Shalby Q2 FY27 results: net profit up 8.2% to ₹7.88 crore, revenue up 9.7%

How did Shalby perform in Q2 FY27?

Shalby's consolidated revenue for the July–September 2026 quarter was ₹313.17 crore, up 9.7% from ₹285.43 crore in Q2 FY26. Total income was ₹318.22 crore, up 9.8%. EBITDA was ₹41.40 crore, down 0.5% from ₹41.61 crore, and the EBITDA margin was 13.2%, lower by 1.4 percentage points.

Profit before tax was ₹16.47 crore, down 13.6% from ₹19.07 crore, while tax fell 27.2% to ₹8.59 crore. Profit after tax was ₹7.88 crore, up 8.2% from ₹7.28 crore, and basic EPS was ₹0.73 against ₹0.68. On the standalone basis, revenue was ₹245.32 crore, up 9.5%, and profit after tax was ₹23.5 crore.

Against Q1 FY27, revenue fell 5.4% from ₹331.22 crore and total income fell 6.0% from ₹338.64 crore. EBITDA was ₹41.40 crore, down 0.5% from ₹41.59 crore, though the margin rose 0.6 percentage points to 13.2%. Profit before tax fell 16.4% to ₹16.47 crore, profit after tax fell 25.0% to ₹7.88 crore and EPS fell to ₹0.73 from ₹0.98.

What changed in Shalby's costs and profit?

Total expenses rose 11.4% year on year to ₹301.74 crore from ₹270.83 crore, outpacing the 9.7% rise in revenue. Other expenses were ₹176.66 crore, up 8.2% from ₹163.33 crore, while finance costs rose 14.6% to ₹11.05 crore and depreciation rose 8.9% to ₹18.92 crore.

Cost of materials fell 48.1% to ₹8.66 crore from ₹16.70 crore, and employee cost fell 4.2% to ₹43.32 crore from ₹45.21 crore. Other income rose 12.8% to ₹5.04 crore from ₹4.47 crore, and there was no exceptional item in either quarter. Tax was ₹8.59 crore, down 27.2% from ₹11.80 crore, which was the main reason profit after tax rose while profit before tax fell.

Sequentially, total expenses fell 5.4% to ₹301.74 crore from ₹318.94 crore and other expenses fell 0.8% to ₹176.66 crore from ₹178.08 crore. Employee cost fell 9.5% to ₹43.32 crore, while cost of materials rose 5.1% to ₹8.66 crore, finance costs rose 4.6% to ₹11.05 crore and depreciation rose 1.0% to ₹18.92 crore. Other income fell 32.0% to ₹5.04 crore from ₹7.41 crore, and tax fell 6.6% to ₹8.59 crore.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹644.4 crore, up 10.7% from ₹581.86 crore in H1 FY26, and total income was ₹656.85 crore, up 10.7% from ₹593.34 crore. Profit before tax fell 13.3% to ₹36.17 crore from ₹41.73 crore.

Profit after tax in H1 FY27 was ₹18.38 crore, up 22.9% from ₹14.96 crore in H1 FY26, and basic EPS rose to ₹1.71 from ₹1.39. The pre-tax decline alongside a higher profit after tax reflects the lower tax charge recorded in the first half.

What do the balance sheet and cash flow show?

Total assets stood at ₹1,856.97 crore as on 30 September 2026, against ₹1,839.13 crore as on 31 March 2026, and total equity was ₹1,022.01 crore against ₹1,005.69 crore. Borrowings were ₹537.12 crore against ₹539.62 crore, and cash and cash equivalents were ₹21.44 crore against ₹21.9 crore.

Inventories were ₹374.73 crore against ₹376.38 crore, trade receivables ₹276.58 crore against ₹228.42 crore, and trade payables ₹153.62 crore against ₹128.49 crore. In H1 FY27, operating cash flow was ₹40.1 crore against ₹13.85 crore in H1 FY26, while investing cash flow was negative ₹10.22 crore against negative ₹69.3 crore.

Financing cash flow was negative ₹30.33 crore in H1 FY27 against positive ₹39.63 crore in H1 FY26. Capital expenditure was ₹30.84 crore, against ₹80.99 crore in the year-ago period. The company filed unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the limited review report of the statutory auditors.

How has Shalby done over the last 8 quarters?

Revenue in the last eight quarters peaked at ₹331.22 crore in Q1 FY27 and was ₹313.17 crore in Q2 FY27, compared with a low of ₹264.89 crore in Q4 FY25. Revenue rose year on year in each of the last three quarters.

Profit after tax moved from a net loss of ₹12.19 crore in Q4 FY25 to ₹18.45 crore in Q4 FY26, then fell to ₹10.5 crore in Q1 FY27 and ₹7.88 crore in Q2 FY27. The EBITDA margin was 14.6% in Q2 FY26, fell to 10.2% in Q4 FY26, and was 13.2% in Q2 FY27, against a low of 7.9% in Q4 FY25. Profit rose year on year in each of the last two quarters.

Which businesses drove the quarter?

Healthcare Services reported revenue of ₹283.21 crore, up 12.1% from ₹252.57 crore in the year-ago quarter, with EBIT of ₹28.11 crore against ₹25.59 crore. The segment's EBIT margin was 9.9%.

Manufacturing of Implants reported revenue of ₹29.96 crore, with EBIT of negative ₹11.64 crore and an EBIT margin of negative 38.8%. The filing does not provide the year-ago revenue or EBIT for this segment.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, together with the limited review report issued by the statutory auditors. The results were filed with BSE on 3 November 2026.

On the same day, the board appointed Shanay Vikram Shah as a Whole-Time Director for five consecutive years from 3 November 2026, and Tushar Shah as an Additional Director designated as Executive Director for five years from 3 November 2026, both subject to shareholder approval by postal ballot. The board also approved the postal ballot notice and calendar, under which e-voting began on 5 November 2026 and closes on 4 December 2026.

The board approved the reconstitution of the Audit, Nomination and Remuneration, Corporate Social Responsibility and Stakeholders Relationship Committees with effect from 16 December 2026. The company also filed an investor presentation for the quarter ended 30 September 2026 on 3 November 2026 and the audio recording of the 4 November 2026 earnings conference call. No dividend or fund raise was disclosed in these filings.

What did Shalby's management say?

Management said it is looking for double-digit consolidated revenue growth in FY27, with H1 performance already nearly at that level, and expects a relatively better EBITDA margin than the previous year, with further improvement in the coming quarter. The effective tax rate is expected at about 45%, against 49% currently and about 65% in the prior year.

Management said H1 capex was about ₹10 crore, with second-half spend expected to remain similar and limited to replacement capex, with no significant expansion capex. Gurgaon revenue rose 50% year on year and is expected to reach cash break-even by around the exit of Q4 FY27. New Medtech supply-chain savings are expected in the P&L from Q4 FY27, with full-quarter impact from Q1 FY28.

Sanjay Shah, President of Shalby Limited, said: "Our focus is on the quality of growth, operating efficiency, asset productivity, and sustainable profitability." He added that 80% to 90% of new capital is going to the hospitals business, and that Medtech is expected to become self-sustaining. Amit Kumar, Group CFO, said: "We believe H2 will be more exciting from here, and we look for a stronger year than than the previous year."

Management flagged that some hospitals remain below potential, with utilisation and operational discipline still to improve. It also said the Mumbai expansion has been significantly delayed pending trustee approvals, Gurgaon has achieved EBITDA positivity but has not yet demonstrated cash or PBT break-even, and Medtech supply-chain savings are back-end loaded to Q4 FY27 and Q1 FY28. No analyst questions were recorded.

How did Shalby shares react?

The results were filed after market on 3 November 2026. From the price when the filing appeared, the stock was down 1.7% after 5 minutes, down 0.8% after 15 minutes and up 0.4% after 30 minutes. On the reaction day it was up 0.7% from the previous close of ₹122.5, against a 2.3% median move for the other Hospital sector stocks and a 2.2% move in the Nifty Microcap 250.

By the next day's close, the stock was down 0.6% from its pre-results close, while the sector median was up 4.3%. The excess move against the sector was negative 1.6 percentage points on the reaction day and negative 4.9 percentage points by the next day's close. No five-day move is given. Earlier results days were also negative, including 1.7% on 12 August 2026, 1.8% on 27 May 2026 and 6.8% on 11 February 2026.

How did other Hospital companies do?

Seventeen Hospital companies have filed this quarter, and their median revenue growth was 20.8%, compared with Shalby's 9.7% year-on-year growth. Of the other companies, 16 grew faster than Shalby and one grew slower.

Of the 15 peers for which profit was compared, 10 reported higher profit. Shalby's profit after tax rose 8.2% year on year, from ₹7.28 crore to ₹7.88 crore.