of 9.8% year-on-year.

    • Shalby International's Gurgaon unit achieved its EBITDA break-even for the first time.

    • Consolidated MedTech delivered a revenue of approximately ₹47 crores, a strong growth of 53% on a year-on-year basis.

    • MedTech as a whole reported EBITDA positive performance for the fourth consecutive quarter.

    Concerns

    5

    • Consolidated EBITDA margin stood at 14.5%, compared to 16% in the corresponding quarter last year, reflecting a 1.5 percentage point decline.

    • Standalone hospital EBITDA margin declined to 18.4% from 21.6% in Q1 FY26, a 320 bps compression.

    • Consolidated PBT decreased to ₹19.7 crores from ₹22.7 crores in Q1 FY26.

    • MedTech US (SAT US) EBITDA was marginally negative during the quarter.

    • The company's consolidated ROCE remains low at approximately 7%.

    Key financials

    Single quarter

    06 metrics
    1. 01Consolidated Revenue₹338.6 Cr+11.6%YoY
    2. 02Consolidated EBITDA₹49 Cr+1%YoY
    3. 03Consolidated EBITDA Margin14.5%
    4. 04Consolidated PBT₹19.7 Cr
    5. 05Consolidated PAT₹10.5 Cr+36.4%YoY

    Segment breakdown

    Hospital Segment (Standalone)
    ₹259 Cr Revenue₹47.8 Cr EBITDA18.4% EBITDA Margin₹34 Cr PBT₹25 Cr PAT44,711 Rs ARPOB3.69 days ALOS701 beds Occupied Beds51% Occupancy Rate
    Shalby International (Gurgaon)
    ₹26.2 Cr Revenue91,326 Rs ARPOB3.8 days ALOSbreak-even status EBITDA Status
    MedTech Segment (Consolidated)
    ₹47 Cr Revenuepositive status EBITDA Status
    MedTech India (SMTL)
    ₹22.9 Cr Revenue1.9% Sequential Growth
    MedTech US (SAT US)
    ₹38.8 Cr Revenuemarginally negative status EBITDA Status
    MedTech Singapore (SGTPL)
    9.9 Mn Revenue5.8 Mn EBITDA
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Net ₹463 crores

    Guidance & targets

    9
    CategoryTargetPriority
    Profitability
    Hospital Segment EBITDA Margin
    upward to 20%
    		High
    Profitability
    Shalby International (Gurgaon) PBT
    positive
    		Medium
    Profitability
    Consolidated ROCE
    11% to 13%
    		Medium
    Revenue
    TPA Renewals Revenue Jump
    5% to 7%
    		Medium
    Cash Flow
    MedTech India (SMTL) Cash Flow Requirement Reduction
    ₹3 crores per month
    		High
    Cash Flow
    MedTech India (SMTL) Cash Flow Requirement Further Reduction
    another ₹3 crores per month
    		High
    Capacity
    Shalby International (Gurgaon) Occupancy Level
    30% or up
    		Medium
    Tax
    Hospital Segment Tax Rate
    26%
    		High
    Tax
    Gurgaon Unit Tax Expense
    no tax expense
    		High

    What to watch in Q2 FY27

    5

    Hospital Segment EBITDA Margin

    next quarter / whole year FY27
    Current18.4% (standalone)
    TargetImprovement towards 20% for whole year

    Why it matters

    Management expects significant improvement from new bunker activations, TPA renewals, and new doctor ramp-up.

    We are strongly confident as per our estimate to see EBITDA margin of upward to 20% on to the whole year basis.

    Risks & concerns

    6
    RiskSeverity

    Consolidated EBITDA margin compression

    Consolidated EBITDA margin declined to 14.5% from 16% YoY. — Management acknowledged

    medium

    Standalone hospital EBITDA margin compression

    Standalone hospital EBITDA margin declined to 18.4% from 21.6% YoY, attributed to temporary pressure from new doctors and specialties. — Management acknowledged

    medium

    MedTech US (SAT US) negative EBITDA

    EBITDA for the US MedTech segment was marginally negative, with active work on improving profitability. — Management acknowledged

    medium

    MedTech bottom line deterioration due to forex and depreciation

    The bottom line in MedTech was impacted by forex gains in the prior quarter and depreciation on intangibles from past CAPEX. — Management acknowledged

    medium

    Low consolidated ROCE

    Consolidated ROCE is approximately 7%, primarily due to significant CAPEX deployment in recent years. — Analyst acknowledged

    medium

    ICRA credit rating downgrade

    ICRA downgraded the long-term credit rating from (A+) to (A), which management described as a procedural assessment with an improved outlook to stable. — Analyst downplayed

    medium

    Q&A highlights

    8

    “To reflect, we are confident to see an improved margin from here on and their underlying reasons are very obvious that if we mention it about importantly to include that we had deployed bunkers in our units already in the last year which got activated also in the Quarter 1 but we see the more uptrend to come in the subsequent quarter and which would flow to our EBITDA margins straight away.”

    Analyst sought clarity on the sustainability of hospital margins, and management provided specific drivers for expected improvement, including new bunker activations and TPA renewals.

    asked by Rajakumar

    2 min read6 chapters

    Detailed Narrative

    01

    Consolidated Financial Performance Overview

    Shalby Limited reported a consolidated revenue of ₹338.6 crores for Q1 FY27, marking an 11.6% year-on-year growth from ₹303.4 crores in Q1 FY26. Consolidated EBITDA grew by 1% to ₹49 crores, though the EBITDA margin compressed to 14.5% from 16% in the prior year. Consolidated PAT increased significantly to ₹10.5 crores from ₹7.7 crores, with PAT margin improving to 3.1% from 2.5%.

    02

    Hospital Segment Performance and Margin Dynamics

    The standalone hospital segment revenue grew 7% YoY to ₹259 crores. Occupied beds increased by 9.8% to 701, with an occupancy rate of 51% (54% excluding Shalby International). However, standalone EBITDA declined to ₹47.8 crores from ₹52.4 crores, leading to a margin compression to 18.4% from 21.6%. Management attributed this temporary pressure📎 to the deployment of new doctors and specialties, expecting margins to improve to an upward of 20% for the full year with the full effect of bunker revenue and TPA renewals.

    03

    Shalby International (Gurgaon) Turnaround

    Shalby International's Gurgaon unit demonstrated significant progress, achieving EBITDA break-even for the first time. The unit's revenue grew to ₹26.2 crores from ₹23.2 crores in the prior year, with an ARPOB of ₹91,326. Management is confident that the unit will achieve an occupancy level of 30% or more by Q3/Q4 and turn PBT positive within 6 to 9 months, driven by sustained growth and operational efficiencies.

    04

    MedTech Segment: Strong Growth with Profitability Focus

    The consolidated MedTech business delivered a revenue of ₹47 crores in Q1 FY27, representing a strong 53% YoY growth. This marks the fourth consecutive quarter of positive EBITDA for the MedTech segment. India MedTech (SMTL) revenue surged to ₹22.9 crores, growing 130% YoY, with management targeting double-digit EBITDA margins. While MedTech US (SAT US) revenue grew 9% YoY to ₹38.8 crores, its EBITDA remained marginally negative, and efforts are underway to improve its profitability.

    05

    Capital Allocation and Debt Management

    The company maintains a healthy balance sheet with a gearing ratio of 0.46X and net debt of approximately ₹463 crores. A new ₹129 crores working capital facility from Kotak was secured, which is a replacement of existing debt at a 30 basis points lower cost, not an increase in overall debt. Management noted that significant CAPEX of ₹160 crores for bunker facilities and MedTech investments was completed in prior years, and minimal CAPEX is expected going forward⏳, which should aid ROCE improvement towards 11-13% in 1-2 years.

    06

    Strategic Initiatives and Future Outlook

    Shalby is actively pursuing new TPA renewals, expected to contribute a 5-7% jump in hospital revenue. The company has transitioned to a lower tax rate of 26% for the hospital segment. Discussions are ongoing for the Mumbai expansion at Asha Parekh Hospital, which will be a greenfield project. The focus remains on sustaining MedTech growth, improving profitability across the portfolio, and optimizing inventory and working capital efficiency.

    This is an AI-generated summary of a publicly available earnings call transcript.