Shanmuga Hospital has scheduled its sixth annual general meeting for September 18, 2026, to seek shareholder approval for significant corporate governance and strategic expansions. The meeting will be conducted via video conference or other audio-visual means.

The agenda includes increasing the authorized share capital from ₹14 crore to ₹25 crore to facilitate future fundraising. The board also proposes amending the Memorandum of Association to expand operations into medical education support services and healthcare information technology solutions.

Strategic Business Expansion

The company plans to diversify beyond its core healthcare services by entering the medical education and technology sectors. The proposed amendment to Clause III(A) of the Memorandum of Association adds two new object clauses:

• Providing administrative, operational, management, technical, academic, training, consultancy, and allied support services to medical colleges, nursing colleges, paramedical institutions, teaching hospitals, and other healthcare establishments.
• Designing, developing, owning, licensing, marketing, selling, distributing, implementing, maintaining, upgrading, and dealing in computer software, mobile applications, web applications, and other digital solutions in India or abroad.

Capital Structure Changes

To support growth and expansion plans, the board seeks approval to increase the authorized share capital by ₹11 crore. The revised structure will comprise 2,50,00,000 equity shares of face value ₹10 each, up from the current 1,40,00,000 shares.

Employee Stock Option Plan

Shareholders will vote on the "Shanmuga Hospital Limited Employee Stock Option Plan 2026". The plan allows the grant of up to 3,50,000 employee stock options, representing 2.57% of the issued, subscribed, and paid-up equity share capital. These options are exercisable into equity shares of face value ₹10 each.

Key features of the ESOP include:

• Eligible participants include permanent employees and directors (excluding independent directors and those holding more than 10% equity).
• Maximum vesting period is three years, with a minimum of one year.
• Exercise price will be determined by the committee, not less than face value and not more than the closing market price on the day before the grant.
• Shares allotted upon exercise will have a lock-in period of one year.

Governance and Compliance

The meeting will also address routine governance matters:

• Re-appointment of Mrs. Panneerselvam Jayalakshmi and Mr. Karuppiah Saravanan as directors upon retirement by rotation.
• Appointment of CS Anuradha as secretarial auditor for five consecutive financial years, commencing FY27 through FY31.
• Alteration of the Articles of Association to align with the Companies Act 2013, including deleting redundant provisions related to physical share certificates.

Shanmuga Hospital reported a stable financial performance for FY26, with net profit remaining largely unchanged year-on-year. The Salem-based healthcare provider recorded revenue from operations of ₹4,743.61 lakh and a profit after tax (PAT) of ₹421.06 lakh for the year ended March 31, 2026.

The results reflect the company's transition into its first full fiscal year as a listed entity on the BSE SME Platform. While operating income saw a marginal decline compared to the previous year, the hospital maintained profitability despite significant capital investments in advanced medical technology.

Financial Performance

Revenue from operations stood at ₹4,743.61 lakh, a slight decrease from ₹4,785.33 lakh in FY25. Total income for the period was ₹4,806.32 lakh, driven by other income which rose to ₹62.71 lakh from ₹23.35 lakh in the prior year.

EBITDA expanded to ₹885.42 lakh from ₹840.44 lakh, indicating improved operational efficiency before interest, taxes, depreciation, and amortization. The cost of consumption decreased significantly to ₹1,474.72 lakh from ₹1,772.74 lakh, contributing to margin stability.

Capital Expenditure and IPO Utilization

A key development during the year was the full utilization of Initial Public Offer (IPO) proceeds. The company raised ₹2,061.72 lakh through its IPO in FY25. As of March 31, 2026, the entire amount had been deployed, with ₹1,115.50 lakh utilized specifically for capital expenditure during FY26.

This capital deployment facilitated the acquisition and operationalization of the Da Vinci Xi Robotic Surgical System, marking a significant milestone in the hospital's clinical capabilities. Property, Plant, and Equipment (PPE) increased substantially to ₹3,746.89 lakh from ₹2,242.71 lakh, reflecting these strategic investments.

Operational Highlights

The hospital reported over 4,200 admissions and performed more than 2,500 surgeries during the year. The introduction of robotic-assisted surgery has enabled precision-driven procedures across multiple specialties, including urology, gynaecology, and oncology. The facility also maintained an average length of stay (ALOS) of 2.6 days, demonstrating efficient patient flow management.

What the Numbers Show

Despite a slight dip in top-line revenue, the hospital achieved higher EBITDA, suggesting improved cost control or a shift in service mix towards higher-margin procedures. The significant reduction in cost of consumption (₹298 lakh decrease) contrasts with rising employee benefit expenses (₹198.73 lakh increase), highlighting a strategic shift towards human capital investment alongside technological upgrades. The complete deployment of IPO proceeds into capital assets indicates a focus on long-term capacity building rather than short-term liquidity retention.