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Informist, Friday, Sept. 19, 2025

 

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--Shalby Ltd: See hospitals, implants helping revenue rise 2.5 times by FY30
--Shalby Ltd: Hospital ops has potential to reach INR 20 bln revenue by FY30
--Shalby Ltd:Hospital ops has potential to reach EBITDA of INR 5 bln by FY30
--Shalby Ltd: To focus on expansion in Pune, Nagpur, Kolkata, Lucknow
--Shalby Ltd: No plan to expand into diagnostics, other ops for next 5 years

 

By Sunil Raghu

 

AHMEDABAD – Shalby Ltd., which operates 15 hospitals across the country, is working to raise its revenue more than two-and-a-half times over the next five years, with twin focus on growing its hospitals and overseas implants businesses, President Shanay Shah told Informist in a recent interaction. Shanay is the son of the company's Chairman and Managing Director Vikram Shah. As of Mar. 31, the company's 11 multi-speciality and four franchise hospitals together had nearly 2,300 beds, of which 1,415 were operational.

 

For the financial year 2024-25 (Apr-Mar), Shalby Ltd. had reported a consolidated net loss of INR 122.0 million on a revenue of INR 11.1 billion. Its revenue was up nearly 17% on year. The company's earnings before interest, taxes, depreciation, and amortisation was down 18.5% on year at INR 1.6 billion owing to a drop of 620 basis points in EBITDA margin to 14.4%. For the June quarter, Shalby Ltd.'s consolidated revenue rose to INR 3.03 billion from INR 2.89 billion a year ago, but its consolidated EBITDA fell to INR 485 million from INR 549 million. The company's net debt stood at INR 3.03 billion as of Jun. 30.

 

Despite the mellow financial performance, Shah's bullishness stems from the fact that the hospitals business generated over INR 11 billion in revenue and EBITDA of INR 1.6 billion in FY25. He sees the potential to scale this to over INR 20 billion in revenue and INR 5 billion EBITDA by FY30.

 

The second reason for the management's optimism is Shalby Ltd.'s knee and hip implant manufacturing facility in the US. The implants vertical sold 14,076 units in the June quarter, earning INR 308 million in revenue. The implants business aims for INR 6 billion to INR 7 billion revenue and INR 1.5 billion EBITDA by FY30. All told, Shalby Ltd. sees the hospital and implant businesses together generating INR 26 billion to INR 27 billion in revenue and INR 6.5 billion EBITDA and a possible $1 billion market capitalisation, Shah said.

 

Shah said Shalby Ltd. has invested INR 7 billion in the overseas implants unit. In FY25, the company had invested INR 900 million in the unit and proposes to invest another INR 1.5 billion in the current financial year. Shah said this business is currently absorbing the cash flow from the hospitals business, affecting the company's consolidated EBITDA. "Business is never like turning a switch on or off...," he said. "Here (in the implants business), opportunity again is very big. That is the reason why the company is investing so much."

 

Talking of the hospitals business, Shah said that on an average EBITDA of INR 3.5 billion, it would generate nearly INR 18 billion over five years. Shalby Ltd. has also secured a 30-year lease on the Asha Parekh Hospital, earlier known as the Bhikhubhai Chandulal Jalundwala Hospital, in Santa Cruz, Mumbai. It plans to build a new 175-bed multi-speciality hospital at the site at a cost of INR 2.5 billion. "So we will do something from the remaining INR 15.5 billion," he said. "Some of it may go for working capital, some in the implants business, still there would be some extra money. We will do something. It is not like we are going to give it away as dividend. All this capital will be used for growth."

 

Though he refused to give details, Shah said the company would continue with its policy of not investing in a new hospital in a city where it is already present. "Expansion will focus on new cities such as Nagpur, Pune, Kolkata, and Lucknow," he said. "Our sweet spot is 200 beds, so we may go for 200-bed hospitals, plus-or-minus 50 beds."

Shah said the company has no plan to expand into diagnostics. "The time the promoters are spending on the current two business, they cannot handle one more," he said "We do not have that kind of management bandwidth.... If something is attractive, we can think about it, but for now our hands are full. For the next five years, we do not want to do anything else."

 

On the entry of big corporations in the hospitals business, Shah said corporate hospitals currently do not hold more than 10% of the beds available in the country. "So we need 100 such corporates to come up and privatise the hospital business in the country," he said. "There is a lot of potential for anybody to come and do well. If they (big corporations) are seeing a big opportunity, there must be something right with the sector."

 

Shah denied that Shalby Ltd.'s promoters are open to the idea of cashing out if a suitable offer comes their way. "We are 100% not cashing out," he said. Friday, shares of Shalby Ltd. closed 2.2% higher at INR 240.57 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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