Shalby Ltd (NSE: SHALBY) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Jigar Todi — Investor Relations
Amit Pathak — Chief Financial Officer
Deepak Ananthakrishnan — Global Chief Business Officer
Shanay Shah — President
Nishita Shukla — Chief Operating Officer
Analysts:
Unidentified Participant
Kashish Thakur — Analyst
Shubham Harne — Analyst
Saket — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome TO shall be limited Q3 FY26 earnings conference call hosted by Alara Securities 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 conference has been recorded. I now hand the conference over to Mr. Kashish Thakur. Thank you. And over to you sir. Thank you.
Kashish Thakur — Analyst
Abhirat. Good afternoon everyone. We welcome all the Participants to Shelby Limited Q3 and 9 months FY26 earnings conference call hosted by Elara Securities. Today we have with us senior management representative from Shalbi. We will start with the performance highlight from Group CFO of Shalbi Limited Mr. Amit Kumar and Mr. Deepak Anand, Chief Executive Officer of Shalpi Medtech. After that we will open the floor for question and answers for all the participants. I will now hand over the call. To Mr. Jiga Todi for important disclaimers regarding any forward looking statements that may be made in today’s call. Over to you Jigav.
Jigar Todi — Investor Relations
Thanks Kashish. Good afternoon everyone. Our investors 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 risk 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 Group CFO Mr. Amit Kumar for his opening remarks. Thank you. And over to you, Amit.
Amit Pathak — Chief Financial Officer
Yeah. Thanks Jigar. Good evening everyone. I am pleased to welcome you all In Shelby’s limited quarter three earning call. I’ll walk you through the consolidated financials and standalone financial performance of the Shelby Group in the Quarter 3 FY26. In order to start with I’ll first walk you through the consolidated performance for the Q3 on with a comparison on year on year basis. For the consolidated revenue in the quarter three it has been 279.4 cr versus 281.1 cr in the quarter three last year. This is marginally down by 0.6% on year on year basis. Our consolidated EBITDA has been 37.5 cr in quarter 3 versus 39.3 cr in the quarter 3 last year with a margin of 13.4% in quarter 3 versus 14% in the quarter 3 last year.
This is marginally down by 0.6% year on year basis. Consolidated PBT of 9.2 crore in quarter 3 FY26 versus 12.4 cr in quarter 3 FY25 with a margin of 3.3% in quarter 3 FY26 and 4.4% in quarter 3 FY25. This is down by 1.1% year on year basis. Our consolidated PAT has been 1.3 cr at a margin of 0.5% in quarter 3 FY26 versus negative PAT of 3 crore with a negative margin of 1.1% in quarter 3 FY25. This shows an improvement of 1.6% on year on year basis in the PAT margins. The group continues to maintain a very strong balance sheet with a low gearing ratio of 0.41x with a net debt of 408 crores.
Now I’ll be running you through the standalone performance of the hospital business with a year on year comparison. Our standalone revenue has been 221 crore in quarter three FY26 versus 226.9 crore in quarter three FY25 which is down by 2.6% on year on year basis. Our standalone EBITDA has been 35.4 crore in quarter three 26 versus 48.4 crore in quarter three FY25 with a margin of 16% in quarter three FY26 against 21.5% in quarter three FY25 which is down by 5.5% year on year basis. Our standalone profit before tax has been 21.9 cr in quarter three FY26 versus 35.8 cr in quarter three FY25 with a margin of 9.9% in quarter three versus 15.8% in quarter three last year which is down by 5.9% year on year on year basis.
Our standalone profit after tax has been 13.8 cr in quarter three FY26 versus 20.9 cr in quarter three FY25 with a margin of 6.2% in quarter three FY26 and 9.2% in quarter three of FY25 which is down by 3% year on year basis. At a standalone level we have a net debt of about 54.5 cr blocks. Our standalone ROC stands at 11.1% in quarter three of FY26. Our RPOB has been 43,171 which is up by 1.1% as compared to similar quarter last year which had a RPOP of 42,704 and similarly our loss has been 3.62 in the quarter three of the FY25 as against 3.9 3.9 loss of in the quarter three of FY26.
On to the occupancy our occupancy rate has been 44% in quarter three FY26 versus 46% in the similar quarter last year. If we talk excluding the Shelby International which is PK Healthcare in Gurgaon, our group level occupancy rate stands at 47% in quarter three of FY26, 48% in the quarter three of the FY25. On to the payer mix of our hospital business this stands at 35% for the self pay, 35% for the insurance and TPAs and 30% for the government business. The revenue of Shelby International the PK Healthcare stands at 23.9 cross as against similar number of 24.1 Cr in the previous in the same quarter last year this has just marginally declined by 1% year on year basis.
The RCOB on operating revenue and a loss of Shelby International Hospital is 87,526 and 3.26 respectively in the quarter three of FY26. In the current quarter our operating revenue has a contribution of 51% coming from international patients in the Shelby International at Gurgaon. At a group level talking about the international business this stands at about 13.7 cr majorly coming through the Shelby International Hospital with a value of approx 10cr and the balance 4cr is the other multi specialty hospitals and surgeries into other hospitals into the other units of Shelby Group. At Shelby our undivided focus has been on demonstrating our clinical excellence through successful exit execution of many diverse clinical surgeries and several in our several hospital units.
We also take pride in sharing that we have successfully completed 32 transplants including 29 kidney transplants and three liver transplant in the current quarter. Shelby also take a pride in nurturing young talent through our Shelby Academy with 320 students registered in the current quarter into the various disciplines like physiotherapy, nursing, lab nutrition and clinical paramedics this includes also Hospital Management AHA workshop as part of their academic outreach and clinical exposure through internships. In the similar quarter we had 130 new physiotherapists interns enrolled at Shelby Hospitals to comply with their internship in the December 2025. Further, Shelby Academy has also successfully completed 17th batch of AHA Certified with various certificates workshop at academy in the Naroda.
Now I will hand over the call to Mr. Deepakanan to share insights on our medical implant business Vertical Shelby Method. Over to you Deepa.
Deepak Ananthakrishnan — Global Chief Business Officer
Thank you Ahmed Good afternoon everyone. Thank you for joining us today. I’m pleased to present the performance of Shalby Medtech for quarter three as well as the nine month financial year 26. So we’ll start with the quarter three financial year 26 performance overview. During this quarter of quarter three our consolidated Medtech revenue stood at 303.8 million, registering at 29% year on year growth compared to 234.9 million in the last year quarter three. This growth was primarily driven by Shelby Medtech India revenue grew 77% year on year to 189.6 million reflecting strong domestic execution, improved distribution reach and enhanced surgeon engagement.
Shalbi Global Technologies which covers our Southeast Asia business revenues increased significantly to 17.2 million up by 378% year on year as we continue to scale our international distribution footprint. Shalby Advanced technologies in USA Revenue remains stable at 264.6 million reflecting resilience in the North American market despite competitive intensity on the profitability front, Consolidated EBITDA turned positive at 0.7 million compared to a loss of 69 million in Q3 financial year 25. This marks a significant turnaround by operating leverage, cost optimization and improved product mix at the entity level. Shall be Advanced Technologies delivered EBITDA of 16 million of 115% year on year shall be MedTech reported positive EBITDA of 5.5 million versus a loss of 75.2 million in the quarter three financial year 25.
Shalbi Global Technologies also delivered a EBITDA of 1.9 million versus a loss of 1.4 million in the quarter three financial year25 quarter. On quarter perspective, While consolidated revenue moderated sequentially in quarter three due to year end and normalization in shall be Advanced Technologies, the underlying fundamentals remain intact. Importantly, Shelby Medtech Ltd. Delivered strong sequential growth of 18%, reinforcing the strength of India franchise. We remain focused on improving consistency and profitability while investing prudently in growth markets. Let’s now move to the nine month financial year 26 performance. For the first nine months consolidated revenue reached 949 million up 47% year on year shall be advanced technologies revenue grew 5% to 842 million.
Shall be MedTech more than double revenue growing 127% year on year to 532 million. Shall be global technologies grew 35% year on year to 50 million. Importantly, consolidated EBITDA improved to 29.9 million compared to a loss of 98.3 million in nine months financial year 25 with 130% improvement. This reflects structural improvements in our cost base, manufacturing efficiencies and disciplined commercial expansion Strategic Focus Areas Our growth continues to be anchored around the five strategic pillars People Strengthening recruitment, retention and continuous training of our sales team, healthcare professionals and channel partners. We’re investing in leadership development and succession planning to build a scalable organization portfolio and innovation Expanding our implant portfolio and improving product differentiation to drive better realization and market penetration penetration Customer segment focus Sharpening our segmentation strategy across geographies to enhance surgeon loyalty and channel productivity Cost reduction driving material optimization, vendor consolidation and manufacturing efficiencies to improve gross margins and the fifth one Supply Chain Excellence Building a more responsive and resilient supply chain to support our growing global footprint.
A Global Expansion Roadmap Our implant business now operates across key existing markets including North America, Japan, India and Indonesia. We have received approvals in Malaysia for our Unicodiola product and Argentina. We have submitted regulatory dossiers in South Korea, Vietnam and Iran and we have ongoing active discussions in Ethiopia, Paraguay, Sri Lanka and Russia. This structured expansion broadband positions us well to accelerated international growth over the next 12 to 14 months. Looking ahead, we expect continued momentum in the India business. The US Business will focus on margin improvement and deeper customer penetration International Marketing Meaningfully as approvals convert into commercial traction, EBITDA improvement remains a key priority through operating leverage and cost discipline, our MedTech platform is transitioning from a turnaround phase to a structured growth phase.
We believe the investments made over the last 18 months are now beginning to reflect in both revenue acceleration and margin recovery. Thank you everyone. I’m handing it over. Back to any questions.
Shanay Shah — President
Yeah, we look forward to your questions. We can start Q and A round.
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 char and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Participants who wish to ask Questions may press charn 1 at this time. The first question is from the line of Shubham Harne from Ponatha Investment Advisors. Please go ahead.
Shubham Harne
Hello, sir. Thanks for the opportunity. I just want to ask about hospital business. What’s happening there? Why are inpatient or outpatient volumes are decreasing continuously while surgical counts are also decreasing? That was my first question.
Shanay Shah
Hi, this is Shanay. So, see, I think if you look at, you know, the numbers, what has happened in this quarter is, you know, the insurance work particularly has come down because we had been negotiating with some of the insurance companies. So, you know, we had to stop doing some of the work with some of these insurance companies, the two or three major insurance companies. And, you know, so for two to two and a half months, you know, we had to stop working. And then eventually the positive is that in the month of November, we have signed.
In the month of November end, we. We have signed the contracts again. So basically the flow in Jan. And so far in this quarter has been good and it’s positive. So this was one of the reasons. The other reason was that you can see that the government business has gone up again. This is also because the government volume has gone up only by 8 or 10%. But the overall realization for patients in the government business is much higher because the rates have been revised, they are more favorable, more accretive. So that is, you know, kind of the other area where, you know, the revenue has kind of been compensated by some of that business.
The other one is that, you know, we also lost two doctors, you know, in two of our units, two different units. And often what happens is, you know, there is a lot of new infrastructure that keeps coming up in some of these cities and often they are prepared to pay any price, you know, to kind of get that business. We may not be able to match that because we believe that profitability also is equally important. And hence, at times we have to take some decisions, take decisions at these points where we have to let one or two of these doctors leave.
Apart from that, I think the quarter has been quite positive in terms of doctor recruitments, etc. Because we’ve added 40 doctors in this quarter, whereas we’ve lost about 18 doctors. So overall, you know, we’ve added doctors for the quarter and, you know, that will. We are seeing, and we will see that play out for us. Besides that, you know, we have already made investments in the last 120 days to 180 days in the, in the bunkers, the linear accelerator bunkers, the radiation oncology therapy. So this is across two regions. So we already operate this in three regions.
Right now we operate it in Jaipur, Indore and Ahmedabad so far. And you know, now we’ve also added two more. One in another part of Ahmedabad and one in Surat. So that is likely to, you know, kind of play out. The one in Ahmedabad will play out throughout the quarter four and you know we are likely to receive the AERB approval very soon, you know, for the Krishna hospital in Ahmedabad, for the Surat hospital, you know, we will receive it very soon. And once you know that is up and about, I think in the month of March, you know, we should start seeing those numbers.
Besides that, I would say that apart from that the quarter has largely been flat for us. However, having said that, we see a lot of positivity in the current quarter and we’ll start seeing the numbers flowing. So I would say it’s a one off.
Shubham Harne
Okay. But in last six to nine months we have hired new doctors. So what’s happening? There is revenue coming from new doctors? Substantially.
Shanay Shah
Yes. So you know, we are putting in marketing efforts for some of these Doctors. I think Dr. Nishita is with me, I think she can discuss a little bit about the marketing initiatives for such doctors. And also besides that, you know, the doctors where you know, we are not able to, we are seeing that, you know, we are not able to derive the right results, you know, eventually we are also taking, you know, the right strategic decisions on those as well. So you know, that’s why you also see that 18 or 19 doctors have, you know, kind of we managed to part ways with them.
But I think Dr. Nishita can throw some light on the marketing.
Nishita Shukla
So. Good afternoon. As for hiring doctors, we are taking a mix of doctors, few doctors we are hiring and you know, having, they are having their own practice. So we are buying our practice to be stable against the doctors left. As well as for the marketing, we are doing lot of marketing activities, awareness programs and all and again supporting all these doctors with high end technologies. See we have placed robots at five of the places, orthopedic robots. We have placed other than orthopedic surgery robots at two or three of our units and that is how to help them with technology as well to bring in high end, you know, surgery revenue as well as rco.
And for all of this we do constant digital marketing awareness programs, in house camps, free camps, activities and all.
Shubham Harne
So are we Getting positive results to this?
Nishita Shukla
Yes, we are getting but it’s a slow process. You know, once they join your, you know, we start slowly. It takes one or two months for them to have the old days again.
Shubham Harne
Yeah, but I think so it’s approx. 9 to 6 months already past since we have hired new doctors. So for that bunch of doctors, are we getting positive as well?
Nishita Shukla
Yeah, we are getting because if you see insurance was a big hit, even you know, doctors coming in, we have to have overall empanelments online. So since quarter two the insurance were stopped because of rate negotiation not giving us, you know, revising rate for last three or four years. So now they are in place. So they will be getting that even testing patients. The new doctors have done good. But as we lost all doctors, the two high end doctors, that is how there is a drop.
Shanay Shah
Hello, we’ve lost, as we mentioned earlier, the insurance business for three of these large insurance companies was stopped. So overall had that been in place, we would have definitely seen a growth. So your question to whether these doctors which have been hired over the last six to nine months, whether they are performing. Yes, some of them are performing and you know, but at the same time, you know, if the hospital takes a call of not doing the insurance business, you know, it will affect their practice. So as I mentioned earlier, it is a one off where you know, we have seen a kind of hit in you know, the insurance patients.
But you know this, it was a one off as I did mention earlier.
Shubham Harne
And second on government business, since you have told right now that the government business rates are getting revised and now it is better. So are we planning to increase that government business in near future or earlier we have said that we will decrease the same. So that would be our strategy.
Shanay Shah
There are specialities and there are different areas within the government business which are accretive, you know, to the overall scheme of things. So we will continue to pursue those.
Shubham Harne
Okay, so wherever we are getting good amount, we will pursue that.
Shanay Shah
Yeah, that’s right.
Shubham Harne
And can you tell me what’s happening in PK Healthcare? Because I think so. Insurance companies are there right now in pk. But now also the, if you see occupancy, it’s reducing quarter on quarter. So can you throw a little bit light on pk?
Nishita Shukla
Yeah, for pk, you know there we are doing a specialty stabilization and with you know, bringing in other specialty doctors. So PK was usually much working on liver transplant, BMT and say oncology work. But as two doctors, the BMT and liver transplant doctors have left so we are, you know, compensating that. We are into recruitment with liver team. But again we are going with a mix of cardiology, ent, orthopedics and again as I told you, giving them a good specialty, good high end equipment. So we have just, you know, hired a very senior pulmonologist. So we are going with a specialty mix instead of only working on lever and BMT which Sanaar used to do earlier.
And for the insurance companies, majority of insurance companies are getting closed and we are waiting for Nabh to come on board which we are expecting by this week. So once Nabh coming in we will be also doing lot of tie ups for Haryana government, cghs, ECHS and all also.
Shanay Shah
I think what has happened is that we’ve lost, you know, these key doctors, you know, due to the earlier management and you know, kind of earlier the head of the hospital, we asked him, I mean, you know, we had to part ways with him because of some of the damage that was done and hence we had lost some doctors. But yes, we are in the process of recruitment. We’ve recruited some of these specialties, some of the high end, high, high performing specialties. We are under talks with a couple of these top specialists in the city.
So you know, we will update you as and when, you know, we recruit for the liver transplant and for the bone marrow transplants. However, orthopedics is already doing really well in the Delhi hospital in Sanaa. And also we have installed robots for not only Orthopedics but also for, you know, some of the other specialties like GI neuro. So you know, ultimately we are expecting that some of these specialties will cover up significantly for some of the lost patients.
Shubham Harne
So this year occupancy rate would be subdued. I can see that means your doctors are leaving, new doctors are joining. But what is the occupancy rate which you are predicting for 27?
Shanay Shah
So look, the occupancy at this point of time we are ranging at about 20 beds, you know, in the SANAA hospital in the next year for the average we are looking at at least 40 as an average for the full year.
Shubham Harne
And then what would be the occupancy rate for hospital.
Shanay Shah
Ending the year at a much higher number than that.
Shubham Harne
Okay, and then what would be the overall occupancy rate for the shall be next year?
Shanay Shah
So overall occupancy rate, we are not giving forward looking numbers but you know, the way we see it is that we definitely see a double digit volume growth, you know, in the, in the next year and then of course there is RPOC growth of 5 to 6%. You know, additionally on top of that.
Shubham Harne
Got it. Thanks. Thanks for the update.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press char and one to ask a question. The next question is from the line of Mr. Kashish Thakur from Alara Capital. Please go ahead. Hey.
Kashish Thakur
Hi. Thank you. Thank you for the opportunity. One question I want to ask personally to our tax rate. Our tax rate has been quite volatile since, since a bit long. So just wanted to understand why it is so and like what, what kind of average tax rate we should work in going ahead.
Amit Pathak
Yeah, this is Amit to answer you. Our tax rate has been at a group level had been about 35% the ETR rate. What you see since our currently we. Are since investing in onto the MedTech and PK side as soon they are becoming profitable. The tax rate and the ETR rate you would see on the consistent side. One significant change as also in the budget. The map changes have come. We are evaluating it out and properly. Our evaluation is indicating that we would move to a lower tax rate of 25% into the Shelby Limited. That would reduce our tax expense significantly into the coming quarter. And if we do that adjustment then the annual impact would come in the next quarter.
Kashish Thakur
Perfect. So second question is more on our expansion strategy. Any, any light on how bad addition we should look like it should look like in, in FY27.
Shanay Shah
So you know the thing is we, we have additional capacity that you know where we can, we can grow for the next two years or so. So at this point of time, if you notice in this fiscal, we have significantly invested heavily on infrastructure upgradation as well as into high end robotics and some of the high end diagnostics. So we’ve installed a new PET CT scan which will now be operational soon. We have invested in bunkers in two of the cities. Now we have five bunkers as a group we are adding, we are planning to add two more bunkers.
If you ask me then the next investment over the next couple of months will be in two additional bunkers in Mohali and in the Delhi and Sia region. So that is, you know, planned over the next 12 to 18 month kind of range. Robots. We have installed five robots across our hospitals for organization orthopedics and two robots for other specialties, you know, across, you know, our units. Again we’ll be adding more robots for other specialties as well across the board. So you know, some of the investments in technology is likely to happen on a, you know, more on more strategic basis.
With regards to bed addition we have another 50 odd beds which can be added in the Delhi and SIA region which at the appropriate time we will take up that project. Besides that we don’t see any significant capex and even some of the capex that I did mention is likely to come in the 12 to 24 month kind of range. So not much capex is planned over the next 12 months on the hospital business.
Kashish Thakur
Understood. One question. On alos our ALS is around somewhere around 4ish 4ish days. So why it is higher? So I think so in industry standards it’s been reducing somewhere on 3.5 3.4 days. Why does for us it is around four days?
Nishita Shukla
Yeah, the LOS is little bit on higher side due to more medical cases. So we have developed critical care unit at through three units and had done some expansion in current beds also. So that is how due to medical cases and critical cases alohs is on higher side.
Kashish Thakur
Should we build in a similar ano is going ahead as well?
Shanay Shah
Yeah, it would be in the range of. It would be in this range. It will fluctuate a little bit based on the specialty mix. But yes.
Kashish Thakur
Understood. And one last question. Are 0-5s hospital are operating somewhere around at 6.6 EBITDA margins. So like when can we see our. Ramp up from these hospitals? Probably reaching somewhere around 10 ish percent or 15 ish percent EBITDA margin levels.
Shanay Shah
Yeah. So you know we will see this. Happen as the units ramp up. You know we are adding, we are doing two things right. We are adding super specialists in some of these important specialties and we are also investing heavily in diagnostics and robotics. So all of this put together will definitely increase the work for us and ultimately that will translate to the EBITDA margins. So as I said, we are aiming for an average occupancy through the year of about 40 beds for FY27 for the Delhi unit. So if that happens we will definitely be at that level. In fact even better than that.
Kashish Thakur
Understood. Thank you. Thank you. That’s all from my side.
operator
Thank you. The next question is from the line of Om Prakash, an individual investor. Please go ahead.
Unidentified Participant
Yeah, hi sir. I have actually been an investor over the past four years. Back then there were a lot of optionalities for the business in terms of franchisee and implant business, you know, even acquisitions, etc. But considering a lot of things have not worked out for us. Just want to understand what Management is thinking at the moment and what is the plan for the future?
Shanay Shah
So I think we’ll start with the implant business. I think Deepak can, you know, kind of lay the foundation for the implant business and then I can move to the.
Deepak Ananthakrishnan
Thank you, Shilai. So from a, from a future standpoint, I think we are in a great space after you just heard what we’ve done, quarter on quarter as well as on nine months time. So if you have to ask me, we are continuously working around the five pillars that we just met. Right. So if you speak about it, every day, every week, every month, we see an improvement in our gross margin through cogs getting reduced. We see our sales growing. We’ve already had a growth last year at about 65%, a similar kind of growth this year.
And we continue to keep that momentum going. So the market is large. We’re also opening up multiple countries, multiple geographies. Along with that, we are also launching new products. In the last 12 months, we’ve launched close to five or six products across different geographies, which has contributed to both top as well as bottom line. We continue to innovate, we continue to get top notch talent across. And this is a large global market. So we are not here to play for a single market. It’s a globally $35 billion market that we are speaking about where we are looking at.
So we are building the base, we’re building our processes systems in such a manner that we are scaling up in a systematic way for us to win the larger space. So that’s what is the. So.
Unidentified Participant
When can we. When can we see a turnaround, sir? I mean, I’m hearing this for a while. I’m just trying to understand when are we gonna break even and start generating profits from the Medtech division.
Deepak Ananthakrishnan
So the results do have a break even right now that we’ve spoken already. So break even has already happened.
Unidentified Participant
Got it.
Shanay Shah
Already happened.
Unidentified Participant
Got it. And sir, about the core hospital business, would like to understand what is the management plan in terms of expansion? I understand there are a lot of under construction hospitals and also franchisee business which we have bound down in a couple of places. So if management can lay it down like a lot of the reasons why we are winding down and why we are not able to do better compared to the market where hospitals in general are posting great numbers. Is there a specific concern with Shelby or it’s something to do with, you know, internal freedoms?
Shanay Shah
Yeah, sure. So, you know, I’ll just conclude the implant segment. So the implant segment has been growing at 40 to 60% depending on the year for us. And we see it growing at that level even going forward forward. So you know you will see the operating leverage play out significantly over the next couple of quarters. More so because the availability problem, you know, until Q3 so far we have had the availability problem, you know, for the implants. I can tell you that more than 70 to 80% of the implants used in the month of Jan, from the month of Jan this year have been our implants.
So that is a big positive for us, which until now, so far, until Q3 used to be around 15 to 20%. So that leverage we will start getting now. The availability for problem is sorted out. The cost of goods manufactured at our implant business at the factory is now down to almost 50% of what we used to manufacture it at about four and a half years ago. So a lot of positive signs there. And as you see the volume ramp up, we’ll start seeing the profitability and the cash flows play out and it will be visible over the next couple of quarters.
So you will see significant changes over the next couple of quarters. Since we are not giving any forward looking statement, I’m not able to give you a guidance on that in terms of the hospitals business. See we already are adding the right clinical talent across the board and as I did mention earlier, quarter three was a one off. Apart from that, if you see the earlier quarters, there has been a growth on the other quarters, Delhi, I told you there were management issues which are a regular, kind of partially resolved. And with the new clinical talent coming in, we’ll start seeing the ramp up of some of these units.
Investing in some of the upgrading, some of these facilities. Investing in robotics, investing in diagnostics is going to play out. Over 80 crores have been invested in some of these areas over the last eight to nine months which have not started, you know, kind of adding to the top line significantly because they have just been commissioned. So you will start seeing the impact of all of these robotics, diagnostics and upgradations, you know, in the coming quarters. And besides that, you know, as you can see in our results, you know, the overall cost of doctors has gone up significantly and you know, ultimately, you know, it is very important to get the right clinical talent on board and then it does take some time to play out.
So we are seeing the impact, you will see the results. We are expecting double digit volume growth and 5 to 6% RPOC growth and you can kind of imagine the kind of growth that we will be seeing in the Quarters to come.
Unidentified Participant
Okay, if I can squeeze one more question. So the question is regarding occupancy rates. So occupancy rates for us have been almost in a similar range for the last three years. I understand we are also expanding by opening new hospitals, especially with Nashik, etc. Would like to hear the commentary how management is thinking to improve this occupancy rates, at least on the older hospitals where we have been operating for a while now.
Shanay Shah
Yeah. So I think, you know, one is that we should not just look at occupancy percentage because what happens is that, you know, as you, over the last three years we have added beds and you know, we look at the percentage, it’s not fair. We should look at the average occupied beds or we should look at the average inpatient count. Average outpatient count. Because, you know, these are the numbers that would really matter. We know the areas where we have not grown or kind of degrown. But then there are a lot of positives as well.
We need to work on some of these areas which we continuously will end up working on. But I would say overall outpatient inpatient counts would be a much better way to judge where the business is going.
Unidentified Participant
Sure. Thanks a lot, sir.
operator
Thank you. Participants who wish to ask questions, press CHAR in one at this time. The next question is from the line of Kashish Thakur from Alara Capital. Please go ahead.
Kashish Thakur
Thank you again for the opportunity. Just One question on RPOB. How do we see our RPOB growing in FY27?
Nishita Shukla
Steve?
Shanay Shah
RPOB traditionally has grown 5 to 6% for us now depending on, you know, how the robotics play out, etc. Over the next couple of quarters, we’ll be able to kind of be in a much better position to, you know, kind of tell you in a couple of quarters because that 5 to 6% is something that we definitely see it growing because of the SOC rate revisions. Even some of the government insurance companies like CGHS, etc. Have increased their rates. So all of that, you know, we have already seen and some of that is already playing out.
But apart from that, you know, robotics will add significantly to some of these archons.
Kashish Thakur
So just following back on the same, like you just mentioned on robotics, so just wanted to highlight, we have always already done around 32 transplant patients during this Q3. So like, how are the margins different for the robotic patients? Slash transplant visa with the normal surgeries.
Nishita Shukla
Transplant, knee transplant.
Kashish Thakur
Should I repeat or clarify my question?
Shanay Shah
Yeah, please repeat, Kashish.
Kashish Thakur
Sure. So I just wanted to know the difference, like when a traditional surgery is performed, basically when a robotic surgery is performed, which is more profitable for us. And we have already done somewhere around 32 transplants in Q3 is what is mentioned in our presentation. So, like, what is our aspiration for the same in FY27?
Shanay Shah
So I will just answer your question. But before that I want to tell you the key specialities for us. You know, the five key specialties which we continue to kind of lay a lot of emphasis on, is orthopedics, where we are globally the number one player. The second one is oncology, which is growing for us significantly. Well, the third is cardiology because the volume of business in the cardiac segment is large. Apart from that. The fourth one is intensive care and emergencies because again, ICU beds are high RPOC general, and ultimately it does kind of drain a lot of patients from the 10 to 15 kilometer radius.
The fifth one is neurology. And the sixth one is, of course the transplant. So the transplants, you know, the volumes are always lower, you know, compared to some of the other specialties. But ultimately you are seen as a center for higher tertiary quaternary kind of care. Right. To answer some of your questions, I think the transplants are generally not done by robotics. Okay. And so that is one. And the typical length of stay is longer for these transplant patients. So they usually end up staying for between 15 to 20 days.
Kashish Thakur
Understood. And if. Yeah, that’s fine. Or if by chance we. I had skipped. Have we mentioned any timeline on EBITDA positive or EBITDA break even for our Shelby International Hospital?
Shanay Shah
Yeah, see, if you ask me, we were likely to be EBITDA positive over there about two quarters ago. So, you know, there has been a delay on that front, as we mentioned, because of some management issues. We are. There are two things happening which give us a lot of confidence. One is the new clinical talent that we are onboarding. But second, and more importantly, the NABH is expected to come in very, very soon. So once that comes in, you know, you will see, you know, a step, kind of an increase in the. In the work that we’ll be doing.
So we are very positive, you know, for the next one or two quarters that we will be able to see the numbers change very drastically.
Kashish Thakur
Understood, thank you.
operator
Thank you. The next question is from the line of Viresh Sangwan, an individual investor. Please go ahead.
Unidentified Participant
I got most of the questions answered. I just want to know about the Mumbai hospital in the expansion and everywhere. You did not mention about that. So what’s happening on that front.
Amit Pathak
So yeah, onto that our partner, the Trust is reviewing certain terms in the agreement and there is a close discussion happening with them. Once the terms are reviewed by them, then only we’ll be able to update you out that any development on that front.
Unidentified Participant
Okay. And lastly, where do we see our debt trajectory in maybe next couple of years?
Shanay Shah
Sorry, can you repeat the question?
Unidentified Participant
Our debt, net debt, where is that going? What’s the trajectory for that in next couple of years?
Shanay Shah
So as I just mentioned earlier that you know, we are not expecting any significant capex in the hospital business or for that matter in the implant for the next 12 months. Besides that, our ramp up because of the consumption. So I did mention earlier that the consumption of the implants in our own hospitals as well as the sales of these implants in some of the geographies like India has ramped up significantly and is likely to ramp up significantly. So with the higher profitability, higher sales revenue coming in from the U.S. you know, for the implant business, the funding requirement there will be much smaller, you know, over the next few quarters.
So. And the hospital business will definitely generate a significant ebitda. So I think the way we see it is that the net debt 12 months from now should be a little lower than where we are at the moment. So you know, the way we see it is that the funding requirement of the implant business will be say 30 to 40% of the EBITDA that we generate. So we are, we are hoping for a turnaround there and the debt should go down.
Unidentified Participant
Yes sir. Thank you.
operator
Thank you. The next question is from the line of Om Prakash, an individual investor. Please go ahead.
Unidentified Participant
Yeah, thanks a lot for the opportunity. Again sir, the first question is considering the experience with recent acquisition in Gurgaon. Just want to understand how management is looking at growth in terms of hospital business. Especially on franchisee acquisition versus organic. If management can just lay out how their thought process is, it’ll be really helpful.
Shanay Shah
So look, I think for the hospitals, as I did mention, the growth plan is really that we can practically, you know, kind of from the current levels do 60 to 70% more work in the existing hospitals with the kind of new investments that have come into robotics as well as the infrastructure upgrade and some of the diagnostics. So with all of this and the med capacity, we should be able to do between 60 to 70% more work than what we are currently doing. That is one ramp up that we see. The Mumbai facility is something that will definitely, definitely come into play some.
The other thing is that you Know, there is also, there are also some opportunities where, you know, we can add capacity, like I mentioned earlier in Delhi, etc. We are able to add, you know, because of the additional SSI that we have, we are able to add beds and, you know, kind of increase the capacity as well. There are a couple of inorganic opportunities that come by small and big. We continue to assess them, but there’s nothing concrete that we have in our plans as of now.
Unidentified Participant
Okay. In terms of franchisee, I’m assuming you’re not looking at it aggressively, is that right?
Shanay Shah
Yeah, for the franchisee, we are not looking at it. And in fact, we have closed down the Rajkot as well as the Lucknow facilities. And you know, we have started doing OPDs from there. And you know, we did realize that, you know, a lot of patients did end up traveling and, you know, prefer to travel to some of our larger units for treatment. So it was a strategic decision taken and we are not planning to add significant franchisees. The good thing is that the capital investment and the capital outlay in some of these franchisees was very minimal.
So, you know, overall we see that, you know, it’s a positive for us and the flow of patients coming in from these cities has, you know, remained the same. So as such, you know, the impact is only. There’s no negative impact. The impact is only positive.
Unidentified Participant
Is it fair to assume then that we might not be investing heavily on the franchise route anymore?
Shanay Shah
Sorry, can you repeat that question?
Unidentified Participant
Yeah, I meant to ask if recent experiences about wind down etc, can we safely assume that franchisees might not be able to double down? It’s more to do with just running on the back burner. Is that a fair statement?
Shanay Shah
Yeah. So I’m not sure if I heard you correctly, but if you’re asking me about the franchisees, yes, we are not looking to add franchisees, you know, as of now.
Unidentified Participant
Got it. Sir, my second question is actually on the Dr. Mix. The new hires that we are doing right now, we are heavily reliant on arthroplasty. Are we looking at increasing better mix with new hires or in future also to continue to be more focused on arthroplasty as a primary revenue driver.
Shanay Shah
So, you know, if you look at. The data for this quarter, about 33% of the work is arthroplasty. Okay, so exactly. If you ask me, 10 years ago we were at about 70% arthroplasty, and 15 years ago we were at 99%, 95% arthroplasty. So we have consciously worked on, you know, one, obviously to increase the arthroplasty business because the volume growth in India is significant. But at the same, and you know, we are globally the largest player, but at the same time we have focused on some of the other specialty areas where you know, each of these specialties like oncology, cardiology, intensive care, you know, these are all between 10 to 15% of our revenue today and they are growing, you know, higher double digit.
So we do believe that there is a lot of potential in some of these other specialties and hence we have reached this level. Now whether Arthur Plasti will come to 10 to 15% very honestly is a tough question because we do the highest volumes. So we do believe that we will always be between the 20 to 30% range for AB arthroplasty. You know, going forward you want to be there. It’s a high rpob generating business with high profitability. So you know, it does make sense for us while we continue to build on some of these other specialties.
Unidentified Participant
Yeah, but if you look at new hires, are we doing more on the arthroplasty or it’s like a distributed model?
Shanay Shah
No, it’s absolutely distributed. It’s distributed. And you know, as I did mention earlier, arthroplasty, oncology, cardiology, neurology, transplants and intensive care, these specialties are key specialties for us. You know, so essentially we continue to invest in clinical talent in terms of infrastructure technology across these and also of course some of these other specialties. But the higher volumes are these six specialities.
Unidentified Participant
Got it. I meant to ask because generally the high margin categories are oncology, nephrology and cardiology. Just wanted to know if management has any inclination towards growing these aspects in the overall pie. That’s where the question was.
Shanay Shah
Yeah, so you know, out of all three, we also do a lot of work like transplants. We also do, you know, dental work everywhere. We also do work across nephrology, etc. So you know, we have 30 to 40 specialties. I mentioned the six specialties which are of key focus to us.
Unidentified Participant
Got it, sir. And sir, if I can squeeze in one more regarding this in plants business, I understand we are actually growing healthily and the breakeven is also very near. I mean we’ve already reached. But can we get like a split of how much is actually consumed by Shelby vs sold to external clients? Is that possible?
Deepak Ananthakrishnan
So I can give you like a ballpark idea. So till about quarter three of this year, I would say Shelby’s consumption would have been in the range of 20 to 25% in total. But that scenario, like what Shanay said a little bit earlier changed in January because of the supply issues getting resolved. So from this quarter onwards you will start seeing large consumption happening at Shelby.
Unidentified Participant
And if I may ask, where is the consumption majorly happening? Is it in North America? I understand we are in four geographies now, but where is the high demand and is the margin? I’m assuming it’s better in the USA compared to other geographies, is that right? Yeah. So is it okay if you can share like a rough split of the GEOs where we sell how much and all.
Deepak Ananthakrishnan
So we currently doing about. If I have to take on a console level, we’ll be about 60, 40 by the end of the year. 60% of the business would be ous. When I mean ous it includes India, Indonesia, Japan as of now and it could be multiple countries in time to come pumps. And the rest 40% is us.
Unidentified Participant
Okay, thanks a lot. So that’s it from my side.
Deepak Ananthakrishnan
Thank you.
operator
Thank you. The next question is from the line of Saket from Sagarika Capital. Please go ahead.
Saket
Thanks for the opportunity. So sir, a couple of years ago we had outlined a hundred million aspiration for the implant business. So can you, can we update, you know, has there been any change on that aspiration or the. What’s the typical timeline? Now we are looking at visa with this $100 million aspiration for implant.
Deepak Ananthakrishnan
So I’ll give you a little bit of idea but we are not speaking any future guidance or anything here. But the aspiration obviously remains the same and it doesn’t end at 100 million actually it’s beyond that as we look at it. So the reasons, if you look at it, why we could not reach to where we had to reach were fundamentally around two reasons. One was around the regulatory policies and the second was around capacity. Right. So these were two large reasons for us which held us from getting to where we had to get to.
Out of that we’ve solved the capacity issues to a very large extent. So that is a good solution that has happened on a regulatory front. It will continue to be uncontrollable thing because it is, it is driven by multiple things including geopolitics and things. But we know where to put our bets. Which country, what has been, where do we have to enter so that mapping is done so we are quite clear about where we want to go from that standpoint and what are the regulatory challenges and roadblocks and solutions that we need to be in and from a capacity standpoint I think it’s 80, 85% resolved.
So these are the two large reasons because of which we couldn’t get to the aspiration that we had planned for. Now with both hurdles almost coming to an end, I think we should be on a good track.
Saket
So what’s the say Aspiration I think. Are we Pat Breakeven right now only EBITDA Breakeven as far as implant business.
Deepak Ananthakrishnan
Goes, we are not Pat Breakeven right now. But our PAT has significantly gone up like from negative almost 50% to about negative 25% at a PAC level. But this is primarily happening because of two large reasons. One is capex. From a standpoint of instruments and other things, we need capex. Without Capex it is difficult for us to do business. So that is done. But to a large extent that CAPEX is already incurred. We will not continue to have the similar kind of CapEx for the next two to three years because that CapEx is incurred. The second is new product development.
Right? I mean that is still something that we will continue to put behind R and D and research and other things which will is important from a company’s future and growth standpoint. We cannot halt that. So outside that I think we are in a good position. But even at a fact we have broken even an ebitda. But even at a pack level, if I’m right, it’s it’s increased by a good amount.
Saket
So when is the say a likelihood of pat brick? When is it like FY27 or 2928 we are looking at as far as bad Breakeven is concerned.
Deepak Ananthakrishnan
So we will provide you that as a guidance at this juncture. I do not mean we’re not doing any guidance at this juncture.
Saket
Okay, so another problem that again I’ve looked at this in as a consultant as well. So one challenge has always been to one supply chain. Another is inventory planning because for particular plan you need different sizes, right? Depending on that. Now how confident are we on these fronts as well that our supply chain is now in in top shape and also because our given despite our size we are already present in multiple geographies. So then that further complicates thing because again multiple geography means multiple height and weight of people because of Russian or American would be very different from what an Indian would be.
So are we on top of things as far as that supply chain aspect is concerned including inventory planning now so cannot agree more.
Deepak Ananthakrishnan
This is a cannot agree more with you. Planning is the Number one thing away because whether it is to do with lead times, regulatory, everything is completely dependent on your planning. So we have some really solid top notch talent in the company who could do planning. So that’s one of the reasons why we have been able to fix this at a short duration. So if you look at it, the capacity challenges that we’ve been able to identify and fix it in the last few quarters has been significant. So that is one thing. Second thing is the inventory is a function of two things.
Inventory is a function of planning and inventory will also be a function of new products. So there will be some kind of inventory, but we will be able to cognizantly balance between what we need to liquidate at the same time what we need to build from a new product launch standpoint. So that is the first thing on the, that you spoke about supply chain and the second one is about inventory.
Saket
Okay, now coming back to the standalone business. So while again one of the challenge that Salvi has faced is on the profitability front, even if you look at say today, maturity wise. And thanks first of all for sharing this data. I know that granularity that you have shared this time. So 10 plus years, we are in the 20s, but even hospitals that are say 5 to 10 years old now are still hovering around 14 to 15% kind of EBITDA. And that’s why unlike other hospitals where I think Salpi has been slightly left behind us, our operating leverage hasn’t really kicked in.
We have become a chain. Now our top line growth and bottom line growth are almost kind of identical. So the five year trend that we have talked about, so it’s 12% keggers for top line and bottom line also 13%. So what really is the challenge right now? Why even our 5 to 10 years hospitals are still hovering around 15%. Any have we been able to diagnose a problem or you think that’s the normal rate because again you are more ortho or say that kind of focus. So is there something that we can expect proper or say a solid improvement on the EBITDA front, especially for the standalone business?
Shanay Shah
See, I would say, you know, we should not let you look at it, you know, from that perspective that you know, because it is in the five to ten year bucket. But you know, I’ll tell you, I think it’s a fair point what you’re mentioning. It’s a good question. So what happens is every unit has a specific reason. So you know, like for example the Jaipur unit as we speak has done well in this quarter, despite us having lost one of the key doctors there at the same time, what happens is maybe a unit like Naroda, which is again in the six to ten year bucket now, for example, we do a lot of government work there.
So if we want to take up cardiology, the government changed the rules certainly where we need to have a full time cardiac surgeon. So we had to start recruiting one because earlier we used to have visiting cardiac surgeons to do these procedures. So there are often changes that happen. Like for example, I did mention about the insurance tie ups where we kind of stopped doing work with some of the insurance companies temporarily. So, you know, there are multiple things like this that happen where, you know, again, when you hire a doctor, again it takes a couple of months.
Deepak Ananthakrishnan
So, you know, it is part and.
Shanay Shah
Parcel of being in this space. But no, these are not the normalized margins. The normalized margins are in the range of 20%. And you know, we do, we are positive that we are inching toward getting there for some of these units.
Saket
So, sir, would there be like there is some sort of, for this inflection point of, say, stable, say 18 to 20% group level margin to kick in? Is there, say, a critical mass that. We are looking at? Because right now we are saying more in the 25, 2300, 2400 kind of bed size. And on top of that, there is some geographical concentration as well. So which leads to, you know, say one or two state regulatory changes or say one or two major facilities. It ends up impacting our group as well. So the benefit of having a, say, a corporate setup where these things can kind of cancel out and that diversification is yet to kick in in our case. So is it like. So maybe once we are at a 3,000 or 3,500 kind of bad setup, then we should expect this 18 to 20% start, that the margin becomes much more stable or say less volatile or exposed to volatility.
As far as some of the developments that you just highlighted. So should we. Is that a realistic expectation or do you think we are well placed already? That critical mass is already there? It was just that we were on the wrong end of the stick for a couple of quarters.
Shanay Shah
Yeah, so you’re right. As you add units, as you add beds, then you have some of the units where if one or two units have operational issues, the other cover up. But we are already in A3 space because we already run more than 10 units, more than 2,300 beds. So we are already in a good space. And I can definitely tell you that with ramp up and the kind of bed capacity that we have, the kind of growth that we’ll see in terms of occupancies as well as in terms of the inpatient, outpatient counts, we can definitely not only stabilize at a 20% margin.
Twenty percent, I said, for a typical unit, but at a group level, we definitely, as we see the ramp up, we definitely can go up to 23 to 25% also at a 50% higher occupancy than what it is right now. So we will have to kind of wait, as I said, for a couple of quarters. We see it happening. We see the numbers. We are, as I said, we have invested heavily in technology. So, you know, it will be visible in the quarters to come.
Saket
Thank you, sir. I really appreciate your responses and best. Of luck for the future endeavors.
Shanay Shah
Thank you.
operator
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Shanay Shah
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 on behalf of LR Securities. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.