Event Type: The document is a transcript of the Q2 FY2027 Earnings Conference Call hosted by Elara Securities India Private Limited.
Date and Time: The conference call was held on November 4, 2026. A specific time was not mentioned in the provided transcript.
Purpose: The purpose was to discuss the company's Unaudited Financial Results for Q2 FY 2026–27 and provide a business update.
Management Participants: The management participants were Mr. Shanay Shah (President – Shalby MedTech Limited), Mr. Amit Kumar (Group Chief Financial Officer – Shalby Limited), and Mr. Jigar Todi (Investor Relations – Shalby Limited). The call was moderated by Mr. Kashish Thakur from Elara Securities.
Availability of Materials: The investor presentation was confirmed to be uploaded on the stock exchange websites and the company's website (shalby.org). The transcript of the call itself was filed with the exchanges and is also available in the Investors Section of the company website.
UPSI Statement: The company included a standard disclaimer through Mr. Jigar Todi, referring participants to Slide 2 of the investor presentation for details on forward-looking statements, risks, and uncertainties.
Financial & Operational Highlights Discussed
Financial Period: The discussion centered on the performance for Q2 FY2027 (Quarter ended September 2026) and the first half (H1) of FY2027.
Consolidated Performance (Q2 FY27 vs Q2 FY26): Revenue grew 9.8% to INR 318 crores from INR 290 crores. EBITDA was INR 46.4 crores vs INR 46.1 crores (0.8% growth). EBITDA margin was 14.6% vs 15.9%. PAT was INR 7.9 crores (2.5% margin), flat YoY. Net debt stood at ~INR 458 crores with a gearing ratio of 0.45x.
Standalone (Hospital Business) Performance (Q2 FY27 vs Q2 FY26): Revenue grew 9.1% to INR 250 crores. EBITDA was INR 45.7 crores (18.2% margin) vs INR 44.8 crores (19.5% margin). PAT grew to INR 23.5 crores (9.4% margin) from INR 19.8 crores. Net debt reduced significantly to INR 14.5 crores from INR 54.5 crores.
Key Operational Metrics (Hospital Business): ARPOB increased 4.3% to INR 42,581. Average Length of Stay (ALOS) improved to 3.58 days from 3.74 days. Occupancy improved to 52% from 48%. Excluding Gurugram, occupancy was 55%. Payer mix was 33% self-pay, 38% insurance, and 29% government schemes.
Gurugram Unit (Shalby International): Revenue grew 50% YoY to ~INR 30 crores. ARPOB grew 18% to INR 96,388. ALOS was 3.3 days. The unit was EBITDA positive for the second consecutive quarter and for H1 overall. Management expects cash breakeven by the exit of Q4 FY27.
MedTech Business Performance: Consolidated revenue was INR 31.6 crores (INR 316 million). The India entity (SMTL) grew 40% to INR 22.4 crores. The U.S. entity (SAT Inc.) was stable, growing 4% to INR 28.6 crores. The business delivered its fifth consecutive EBITDA-positive quarter, with Q2 EBITDA at INR 0.36 crores, double that of Q1. Inventory days reduced to 784 from ~1,200 a year ago.
Strategic Priorities & Outlook: Management priorities are: 1) Adding specialist doctors in both orthopedic and non-orthopedic specialties, 2) Improving performance of underutilized hospitals, 3) Completing MedTech's supply chain transition for cost reduction (benefits expected from Q4), and 4) Continued investment in people and technology. Capex is expected to be minimal (~INR 10 crores in H1) going forward, focused on debt reduction. Management expects double-digit revenue growth for FY27 and improved EBITDA margins.
Additional Notes Section
Attachments: The regulatory filing included the enclosed transcript of the earnings call as an attachment.
Financial Data: Extensive financial data and operational metrics for Q2 FY27 were disclosed and discussed during the call.
Q&A Topics: The Q&A session covered queries on the rationale for the MedTech business, Gurugram unit's path to profitability, potential impact of oncology drug price capping (deemed insignificant), expansion plans (focus on technology upgrades and Gurugram bed addition), Mumbai expansion delays, and debt reduction plans for the MedTech business.
