Shalby Limited — Call Transcript 2025

Nov 20, 2025

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Shalby/SE/2025‐26/77

November 20, 2025

The Listing Department Corporate Service Department National Stock Exchange of India Ltd BSE Limited Mumbai 400 051. Mumbai 400 001. Scrip Code : SHALBY Scrip Code: 540797 Through : https://neaps.nseindia.com/NEWLISTINGCORP/ Through : http://listing.bseindia.com

Sub.: Transcript of Earning Conference Call for Q2 FY2025‐26 financial results Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015

Dear Sir/Madam,

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith transcript of earning conference call held on November 15, 2025, wherein Unaudited Standalone & Consolidated Financial Results for the quarter ended September 30, 2025 (Q2 FY26) were discussed. The said transcript is also available in the Investors Section of our website.

We request to take the same on your records.

Thanking You,

Yours faithfully,

For Shalby Limited SHAH TUSHAR Digitally signed by SHAH TUSHAR DINESHCHAND DINESHCHANDRA RA Tushar Shah Date: 2025.11.20 13:01:20 +05'30' AVP & Company Secretary Mem. No: FCS‐7216

Encl.: Concall Transcript

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“Shalby Limited

Q2 FY '26 Earnings Conference Call” November 15, 2025

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MANAGEMENT: DR. VIKRAM SHAH, CHAIRMAN AND MANAGING DIRECTOR, SHALBY LIMITED

MR. SHANAY SHAH, PRESIDENT, SHALBY LIMITED DR. NISHITA SHUKLA – GROUP CHIEF OPERATING OFFICER -SHALBY LIMITED MR. DEEPAK ANAND – CHIEF EXECUTIVE OFFICER – SHALBY MEDTECH LIMITED MR. AMIT KUMAR – CHIEF FINANCIAL OFFICER – SHALBY LIMITED MR. BABU THOMAS – CHIEF HUMAN RESOURCES OFFICER, SHALBY LIMITED

MODERATOR: MR. KASHISH THAKUR – ELARA SECURITIES INDIA PRIVATE LIMITED

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Shalby Limited Q2 FY '26 Earnings Conference Call Transcript November 15, 2025

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Moderator:

Ladies and gentlemen, good day, and welcome to Shalby Limited Q2 FY '26 Earnings Conference Call, hosted by Elara Securities India Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Kashish Thakur. Thank you, and over to you, Mr. Thakur.

Kashish Thakur:

Thank you, Hina. Good afternoon, everyone. We welcome all the participants to Shalby Limited Q2 FY '26 Earnings Call, hosted by Elara Securities. Today, we have with us senior management representatives from Shalby. We will start with the performance highlights from newly appointed Group CFO by Shalby Limited, Mr. Amit Kumar. Later, Mr. Deepak Anand, CEO of Shalby MedTech will take over. After that, we'll open the floor for question and answer for all the participants.

I will now hand over the call to Mr. Amit Kumar for the important disclaimers regarding any forward-looking statements that may be made in today's call. Over to you, sir.

Amit Kumar:

Yes. Thank you, Kashish. Good afternoon, everyone. This is Amit Kumar. I am pleased to welcome you in Shalby Limited Quarter 2 FY '26 Earnings Call. Our investor presentation has already been uploaded on website of the stock exchange and as well on our company website, shalby.org. We hope you all had an opportunity to review it already.

Before we begin, I would just like to remind you that certain statements during this call today would be forward-looking in nature and involve risks and uncertainties. For that matter, you could also refer to a detailed disclaimer to our investor presentation on Slide number 2.

So to start with, I'll walk you through the consolidated performance first. And to start, it would be on a year-on-year basis, meaning quarter 2 of FY '26 compared with similar quarter last year. On to the numbers, the consolidated revenue stands at INR289 cr. in quarter 2 FY '26 versus INR274 cr. in the same quarter last year. This shows a growth of 5.5% on a year-on-year basis.

The consolidated EBITDA stands at INR46.1 crores in the current quarter as against INR39.8 crores in the same quarter last year. From the point of view of the margin, the current quarter margin has been about 15.9% as against 14.5% in the same quarter last year. This shows a growth of 15.8% on a year-on-year basis.

Onto the consolidated PBT, that stands at INR19.1 crores in the current quarter as against INR13.7 crores in the same quarter last year. From the point of view of margin, it stands at 6.6% in the current quarter as against 5% in the last year. This shows a strong growth of 39.2% on a year-on-year basis.

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Shalby Limited Q2 FY '26 Earnings Conference Call Transcript November 15, 2025

The consolidated PAT stands at INR7.3 crores in current quarter as against INR2.4 crores in the same quarter last year, with a margin of 2.5% in the current quarter as against 0.9% in the same quarter last year. This also shows a strong growth of about 200% on a year-on-year basis.

Moving to half year performance for the FY '26 as against half year performance of FY '25. The consolidated revenue stands at INR593 cr. as against half year performance of last year, having INR563 crores of consolidated revenue. This also shows a growth of 5.3% year-on-year basis.

The consolidated EBITDA stands at INR94.6 crores in the half year of FY '26 as against INR94.7 crores in the half year of last year. This has a margin of 16% in the current half year as against 16.8% in the half year last year, which is almost flat year-on-year basis.

The consolidated PBT stands at INR41.7 crores in the current half year as against INR41.1 crores against the half year in FY '25. This has a margin of 7% in the half year current year and against the 7.8% on half year basis in FY '25. This is down by 5.4% year-on-year basis.

The consolidated PAT is INR15 crores in current half year of FY '26 as against INR17 crores in the half year of FY '25. This has a margin of 2.5% in the current half year as against 3% in the FY '25 on same period. This is down by 12.5% year-on-year basis. On to the balance sheet, this remains strong with a low gearing ratio of 0.36x with a net debt of INR362.2 cr.

Now moving to the stand-alone performance, starting with the year-on-year basis for the quarter 2 of FY '26 compared with quarter 2 of FY '25. The stand-alone profit stands at about INR230 cr. as against INR217.6 cr. in the quarter 2 of last year. This has a growth of 5.6% year-on-year basis.

The stand-alone EBITDA is at about INR45 cr. as against INR40.8 cr. in the quarter 2 of FY '25. The margin of EBITDA has been 19.5% in the quarter 2 of FY '26 as against 18.7% in the quarter 2 of FY '25. This has a Y-on-Y growth of approximately 10%. The stand-alone profit before tax is at about INR13.6 crores in the current quarter as against the INR28.3 crores in the same quarter last year, with a margin of 13.3% in the current quarter as against 13% in the quarter 2 of FY '25. This is up by approx 8% year-on-year basis.

The stand-alone profit after tax is at INR19.8 cr. in the current quarter as against INR17.3 cr. in the quarter 2 of FY '25 with a margin of 8.6% in the quarter 2 of FY '26 as against 8% in the quarter 2 of FY '25. This has a strong growth of 14% year-on-year basis.

Now on half year performance of H1 '26 as against H1 of '25 on a stand-alone basis. The revenue stands at INR472 cr. in the half year of '26 as against INR458 cr. in the half year of '25, with a growth of 3% year-on-year basis.

Stand-alone EBITDA is INR97 cr. as against half year of '25 of INR99 cr. in H1 of FY '25. This has a margin of 20.6% in half year of '26 as against 21.6% in the half year of '25. This is down by 1.8% year-on-year basis.

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Shalby Limited Q2 FY '26 Earnings Conference Call Transcript November 15, 2025

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Stand-alone profit before tax, is at about INR70.7 cr. in half year of '26 as against INR74.3 cr. in half year of '25, with a margin of 15% in half year of '26 as against 16.2% in the half year of '25. This is approximately down by 5%.

The stand-alone profit after tax is at about INR45.5 cr. in half year 2 in as against INR47.9 cr. in half year of '25. This has a margin of 9.6% in the half year of '26 as against 10.5% in the half year of '25, nearly down by 5% year-on-year basis. On to the balance sheet. The stand-alone net debt stands at about INR30.9 cr. with an annualized return on capital for about 11.8% in the quarter 2 of FY '26.

Moving to operational metrics. Our ARPOB and ALOS have been INR40,794 and 3.74%, respectively, compared to 38,779 and 3.6% in the same period last year. The ARPOB on yearon-year basis has grown stronger by 5.2%.

The number of occupied beds has been 673 in the quarter 2 of FY '26 as against 690 in the quarter 2 of last year. This has decreased by 2.5% year-on-year basis with an occupancy rate of 48% in the quarter 2 of FY '26.

Moving to the payor mix in the quarter 2 of FY '26, it has been healthy about 36% of self-pay, 37% of insurance and about 27% of government business. On to our hospital and Delhi NCR, just also to share that we have rebranded Shalby Sanar International Hospital to Shalby International Hospital now. The revenue of the hospital Shalby International stood at about INR20 cr. in quarter 2 of FY '26 as against INR25.6 cr. in the same quarter last year.

This has a decline of approx 22.7% year-on-year basis. The ARPOB and a loss of Shalby International is at about INR81,185 and 3.23%, respectively, in the quarter 2 FY '26. Shalby International is presently operating at an occupancy of 21%. It is to increase gradually in the coming quarters. In the current quarter, 65% of the total contribution of the Shalby International is generated from international patients with an ARPOB of reaching approximately INR1 lakh.

Total revenue from international business remains at about INR15.4 cr. that included INR2.5 cr., which had come from Shalby Multi-Specialty Hospitals and about INR13 cr. from Shalby International Hospital in the quarter 2 of FY '26.

Moving to our clinical excellence and capacity building, at Shalby, our undivided focus has been on demonstrating our clinical excellence through our successful execution of many diverse clinical surgery and several of our hospital units. We also take pride in sharing that we have successfully completed 31 transplants, including 22 in kidney, 8 in liver, and 1 bone marrow transplant during quarter 2 of FY '26.

Shalby also take pride in nurturing young talent through our Shalby Academy, about 390 students listed in various disciplines like physiotherapy, nursing, lab technician, nutrition, clinical, paramedics, hospital management and pharmacy as part of their academic outreach and upgrade of the skills in quarter 2 FY '26.

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Shalby Limited Q2 FY '26 Earnings Conference Call Transcript November 15, 2025

This included Shri Vaishnav Vidyapeeth Vishwavidyalaya in Indore, where BBA HHM and MBA HHM first batch have enrollment for the academic year '29. Also Ganpat University, fourth batch of MBA HHM enrollment for AY '31, including over 65 students have been enrolled for Kaushalya The Skill University, Government of Gujarat. And Shalby Academy allied health sciences courses like B.Sc. MLT, M.Sc. MLT and Diploma MLT, Diploma OT for academic year '25-'26.

Now I'll hand over the call to Mr. Deepak Anand to share his insights for our medical implant business, Shalby MedTech. Over to you, Deepak.

Deepak Anand:

Thank you, Amit. Good day, ladies and gentlemen. I am Deepak Anand, CEO of Shalby MedTech, and I welcome you to our Q2 financial year '26 earnings call. Thank you for taking the time to join us. Today, I'll walk you through our quarterly performance and update you on our strategy for growth and value creation.

Our vision is clear, improving lives. We deliver surgeon-friendly implant systems tailored to regional clinical leads while maintaining world-class standards. Our key differentiators include nimble, surgeon responsive R&D, high reliability and ethical operations, personalized support with deep orthopedic experience.

Let me now walk you through our financial highlights for the quarter. Shalby MedTech consolidated revenue for quarter 2 financial year '26 stood at INR33.7 crores versus INR23.7 crores in quarter 2 financial year '25, reflecting a year-on-year growth of 42.1%.

Shalby MedTech consolidated EBITDA for quarter 2 financial year '26 stood at INR3.66 crores versus a negative INR21.6 lakhs in quarter 2 financial year '25, reflecting a year-on-year growth of 1795.4%.

Total 10,988 implant components sold in quarter 2 financial year '26 versus 9,443 implants sold in quarter 2 financial year '25. Year-on-year growth of 16.4% in Shalby MedTech at a consolidated level.

Shalby MedTech consolidated revenue for H1 financial year '26 stood at INR64.5 crores versus INR41.2 crores in H1 financial year '25, reflecting a year-on-year growth of 56.7%, driven by robust domestic volume to improve channel partner engagement. Shalby MedTech consolidated EBITDA for H1 financial year '26 stood at INR2.9 crores versus negative INR2.9 crores H1 financial year '26, reflecting a year-on-year growth of 199.5%.

Total 25,064 implant components sold in H1 financial year '26 versus 17,953 implant components sold in H1 financial year '25 year-on-year growth of 39.6% in Shalby MedTech at consolidated level.

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Shalby Limited Q2 FY '26 Earnings Conference Call Transcript November 15, 2025

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The growth has been attributed to a couple of things. We have initiated cutting-edge technology by introducing robots in our product portfolio, not only to boost our implant sales but also to generate robotical income -- rental income from the hospitals.

We have launched Duraniom, the only U.S. FDA-approved U.S. manufactured TiNbN knee in India and continued efforts on sales and marketing across India, U.S.A. and Southeast Asia. On COGS reduction, our implant manufacturing entity COGS has been reduced by 9% on a yearon-year basis and 3% on a quarter-on-quarter basis.

From a supply chain excellence, we will establish multiple vendors to mitigate tariff impacts and improve procurement and trade efficiencies, aiming to reduce cost by 15% to 20%. Distribution efficiencies will be tailored to each market to ensure timely and cost-effective delivery. We have improved our order-to-cash and asset utilization and started to address our high inventory.

Further inventory improvements will be an area of continued focus in 2026 to enhance working capital and ROCE. Capacity improvement, we have done, but we still have some distance to cover, which will happen during the end of quarter 3 and start of quarter 4.

From an organization and talent development standpoint, new engineering leadership set up and setting up an R&D office in India is happening in this quarter as well as in U.S.A. to drive new product development.

In conclusion, our roadmap for 2025-2026 is designed to drive sustainable growth, operational efficiency and innovation leadership in the orthopedic market. We are confident that our strategic initiatives combined with favorable market dynamics and technological advancements will position us strongly for the future.

Thank you for your continued support and trust. We look forward to a successful year. Thank you so much. Over to you, Amit.

Amit Kumar:

So we can now move to Q&A session.

Moderator:

Thank you, now we will begin our Question-Answer session. Any one who wishes to ask question, may press * and 1 on their touchtone telephone. If you wish to remove from queue, you may press * & 2. Participants are requested to use their handset for asking the question. Ladeis and Gentlemen, we will wait while the queue assembles.

The first question is from the line of Kush Jain, an Individual Investor, please go ahead Mr. Kush you can unmute yourself and go ahead with the question.

Kush Jain:

My question is regarding the Shalby International Hospital. This quarter, the hospital reported a year-on-year revenue decline and EBITDA loss and very low occupancy rate of 21%. Could you share the specific challenges this hospital is facing in the market? And also share the detail of

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Shalby Limited Q2 FY '26 Earnings Conference Call Transcript November 15, 2025

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the specific strategies that will be implemented to achieve high occupancy and become profitable as well as the expected timeline for this recovery.

Amit Kumar:

Yes. Thank you, Kush, for your question. In order to answer -- to answering your second question first on to the strategy, I would answer it into the threefold actions, which are underway. First of all, we have revisited and revised our marketing strategy for the unit in Gurgaon. And as a result, you see that we have rebranded the hospital from Sanar International to Shalby International, and it is widely deployed and you would be seeing that across very soon.

The second, we have also done leadership restructuring, bringing in more stronger leadership, which is already has started taking actions. And that effect would also be coming in the upcoming quarters. Third and last, that we have started onboarding new clinical talent. Certain steps have been taken and a few more renowned doctors would be in panel soon as the discussion is under conclusion with them.

On to the performance, as overall, we are confident to see the hospital performing better to the optimum levels in about 2 quarters from here. And in the next year, we are pretty sure that we would have a positive EBITDA coming forward from these hospitals.

My next question is regarding the long-term growth of the implant business to become $1000 million revenue, could you clarify if the growth is expected to lead by the particular U.S. market or new market entries? And furthermore, what are the specific strategies that's been employed to achieve this growth?

Khush Jain: My next question is regarding the long-term growth of the implant business to become $1000 million revenue, could you clarify if the growth is expected to lead by the particular U.S. market or new market entries? And furthermore, what are the specific strategies that's been employed to achieve this growth? Deepak Anand: So the growth powered by not only the U.S. market, but also the developing markets. U.S. will obviously play a role. But specifically on a growth standpoint, will be a lot of development markets playing a role. How are we looking at from a future standpoint is, again, speaking about it is just going to be focused -- very focused on the 5 pillars that we are working towards right from ensuring that regulatory approvals in new markets and get sales going through our current channel of sales and distribution through channel partners as well as our own team members, reducing -- continued efforts to reduce cost, continued effort to increase the capacity.

And fourth, but important one is our new product development. We have already -- like I said, we have set up an R&D which is a large team, which is starting to work on a lot of new product development. It is imperative to have the portfolio complete, so we are working towards that. And the last pillar would be right talent at the right place. So these are the 5 pillars that we'll be focusing on from -- to ensure that this is a sustained growth. And that's the strategy that we will be implementing.

Khush Jain:

So sir, how much capacity would be increased?

Deepak Anand: So when -- if you're talking about our current plant, current plant itself, we have capacity to take care of our next 5 years need, so we'll be more focused on that to increase our current capacity.

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It's just about adding shifts and maybe adding certain extra time hours and things like that, so which we are working towards.

Khush Jain: ok Thank you. I am done with the question. Moderator: The next question comes from the line of Kashish Thakur from Elara Securities. Kashish Thakur: Hi, Thank you, Sir, a few questions from my end. Sir, so IP and OP volumes have declined in Q2, despite our ARPOB has increased around 5%. So what has led to this softness in the footfall? And what do you think in like H2 will there be a recovery in volume? And how do you expect in that number? Amit Kumar: Yes. So I would request Nishita ma'am to answer this question. Nishita Shukla: If we see quarter 1 to quarter 2, there is 5% growth. But as comparative to last year quarter to this year's quarter, there were 3 major reasons for drop in OP and IP. The reasons mainly were heavy rainfalls during the season, which had a drop in patient footfall, walk-in footfalls as well as cancellations of all planned surgeries. Secondly, for the medicine part, there was no season for malaria and dengue this year if we compare to last year. And the third of which was also very important was our TPA negotiations were going on strongly. So like 5 to 6 TPAs were on hold, and that is how we had a surgical drop with that patient. Kashish Thakur: Understood ma'am. And how we are looking this volume recovery in H2? Nishita Shukla: So for volume recovery, if you see we are on a constant increase in good doctors, taking -- leading higher clinical teams. So last year, if you see, we were on 370 doctors at group level. And this year, it is now 454-doctors. So bringing in more doctors, more talent, as well as renegotiation of TPAs are nearly to be closed. So 3 of 5 companies have already closed with good rates and it will be again starting. And then again, more digital promotion and bring international promotion for Sanar. Kashish Thakur: Just 1 question on TPA. We have renegotiations with these companies after every 2 years or how is it? Nishita Shukla: No, this was mid negotiation as there were a lot of issues of deductions and rate revision. So usually, it is like 2 years, but they don't take it at 2 years, they make 4 years to give us the final new rate. But then this was all mix like -- there were a lot of deductions coming after approval from TPA and this was mid negotiation going on from their side to again reduce rates in between 2 years. So that is how we had to keep some TPAs on hold. And now it has -- majority of them has been closed with a new renegotiated rates.

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Shalby Limited Q2 FY '26 Earnings Conference Call Transcript November 15, 2025

Kashish Thakur: My second question is on occupancy. What levels do you expect our occupancy -- like it has been hovering around 47% to 50% over quite a while. Like what push do we require so that our occupancy can go back to the levels of somewhere around 55%. Amit Kumar: So this is Amit. I would like to answer it. The answer here is, one, the hospital in PK, which is operating at a low capacity. The actions I had already briefed which are underway to bring back the occupancy hire. For a minute, exclude the performance of that hospital currently, the other hospital has already reached a 50% of occupancy mark. As soon the PK would be showing the traction which the measures are underway, we will soon see the consistent performance of the occupancy going up by about 400 to 500 basis points in the coming quarters. Kashish Thakur: Understood, understood. And 1 last question as of now, so stand-alone EBITDA margin has improved to 19.5%, right, this time around. So how sustainable is this margin? And like what kind of margins can we expect for FY '26 and going ahead for stand-alone business? Amit Kumar: So yes, on the stand-alone basis, the margin has about, for the quarter 2, 19.5%. And on to your question, how sustainable it is, the measures which have been taken are permanent, and they would be showing the consistent growth in the EBITDA margin as to what the forecast which we see, it would surely be increasing from here to a trend line of 200 to 300 basis points. Kashish Thakur: Understood. And really growth of 200 to -- 200 to 300 basis points, right? Shanay Shah: Yes. And also, I think the uptick of robotic surgeries in orthopedics has picked up significantly across all the group entities. So not only is that contributing, but if you also contribute more meaningfully in the quarters to come. We have also invested significant capacity in terms of adding 2 more linac bunkers in Surat and Ahmedabad in 2 units where we did not have a bunker earlier. And these 2 units will start contributing to top line subject to approvals from Q4 onwards. So all of these things along with an additional PET/CT scan machine, which will be installed at Naroda at some point of time in Ahmedabad in the next quarter or the next fiscal. So we are planning a lot of these investments and all of these investments put together will further fuel this growth beyond the occupancy going up because of the addition of doctors that Dr. Nishita alluded to earlier. Kashish Thakur: Understood, sir. Sir, so in light of that, how many da Vinci robotic robots do we have as of now in our facility all around? And what kind of capex do we see for FY '26 and '27 like we are adding a few of capex-heavy machineries, right? So what kind of capex do we see for these years?

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	Shalby Limited
	Q2 FY '26 Earnings Conference Call Transcript
	November 15, 2025
Nishita Shukla:	So at present, we have 5 orthopedic robots, and we are in purchase for general surgery, onco
	surgery, neurosurgery robot. So we will be going for SSI Mantra to start with, and then it will
	be da Vinci later on, so as per capex allocation, what we get.
Shanay Shah:	The investments for the radiotherapy machines are already made. And for the orthopedic
	surgeries also, major investments have been made.
Kashish Thakur:	Understood sir. Sir, can you quantify capex, if possible? Or what we are aiming for?
Amit Kumar:	Yes. So the quarter 2 spend has been about INR70 crores. For the first 6 months about we have
	done a INR70 crores of the investment. It largely included the robotic and onco machines for
	about INR50 crores. That was the larger portion.
Moderator:	The next question comes from the line of Naman from AUM Capital.
Naman:	Thanks for the opportunity. I just wanted to understand that on a standalone basis, if you look at
	your MedTech business, despite around 100% growth in your revenues on a Y-o-Y basis, the
	reported EBITDA was negative. So could you please help us understand how should we read
	that?
Amit Kumar:	Deepak, would you like to answer this?
Deepak Anand:	Yes, I can take it part and then you can add up -- my understanding is, can you just repeat the
	question once again? I kind of got the question, but it will be good if you can just repeat it?
Naman:	Yes, sure. Like if you look at your MedTech business on a stand-alone basis, the EBITDA has
	been negative, like despite 100% growth in revenue, like if you could just help us understand
	why this drop in EBITDA for a better understanding?
Deepak Anand:	So it's a function of a couple of things. Number 1 is -- our COGS did go up a little bit high
	because of the dollar fluctuation, okay, between last quarter and this quarter. That's number one.
	Number 2 is also from a mix of products, we did have some extra sales of hits happening which
	-- some product mix, which are lower EBITDA just from a standpoint of capturing the market.
	So these are 2 large contributors for it.
Naman:	And like how should we expect it ahead like in the upcoming quarters?
Deepak Anand:	You're talking about the stand-alone?
Naman:	Yes, yes. The trend in the upcoming quarter.
Deepak Anand:	So trend from a stand-alone standpoint, you will -- you should continue to see a growth of the
	similar kind -- we are working on certain capacity challenges, which should open up, like I

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mentioned, by end of this quarter. So by quarter 4, you will start seeing a good amount of growth that will come in place.

We will also start seeing the EBITDA getting recovered as a part of 2 things. One is on the strength of robotics and robotic rentals that are coming through, and also from a standpoint of the product mix that we'll focus to sell, which are higher margin ones. So you will see a better in quarter coming year for stand-alone.

Naman:

And like -- what exactly led to the rise in our ALOS during the quarter, like on a Y-o-Y basis, it stands at INR3.7 crores, growing by approximately 4%. So if you could just help us understand.

Amit Kumar: Could you clarify your question again? It was -- there was a noise behind it, and we could not hear it properly.

Naman: Yes. So I just wanted to know that what led to the rise in your ALOS during the quarter, like if you compare it on a Y-o-Y basis, it has grown up by 4%. So if you could just help us understand.

Amit Kumar: So it is just that there is a mix change of the specialty, which we have dealt in the period you are talking about. It had led to a slight increase in there.

Naman:

And let me ask 1 last question. Does the company have any expansion plan in the northeastern region, there has been a lot of expansions going on. So like are you planning to expand your presence in the northeastern region?

Amit Kumar:

The answer is no. Not on the cards right now.

Moderator: The next question comes from the line of Shubham from Purnartha Investment Advisers.

Shubham:

Hi, thanks for the opportunity. I just want to ask about the strategy of ours regarding government business because I think so earlier, we have said that we will reduce the government business gradually.

Nishita Shukla: Yes. Hello, sir. I'm Nishita. And regarding government business, if you see all big hospitals and the government business has reduced in Surat and all, where we are planning to reduce Ayushman and converting it to self-paying and TPA patients.

The increase of business is only at Mohali unit, if comparatively we see all the hospitals. Mohali unit, we have a lot of ECHS patients, and that is how we are getting the patients more to emergencies and all. So we are treating that patient. So as such, the strategy remains same of increasing our TPA self-paying work, but at 1 or 2 units, we have allowed them to have and treat that patient.

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	Shalby Limited
	Q2 FY '26 Earnings Conference Call Transcript
	November 15, 2025
Shanay Shah:	I'll just to add. In Mohali, it is very difficult to operate without the without the empowerment of
	ECHS. And similarly, in Jabalpur, a big majority of the patients come from CGHS. So these 2
	cities, we have to take up a lot more government work than we would want to.
Shubham:	So you are saying basically due to Mohali and Gwalior, the government business has increased
	from 23% last year to 27% in current quarter.
Shanay Shah:	The increase is because of Mohali, but most of the government work, significant government
	work is being done in Jabalpur and in Mohali for ECHS and CGHS, respectively.
Shubham:	And that conclude -- that will increase your government business by 4% approximately.
Shanay Shah:	For this quarter, yes, it has increased. Yes. And the fact that what Dr. Nishita alluded to earlier
	on the fact that some of the insurance work was postponed to this quarter because of the ongoing
	negotiations with the insurance company, that has also translated into lesser TPA business,
	which has by default kind of -- because of that reason, you'll see a higher government number
	for this quarter.
Shubham:	And second question on Shalby International. Earlier, I think so you have said that TPAs are
	enrolled -- TPAs are going to be enrolled in Shalby International, so has been TPAs are enrolled
	currently or what's status there?
Nishita Shukla:	Yes, we are in negotiation, like 2 or 3 TPAs are closed, but we are also waiting for NABH
	accreditation. As per NABH accreditation, our TPA rate negotiations are different. So
	everything has been applied. We are just waiting for the certification of NABH. So once it is
	done, another 4, 5 more TPAs will be on-boarded.
Shubham:	So Shalby International only, our focus is on international business there more or domestic also
	we want to tap up?
Nishita Shukla:	So we will be doing domestic also. So international was already there earlier, but now we are
	also focusing on domestic business. As Dr. Vikram Shah starting his OPD and IP over there, he
	is already receiving a lot of domestic patients.
Shubham:	And on tax rate, what would be the tax rate going forward?
Amit Kumar:	It would be 25%.
Shubham:	From Q3 only, it would be 25% going forward.
Amit Kumar:	So for the year, which is '26 year, which we are underway, the applicable rate would be 25%.
Moderator:	The next question comes from the line of Kashish Thakur from Elara Securities.

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Shalby Limited Q2 FY '26 Earnings Conference Call Transcript November 15, 2025

Kashish Thakur: Just like -- everyone from the management, I just wanted to dig your brain around or what kind of benefit we can get from the CGHS rate revision, which happened earlier this quarter. What kind of like growth on top line orders on EBITDA, we can expect from that because as we said that we have some -- we have increased our revenue 4% from the Mohali hospital as we have undertaken CGHS. So can you just help around that? Shanay Shah: Yes. So on the CGHS front, the rate revisions will definitely help us. And we will basically be seeing -- we are seeing that the CGHS rates have inched closer to the self-paying rates also. So we will start seeing an impact -- we will -- basically, at this point of time, we are not able to share what is the incremental impact. But yes, there will be a positive impact on the margins and a positive impact on the revenues. Kashish Thakur: And what -- do we have a positive impact from GST as well? Shanay Shah: Yes. There will be a positive impact on GST as well, yes, absolutely. Kashish Thakur: Sir, 1 just question on our revenue mix. Still around 34% is driven from ortho-related stuff. Are we planning some measures to reduce that? Or is it going to continue in a similar manner? Shanay Shah: So we have come to 34% level. And earlier, even if you look at the numbers, 4 quarters earlier or 8 quarters earlier, you could see that we were at about 40%, right? So about 10 years ago, this number was close to 60%, 70%. And so I think it has drastically come down despite the arthroplasty business growing for the group. So the reason is that some of the other specialties have picked up faster in some of the new locations where we started. So as we speak from the investor presentation also, you could make out that the mix is very well diversified between cardiology, neurology, nephrology, oncology, transplant, critical care. So about 10% coming from each of these 10 specialties. So now I think from here on, we believe that it will further come down arthroplasty business. But be very gradual because arthroplasty business will also continue to grow along with some of the other specialties. Kashish Thakur: Also, just last on how are FOSO and FOSM business has performed for this quarter? If you can quantify, usually, we used to quantify earlier presentation, what has been the performance, and if you can quantify that. Amit Kumar: Yes. So on to the performance, we are awaiting the outcome to be better off in the coming quarters. There are certain measures underway. The performance is -- the results of that is expected to come in the coming quarters. Moderator: As there are no further questions, I would now like to hand the conference over to management for closing comments.

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Shalby Limited Q2 FY '26 Earnings Conference Call Transcript November 15, 2025 Amit Kumar: Yes. So thank you, everybody, for joining the call. We'll connect again into the next quarter. And meanwhile, if you have any questions, you can please reach out to our investor e-mail ID. And thank you for joining this call. Moderator: Thank you. On behalf of Elara Securities India Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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