Shalby Ltd (NSE: SHALBY) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Jigar Todi — Investor Relations
Amit Pathak — Chief Financial Officer
Deepak Ananthakrishnan — Global Chief Business Officer
Nishita Shukla — Chief Operating Officer
Vikram Shah — Chairman and Managing Director
Analysts:
Unidentified Participant
Neel Shah — Analyst
Sucrit D. Patil — Analyst
Ashok Shah — Analyst
Kashish Thakur — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the shall be limited Q1FY26 earnings conference call hosted by Alara 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 touchstone phone. Please note that this call is being recorded with this. I now hand the conference over to Mr. Kashish Thakur for his opening remarks. Thank you. And over to you sir.
Kashish Thakur — Analyst
Thank you, Samya. Good afternoon everyone. We welcome all the participants to the Shalbi Limited Q1 FY26 earnings call hosted by Elara Securities. Today we have with a senior management representative from Shelby. We will start with the performance highlight from Mr. Amit Pathak, CFO and Mr. Deepak Anand, CEO. After that we’ll open the floor for question and answer for all the participants. I will now hand over the call to Mr. Jigar Todi for important disclaimers regarding any forward looking statements that may be made in today’s call. Over to you, Jaga. Thank you.
Jigar Todi — Investor Relations
Thanks Kashish. Good afternoon everyone. Our investor presentation is uploaded on the stock exchange website and Our company website shelby.org we do hope you have already had the opportunity to go through the presentation. Please note that some of the statements made in today’s call may be forward looking in nature and may involve involve risks and uncertainties. Kindly refer to slide number two of the investor presentation for a detailed disclaimer. Now I would like to hand over the call to CFO Mr. Amit Pathak for his opening remarks. Thank you. And over to you sir.
Amit Pathak — Chief Financial Officer
Good afternoon everyone. I’m pleased to welcome you all to Shelby Limited quarter one FY26 earning call. Now I will walk you through the financial performance of your company for the first quarter of FY26. The consolidated revenue of the company for this quarter is 303 crores versus 270 crores into the quarter four of last financial year and 289 crores in the Q1FY25. And we have been grew by around 12.3% on quarter on quarter and 5.1% on yoy basis. In the history of Shelby we have first time crossed 300 crores of the quarterly performance. And we are going to continue this momentum into the upcoming quarters.
EBITDA of 48.5 crores in this quarter versus 26.2 crores into the last quarter versus 54.9 crores into the quarter one of the last financial year with a margin of 16% in this quarter, 9.7% into the last quarter and 19% into the quarter one of the last Financial Year. And that reflects the 85.6% growth on the quarter on quarter basis and on yoy basis we have been down by around 11.6%. PVT. Of this quarter is 22.7 crores versus negative 0.7 crores into the quarter four of last financial year and 30.4 crores into the quarter one of the last financial year with a margin of 7.5% in this quarter with neutral impact into the quarter four into the FY25 and 10.5% into the quarter one of the last financial year. And we have been substantially improved compared to the last quarter. And we have been grown by 3165% on quarter to quarter and down by around 25.5% on yoy basis. PAC for this quarter is 7.7 crores with a negative 12.2 crores into the quarter four of last financial year and 14.7 crores into the quarter one of the last financial year with a margin of 2.5% in this quarter with negative 4.5% on quarter four of last financial year and 5.1% in Q1 of FY20.
operator
Connected. Just give me a moment, I’ll just reconnect the line. Hello sir, you are not audible.
Amit Pathak — Chief Financial Officer
Are we audible?
operator
Hello sir, you’re not audible.
Amit Pathak — Chief Financial Officer
We are not audible. Are we audible?
Jigar Todi — Investor Relations
Hello, are we audible now?
operator
For the management has been disconnected. Please stay connected while we reconnect the line. Ladies and gentlemen, thank you for patiently holding the line for the management has been reconnected. Thank you. And over to you sir.
Amit Pathak — Chief Financial Officer
Yeah, we apologize for the network issue. So I’m just continuing with the pack performance on the consolidated numbers. So the pack for this quarter is 7.7 crores for this quarter with negative 12.2 crores in the quarter four of FY25 and 14.7 crores in the quarter one of the last financial year with a margin of 2.5% in this quarter with negative 4.5% margin into the last quarter and 5.1% in quarter one of last financial year. And we have been grew by 163% on quarter on quarter and down by around 47% on yoy basis. As a group, we continue to maintain a very strong balance sheet with a low gearing ratio of 0.3x I.e.
on the total debt consolidated debt of 302 crore. Now the standard of performance of the hospital for this quarter is 242 crores in this quarter versus 214 crore into the last quarter and 240 crores in the quarter 1 25. So we have been grew by around 13.1% on quarter on quarter basis and Y basis our performance is flat EBITDA of 52.4 crores in this quarter versus 38 crores into the last quarter and 58 crores into the quarter one of FY25 with a margin of 21.6% in this quarter and 17.7% during the last quarter and 24.2% in quarter one of the last financial year and we have been up by around 37.9% on quarter and quarter and down by around 9.8%.
YoY basis Pvt is 40.1 crores in this quarter versus 25.7 crores into the last quarter of last financial year versus 45.8 crores into the quarter one of the last financial year with a margin of 16.6% in this quarter, 12% into the quarter four of last financial year and 19.1% in quarter one of FY25 and on quarter on quarter basis we have been grew by around 56% and down by around 12.5% on yy basis. Pact for this quarter is 25.7 crores versus 15 crores in quarter four of last financial year and 30.5 crores in quarter one of last financial year with a margin of 10.6% in this quarter, 7% into the last quarter and 12.7% into the quarter one of the last financial year and there is a substantial jump of around 71% on quarter on quarter basis whereas we have been down by around 15.7% on yoy basis.
At standalone level again we positioned the net cash balance of 10 crore and our standalone RoT is 12.5% in the current quarter on annualized basis our RPOB and ALOS is continue to show the improvement and for this quarter our RPOB is 45,673 for the hospital business and LOS is 3.53 respectively compared to 43, 365 and 3.7 into the same period of the previous year and ARPOB is grown by around 5.3% on yoy basis. In terms of the occupancy our Occupy bed is freeze 639 in this quarter versus 669 in quarter one of the last financial year and there is a decrease of around 4.5% on yy basis on the overall occupancy rate of 45% in this quarter.
The payer mix we continue to maintain the same payer mix. The self mix is close to 36%, 40% for the insurance and 24% for the government business. For our Delhi acquisition Sagbishanar for this quarter the revenue is 23.25 crores versus 23.7 crores into the quarter One of the last financial year with the marginal decrease of 2.2% on yoy basis. This is mainly because of the Middle east war which we have seen into the quarter one. There’s a lot of flight cancellations and other things. Patient flows has been not there and Delhi we have more of international patient.
So we have seen the slowdown into the upcoming international patient into the quarter one which impacted the top line of the Shelby sanar Hospital. The ARPO one allows of Shelby Sanaar is close to around 90,003.38 respectively into the current quarter. With this middle of east war we have seen that occupancy for this quarter is close to 122% and in terms of the revenue contributions also the international contribution has come down from 65 70% to 56% into the current quarter. Revenue from the international business Is remain at 15 crore which includes 2 crores from the Shelby operation and 13 crores from the Sanaar operations.
Now at Shalby we undivided focus has been demonstrating our clinical excellence through successful execution of many diverse clinical advisories in several of our hospitals. We also pride in sharing that we have successfully completed 25 transplant which includes 8 kidney, 14 liver and 3 BMT during the current quarter. We also taken pride in nurturing young talent through the Shelby academy vertical with 630 plus students registered in various disciplines like Physiotherapy, Nursing Lab Technician, Nutrition, Clinical Paramedics, Hospital Management and pharmacy. As per their academic outreach and upgrade their skills during the quarter one of this current year Shelby Academy Indoor collaborated with Sri Rational Vidya Feet Visuale indore for offering BBA, HSM and MBA HSM program.
From this financial year 2526 over 50 student has been involved enrolled for Kaushalia Skill University and Shelby Academy Allied Health science courses like BSc, MLT, MSc, MLT and Diploma MLT Diploma OT now I will hand over the call to Deepakanal to share his insight about the implant business. Over to you Deepak.
Deepak Ananthakrishnan — Global Chief Business Officer
Good day Ladies and gentlemen, I’m Deepakanan CEO of Shalvi Medtech and I welcome you to our Q1 financial year 26 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 by clear restoring mobility improving lives. We deliver surgeon friendly implant systems tailored to regional clinical needs while maintaining world class standards. Our key differentiators include nimble surgeon responsive rd, 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 one financial year 26 stood at 30.8 crores was a 17.4 crore in quarter one financial year 25 reflecting a year on year growth of 74.2% driven by robust domestic volumes and improved channel partner engagement shall be MedTech EBITDA for quarter one financial year 26 stood at a negative 74 lakhs was a negative 2.7 crores in quarter one financial year 25 reflecting a year on year loss declination of 72%. Total 14,076 implant components sold in quarter one financial year 26 versus 8,500 implant components sold in quarter one financial 25 year on year growth of 65.4% shall be metric standalone revenue for quarter one financial year 26 stood At 18.24 crores was 4.6 crores in quarter one financial year25 reflecting a year on year growth of 271% driven by robust domestic volumes and improved channel partner engagement.
Shalby MedTech EBITDA for quarter one stood at 1.2 crores versus a negative EBITDA of 1.5 crores in last year reflecting a year on year inclination of 181.4%. Total 9,317 implant components sold in quarter one financial year these are the 2,837 components sold last year at the same time growth of 228.4%. We achieved operational efficiency while scaling up production capacity and regional coverage. Our gross margins improved on the back of supply chain optimization and value engineered implants. Like we discussed earlier, the strategic priorities for 2526 remain the same product and Innovation we’ll focus on local partnerships across different countries to expand our footprint.
We plan the global launch of two new products this year. We’re advancing robotic partnerships with Purexo to integrate cutting edge technology into surgical solutions projects. Team will initiate new product development projects to Build a robust product innovation product pipeline for future launches. We will also strengthen key existing product brands like Tux to gain market share. Our second pillar is our customer segment focus. Our sales efforts will concentrate on key markets us, India, Indonesia and Japan. We aim to increase market share in these regions by leveraging existing resources and deepening customer relationships. Brand awareness will enhance through partnership with key opinion leaders, clinical agreements, training programs and targeted marketing engagements.
We will also launch operations in four to five new countries to diversify our market presence. The third pillar being cost of goods reduction. A critical focus will be on cost efficiencies, targeting a reduction in cost by 30%. We will identify and execute manufacturing efficiencies and optimize warehouse management to improve margins. And our fourth pillar being supply chain excellence. We’ll establish multiple vendors to mitigate tariff impacts and improve procurement and freight efficiencies. Aiming to reduce cost by another 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 continuous focus in this year to ensure enhanced working capital and roce. Organization and talent development. Hiring of key leadership talent across the organization is priority. Recruitment, retention and continuous training of sales and corporate teams remain a priority. Will enhance employee engagement through clear career development pathways, rewards, recognition and regular communication. Our partner relationship will be strengthened to ensure alignment with our strategic goals. In conclusion, our roadmap for this year 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 advancement will position us strongly for the future.
Thank you for your continued support and trust. We look forward to a successful year ahead. Over to you, Amit.
Amit Pathak — Chief Financial Officer
Thank you, Deepak. So now we can open the forum for the Q and A.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Neel Shah from Prunetra Investment Advisory Private Limited. Please go ahead.
Neel Shah
Am I audible?
operator
Yes, sir, you’re audible. Please go ahead with your question.
Neel Shah
Yeah, so in your initial remarks you. Mentioned that the anos has dipped compared to the previous quarter. So should we Consider a decrease in. The ANOS to be a positive because is it not better to have a. Higher alos if your occupancy rates are. On the lower side?
Amit Pathak
So your question is not clear. Can. Can please repeat or interrupt?
operator
May I request you to use any handsets while asking a question?
Neel Shah
Okay, so basically, should we consider a decrease in the ALOS to be a positive, and is it not better to have a higher ALOS if your occupancy rates are on the lower side?
Amit Pathak
So, you know, I would not read too much into the aloft because the aloft is, you know, a factor of, you know, the kind of procedures that have been done in particular unit. And then, you know, these all are consolidated to give you a number. So I would not look much into it. Wherever we have more daycare patients, like in Naroda as well as in Surat, you know, what happens is, you know, that allos is much lower, so that tends to bring the avocado length of stay much lesser. So, however, as I said, you know, I would not read too much into the decrease.
Neel Shah
Okay, so then the occupancy rate has decreased year on year. So do we have any specific reasons for that? And also, what can we expect the occupancy rate for FY26? To be.
Amit Pathak
Sure, I think we have Dr. Nishita Shukla, Chief operating officer on the line. I think, you know, she can probably take that.
Neel Shah
Okay.
Nishita Shukla
I think I would just like to add that, you know, allows average length of stay. When it reduces, it gives you a good R form. So that is how it is good. It is nowhere related to the occupancy because occupancy remains the same if, you know, patient is staying for three days or four days.
Neel Shah
Okay, understood.
Nishita Shukla
Which length of stay always helps us? You know, fasting fast out of the patient helps in, you know, increasing the RFO of the hospital. And that is if you see the has increased because of short stay surgery and because of, you know, new technologies coming in and all. So now, as such, the surgeries, which were for five days, seven days a week, has reduced to three days. If you see CAVP also, which was earlier for 10 days. Now with same package, the patient is staying for five weeks.
Neel Shah
Okay, I got it. And what about the occupancy?
Nishita Shukla
Sorry.
operator
Sir, can you please repeat your question?
Neel Shah
Yeah, what about my question? So occupancy rate has decreased on a year, on year basis. So are there any specific reasons for that? And also, what can we expect the. Occupancy rate for 20, 26 to be. Yeah.
Nishita Shukla
The occupancy this quarter is less because as we have mentioned we are moving the pyramids. So we have reduced our cover line work, little bit of dormant work as well as there are few doctors which were on board have moved to some other place and we are hiring new doctors. So the, the you know, the shortfall is because of that transit of doctors and coming in of new doctors.
Amit Pathak
Yeah. We also have Mr. Naresh Kapoor. Hospital. So Nareshi, you want to kind of speak about Sanat?
Unidentified Speaker
Yeah. Good afternoon everyone. So on the occupancy, like Amit mentioned earlier that due to the political geopolitical environment in Middle east, there was a dip in occupancy for about 30 days and now it is coming back. So that’s why the Q1 occupancy has gone down. But we are seeing witnessing now the back in search as the things are sorted out. So this quarter should be better as compared to the earlier one. Thank you.
Neel Shah
Okay, so do you mean that the lower occupancy is only related to the Shalbi Sanur?
Amit Pathak
Yes, it includes the entire hospital business.
Neel Shah
Okay. All right. And what can we expect it to be for FY26?
Amit Pathak
So anishka ma’, am, can you please answer?
Nishita Shukla
I’m not clear about the question because you’re not able to understand actually for.
Neel Shah
FY26, how much do you expect the occupancy rate to be for the entire year.
Nishita Shukla
Occupancy? We are like expecting 85 to 90 average occupancy for the year.
Neel Shah
For the entire year. 85 to 90.
Nishita Shukla
Yeah.
Neel Shah
Okay.
Amit Pathak
So I will just reframe your question from the investor point of view when you are talking for the occupancy as we mentioned we had around 45% of the occupancy. We have already mentioned that is a mix of couple of things. As our CEO has explained that we have seen this couple of moment of the doctors. We have seen certain turbulence into the Sanaa. That is the reason we had around 40 occupancy of 45%. But the way we are seeing with the good hiring of the doctors with the kind of business what we are expecting into the quarter three, quarter four and the upcoming quarters, we can going to see the upward movement of the occupancy and that on average if I am paying for FY26, I can see that will be definitely touching coral stone on 50% plus kind of thing.
60% plus or 50% plus 50 plus 50% plus. But see again as I said, depending on the alos right. The occupancy absolute. The absolute occupancy number may be more or less, but the way we track, you know, our kind of growth is really based on the outpatient count growth and the inpatient count growth. I think ultimately that is what will matter to us, you know, from that standpoint.
Neel Shah
Okay, thank you. That was very helpful.
operator
Thank you. The next question comes from the line of suchrit d. Patil from eyesight fin trade private limited. Please go ahead.
Sucrit D. Patil
Good afternoon. The shall be team. My name is Sukhrut Patil and I have a question for Mr. Deepak Anand. My question is, first of all I’d like to congratulate the team on the strategic achievement in acquiring the Delhi hospital. So my question is, as Shelby pivots beyond joint replacement into oncology and transplant care, how are you thinking about building a differentiated clinical brand for international patients? Possibly through bundled care models, outcome linked pricing or some tie ups with global insurance companies and medical tourism platforms. And is there a roadmap to position Shelby as a destination hospital brand across high acuity specialties? Yes, that was my question.
Deepak Ananthakrishnan
I think, doctor, I think Shanay will.
Amit Pathak
Be the better person to answer this question.
Deepak Ananthakrishnan
Yeah, so we have Dr. Nishita Shukla and Mr. Naresh Kapoor. Probably they can take the question.
Unidentified Speaker
Okay, so on the international front we already have got tires with various large insurance companies like nhif in Kenya and couple of middle east companies also. Apart from that, we do also have tie up with various health ministries in different countries like Ethiopia and Baghdad, Iraq and Uzbekistan and to some extent Tajikistan. And apart from that we have tie ups with the large hospitals in different countries in Africa, middle east and also CIS countries. So this is since last three years, growing every year. And we have more tires with the ministries in the pipeline and hopefully coming years, coming time we should be having tie up with the health ministry of Malawi, health ministry of Mauritius and also we are in talks with health ministry of Zambia.
So through these health ministries we have tied up with, we go through the tie up for the large government hospitals through which we get a steady inflow of patients from international district. And on the medical tourism part, as far as the channel partners or the medical tourism companies are concerned. So there is a big, big I would say number of medical tourism companies operating in the country and particularly in the lncr, if I can talk about that. And almost all of them we are in touch and we have tie up with couple of very large companies also who have presence not only physical in different countries but also a wide digital presence.
Also and through them we source our patients. And like Amit mentioned earlier we. We have all these specialties in somewhere international and in Gurgaon. And we cover a lot of transplants including kidney transplant, liver transplant, bone marrow transplant. And that is the basis of our sourcing of international patients. And this is going to increase in the near future as tires with different. Like I mentioned the government and other private. Private players is going to increase. So that will increase our foray into international. Thank you.
Sucrit D. Patil
Okay, thank you very much.
operator
Thank you. Before we move to the next participant a reminder to all participants. You may press star and one to ask a question. The next question comes from the line of Mr. Kashish Thakur from Alara Securities. Please go ahead.
Kashish Thakur
Thank you for the opportunity. So my first question is on. So I think so we have started giving the maturity wise hospital performance from this quarter highly appreciated for that just wanted to know in the maturity wise 10 plus year which we have 4 hospital what kind of EBITDA margin contribution we might have like for our entire EBITDA how much EBITDA contribution will be from these four hospitals.
Amit Pathak
So Kashish, if you can go through our investor presentation we have already given in terms of the absolute number for this quarter this mature hospital have the EBITDA of 32 crores. And in terms of the margin they are highly profitable with around close to 36% of the EBITDA margin.
Kashish Thakur
Yes, yes. So I understand it is somewhere around 70 odd percentage of contribution to our EBITDA. So like no is this trend do we expect to follow in this financial year and coming two, three years as well or how do we should we expect this trend to continue?
Amit Pathak
So look we have the capacity in all the hospital, even the mature hospital we have 10 years plus. So we are going to see the momentum of growth, growth in these hospitals also I just want to add the hospital which are five to 10 years of old there we have the higher delta because you can see the EBITDA margin is close to around 17%. We have the lot of capacities are there which is going to be built in into the coming quarters. And they are also going to show the higher momentum of more than 20% into the upcoming quarter hospital which are in the range of zero to five years in that if you can see we have the majorly of the franchisees operation which are smaller in size.
So that doesn’t impact much. The only thing which has been added here is the Sanaar International Hospital where we all know that it is going to deliver and turn around Very quickly into the coming quarters. So you are going to see that bracket is also improving with just the improvement of the SANAA and rest of the two bracket. The middle one is the high growth and even the 10 years plus will continue to give the continuous growth growth what we have into the past.
Deepak Ananthakrishnan
Add to that, if you look at our data about 10 years ago when we got listed about 85, 90% of the EBITDA used to come from the mature units. So that has now come down significantly. And even if you look at the data that is presented in the investor presentation this time if you ignore the bucket which is zero to five years, which is kind of making a little bit of a loss, if you look at the balance, about 55% of the EBITDA really comes in from the mature hospitals. So I think we’ve come a long way from that 85, 90% down to almost 55%.
And as our CFO just said, all the buckets can grow from here. However, strategically, because there are more number of beds in the five to 10 years bucket, we will see that that bucket will continue to grow. That bucket as well as the 0 to 5 years bucket will grow a little bit faster than the 10 years plus bucket.
operator
Are you audible?
Kashish Thakur
Yes sir. Yeah, yeah, perfect. Thank you. So my next question is on our foso and fosum business. What kind of revenue we might have generated from the same for this quarter.
Amit Pathak
So foso for this quarter is close to around 2.2 crores and fosum is around 80 lakhs. And if you can see on the growth basis also we have a slightly decline into the foso. That is the reason you can see into the zero to five year bucket. So compared to last year it is around 26 million versus 22 million in this quarter and whereas foursome is around 75 lakhs to 80 lakhs in this quarter.
Kashish Thakur
Understood sir. Thank you sir. So one question is on the government business. I think so. Like earlier in the commentary I heard that we are reducing, we are trying to reduce the revenue contribution for the government business. As of now it has been 24%. Like what is our aspiration to reach where we will be comfortable? Like what kind of revenue generation from government institution and we’ll be happy with it in next two, three years.
Deepak Ananthakrishnan
So Dr. Nishita chief operating officer can probably take that question.
Nishita Shukla
Actually if we state that occupancy wise, the number wise and we are planning for 70, 30, so 70 should be sulfing and CPA and 30% we should be training from government. So revenue wise I think you know CFO sir can help me out for that.
Amit Pathak
Sure. So look, I will say just to correct. Our proportion of the government and self versus TTA is continuing with around 75%, 25% kind of thing. And you can see we are going to be into this kind of bracket. But just I want to say even into the government business we are more inclined towards the state schemes like RDHS, CGHS which are highly profitable. As our CEOs already mentioned that we have just cut down couple of schemes mainly which are low profitable in the sense like ESIC and other things where we are not doing lot of businesses.
Whereas other businesses like CGHS and RGHS are the highly profitable. And that will also continue to remain into the same proportion into the future. Also it will reduce slightly going forward. If you can see into the next gen onwards our sales TPA will be closed on 80 to 81% kind of thing. And government will come down below 20% into the upcoming quarters.
Kashish Thakur
Thank you sir. Sir, I have few other questions. I’ll just move back in the queue. Thank you so much.
operator
Thank you. The next question comes from the line of Ashok Shah from EA Invesco family office. Please go ahead.
Ashok Shah
Thanks for taking my questions. Sir. We have continuously again I think it is a repeat. But on occupancy our occupancy is on lower level less than 50%. It’s come down to 45%. So do are we thinking on a different line that also are thinking to have increased the occupancy by reducing the rates or the something like that similar way. Hello. Hello.
operator
Was the question audible to you?
Vikram Shah
Yes, I think Dr. Nishita Shukla is also on the line. I think she can take this question.
operator
Yes sir, she is on the line. Ma’, am. Were you able to hear the question?
Nishita Shukla
Actually for you know, increasing the occupancy we are you know working for everything since bringing in doctors, you know, going for STEAM patients and all. Even we have economy class and all in all packages where we you know facilitate the patients who are not affordable. We also have a support system to cater in patients. But yes, the occupancy, you know, many things matter. It is not only the rates which are on a higher side. Because we have all packaged surgeries. We have more insurance patients where we already have a tight package. So increasing occupancy. We are working on you know 360 labor.
Like bringing in good doctors who have good name. You know, making all in all packages supporting patients with Government schemes and all. So hope I am able to answer your question.
Ashok Shah
And sir, secondly, on the front reaction of increased cost. So what we are doing on the reduction of the interest cost.
Amit Pathak
Sure. So on the interest cost, I just want to highlight if you can see in terms of the debt, we have the major debt in our implant business. And we have seen the momentum change into the implant business compared to the last year. The way we are seeing, we have to definitely keep investing the money into the our implant business. But the kind of money what we have invested into the past compared to the upcoming quarter which will be low because that business is start becoming profitable into the coming quarters. So in terms of value terms you will see there will be a slight decrease compared to the earlier quarters.
But in terms of the profitability percentage, it will improve with the improvisation into the business. The coming quarter.
Ashok Shah
Sir, over the next three, four years, do you expect implant business to give at least 25% of the profit to us?
Vikram Shah
Yeah. Deepak, if you can take that please.
Deepak Ananthakrishnan
Sure. So in eventual time you will receive it. But I do not see that 25% of profit coming in immediately. But eventually if you look at it, it will reach there, right? I mean it is a very large market and you know, globally we are trying to penetrate in a big way. So at some point of time you will start seeing that 25% kind of EBITDA coming in. But at this juncture for the next immediate effect, you will not see that 25% EBITDA coming through.
Ashok Shah
Thank you. Thank you. Sir. I have one suggestion that over the last eight, nine years after coming out with the ipo we have never organ the analyst meeting in Mumbai city. So can you organize the analyst meet? So every year at least once your analysis, it will be good to know and meet and interact with the management. Thank you. That’s from my side.
Amit Pathak
Definitely. Yeah, we appreciate your point. We will work around that and inform accordingly.
operator
Thank you. The next question comes from the line of Kush Jain, an individual investor. Please go ahead.
Unidentified Participant
So my question is regarding the implant business that who all are our computers in India?
Deepak Ananthakrishnan
I’m answering. So we have multiple companies in India which are global companies and some of them are Indian manufacturers. So if you want to take names of them, then we have Zimmer, Biomat, Stryker, J and J. Smith and Nephew. These are all international multinational companies who have presence in India. And then there are also Indian companies who have presence in India like the Merrells and the Biorads of the world. So it is right now about seven to eight people. Eight, nine people are already there in the Indian market.
Unidentified Participant
So sir, what is the competitive advantage of our in plant business from others?
Deepak Ananthakrishnan
So our competitive advantage are multiple things starting from our product quality which I spoke about our product, where it is made and how it is made in terms of all our products get manufactured in California and the United States plant under the US FDA law. So that is number one in terms of the quality and the product quality that we have with zero recalls in the last 32 years of existence, which is not there in many implant companies around the world. Second thing is we have the Shalty hospital backbone in terms of ensuring training, upskilling, new product development, all of that in terms of access.
These are two large USPs. So our whole manufacturing quality process, our product, we have already come out with a couple of clinical papers in terms of our product performances have been which is really doing well. And that’s why you see the growth, right? The growth in business is coming fundamentally because of our product quality, our assurances as well as from a standpoint of upskilling training, which is something which is comparatively easy for us because of the Shalby Hospital group behind us.
Unidentified Participant
Okay, so that’s good. Next question is that target, as you have given the target of implant visit, you will stick on it for the couple of next year.
Deepak Ananthakrishnan
I’m sorry but I cannot get your question. Can you repeat your question please?
Unidentified Participant
So you, you have given the target. For implant business of $100 billion. You are going to stick on it?
Deepak Ananthakrishnan
Yeah. So the $100 million still we’re sticking on to it, but not from an immediate standpoint of the next one or two years. It will take slightly longer time because of some of the supply chain challenges that we have had in the past and some new product development. But I’m pretty sure from where we are to where we need to reach, we will reach there the next four to five years for sure.
Unidentified Participant
So what will be the margin in next four, five years for the implant business?
Deepak Ananthakrishnan
Amit, do you want to take that?
Amit Pathak
So definitely, as we have guided we the way the implant is doing, we are going to see the single digit EBITDA margin into the this year and next year and down the line four to five years. The kind of margin we are seeing that will be ranging between 20 to 25%.
Unidentified Participant
That’s from my side. Thank you sir.
operator
Thank you. The next question comes from the line of Vivesh, an individual investor. Please go ahead.
Unidentified Participant
Hi, my question is on Sanaar Hospital. When I look at the numbers it is hardly any progress from the YOY basis as well. Like there is hardly any revenue growth or anything. When our competitors are in similar size and all they are turning breaker one in maybe 12 months to 18 months what they are doing differently or what we where are we lacking like to turn this around. That’s my question one should I ask the question to now or.
Vikram Shah
Yeah, I think Mr. Kapoor can first take that question.
Unidentified Speaker
Okay, so on the on the SANAR operations as compared to the previous year, what have things been this quarter? Particularly if you are seeing quarter year year on year for this first quarter like I mentioned earlier because of the geopolitical reasons, there was a dip in the patient flow from Middle east and Middle east being almost covering our 45 to 50% of the inflow. So that was affected for quarter one on otherwise there have been couple of couple of exit in terms of doctors which have been replaced immediately by us. And typically a doctor when replaced takes about six months to 12 months to get settled and the patient flow is recaptured.
So hopefully going forward in next couple of quarters you will see the numbers much better than what it was in the first quarter.
Unidentified Participant
Okay, and are we solely relying on international patients or are like are there plans to like vaccine or at least some from the occupancy perspective like taking local patients as well like so majority.
Unidentified Speaker
Till now was on was from international as mentioned earlier that about 65% patients were coming from international, 35 from domestic. But last one year our focus has also been on domestic front and we have got our hospital accredited by NAB in the process of getting by NABHE and we hope to get some panels also on board which will further enhance the occupancy of domestic. And currently if you see the occupancy of international land domestic is around 55, 45 and as normally the domestic fund it takes about 3, 4 years for any hospital to reach to a level where they can say that the large number of population is covering.
So so but in Gurgaon now we are more visible. Our brand is much more which shall be coming in much more recall value and not only in high end transplant business but also like in orthopedics in spine surgery we are getting a lot of local patients, Indian nationals from Gurgaon and nearby places. And for orthopedics particularly people come from places like UP Bihar and Madhya Pradesh and Rajasthaninska and so forth. So my take is that going forward in next couple of quarters our domestic business will also grow equally as the international business is going.
Unidentified Participant
Okay. Okay, thanks for the insight, another question was on the new hospitals or the growth, what’s happening on the Mumbai hospital front? Like it was expected like from the initial commentary maybe six months back it was expected to like we were expected to get the, we were expected to start the construction. What’s happening in there?
Amit Pathak
Yeah. So as we mentioned earlier also we announced that we have received the Charity commission approval and we have to submit the document with the Charity Commission, the final deed and post that we will go with the other regulatory approval and start the greenfield project into the Mumbai location.
Unidentified Participant
So when should we expect? Any time like with 3, 4.
Amit Pathak
So the way we are seeing the total project timeline that we are seeing is three to three and a half year from now.
Vikram Shah
Three to three and a half years from the day we get the handover from the trust current, you know, I mean the property still with the trust and after submitting, you know, the lease document to the charity commissioner’s office, you know, and completing the formalities, we will get the handover. So from the day of handover we should be taking between three, three and a half years.
Unidentified Participant
Yeah, I was asking about the handover and we beginning the construction because that’s when our some payout like that will become a stress on the books. So that’s what I was interested in. Okay. And lastly lastly on our lightweight model like either shall be operated or managed. So from last seven, eight months like we are just, we have not added anything on that front. Like I’ve been like there have been two exits that we have seen but no addition. Like any insights you want to give there on that business?
Vikram Shah
No, that is true. That is true. In fact, you know, we have become extremely picky when it comes to, you know, kind of joining hands with, you know, any particular hospital for a franchisee. Because, because in the past there have been instances where the local franchisee may have shortchanged us or kind of not followed the quality parameters, etc. And then ultimately it doesn’t give a good name to the brand. So we have become very picky in terms of choosing the partners. And hence even though we may take time to get to our target, we will not hurry into, you know, kind of scaling this model up.
Unidentified Participant
Okay, thank you. Thanks for answering the questions.
operator
Thank you. The next follow up question comes from the line of Mr. Kashish Thakur from Elara Securities. Please go ahead.
Kashish Thakur
Hi. Thank you. Thank you for giving me opportunity. Again. Again, just taking forward from your government business, what kind of receivable days do we have from the government guys?
Amit Pathak
So look it’s depend upon the team to scheme generally and also the fund available with the government like rdhs. The way we have seen the funds are coming in the close to around 100. But sometimes if the funds has not been there it can extend to 180 days. Ayushman is also ranging between around 180 days and couple of other schemes. So generally you can take is the average in when average receivable days for this government business is closed on 180 days plus kind of thing.
Kashish Thakur
Understood sir. And how has been the trend? It has been 180 days since or like last two, three years or has we has it come down.
Amit Pathak
So the average remain the same. It’s a trend where you can see because sometime you are getting the partial money. But overall if you can see it’s ranging around 180 days kind of thing.
Kashish Thakur
Understood sir. So one question is on insurance or the. The domestic insurance. So I believe that we. We. We sign a new deal with the insurance companies every like in maybe two, three years. So how has been the situation for us? So are we planning to sign a new deal with the insurance companies or how it is.
Amit Pathak
So I request Dr. Nishita Shukla to answer this question.
Nishita Shukla
Yeah, I’ll take that for the insurance. You know there are. There are different insurance. One is the insurance where they tie up with all the hospitals and they have certain insurance under them and there are corporate insurance whether the individual CPAs. So we usually try and do tie up with all the insurance but few insurance which are not supporting the hospital. So there are groups of hospitals who have got together. Say Ahana is a group which runs in Ahmedabad. This is working you know for the non competence of the insurance company where they don’t pay us on time.
They do hepas at deductions and all. So we have you know decided together as a group to not you know support that insurance company. So there are few of them which we are talking to which on behalf of all the hospitals we are talking to them and that is one which is going on. Otherwise we usually do tie up with all the insurance. Insurance because we get patients from different insurance and hospital have that support to give it to the insurance patient when you work for them.
Kashish Thakur
Understood ma’. Am. Oh and sorry ma’, am, your voice was a bit feed.
Nishita Shukla
Yeah. So what I’m trying to tell you is we are tied up with majority all the insurances. And so that is not a new insurance or old insurance. The insurance tie ups are done every two years, three years. But There are few insurance companies which don’t respond back to us. You know, in spite of repeated reminders, they don’t do extended tie up or revision of age for five years or they don’t give us a timely payment. So such insurance we are working though they are on panel but then we are to talk with them.
Kashish Thakur
Understood. One, thank you. And just one last final question. Just can we, can we just reemphasize on what kind of top line growth we should expect for FY26 along with the EBITDA margins? This is the consolidated business.
Amit Pathak
Yeah. So we are seeing the good momentum in terms of the top line growth because we have invested heavily into the counters into the quarter. Three, the business will continue to grow into the upcoming quarters and the way we have historically delivered the revenue growth we are expecting we are going to deliver the double digit growth margin ranging around 12 to 15% kind of the growth will be there into this financial year and accordingly our EBITDA margin will also improve.
Kashish Thakur
Thank you so much sir. That’s all from my end.
operator
Thank you. The next follow up question comes from the line of Neil Shah from Prunetra Investment Advisory Private Limited. Please go ahead. Please go ahead with your question, sir.
Neel Shah
Hello.
operator
Yes sir, please go ahead with your question.
Neel Shah
Yeah, so in case of Shalbi medtech Limited, we have a positive EBITDA on a standalone basis but a negative EBITDA on a console basis. So I understand why the EBITDA is negative but can you tell me what Shalbi MedTech Limited does on a standalone basis? Like how does it generate revenue on a standalone basis? What is its business? Exactly.
Deepak Ananthakrishnan
So yeah, so I’ll go ahead and maybe Amit, you can add up to us. So shall be MedTech is the, is also the business that we do in India. The reason for us to have that positive EBITDA this quarter is a couple of reasons. Number one, there are operational efficiencies that we have built and second is some innovative partnerships and robotic models that we have done. So both of them put together are the reason. So the cost does continue to go down. But also there are some partnerships that we’ve done with certain products and projects which have allowed us to get certain businesses through.
Like we have tied up with robotics, so we do robotic rentals. We are figuring out way to get business out of robotics consumables and so on and so forth. So that adds to both the top line and the bottom line. And that’s why you see the standalone shall be MedTech and it is not One time this is going to be more evolving. So as we work and continue to get the cogs down and build operational efficiency, this particular partnership is the first of the partnership which I just spoke about. Our strategic. There are multiple other partnerships.
We have had some other products also which have come into Arkiti through partnerships and these products add to a decent gross margin for us and hence to the ebitda.
Neel Shah
Okay, understood. And like why is the RPOP for hospitals with a maturity of 5 to 10 years so low as compared to the other maturities of 10 plus years or 0 to 5 years?
Amit Pathak
So if you can see in the 0 to 5 years of hospital, as I already mentioned, that includes the Sanaar International Hospital also and Sanaa, the kind of business we have around 56% of the international business where the RPOP is closed to around 89,000 rupees plus. So, so that is the reason due to the international business where the revenue size is high, we have the higher RFOP. And whereas if you can see into the 10 years plus mature hospital we have more of a domestic business, hardly any international business and that is still based out in Ahmedabad and some other locations.
And in light with that, if you can see RCOV is pretty good for the 10 years now hospital that is close to 71,000.
Vikram Shah
Yeah, just to add, you know, the basically two things, you know, as we said, one is based on the geography, the RPOP could be more or less depending on a metro versus tier one, tier two cities. And second is the specialty mix, you know, where you have a high number of orthoplastic surgeries happening, you see a higher RPOP because the ticket size is high and the average length of stay slightly low. So you know, it really depends on the, on these two factors.
Neel Shah
Okay, so do you mean that in the maturity of 5 to 10 years they are all not in the best geographies or the specialty mix is not.
Vikram Shah
Very favorable.
Neel Shah
Or is it just evolving?
Vikram Shah
No, I would not say that. I would say that, you know, basically. The. Hospitals in the five to ten year segments have very high rpob, you know, compared to the competitors that we kind of compete with in those geographies. The profitability also is, you know, high. So that’s not a concern at all. But if you look at the Delhi as a geography, you know, you have higher RPOps there naturally because of, you know, the kind of, because of the kind of cost of living, etc. So I would say higher RPOP does not necessarily translate into higher profitability. So I would say, you know, I would segregate the two. I would not kind of try to combine both of them.
Neel Shah
Okay. All right, that’s it for myself.
operator
Thank you. The next follow up question comes from the line of Ashok Shah from Eclavia Invesco family office. Please go ahead.
Ashok Shah
Thank you for taking my further question. Sir, are we in, in case of our new business of this implant, are we thinking on the dental also side to expand or it will be only this one.
Deepak Ananthakrishnan
Can you repeat your question please?
Ashok Shah
No. Our implant business is I think basically related not to the dental. Dental, dental services. So are we thinking to expand to the dental also?
Deepak Ananthakrishnan
So not on the immediate front. See, the orthopedic itself is a globally $30 billion market, okay. In which we have just started scratching the surface of it, right. So I think there is enough space over there to go and build that business to a decent level with good financials. I think our focus and investments are going to be in that place at this juncture. But eventually once this orthopedic business gets settled up, then we can look at other things. There are multiple things, right? Onco and Opdel and dental. There are many medical devices that could be looked at from a long term standpoint.
But at least in the recent short term future we are going to be focused on orthopedics and win there and build a better business with financials and.
Ashok Shah
On the second front, mediclaim and government. Yeah, can I, can I ask the question? Yeah, yeah, yeah. On the second question. So on the competition and the lower level of our occupancy, we are charging more to the customer or the patient who pays, pay pay medical bill immediately and we pay charge lesser to the mediclaim customer. So is it not too good to incentivize those who pay immediately on admission or on the treatment to reduce their cost or at least keep it at the rate of the mediclaim customer to increase our occupancy.
Nishita Shukla
Sir, as I told you earlier, we have, you know, we have different type of packages, we have different class and we have different packages and we also do all in all packages if the patient is not affordable. But majority of places our self paying, you know packages or self paying rate master is equivalent to all other hospitals, all other corporate hospitals and it is also equivalent or little bit more than, you know, tpa. It is not on much higher side.
Ashok Shah
As per our study, it came to that we pay, we carry at least 10% more to the customer patient who pays immediately and we charge lesser to the mediclam customer or the other customer who do not pay immediately.
Deepak Ananthakrishnan
We have different categories.
Nishita Shukla
It is the packages what the insurance has provided us that only we have to apply to that patient as per the policy limit. And our self paying soc is already shared with insurance when we you know negotiate with them for the packages and all. So self paying associates already shared with them. So to the self paying patient we cannot deviate from that associate postings or not. But yes if the patient we do pass on discounts to the patient if they are not affordable or if it is needed.
Ashok Shah
Yes, I am not talking about about the affordability, I am talking about the those who are affordable but pay extra on the direct cash payment and if they come out with the mediclaim you charge lesser amount.
Nishita Shukla
Sir, that is what I’m trying to explain. Our SOC is shared with mediclaim and mediclaim has asked us to reduce 10% when the patient is diverted to a claim or having a TC or an insurance. Our self paying SOC is shared with them and they have an MoU with us to charge 5 to 10% in 5 to 10% range. As for the hospital and as per the state where they have asked us to charge less 10% to their patient that is how but the SOC is same everywhere.
Ashok Shah
Okay, thank you. That’s all from my side. Thank you. Best wishes to you.
operator
Thank you. Ladies and gentlemen will take this as the last question for today. I would now hand the conference over to Mr. Jigar Tohori for closing comments.
Jigar Todi
Thank you everybody for joining the call. We will connect again into the next quarter. Apart from that, if you have any questions you can reach out to our investor email id. Thank you.
operator
Thank you sir. On behalf of Elara Securities Private Limited, that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.