Shalby Ltd

AGM access and annual report

• AGM scheduled: 10 September 2026 at 4:00 PM IST via VC/OAVM.
• Annual Report FY 2025-26 accessible on the company website with AGM notice.
• Letters with AR link sent to members without registered emails.
• AR also disclosed in newspapers and filed with exchanges.
• AR available on BSE and NSE portals.
• Remote e-voting cut-off date: 3 September 2026.

Remote voting and AGM participation

• Remote e-voting starts 5 September 2026 at 9:00 AM IST.
• Remote e-voting ends 9 September 2026 at 5:00 PM IST.
• Members may vote during VC/OAVM if not previously voting remotely.
• Speaker registrations for AGM open until 3 September 2026.

Financial Performance

• Consolidated PBT ₹ 19.7 crores; margin 5.8%; PAT ₹ 10.5 crores; margin 3.1%.
• Net debt approx ₹ 463 crores; gearing 0.46x.

Hospital Segment Update

• Standalone hospital revenue ₹ 259 crores; YoY growth ~7%.
• Standalone EBITDA ₹ 47.8 crores; EBITDA margin 18.4%.
• Standalone PBT ₹ 34 crores; PBT margin 13.1%.
• Standalone PAT ₹ 25 crores; PAT margin 9.7%.
• Beds occupied 701; occupancy 51% (54% including Shalby International).
• ARPOB 44,711; ALOS 3.69 days.
• Payer mix: 30% self-pay, 38% insurance, 32% government.
• Gurgaon revenue ₹ 26.2 crores; ARPOB ₹ 91,326; ALOS 3.8 days; EBITDA break-even.
• International revenue ₹ 13 crores total; Gurgaon ₹ 2 crores; others ₹ 11 crores.
• Transplants: 47 total (41 kidney, 5 liver, 1 bone marrow).

MedTech & International Update

• MedTech consolidated revenue ₹ 47 crores; YoY +53%; QoQ +17%.
• India MedTech revenue ₹ 36 crores; sequential +29%; YoY +98%.
• US MedTech revenue ₹ 38.8 crores; SGTPL ₹ 9.9 million.
• MedTech consolidated EBITDA ₹ 1.7 million; fourth straight quarter positive.
• SMTL India revenue ₹ 22.9 crores; YoY +130%; sequential +191%.
• US EBITDA marginally negative; SGTPL EBITDA ₹ 5.8 million.
• Inventory holding days expected to improve ~30%.
• Q1 FY27 consolidated revenue ₹ 472 million.

Guidance & Outlook

• EBITDA margin to up to 20% for the full year FY27.
• Inventory optimization and working-capital efficiency to continue; selective investments in products/tech.

Q&A Highlights

• Hospital margins: bunkers deployed; new TPA renewals could lift revenue by 5–7%; Gurgaon EBITDA positive; other units growing ~30% YoY.
• Implants bottom line down due to forex; gross margins expected to improve 100–200 bps per quarter; further improvement anticipated.
• DTA recognition: hospital DTA recognized; US MedTech not yet; will reconsider as profitability improves.
• MedTech margins: FX headwinds; India volumes up; cost-reduction plan saves ₹3 crores per month now and another ₹3 crores by Q4; expect double-digit EBITDA margins.
• Shalby International: occupancy ~30% target by Q3/Q4; PBT positive within 6–9 months; 7% EBITDA achieved.

CEO resignation

• Resignation of Deepak Anand as CEO of Shalby MedTech Limited, effective close of business 4 September 2026.
• Reason: moving abroad for personal reasons.
• No other material reasons stated.

Overview

• Standalone BRSR for FY2025-26; hospital and medical care provider.
• Reporting boundary is standalone; hospital services account for 100% turnover.
• 75 national units and 23 international locations across 10 Indian states and 13 countries.
• Exports contribute about 1.31% of turnover; paid-up capital ₹1,080.1 million.

Key ESG Risks & Opportunities

• Data protection risk; DPDP Act readiness with enterprise-wide privacy framework.
• Cybersecurity risk mitigated via access controls, breach response, and training.
• Energy/waste management opportunities; LED lighting, STP reuse, and potential solar.
• Biomedical waste handling compliance reduces regulatory risk and costs.

Governance & Policy Highlights

• Board oversight via Directors and Senior Management; CSR committee oversees CSR spend.
• Vigil Mechanism and Whistleblower Policy; anti-bribery and human rights policies.
• DPDP readiness with consent management framework and privacy policies.
• Policies approved by the Board; no external assurance obtained for BRSR FY2025-26.
• Policies cover ethics, risk, data privacy, and environment, health and safety.

Social Responsibility & Workforce

• Total employees: 2,838; permanent 2,217; female share ~44.6%; board female representation 14.29%.
• OHS: LTIFR and fatalities zero; NABH accreditation across hospitals.
• Training: ~89.9% employee training coverage; health, safety, and skill development programs.
• Turnover: permanent employees 35.99%; 2023-24 to 2024-25 turnover stable.
• CSR spend ₹32.18 million; CSR turnover ₹8,985.57 million; 100% beneficiaries from vulnerable groups.
• Grievance mechanism in place; 47 employee complaints filed, with minimal unresolved cases.

Environmental Performance

• Electricity from non-renewables: 59.88 TJ; total energy 61.96 TJ; intensity 6.9e-9 TJ/₹.
• Energy intensity improved ~18.4% year over year; LED lighting and HVAC optimisation cited.
• Water withdrawal 342,268 KL; water intensity 3.81e-5 KL/₹; 100% STP water reuse being evaluated.
• Biomedical waste 228.44 tonnes; disposed through authorised CBWTFs.
• GHG emissions: Scope 1 155.57 tCO2e; Scope 2 11,809.99 tCO2e; total 11,965.56 tCO2e.
• NABH accreditation; solar power and rainwater harvesting explored; zero liquid discharge not yet in place.

Stakeholder Engagement & Complaints

• Stakeholders: patients, employees, vendors, regulators, investors; engagement ongoing via multiple channels.
• Patient feedback informs hygiene, infection control, and housekeeping improvements.
• Investor engagement through quarterly presentations and ESG disclosures; policy inputs reviewed by Board.
• Grievance mechanism supports timely resolution; 0-47 employee complaints year, with minimal pending cases.
• Affiliations: 5 industry bodies (ASSOCHAM, CII, FICCI, GCCI, NatHealth).

Other Notable Metrics

• Related party transactions: purchases from RPbs 31.48%; loans/advances to RPbs 68.04%; investments 90.06%.
• Purchases to related parties 31.48%; sales to related parties 0.001% of turnover.
• Data privacy: consent management on website; DPDP-aligned policies; no data breaches in FY2025-26.
• Cybersecurity policies and data privacy frameworks in place; no external assurance obtained.
• Public policy: active engagement with industry associations; no adverse regulatory orders.
• No material product recalls or service disruptions reported.

Financial and Operational Highlights

• Consolidated revenue ₹11,414.29 crore for FY2025-26.
• Consolidated EBITDA ₹169.54 crore; margin 14.50%.
• Consolidated PBT ₹60.56 crore.
• Consolidated PAT ₹34.69 crore.
• Consolidated PAT ₹346.86 crore.
• Net debt ₹446.22 crore.
• ROCE 6.85%.
• Occupancy rate (hospital) 46%.
• Shalby MedTech revenue ₹134.97 crore.
• MedTech EBITDA ₹6.7 crore.

Meeting Details

• Date and time: August 13, 2026, 10:30 IST.
• Type: group earnings conference call; Mode: virtual.
• Event/organiser: earnings conference call by Shalby Limited.

Participants

• Key company participant: Vice President & Company Secretary.

Purpose

• Purpose: discuss Q1 FY2027 earnings results.

Availability

• Audio recording of the concall is available.

Business Overview

• Shalby is a multi-entity healthcare group focused on joint replacement.
• Key segments: Hospitals, International, MedTech, and Pharma & Franchise.
• Implant manufacturing in California and distribution in India/SE Asia supports core business.
• Revenue-sharing model with Zynova and Gwalior underpins O&M.

Operational Highlights

• Q1 FY27 consolidated revenue ₹3,386 mn, EBITDA ₹490 mn, PAT ₹105 mn.
• Standalone revenue ₹2,591 mn; EBITDA ₹478 mn; PAT ₹251 mn; ROCE 9.4%.
• Hospital metrics: In-patients 23,895; surgeries 9,326; occupancy rate 51%; ARPOB ₹44,711.
• Bed capacity expansion: additional 40% capacity available for organic growth.
• Markets: NA, Japan, India, Indonesia; approvals: Malaysia knee, Vietnam hip.
• Implant footprint across markets; upcoming markets include Argentina, Peru, Colombia, Iran, Iraq.
• Occupancy growth supports margin expansion with limited capex.
• 24x7 Homecare services and tech enablement to expand patient reach.

Financial Performance

• Consolidated revenue up 11.6% YoY; EBITDA up 0.9%; PBT down 13.1%.
• PAT up 36.7% YoY to ₹105 mn; PAT margin 3.1%.
• Consolidated ROCE 6.7%; Standalone ROCE 9.4%.
• Consolidated net debt ₹4,636 mn; cash ₹873 mn.
• Debt/Equity at 0.46x.
• Revenue mix: Hospitals 78.3%, International 7.8%, MedTech 13.9%, Others near zero.

Capital Structure & Liquidity

• Total borrowings ₹5,509 mn; net debt ₹(4,636) mn; cash ₹873 mn.
• Debt/Equity ratio 0.46x.
• Standalone borrowings ₹1,216 mn; cash ₹671 mn; net debt ₹(545) mn.

Strategic Priorities & Outlook

• Maintain leadership in joint replacement; diversify into Cardiac, Oncology, Neuro, Transplants.
• Prudent capex; revenue-sharing O&M partnerships to optimize capital use.
• Aim to double ROCE in coming year via operational leverage.
• Expand 24x7 homecare; leverage technology to improve outcomes and reach.
• Occupancy growth supports higher capacity utilization.

Governance & Leadership

• Board includes independent directors: Ashok Bhatia, Shyamal Joshi, Tej Malhotra, Umesh Menon, Sujana Shah.
• Dr. Vikram Shah is Chairman and Managing Director.
• Investor relations contact: Jigar Todi.