Shalby Ltd (NSE: SHALBY) Q4 2025 Earnings Call dated May. 24, 2025
Corporate Participants:
Unidentified Speaker
Jigar Todi — Investor Relations
Amit Pathak — Chief Financial Officer
Deepak Ananthakrishnan — Global Chief Business Officer
Shanay Shah — Secretary
Analysts:
Unidentified Participant
Kashish Thakur — Analyst
Rajakumar Vaidyanathan — Analyst
Ranodeep S. — Analyst
Presentation:
operator
Foreign. Ladies and gentlemen, good day and welcome to the Q4 and FY25 earnings conference call of Shelby Limited hosted by Alara Securities India Private Limited. As a reminder, all participant nines 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 the conference call please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is recorded. I now hand the conference over to Mr. Kashish from Elara securities. Thank you. And over to you sir.
Kashish Thakur — Analyst
Oh, thank you, Pooja. Good afternoon everyone. We welcome all the participants to the Shelby Limited Q4FY25 earnings conference call hosted by Elara Securities. Today we have with us senior management representatives from Shelby. We will start with the performance highlights from Mr. Amit Pathak, CFO and Mr. Deepak Anand, Global Chief Business Officer. After that we’ll open the line for question and answer for all the participants. I will now hand over the call to Mr. Jigar Tudi for important disclaimers regarding any forward looking statements that may be made in the today’s call. Over to you Mr. Jigar.
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 risks and uncertainties. Kindly refer to the 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
Yeah. Thank you. Good afternoon. I’m pleased to welcome you all to the shell based quarter four FY 2025 earning call. Now I will walk you through the financial performance of your company. For the fourth quarter of FY25 on the consolidated basis we have delivered the 270 crores of the top line versus 249 crores of the top line into the quarter four of the last year. And we have been grew by around 8.4%. EBITDA on the quarter four is 26.2 crores versus 43.9 into the same quarter of the last year with a margin of 9.7% in the current quarter versus 17.6 in the quarter four of the last year.
And there is a dip of around 40% of Pyoy business CBT. We are kind of almost flat with around 0.7 crores negative versus 21 crores into the quarter four of the last year. Now revenue for this FY25 on the annualized basis is 1115 crores versus 953 crores into the last year and we have improved by around 16.9% of YUI basis. This is increase into the revenue is mainly coming from the Sanaar because last year we have just consolidated for two months plus for Sanaar and this year the entire year has been consolidated. So 80 crores is coming from the Sanaar hospital, 35 crores rise is coming from the implant and another 45 crores is coming from the standalone Shelby’s operations.
On the consolidated basis we continue to maintain the strong balance sheet with a low gaining ratio of 0.28 on the net debt of around 279 crores. Now I will run you through the standalone performance of the hospital. Standalone revenue of 214 crores in quarter four of FY25 versus 210 crores into the quarter four of the last year and we have improved around 1.7%. EBITDA is 38 crores into the current quarter versus 42.6 crores into the quarter four of THE last year with a margin of 17.7% in the current quarter versus 20.2% in the last quarter of the last financial year and there is a slippage of around 11% on yoy basis in terms of the EBITDA margin.
The down in EBITDA is mainly because of our strategical movement towards the investment with the doctor which if we can see on the Y o y basis there is increase of around 2% to the doctor cost and due to the change into the PMICS There is around 1% increase into the cost. PVT is around 25.7 crores in the current quarter versus 32.5 into the quarter four of the last year with a margin of 12% in the current quarter versus 15.4% in the quarter four of the last financial year. Now on the standalone basis again we continue to maintain the positive cash positions.
The net debt is zero and we have the positive cash balance of 23 crores close to raw on the operating leverage. What we are taking off with the satellite model our standalone roc is around 14% in the quarter four of this financial year on an annualized basis the ARPO allocys continue to show the improvement with 41,585 and 3.6 respectively compared to 39,101 and 3.75 in the same period of the previous year, RFOP on YUI basis has been growing by around 6.4%. The number of occupied bids in the current quarter is 633 versus 637 in the quarter four of the last year and it’s marginally decreased by 0.6% on the YY basis with the occupancy rate of around 45% in this current quarter.
The peer mix continue to showcase a similar kind of structure with around 36% for the sales 41 for the TTA and 23% for the government business. The revenue of the Shelby SANAA for the current quarter is around 23 crores versus 24 crores into the last quarter with a marginal decrease of around 5% on quarter. On quarter basis the RFOP continue be the robust here and we have delivered the RFCB of 84,647 with the loss of 3.88 respectively in the quarter four of the current financial year. We are currently still operating at around 23% of the occupancy level and it will gradually increase as we mentioned into the current financial year.
We are going to see the leap into the Shelby Sonar into the coming quarters. The current quarter if we are talking about 60% of the revenue is from the international business and 40% of the revenue of the sonar is coming from the domestic business. On the overall group business into the hospital the total business for the international business is close to 15.3 crores which includes 3 crores from the Shelby and around close to 12.5 crores is from the Shelby Shanar Hospital. Now if you are talking in terms of our clinical excellence, we have devised lot of clinical surgeries during the quarter into our many hospitals and we are proud to say that we have completed the 16 transplants, 10 into the kidney, six into the liver during the current quarter.
Further on terms of our franchise business we have closed our relationship with our RATI franchisee in the month of March. We have closed down the relationship with them but overall basis if you are seeing our source of business is close to 2.19 crores which has been grew by around 26% on the YoY basis and Fosam is around 0.76 crore which has been down by close to 5% due to the shutdown of our Udaipur location into the last financial year our home care business has served around 30,000 plus patient versus 29,645. There is a marginal increase of 1.3% compared to the similar period of the last financial year the home care business also shown the growth of around 5% on annualized basis which is around 15.3 compared to 14.6 into the last year.
As part of our social commitment we continue to spread awareness about the importance of the health and well being through various social media platform and created 75/healthcare videos. We also conducted more than 480/healthcare camps and 115/healthcare talks across all our unit during the last quarter as a part of various community outreach programs. As a Shelby we take the pride to nurturing your talent through our Academy vertical with 22,000 plus students which has been registered on the various healthcare program during the current financial year and we would also like to inform the Shelby Academy has successfully completed 200 plus enrollment for the team Indore and 50 plus enrollment for the team Javalpur in paramedics 3.
The total paramedics enrollment for the current year is 385 plus. The total 110 students are certified through AHA and scores Ahmedabad and we have also trained 30 plus Pharmad for the one month student at our various under the guidance of Pharmacist, General Physician Pharmacologist with the collaboration of the SAGA School of the Pharmacy Gandhi Nagar. Now I will hand over the call to Mr. Deepak Anand who will share his insight about our implant business. Thank you Deepak.
Deepak Ananthakrishnan — Global Chief Business Officer
Thank you Amit. Good day everybody and welcome to you to our Q4 and full year financial year 25 earnings call. Thank you for taking the time to join us today. I’ll walk you through our quarterly Performance share highlights from the full year and update you on our strategy for growth and value creation. Shalvi Medtech, formerly known as Mass Medical Devices Ltd. Is a growing force in the orthopedic implant space. Through our subsidiaries Shalvi Advanced Technologies in the United States and Shalvi Global Technologies in Singapore, we are steadily building a global supply and innovation backbone. Our vision is clear restoring mobility improving lives.
We deliver surgeon friendly implant system tailored to regional clinical leads while maintaining world class standards. Our key differentiators include nimble surgeon, responsive R and D, high reliability and ethical operations Personalized support with deep orthopedic experience. Let me now walk you through our financial highlights for the quarter shall be Medtech consolidated revenue for quarter four financial year 25 stood at 29 crores was 12 crores in quarter four financial year 24 reflecting to a year on year growth of 138% driven by robust domestic volumes as well as improved channel partner engagement. Total of 12,700 727 implant components sold in Quarter 4 Financial Year 25 VIS A VIS 8,485 implant components sold in Quarter 4 Financial year 24 which is a growth of 50% from an annual performance standpoint shall be MedTech Consolidated revenue for financial year 25 stood at 93%.
Crores was 55 crores in financial year 24 reflecting a year on year growth of 67.2% driven by robust domestic volumes and improved channel partner engagement. Total 41,960 implant components sold in financial year 25 vis a vis 30,000 implant components sold in financial year 24 which is a year on year growth of 40%. 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. What I will also take an opportunity right now is to walk you through a roadmap for the upcoming year 2526 and share our strategic outlook aligned with our vision of restoring mobility and improving lives.
Our commitment remains steadfast to exceed the expectations of both our customers and employees by delivering superior patient outcomes through the highest quality orthopedic products and services. We continue to build on our core values of teamwork, reliability and integrity, ensuring customer centricity, nimbleness and transparency in all our actions. Our strategic priorities for 2526 revolves around the same four pillars as last year but with slight change where we were calling it New product Development. We call that product and innovation. We’ll focus on local partnerships across different countries to expand our footprint. We planned the global launch of two new products this year.
We’re advancing robotic partnership with Curexo and Monogram, Curexo being a South Korean, Monogram being an American company which is listed there to integrate cutting edge technology into our surgical solutions. Project teams will initiate new product development projects to build a robust innovation pipeline for future launches. We will also strengthen key existing product brands that we have to gain market share. Our second pillar which we were calling sales, we want to change that and call that customer segment focus. Our sales efforts will concentrate on key markets which is 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 be enhanced through partnerships with key opinion leaders, clinical agreements, training programs and targeted marketing engagements. We will also launch operations in four to five new countries in 2026 to diversify our market presence. Cost of goods sold reduction as a third pillar, critical focus will be on cost efficiencies targeting a reduction in cost by 30%. We’ll identify and execute manufacturing efficiencies and optimize warehouse management to improve margins and the last pillar being Supply Chain Excellence which we had called earlier as capacity but we want to rename it as Supply Chain Excellence in which we will establish multiple vendors to mitigate tariff impacts and improve procurement and flight efficiencies.
Aiming to reduce cost by 15 to 20%. Distribution efficiencies will be tailored to each market to ensure timely and cost effective delivery. We have improved our order to cash and asset utilization and started to address our high inventory. Further inventory improvements will be an area of continued focus in 2025 to further enhance working capital and rock. The last was most. Fifth new entrant into the pillar is our organization and talent development which we have identified as an important strategic pillar for the year to come. Hiring of key leadership talent across the organization is priority in 2526.
Recruitment, retention and continuous training of sales and corporate teams remain a priority. We will enhance employee engagement through clear career development pathways, rewards, recognition and regular communication. Our partner relationships will be strengthened to ensure alignment with our strategic goals. In conclusion, our roadmap is designed to drive sustainable growth, operational efficiency and innovation. Leadership in Orthopedic market We are confident that our strategic initiatives combined with favorable market dynamics and technology advancements will position us strongly for the future. Thank you for your continued support and trust. We look forward to a successful year ahead. Now I give it back to Amit.
Amit Pathak — Chief Financial Officer
For further yeah 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 their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of R. Vidya Shankar, an individual investor. Please go ahead.
Unidentified Participant
Good afternoon gentlemen and thank you very much for giving me this opportunity. I’ve joined this conference call after a brief for long period. Actually there are concerns on the falling EBITA and the falling margin. Plus the main concern is that you had announced the board meeting with an agenda of dividend and you have skipped it. So we would like to understand why. So obviously the results are reflecting it but then there was a pre planned agenda and we got it. Secondly on your website and the data shareholding pattern format the Details of the people who are owning more than 2 lakhs that names are not appearing.
Is it possible that you can publish a complete list of shareholders on an annual basis? So for March 25, can we have that? Thank you so much.
Amit Pathak
Thank you for the question. This is a very strategic call where you are going to see a lot of upward in terms of the hospital business. We have invested lot into the Doctors into the quarter three, quarter four. So that is the reason there is around 2% jump in terms of the Dr. Cost. And apart from that the 1% hit in terms of the status standalone is on account of the change of the pmx. What we have during the year in terms of the change of mix into the different specialty on the consolidated basis, the dip is mainly because on the annual basis, if I am talking mainly because as I mentioned this year we have the entire consolidation of the SANAA where we have last year, we have two months.
So we have been hitting by around 7 crores into the absolute number for SANAA in terms of the losses and where the in terms of the implant. If we are talking about the business is nurturing and we are investing a lot into the business where we have to do some kind of investment to grow the business into the coming years. So that is the reason you can see some decrease in terms of the EBITDA into the current year and you will see the upward movement into the coming years which will come from FY26 onwards. Now.
Now in terms of when you’re talking in terms of the shareholders, a name to be disclosed. I think you can connect to our company secretary. There is a regulatory requirement which we have to comply in line with the company’s act. So you can connect with him and he can share with you detail as a right of the shareholder. The third and other thing where you are talking in terms of the dividend. So you can understand as a process of agenda. Definitely we have to take for forward the agenda and the board is to decide whether we are going to declare the dividend, what dividend we have to give and looking after the consolidation and lot of investment where we are looking forward for unlocking the value of the company with multiple investment.
What we have done in current year and going to do into the next year. We just want to reserve the cash for some time. And once the company is going to perform well into the coming year we will definitely come ahead with the appreciation in terms of the dividend for the shareholders.
Unidentified Participant
Thank you very much. With regards to the shareholder thing, I had returned to Mr. Kushar Jadav, I think he is your company secretary if I’m not mistaken.
Amit Pathak
Okay, I will, I will take up with him. I will just tell him to get connected with you and resolve your query.
Unidentified Participant
Yes, and I look forward to a robust performance in the coming years because investments have been made so they should be resulting in quite a decent upward movement. And we will, investors will get rewarded as equal stakeholders. Thank you very much sir. And all the best for the future. Let’s have a healthy future. Thank you.
Amit Pathak
Thank you. Thank you.
operator
Thank you. Participants who wish to ask questions may press. The next question is from the line of Raja Kumar Vidyanathan from RK Investments. Please go ahead.
Rajakumar Vaidyanathan
Yeah, good afternoon, can you hear me?
operator
Yes, we can.
Rajakumar Vaidyanathan
Yeah. Sir, if I just, you know, look at the segmental information and if I kind of look at your three levers, that is your standalone health, you know, hospital business, then your sonar and then your manufacturing of implants. Right. So if I look at these three segments and if I see your Q4 performance, all your three, you know, kind of verticals have not performed well. And you know, unfortunately see even in the previous quarter call you mentioned that the hospital segment is down due to some one off cause of 6 to 8 crores. And you know that will kind of get, you know, removed in the upcoming quarter.
But in Q4 you’re done worse than Q3. So I mean, you know, I would be happy if you are kind of more forthcoming in terms of, you know, I think you just mentioned that you added some doctors, the cost has gone up and all that. So you know, I mean it’s the surprises is, you know, not kind of good for the investors community. You know, if you want to attract the institution interest, you know, there should be some kind of a predictability in what you were saying. You know I would a kind of request, you know, if you see a bad quarter, you know, I’m sure you know you will have a good visibility in terms of at least two to three quarters.
So you know, it would be helpful if you could educate the investors upfront rather than throwing a bad results quarter after quarter. That’s my first request, sir.
Amit Pathak
Sure. So thank you for the question. If you can see the segment on the consolidated basis where the TBT has come down, that is mainly into the implant. And you can understand implant we have a long term growth strategy and this is the year and the coming year we are doing a lot of investment. So you can see last quarter we have 8 crores of the loss into the implant versus 16 crores into this quarter which has been majorly impacted this business. Whereas in the healthcare, if you can see the overall basis, 4 crore plus kind of losses has been there in that around 2.5 crores is due to Sanaa because it was the first year of operation.
We continue to have some kind of losses on the EBITDA level where just to correct my answer, this is on the PBT level. So apart from that also we have the losses thereafter. So you have seen this losses closed off to 3 crores kind of thing on the hospital front. Some losses, I will not say the losses, some because once the doctor is getting onboarded it took around three to six months of time to deliver on the pace. And again I don’t want to commit anything in terms of the forward looking point of view but definitely FY26 looks promising on the hospital side.
Shanay Shah
So I have to add to that, you know, if you look at, you know, the Sanar hospital which has, you know, being, I mean you divided the businesses into three buckets. If you look at the other hospital, the acquisition that has done decently well for us in terms of the growth, in terms of the numbers. So if you look at the IP count we have grown by 20%. If you look at the daycare count it has gone up by 40%. If you look at the OP count it has gone up by 25%. And in any hospital you see see a gradual increase in growth and these are high growth numbers.
In terms of profitability I agree with you that we have been negative 7 crores on EBITDA in this year but the revenue has definitely gone up. And since it’s just going to be the second year of operations and we are pretty confident that we are not even going to break even but kind of be positive. EBITDA in the Suner hospital in this year in terms of the PAT level, yes, the depreciation is high at that hospital. So it will take probably a year or two years, you know, to kind of be pat accretive over there.
But you know, we’ll be EBITDA positive from this year onwards in the, in the SANAA hospital in the standalone hospital business. As Amit said, I agree with you that the performance could have been better in the standalone hospital but we have invested significantly in new talent and buying doctor practices and that has hit the quarter four of this year for us particularly. So all of that will play out in the coming quarters. We’re not going to give projections or guidance but it will play out in the coming quarters. The Implant business has shown significant growth across the US business, India business, as well as what we have done in Indonesia.
And although the P and L numbers are not showing it right now, because of the scale at which we operate, we are confident that in the next 12 months to 18 months we’ll be seeing a different picture for the implant business as well.
Rajakumar Vaidyanathan
Yeah, thank you so much sir for responding to my question. Sir, my concern is if you could at least give one slide where you can put these three buckets and give a range that will kind of educate the investor what to expect from Shelby because otherwise we are just shooting in the dark from an investor standpoint. So because your standalone business used to do very well, even that has started deteriorating and that is really a concern, you know, that is still not addressed. So that is one point. And also you know there are some slides, if you could please maintain consistency because last time you gave maturity wise hospital performance, that slide is missing.
In fact, I said in the last call it is a good slide. So that slide is missing. And you know, even on the Shelby Advanced technology last time you gave revenue and EBITDA details, now only revenue numbers are given. I mean the slides are going up and I mean back and forth. So if you could just maintain the slides, it gives a continuity, you know, otherwise you keep on changing the slides. It doesn’t kind of convey, you know, something good to the investors. That’s my humble request.
Amit Pathak
Your point well taken and definitely maturity wise another thing definitely we will do and as Shane Bhai has mentioned, that implant lot of things is happening so we want to update the investor with the movement, the positive movement and other movement which is happening in terms of the implant business. So we are going to see lot of addition of the slides also into the coming quarter into the investor presentation because we have to keep updating the investors for the newer thing which is happening into the organization. But point well taken. We’ll try to keep the familiarization as much as possible.
Rajakumar Vaidyanathan
Yeah sir, if you could give some range. So the three buckets that we spoke about, where do you see, you know, all these three buckets firing in terms of the next year or if you could give a medium term view, two years, you know that would be really helpful as an investor.
Shanay Shah
Steve, what we can only tell you is that the hospital business has been growing in double digits for the last five to seven years and you can expect that kind of growth going forward because we have unutilized capacity. Sanar business is a newer business so that business will grow at higher double digits. And you’ve seen that trend. I just spelled out some of the numbers how we have grown in the last year. So it has the potential to grow at similar levels or higher going forward at least until we exhaust capacity. And for the implant business we’ve kind of grown four times in Indonesia from the last year.
We have grown almost 35 to 40% in US we have grown almost 2.5x compared to last year in India. So you know, as the base is small right now it is in a high growth trajectory. So you can expect a much higher growth level in the implant business. But beyond that very difficult for us to give you projections.
Rajakumar Vaidyanathan
Okay, so your at least FY25 26, will it be better than the 25 numbers what you have reported on an overall basis both for the healthcare and manufacturing and the implants put together.
Amit Pathak
So definitely. Look, we totally understand on the standalone basis, on yoy basis we grow by around 5 to 6%. But as you mentioned, historically we have grown by around into the double digit kind of thing. And that is the way we are expecting into our hospital business. We already mentioned regarding the implant because it is just into the initial phase, the base is pretty low. But we have grown really rapidly, fast and we expect the growth to continue into the similar fashion. So we are going to see the good growth in terms of the top line in the current financial year compared to the last year.
Rajakumar Vaidyanathan
Okay, thank you so much sir. Last one question on the tax rate. So you last call, you mentioned that you will be moving to the new tax regime in FY25 26. So is that, that that holds now or you the math will be fully utilized as of March or you will be, you’ll be still remaining in the old regime.
Amit Pathak
So it’s almost utilized. So we are going to move into the new bucket from this financial year.
Rajakumar Vaidyanathan
So it will be from Q1. So it will be from the next Q1 onwards. Right?
Amit Pathak
Yes. Yes.
Rajakumar Vaidyanathan
Okay. Thank you so much sir. And I’m sorry if I if I sounded a bit negative. I just wanted to be, you know, as Skull Spade has paid, you know. So the idea is not to demotivate the team, you know. I appreciate, thank you so much. All the very best for the future.
operator
Thank you. Ladies and gentlemen, in order to ask a question, you may press Star one. The next question is from the line of Kashish from Alara Capital. Please go ahead.
Kashish Thakur
Hi, thank you. First question is just on that grid. So our effort really is tax rate will be somewhere 25%.
Shanay Shah
Sorry, can you repeat our FY26 tax.
Kashish Thakur
Rate will be somewhere around 25%.
Amit Pathak
Correct?
Kashish Thakur
Understood sir. So like you as you have said in the hospital business there has been quite a few additions. So this addition, the addition of talent, is it in the like maybe in the higher management side or how it is like. And have you seen any attrition? That’s why you have done addition or like can you just spend some time on it? Like how why it is done and what was the whole scenario behind it.
Unidentified Speaker
The addition are a few units to be. Can you say at indoor. We have hired your biggest GI team who is well known at Indore and at you know Asia level also. So that is how there are eight doctors who are hired in GI team. And we have started that vertical of GI and hepatobiliary disease as well as liver transplant department. So it is all high end procedures and super specialty work. That is how we are going and hiring. And it is a strategic decision to you know going with high end procedures and high end surveys, surgeries.
So same ways with Surat, same ways at other hospitals. So if you see in this quarter Jan, Feb March we have hired 40 doctors at different hospitals which are into super speciality work development.
Kashish Thakur
Understood. So there was no attrition as such. If I’m right.
Amit Pathak
There’S no attrition. As we mentioned we have started the new segment the GI segment and liver segment into indoor. So there’s no attation.
Kashish Thakur
Understood.
Unidentified Speaker
There are attritions at the small places. We replace with regular teams with an experience of three years and basics, general surgery, ent, ophthalmology. But say fact at Ahmedabad, at Indore, at Sanar we are going with with very high end doctors. So we have already practiced and footfall of say 40 to 50 patients per day in OPD as well as you know few surgeries per month. So to bring in practice we are buying out practice in short.
Amit Pathak
At big. Hospitals at metro cities.
Kashish Thakur
Understood? Understood. Thank you so much. So next question is towards Nareso. Let us move for in plant business. I heard in this commentary that business we are planning to launch two new products in this financial year. If I’m not wrong. So what can be the opportunity size of the two new products which we are planning to launch Now I know it is very difficult to answer but if you can just throw some light how it is going to be how we are planning to progress through it. It will be very helpful for us.
Deepak Ananthakrishnan
So the two new products approximately at the annual level should call contribute anywhere between 40 to 50 crore lifter.
Kashish Thakur
Understood. Oh and revenue to start from this financial year only, right sir?
Deepak Ananthakrishnan
Yes, we are waiting for some regulatory approvals. It will start in this financial year for sure. But that is exactly the reason why whether you know regulatory is not fully in our control. So it could start if we might get nine months of this year, we might get six months of this year. It’s, that’s where it is. But both of these should contribute about 40 to 50 crores.
Kashish Thakur
Apart from these two, what are our long term goals? Like how many products are we planning to launch in next three, four years.
Deepak Ananthakrishnan
So if you look at the product gestation period in this business is roughly three years. If you have to do it all the way from scratch to launch, okay. We had started some of them last year which might see the light of the day by end of this year. But in the meanwhile we have also initiated certain local partnerships for each countries where we can do like a low lift, where these are products which are already available in the market and if we can figure out to do exclusive tie up and OEM and stuff like that which we are working out.
So from a long term standpoint, just to let you know, we have a this point of time, five to six products including the two that are getting launched which are already in pipeline in some form of the other which is either in development stage, some in regulatory stage, some in testing stage, some in start of the production stage and so on and so forth.
Kashish Thakur
Understood sir. First of just want to understand when we launch a product so like post it is launched in the domestic market then it goes to the row market than us or how we launch it simultaneously on all them in all the markets.
Deepak Ananthakrishnan
So products that would come out of the govitas are what we manufacture right now Everything is manufactured and developed out of the United States office. So when we, when we launch there first and then from there whatever time it takes for us to get the regulatory approvals in each of the countries that we will be going is the time taken to launch in those countries. But in the meanwhile like I said there could be some local partnerships that we would explore for each country which could give us like a technology push or any of those things.
Those products we will not, we will, it will be region specific or country specific and not necessarily global.
Kashish Thakur
So thank you so much. That was from implant business. One, one question on sonar business. So Sanaar as we are like we have seen Approximately some around 2020 ish percent of occupancy in last financial year and we are heavily dependent on international business going ahead right so what kind of international patients do we witness in Sanaa? Is it from Asia or Africa or how it is?
Unidentified Speaker
So I will, I, I’ll take that.
Rajakumar Vaidyanathan
Yeah. Yeah.
Unidentified Speaker
So thank you for your question. So basically in Sanaa we get almost about 60% business from international and they are divided into 3, 4 regions. One region is Middle east from where we get almost 50% patients. Then we get patients from Africa and also from CIS countries like Uzbekistan and Turkmenistan and Kazakhstan, etc. Also we get patients from star countries like Nepal, Bangladesh and Afghanistan, etc. Out of which Afghanistan is not working right now. But Nepal and Bangladesh we get regular patients. And other than that we also get patients from CG island, some patients from Indonesia, some more patients from Pacific Islands, and small patients from other countries.
But majorly these four buckets or these four regions from where we get the patients.
Kashish Thakur
So any, any pressure are we seeing from Bangladesh issues?
Unidentified Speaker
So Bangladesh per se, if you see, has not been that volume in north India as compared to what it was in the east India. So maximum patient used to go to the eastern part, but north has not been that great volume or major volume comes from Africa and Middle east and also cis. So these are growing steadily. And Bangladesh now of last one month, I think the visas have started coming. So it takes about one and a half month to two months to get the visa, medical visa there. But now patients are trickling in. So whatever volume we do, the patients are taking in.
Kashish Thakur
Just the last one on consolidated revenue, you said our consolidated revenue for FY26 will be better than FY25. So just to quantify it may be in the somewhere around high digit kind of approach.
Amit Pathak
Can just repeat a question. I just lost.
Kashish Thakur
Yeah, so, so I, I just asked about the statement which we made about our FY26 consolidated revenue to witness a better growth as compared to FY25. Just not to quantify it. Just wanted a broad range so we can see in higher single digit kind. Of a growth in FY26.
Amit Pathak
So we have already mentioned we cannot quantify, but segment to segment, we have already given the indication that the hospital will continue to grow into the double digit kind of thing, the similar kind of things we are seeing into the implant business also. And being a lower base, it will be the higher double digit kind of. Growth. And because this year also we have grown by around 50% on the 12 month basis on the consolidated basis in implant. So we are going to see the good growth into the implant and hospital will deliver the double digit growth.
Kashish Thakur
Understood, thank you. So Much.
Kashish Thakur
Sir, I have one or two more questions. I’ll just come back.
operator
Thank you. Participants who wish to ask question may press star and 1. The next question is from the line of Ranudeep S from MAS Capital. Please go ahead.
Ranodeep S.
Thank you for the opportunity. Just wanted to check any update on the Nashik and Mumbai hospital. I think more than five years that we’ve been waiting for this, an update in terms of opening up. Any thoughts around that?
Shanay Shah
Yeah, so for the Mumbai projects, you know we have the trust had gone. To. The charity commissioner and basically, you know, they wanted to kind of essentially get a correction on, you know, the approval and essentially they have received the approval. Now we are broadly okay and you know it is as per our contract now we are waiting for the trustees to kind of send us the final agreements, etc. So, so you know, we are waiting for them to share the details with us and you know, after that he will be filing and doing the registration for the O and M agreement that we have signed. So we are okay and good to go.
From the charity commissioner and the regulatory perspective, just some internal work has to be done by the trust so that they can share the document documents with us which need to be further registered. So that is the update after which, you know, we’ll be proceeding to get the plans approved by the BMC and you know the other other formalities which will have to be completed.
Ranodeep S.
It’s been a while, right, that we’ve been tracking and I mean we’ve been waiting to hear an update and parallel. If you look at your peer group hospitals, I think they’ve been on an expansion spree. So are we at the risk of losing market share given this delay?
Shanay Shah
Well, I will not comment about others but if I talk about our company, Shelby, I can tell you that we are expanding capacity into the businesses which are roce accretive. Last 15 months has seen one large acquisition to the tune of almost 300 crores. So I would not say we are not in the expansion spree. We are also expanding. We are also adding a hospital in Mumbai. We will be investing a little over 250 crores in that asset. So we are very much expanding. And also just to kind of, I’m sure, you know, since you are an investor here, we are already we have the capability to double the revenue in the existing setup that we have.
So we have plenty of growth avenues in the existing hospital business and we are creating new revenues as Deepak said, in the newer businesses, which is in particular the implant business.
Ranodeep S.
Sure look forward to hearing on the next step. Second question was on the sanaa, right. I think there was an optionality to increase from 130 to 180 beds. Just, just wanted to pick your brain in terms of what are the guidelines or any thoughts around this expansion.
Deepak Ananthakrishnan
Yeah. So you know, we have done our homework in terms of what needs to be done. What will be the, you know, kind of the regulatory approvals required, you know, broadly what would be the cost required. Essentially at this stage where, you know, we are operating at an occupancy of about 25 to 30 beds on a regular basis, we already have significant capacity to grow in the existing setup. So we will be doing it in a timely manner based on which we don’t have too much capacity, which is unutilized. So maybe at the right time we will start the project.
We believe that this project should not take us more than six to nine months to complete the moment we started.
Ranodeep S.
Sure. My last question was on the franchisee business. I think when we created this model, I think we experimented with a couple of models in the franchisee space. Just wanting to understand now that it’s been around three years since we’ve kind of launched the franchisee business. Would you like to share like a long term guidelines? Because I mean I do recall that there was a guideline of 50 plus franchisees. Are we still holding on to those numbers? If you can just share maybe a three year plan in the franchisee space.
Shanay Shah
Yeah, sure. So see the franchisee business has been growing. You might have seen the numbers. Of course the base is small. We have been growing. But over the last three years what we’ve realized is we have become very picky in terms of what, who we join hands with. Because ultimately we have seen a couple of hospitals and couple of partnerships where the right standards and the practices and the protocols were not being followed. And essentially that is detrimental to the brand of Shalbi. And so henceforth we have been very picky and we will remain that way.
We may not achieve the target of what we’ve kind of mentioned earlier, but whatever we do, we’ll end up working with the right people. And as such the good part is that there is no significant capital employed in this business from all it takes is a little bit of, a little bit more of management bandwidth here. So that’s what I would like to say about the franchisee business.
Ranodeep S.
Sure. If I can just squeeze in one last question. This is on the home care business somewhere. It looks like in FY25 the number seems to have stagnated. I think there was just a 1% year on year growth in terms of the patients, number of patients served. This in the backdrop that we kind of cater to the senior citizens group a lot. I mean are we thinking, is there any special impetus that we’re looking at in this business because this has an optionality of becoming a big business given by 2030 there are clear projections that India is going to have 300 million senior citizens.
So any thoughts around that, Shana?
Shanay Shah
Yes, of course. I think the opportunity set is huge and we would like to capitalize on it. However, you know, we have taken it up in two stages. The first stage is to really capitalize on the incoming patients and you know, our existing patients that shall be and you see a lower growth because you know the growth at the standalone hospitals has been flat in this year. So from that perspective, you know, we have not seen that kind of growth. But yes, we do understand and we do understand what kind of opportunity, underlying opportunity is there for the home care business because of the growing population, the middle aged population and the aging population.
And in the next phase we will be looking to capitalize on that and also invest in technologies, you know, which can enable us to grow faster.
Ranodeep S.
Sure, sure. All the best for the next financial year. Thank you.
operator
Thank you. The next follow up question is from the line of R. Vidya Shankar, an individual investor. Please go ahead.
Unidentified Participant
Thank you gentlemen for giving me one more opportunity. One thought that I had in my mind and wanted to understand. Is there a competition competitive landscape that is prepared for the small cap and super speciality with that category? Who are our competitors in this micro category and what is our strategy from a competition perspective for the next five years? Product wise and synergy wise.
Shanay Shah
Sorry. So which business else are you referring to, sir?
Unidentified Participant
SH Hospital super speciality is the core sector, right? And we are in small cap as of now. We are in the small cap sector from a market capitalization. If we focus on this micro combination small cap which is our cap market calculation as on date, we we look to become a large cap one day and we look at fatality. So if we combine these two, can we have a competitive analysis for the next five years? What will be the competitive strategy basis this micro competition environment?
Shanay Shah
Hey, I think you know the strategy is very clear that there are orthopedics is, you know, key for us because we are not only leaders in India but global leaders in terms of the market share. So we control over 15% of the organized market share in India and that market is Growing fast at higher double digits. And so are we. So we would like to maintain that leadership position which we have for the last 25 years. Over and above that, we have identified fast growing segments which are basically a major disease burden for the country right now, which are in the lines of cardiology, oncology, gastroenterology, neurology, nephrology.
And these five segments continue to contribute more than 50 to 60% of the group’s revenue. And these are again fast growing segments. So this along with orthopedics will remain the fast growing segments for us. And we will be focused on focusing on this to grow faster in the coming time. And this will be coupled with the high end transplants that we do, like kidney transplants, liver transplants, bone marrow transplants, et cetera. So that will remain the focus because we believe that this is a strategy for us which will help us grow faster. And we feel that the competition is quite limited in terms of, of these segments.
Unidentified Participant
So you are saying all these are high growth segments and primarily we are the market leaders in each of them.
Shanay Shah
But these segments offer a significant pathway to growth going forward. So we will continue to grow significantly because of being in these segments. Of course for orthopaedics we are the global leaders as I mentioned earlier. But for some of these other segments, I would say that we are among the top two or three in the towns and cities that we work in.
Unidentified Participant
Strategically we are in the right pocket is what we are trying to say. And it is a capital intensive sector, which is the very nature of it. Because of it, some projects take a longer time for in terms of gestation.
Shanay Shah
That’s right.
Unidentified Participant
Okay, okay. Point.
operator
Thank you. The last question is from the line of Kashish from Alara Capital. Please go ahead.
Kashish Thakur
Hi sir. Thank you. So just one question. This is regarding our again coming back to our implant business. So can you just give a broad idea how has been the EBITDA contribution from region wise? So like how is the realization in the implant business if you are selling the same product in US is it higher as compared to what you are selling the same product in row in India market or how it is?
Deepak Ananthakrishnan
I’ll give you an idea. On the, on the, on the margins and top line. So obviously there are markets globally. If you look at it, it’s a $30 billion market globally divided into primarily three categories. There are high margin countries, there are medium margin countries and low margin countries. Right now where we operate actively on a month, on month basis. The different types of business, US and Japan for US right now fall in the high margin countries and Indonesia falls in the medium margin countries and India falls in the low margin countries. And just to give you a little bit idea of what is the price difference, it’s about 4, 4.5 times the difference between what we sell in the United States vis a vis what we sell in India.
Kashish Thakur
Understood, sir. Okay, just one last question or query. We have shifted our everything like every production of production of the implant business in US so our OpEx cost might have definitely gone up.
Rajakumar Vaidyanathan
Right?
Kashish Thakur
So wasn’t it economically for us to make the products here and like sell it in the market?
Deepak Ananthakrishnan
So. So there are two ways and I will, which I will answer this. But first to say that, you know, this is what we believe. Not without comparing with anybody. We believe that our quality of products and what we want to sell in the market the way we want to. We have not yet been able to see at this juncture that level of precision and quality engineering talent available in this country. Okay. Right now for the products that we have. Okay, Having said the same thing right now within the United States that we are doing over the last 12 to 18 months there has been a significant amount of improvement that we have done in efficiencies in terms of.
And you will see that even more significant in times to come. In the next 12 to 14 months, in fact, you will start seeing month on month is getting better. Even between April and May also it’s better. So you will start seeing that it is getting month on month better than what it was the previous month. We will try and get to a great efficiency. But it is also also at a stage where we have to build very solid quality at great credibility, good brand and great precision to start with. And then eventually when we get a full hang of that technology and that talent available at some point of time for us to migrate and build it, we might look at it from a futuristic long term standpoint.
But at least right now we feel from a credibility brand building as well as being a product that we manufacture, there is the right strategy strategy for the next at least 12 to 18, 24 months.
Kashish Thakur
Understood. So thank you so much. That’s all from my end.
Deepak Ananthakrishnan
Thank you.
operator
Thank you. Ladies and gentlemen, in the interest of time will take this as a last question. I now hand the conference over to the management for closing comments.
operator
Everyone.
Amit Pathak
Thank you everyone for joining the call. We will connect again after the quarter one results. Thanks for participating. Thank you.
operator
Thank you. Thank you on behalf of Alara Securities India Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.
Amit Pathak
Sam.