SHALBY - Shalby

📊 NSE: SHALBY 🏢 Healthcare 📅 Last Updated: 12/14/2025 13:06

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 5.5% YoY to INR 289.9 Cr in Q2 FY26. Segmental growth: Shalby Hospitals/Pharma/Franchise grew to INR 234.5 Cr (80.9% of total), Shalby MedTech (Implants) grew 42.1% YoY to INR 33.7 Cr (11.6% of total), and Shalby International (Sanar) contributed INR 19.9 Cr (6.9% of total).

Geographic Revenue Split

A significant portion of revenue is generated from Gujarat, particularly the flagship SG Highway hospital. Sanar International Hospital expands the footprint into Delhi-NCR, while international patients from 60+ countries contribute 65% of Sanar's revenue.

Profitability Margins

Consolidated OPM declined from 19.3% in FY24 to 12.2% in FY25 due to losses in Sanar and MedTech. Standalone EBITDA margin for H1 FY26 was 20.6%, down from 21.6% YoY, reflecting a 1.8% decline in core profitability.

EBITDA Margin

Consolidated EBITDA for Q2 FY26 was INR 46.1 Cr, up 15.8% YoY from INR 39.8 Cr. MedTech EBITDA grew 1795.4% YoY to INR 3.66 Cr, while Shalby International reported an EBITDA loss of INR 1.2 Cr in Q2 FY26.

Capital Expenditure

Shalby acquired Healers Hospital Private Limited (HHPL) for INR 104 Cr to transition from a leased to an owned model. Net debt is expected to increase by INR 100-105 Cr for HHPL and INR 140-145 Cr for the PKHPL acquisition.

Credit Rating & Borrowing

ICRA revised the long-term rating from [ICRA]A+(Stable) to [ICRA]A+(Negative) due to margin deterioration. Gross borrowings stood at INR 129.44 Cr as of September 2025 with a net debt of INR 30.93 Cr.

⚙️ Operational Drivers

Raw Materials

Orthopedic implants (knee/hip), surgical consumables, and pharmaceutical medicines represent the primary material costs, with materials and consumables accounting for 25.9% of total revenue in Q2 FY26.

Import Sources

Implants are manufactured in-house via Shalby Advanced Technologies (SAT) in the USA (Consensus Orthopedics assets) and sourced for domestic use in India.

Key Suppliers

Shalby MedTech (internal subsidiary) serves as a key supplier for implants; other pharmaceutical and consumable suppliers are not specifically named in the documents.

Capacity Expansion

Sanar International Hospital has a total bed capacity of 130. Group-wide occupancy was 47.5% in 9M FY25, while Sanar operated at a low 21% occupancy in Q2 FY26.

Raw Material Costs

Materials and consumables costs were 25.9% of revenue in Q2 FY26. Procurement strategies include in-house manufacturing of implants to reduce external sourcing costs and improve supply chain control.

Manufacturing Efficiency

MedTech sold 10,988 implant components in Q2 FY26, a 16.4% YoY increase. Hospital efficiency is constrained by low occupancy at Sanar (21%) and emerging specialty units.

📈 Strategic Growth

Expected Growth Rate

16-20%

Growth Strategy

Growth will be driven by scaling the MedTech implant division (expected 50% YoY growth), increasing international patient footfall at Sanar (currently 65% of its revenue), and diversifying into non-arthroplasty segments like oncology and transplants.

Products & Services

Arthroplasty (joint replacement) surgeries, knee and hip implants, liver/kidney/bone marrow transplants, and cardiac care services.

Brand Portfolio

Shalby, Sanar International, Shalby Academy, Slaney, Griffin, and Consensus Orthopedics (acquired assets).

New Products/Services

MedTech is planning to launch new implant products in FY26, which is expected to drive the projected 50% revenue growth in that segment.

Market Expansion

Expansion into the Delhi-NCR market via Sanar and increasing the number of Shalby Orthopedics Centres of Excellence (SOCEs) across India.

Market Share & Ranking

Shalby is a leading player in the Indian arthroplasty (joint replacement) market, though specific market share % is not disclosed.

Strategic Alliances

Strategic acquisition of Healers Hospital (HHPL) and PK Healthcare (Sanar) to consolidate the Delhi-NCR presence.

🌍 External Factors

Industry Trends

The industry is shifting toward multi-specialty care and digital accreditation (Digital NABH). Shalby is positioning itself by diversifying beyond its core arthroplasty strength into transplants and oncology.

Competitive Landscape

Competes with major multi-specialty hospital chains and specialized orthopedic clinics.

Competitive Moat

The primary moat is the brand reputation of Dr. Vikram Shah in arthroplasty and the high switching costs/technical expertise required for complex joint replacements.

Macro Economic Sensitivity

Healthcare demand is sensitive to per capita income growth and widening medical insurance coverage, which increases the affordability of elective surgeries.