Shalby revenue rises 9.1% as Q2 EBITDA margin falls to 18.2%

In Q2 FY27, Shalby Limited’s standalone hospital revenue increased 9.1% year on year to Rs 250.6 crore, but EBITDA margin declined to 18.2% from 19.5% as consumables, doctor fees, employee benefits and other expenses took larger shares of revenue. Profit after tax rose 19.0% to Rs 23.5 crore.

Why did Shalby’s Q2 EBITDA margin decline?

Shalby’s earnings before interest, tax, depreciation and amortisation, or EBITDA, margin declined by 130 basis points year on year to 18.2% in Q2 FY27 because several costs rose as a percentage of revenue. Materials and consumables increased to 25.5% of revenue from 24.7%, fees to doctors and consultants rose to 27.2% from 26.9%, employee benefit expenses reached 12.2% from 12.0%, and other expenses increased to 8.4% from 7.6%.

Other operative expenses were the exception, falling to 8.6% of Q2 FY27 revenue from 9.3% a year earlier. That 70-basis-point reduction did not offset the higher shares for consumables, doctor fees, employee benefits and other expenses. EBITDA rose 2.0% year on year to Rs 45.7 crore, below the 9.1% revenue growth rate. The presentation states that EBITDA includes other income.

How did Shalby’s Q2 profit compare with prior periods?

Shalby’s Q2 FY27 profit after tax, or PAT, was Rs 23.5 crore, up 19.0% from Rs 19.8 crore in Q2 FY26, while PAT margin improved to 9.4% from 8.6%. Profit before tax, or PBT, increased 3.2% year on year to Rs 31.6 crore, but its margin decreased to 12.6% from 13.3%.

Sequentially, Q2 FY27 was below Q1 FY27 on all four reported profit-and-loss measures. Revenue declined 3.3% from Rs 259.1 crore, EBITDA fell 4.3% from Rs 47.8 crore, PBT decreased 6.9% from Rs 33.9 crore and PAT declined 6.2% from Rs 25.1 crore. The Q2 EBITDA, PBT and PAT margins of 18.2%, 12.6% and 9.4% were also below Q1 levels of 18.4%, 13.1% and 9.7%, respectively.

What does Shalby’s H1 FY27 performance show?

Shalby’s H1 FY27 standalone revenue increased 8.0% to Rs 509.7 crore from Rs 472 crore in H1 FY26, but EBITDA declined 3.8% to Rs 93.5 crore from Rs 97.1 crore. Consequently, H1 EBITDA margin fell 230 basis points to 18.3% from 20.6%, a larger contraction than the 130-basis-point year-on-year decline in Q2.

H1 FY27 PBT declined 7.4% to Rs 65.4 crore and its margin reduced to 12.8%, compared with Rs 70.7 crore and 15.0% in H1 FY26. PAT nevertheless increased 6.9% to Rs 48.6 crore from Rs 45.5 crore, although PAT margin edged down to 9.5% from 9.6%. The half-year figures show that the reported revenue increase did not translate into higher EBITDA or PBT.

Which hospital operating metrics changed in Q2 FY27?

Shalby reported 25,357 in-patients in Q2 FY27, up 11.5% year on year, while surgery count rose 14.3% to 8,618. Occupied beds increased 6.2% to 715 even as operational beds declined 3.5% to 1,365. The occupancy rate was 52%, against 48% in Q2 FY26, and the presentation reports a 55% rate excluding PK Healthcare.

Average revenue per occupied bed, or ARPOB, rose 4.4% to Rs 42,581, while average length of stay, or ALOS, excluding day care declined 4.3% to 3.58 days from 3.74 days. Surgery growth was led by nephrology and urology at 70.7%, followed by general and cosmetics at 22.2% and oncology at 20.5%; arthroplasty rose 3.5% to more than 3,070 procedures. The operational data for both comparison periods include Shalby International (PK) Healthcare performance.

What was Shalby’s September 2026 balance-sheet position?

Shalby reported gross borrowings of Rs 115.625 crore and cash and cash equivalents of Rs 66.038 crore as of September 2026. Its reported net cash/(debt) position was negative Rs 49.587 crore, indicating that gross borrowings exceeded cash and cash equivalents at that date.

Return on capital employed, or ROCE, was 9.4% on an annualised basis as of September 2026. Shalby defines ROCE as annualised earnings before interest and tax divided by average equity plus debt less cash and cash equivalents. This balance-sheet measure is separately reported from the Q2 FY27 standalone profit and loss account.

Conclusion

Shalby’s Q2 FY27 standalone result combined revenue growth and a higher PAT with lower EBITDA and PBT margins. Consumables and other expenses each added 80 basis points to their shares of revenue year on year, while doctor and consultant fees added 30 basis points and employee benefits added 20 basis points. The 70-basis-point decline in other operative expenses did not fully offset those movements.

The next disclosed results will show whether materials and consumables remain at 25.5% of revenue and doctor and consultant fees at 27.2%, after H1 FY27 EBITDA declined to Rs 93.5 crore despite Rs 509.7 crore of revenue. The presentation provides no margin target, cost-reduction plan or scheduled capacity expansion, leaving the revenue-to-EBITDA mix and occupancy trend as the reported items to monitor.