Shalby Limited Q2 Revenue Rises 9.8% to Rs 318 Crore in FY27

Shalby Limited reported consolidated total revenue of Rs 318.2 crore in Q2 FY27, up 9.8% year on year, as hospital operations improved and its MedTech division remained EBITDA positive. However, consolidated EBITDA margin declined to 14.6% from 15.9%, showing that revenue growth did not fully translate into margin expansion.

What did Shalby report for Q2 FY27?

Shalby reported total consolidated revenue of Rs 318.2 crore for the quarter ended September 30, 2026, compared with Rs 289.9 crore in Q2 FY26. The investor presentation showed quarterly EBITDA of Rs 46.4 crore, marginally higher than Rs 46.1 crore a year earlier. EBITDA margin declined by 130 basis points to 14.6%.

The company's consolidated results filing separately reported revenue of Rs 313.17 crore, up 9.72% year on year from Rs 285.43 crore, and net profit of Rs 7.89 crore, up 8.38% from Rs 7.28 crore. The difference between the Rs 318.2 crore total revenue figure and Rs 313.17 crore reported revenue reflects the separate metrics disclosed in the investor presentation and the consolidated results filing.

How did hospital operations support Shalby's revenue growth?

Shalby's hospital business recorded broad-based operational improvement during the quarter. Occupancy increased to 52%, a rise of 400 basis points year on year, while the average length of stay decreased. The share of insured and government-supported patients also increased, according to management commentary.

The operating indicators matter because higher occupancy can improve the utilisation of existing hospital infrastructure. Management said the existing hospital network has capacity to generate about 50% more revenue. President Sanesh Shah said the hospital business remains profitable, while the company intends to direct most new capital towards this segment.

What is the progress at Shalby International in Gurugram?

Shalby International, the Gurugram hospital, delivered about 50% year-on-year revenue growth and was EBITDA positive for the second consecutive quarter. Management expects the facility to reach cash breakeven around the end of Q3 or during Q4 FY27.

Group CFO Amit Kumar said the unit's financial position has improved alongside revenue growth. Sanesh Shah added that a further 20% to 30% increase in revenue from current levels would make the hospital profit-before-tax neutral. This remains a management assessment rather than a reported PBT outcome for the unit.

Why is Shalby continuing to invest in the MedTech business?

Shalby is continuing to support its implant-focused MedTech business because management expects lower production costs and an eventual self-sustaining operation. The division was EBITDA positive for the fifth straight quarter, while its consolidated EBITDA roughly doubled sequentially to US$3.6 million.

Management said manufacturing cost per implant has fallen from about US$1,100 to less than half that level. A new supply chain is expected to reduce cost of goods sold by a further 30% to 40% from Q4 FY27. The company did not provide a specific sales target linked to the new supply arrangement, but said it would support a stronger sales push.

Sanesh Shah said 80% to 90% of fresh capital deployment would be directed to the hospital business. The stated plan is for MedTech to fund itself through internal accruals, allowing more operating cash to be used in hospital expansion and operations.

How is lower capital expenditure affecting Shalby's debt position?

Shalby's net debt declined to Rs 458 crore, with gearing at 0.45 times. Management linked the improvement to lower capital expenditure, the turnaround in the Gurugram unit and continued EBITDA-positive performance in MedTech, despite the impact of a stronger US dollar.

Capital expenditure was about Rs 10 crore in the first half of FY27, compared with about Rs 160 crore in the prior-year period. Amit Kumar said spending in the second half is expected to remain at a similar level and will primarily cover replacement capital expenditure and required medical equipment. No significant capital expenditure programme was indicated.

The reduction in cash outflow is important for a hospital operator because new facilities and medical equipment can require substantial upfront funding. Management expects debt to decline further in coming quarters, though it did not provide a debt-reduction target or a specific timetable.

Conclusion

Shalby's Q2 FY27 performance combined 9.8% growth in consolidated total revenue with better hospital utilisation, a second consecutive EBITDA-positive quarter at Gurugram and continued EBITDA-positive MedTech operations. At the same time, the decline in EBITDA margin to 14.6% and lower PBT show that profitability growth trailed revenue growth during the quarter.

The key developments to watch are the expected cash breakeven at Shalby International around the end of Q3 or in Q4 FY27, the rollout of the new MedTech supply chain from Q4 FY27, and management's stated expectation of double-digit top-line growth for FY27. Investors will also track whether low capital expenditure supports the projected continued reduction in net debt.