Shalby MedTech reports Q2 revenue down 6%, EBITDA down 90%

Shalby MedTech Limited reported consolidated Q2 FY27 revenue of Rs 31.596 crore, down 6% year on year, while EBITDA fell 90% to Rs 36.4 lakh. Shalby MedTech also held Rs 337.4 crore of consolidated inventory in H1 FY27, equivalent to 784 days of inventory to sales.

What happened to Shalby MedTech's Q2 FY27 revenue and EBITDA?

Shalby MedTech's consolidated revenue declined 6% year on year in Q2 FY27 and EBITDA declined 90%. Revenue was Rs 31.596 crore, compared with Rs 33.726 crore in Q2 FY26, while EBITDA was Rs 36.4 lakh, compared with Rs 3.662 crore a year earlier. The presentation also reports revenue down 33% quarter on quarter from Rs 47.167 crore in Q1 FY27.

The sequential EBITDA comparison moved differently from revenue. Consolidated EBITDA rose 121% from Rs 16.5 lakh in Q1 FY27 to Rs 36.4 lakh in Q2 FY27, although it remained below the Q2 FY26 figure. This means Shalby MedTech reported higher EBITDA than in the immediately preceding quarter despite a Rs 15.571 crore sequential revenue decline.

QoQ means quarter on quarter and YoY means year on year. The source reports the quarterly percentages and financial figures, but does not give a separate narrative reconciliation for the consolidated revenue or EBITDA change.

Which reporting units changed most in Q2 FY27?

Shalby MedTech's disclosed reporting units showed the largest revenue decline at Shalby Global Technologies Pte. Ltd. Revenue at that unit was Rs 27.1 lakh in Q2 FY27, down 91% from Rs 2.929 crore in Q2 FY26 and down 73% from Rs 98.7 lakh in Q1 FY27. The decline occurred alongside year-on-year growth at the other two reported units.

The Shalby MedTech standalone business reported Q2 FY27 revenue of Rs 22.387 crore, up 40% year on year, while Shalby Advanced Technologies Inc. reported Rs 28.601 crore, up 4%. Sequentially, however, those businesses recorded declines of 38% and 13%, respectively, from Rs 36.096 crore and Rs 32.81 crore in Q1 FY27.

EBITDA at Shalby Advanced Technologies Inc. was Rs 2.515 crore in Q2 FY27, down 62% year on year from Rs 6.63 crore. Shalby MedTech standalone EBITDA was Rs 91.4 lakh, compared with a loss of Rs 35.51 lakh in Q2 FY26, while Shalby Global Technologies Pte. Ltd. recorded a loss of Rs 1.75 lakh against EBITDA of Rs 5.36 lakh a year earlier.

The reporting-unit figures are not additive to the consolidated revenue total of Rs 31.596 crore. The presentation lists both individual entities and a consolidated line, without explaining the consolidation adjustments between them.

How large is Shalby MedTech's inventory burden?

Shalby MedTech held Rs 337.4 crore of consolidated inventory in H1 FY27, including Rs 242.4 crore of finished goods and Rs 95 crore of raw materials plus work in progress. H1 FY27 consolidated revenue was Rs 78.8 crore, and the company reported 784 days of inventory to sales for the period.

The inventory balance declined by Rs 8 crore from Rs 345.4 crore in FY26, while inventory days fell by 150 days from 934. Finished goods represented Rs 242.4 crore of the H1 FY27 total, compared with Rs 253.4 crore in FY26; raw materials plus work in progress increased from Rs 92 crore to Rs 95 crore.

WIP means work in progress. Inventory days have declined in every disclosed comparison since FY24, falling by 531 days from 1,315 in FY24 to 784 in H1 FY27. Yet absolute inventory increased by Rs 126.8 crore over the same span, from Rs 210.6 crore to Rs 337.4 crore.

How did Shalby MedTech perform before Q2 FY27?

Shalby MedTech's consolidated revenue grew in FY25 and FY26 before the Q2 FY27 year-on-year decline. Revenue rose from Rs 58.441 crore in FY24 to Rs 92.286 crore in FY25, then to Rs 134.972 crore in FY26. The FY26 result represented 46% reported revenue growth from FY25.

Consolidated EBITDA moved from a loss of Rs 4.852 crore in FY24 to a loss of Rs 19.165 crore in FY25, before turning positive at Rs 6.704 crore in FY26. The FY26 EBITDA result followed a Rs 21.015 crore EBITDA contribution from Shalby Advanced Technologies Inc., while the Shalby MedTech standalone business recorded a loss of Rs 71 lakh.

FY26 revenue growth was fastest at the Shalby MedTech standalone business, where revenue increased 131% to Rs 81.311 crore. Shalby Advanced Technologies Inc. reported 8% growth to Rs 116.823 crore, whereas Shalby Global Technologies Pte. Ltd. reported a 1% decline to Rs 6.305 crore.

The annual data therefore show two years of consolidated revenue expansion through FY26, but a less consistent EBITDA path. Q2 FY27 then brought a year-on-year decline in both consolidated revenue and EBITDA, with revenue at Rs 31.596 crore and EBITDA at Rs 36.4 lakh.

What actions has Shalby MedTech disclosed to improve operations?

Shalby MedTech has disclosed manufacturing and quality initiatives intended to increase implant-processing throughput and reduce bottlenecks. In Q2 FY27, it reported growth in processing volumes through its Clean, Pack & Sterile, or CPS, department, which management said supported product availability and revenue growth through increased operating capacity.

The company also reported enhanced inspection processes, reinstatement of a passivation line and establishment or recommissioning of a secondary clean line. Management said these measures were intended to improve productivity and turnaround times, strengthen in-house processing capacity, and expand production capacity; the presentation does not quantify the capacity increase or savings.

Shalby MedTech further reported a significant reduction in quality-control non-conformances and lower defects and scrap from contract manufacturers. Management said the changes improved first-pass acceptance, reduced rework and material losses, and supported gross margins. It also began targeted surgeon-engagement initiatives intended to increase implant utilisation and market adoption over the longer term.

The presentation identifies North America, Japan, India and Indonesia as existing implant markets. It lists approvals received in Malaysia, Argentina and Nepal, while regulatory approvals remain pending in South Korea, Vietnam, Iran and Iraq.

Conclusion

Shalby MedTech's Q2 FY27 result combined a 6% year-on-year revenue decline with a 90% EBITDA decline, despite a sequential rise in EBITDA from Rs 16.5 lakh to Rs 36.4 lakh. The working-capital position remains central to the reported figures: inventory days fell from 934 in FY26 to 784 in H1 FY27, but inventory was still Rs 337.4 crore against H1 revenue of Rs 78.8 crore.

The next disclosed areas to watch are execution of the CPS, inspection, passivation and secondary clean-line initiatives, particularly their stated effects on throughput, defects, scrap and product availability. Regulatory decisions in South Korea, Vietnam, Iran and Iraq are also unresolved, while management's surgeon-engagement programme is intended to support longer-term implant utilisation.