Shalby Limited , a leading multi-specialty hospital chain, has reported mixed results for the first quarter, with consolidated revenue crossing the INR 300 crore mark for the first time in the company's history.

Financial Highlights

Operational Performance

• Hospital business faced challenges with occupancy dropping to 45% from 49.5% in the previous quarter.
• Average Revenue Per Occupied Bed (ARPOB) rose 5.3% to INR 45,673.
• Shalby Sanar's revenue fell 2.2% to INR 23.25 crores due to geopolitical issues affecting international patients.

Implant Business Growth

The implant business, operated under Shalby MedTech, showed strong growth:

• Revenue up 74.2% to INR 30.80 crores
• Reduced EBITDA losses
• Total 14,076 implant components sold, a 65.4% year-on-year increase

Management Outlook

• Management expects 12-15% consolidated revenue growth for FY2026.
• Targeting occupancy improvement to 50%+ levels.
• Aiming for $100 million implant revenue in 4-5 years.

Segment-wise Performance

The company provided a breakdown of hospital performance based on maturity:

International Business

• Shalby Sanar in Delhi saw a dip in international patient flow due to geopolitical issues in the Middle East.
• The company is focusing on increasing domestic patient inflow to balance the mix.

Future Plans

• Mumbai hospital project expected to take 3-3.5 years from property handover.
• Cautious approach to expanding the franchisee model to maintain quality standards.
• Focus on orthopedic implant business with potential expansion into other medical devices in the long term.

Shalby Limited continues to navigate challenges while pursuing growth opportunities across its hospital network and implant business. The company's strategy focuses on improving occupancy rates, expanding its domestic patient base, and driving growth in its implant division.

Shalby Limited , a leading multi-specialty hospital chain, has announced its financial results for the first quarter. The company reported a mixed performance with revenue growth but a significant decline in profitability.

Revenue Growth

On a consolidated basis, Shalby Limited's revenue from operations increased by 6.3% year-over-year to ₹2,964.26 crore, compared to ₹2,788.90 crore in the same quarter last year. This growth was primarily driven by the company's healthcare services segment, which generated revenue of ₹2,683.63 crore.

Profit Decline

Despite the revenue growth, the company experienced a substantial decrease in profitability. Consolidated net profit dropped by 47.9% to ₹76.78 crore, down from ₹147.41 crore in the corresponding quarter. This decline in profit can be attributed to increased expenses across various categories.

Segment Performance

Shalby's financial results highlight the performance of its two main business segments:

1. Healthcare Services: This segment remained the primary revenue driver, contributing ₹2,683.63 crore to the total revenue. The segment reported a profit of ₹325.67 crore for the quarter.

2. Manufacturing of Implants: This segment generated revenue of ₹280.62 crore but reported a loss of ₹99.15 crore, indicating ongoing challenges in this business area.

Operational Highlights

• The company performed over 9,000 surgeries during the quarter, with arthroplasty accounting for more than 4,210 procedures.
• Shalby's hospital business saw a slight decrease in inpatient count to 22,499, compared to 22,792 in the same quarter of the previous year.
• The Average Revenue Per Occupied Bed (ARPOB) increased by 5.3% to ₹45,673.
• The occupancy rate stood at 45%, down from 48% in the same quarter last year.

Financial Position

Shalby Limited's consolidated net debt stood at ₹3,025 crore. The company's consolidated annualized Return on Capital Employed (ROCE) was 6.8% for the quarter.

Management Commentary

Dr. Vikram Shah, Chairman and Managing Director of Shalby Limited, stated, "We are pleased with our revenue growth this quarter, particularly in our core healthcare services segment. However, we acknowledge the challenges reflected in our profitability. We remain committed to improving operational efficiency and expanding our services to drive sustainable growth and profitability in the coming quarters."

Future Outlook

Shalby Limited continues to focus on its expansion plans, with ongoing projects in Nashik and Mumbai. The company is emphasizing prudent capital allocation and leveraging technology to enhance medical outcomes and patient reach. Additionally, Shalby is diversifying its services beyond its core competency in joint replacements, expanding into areas such as cardiac science, oncology, and neuroscience.

As Shalby navigates the evolving healthcare landscape, the company aims to maintain its leadership position in arthroplasty while driving growth in other specialties and improving overall operational performance.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult with a qualified financial advisor before making any investment decisions.