Shalby Limited (SHALBY) — Financial Results

Investor Takeaways

Revenue grew 9.4% YoY to ₹295.5 crores in Q4 FY26, driven by international performance.

PAT turned positive at ₹18.5 crores in Q4 FY26, compared to a loss of ₹12.2 crores in Q4 FY25.

EBITDA surged 43.1% YoY to ₹37.4 crores in Q4 FY26, reflecting improved operational efficiency.

Full-year EBITDA reached ₹169.6 crores and PAT reached ₹60.6 crores in FY26.

International operations remained profitable despite U.S./Iran headwinds, contributing to overall resilience.

Capex of ₹160 crores in FY26 focused on robotics and LINAC bunkers to support long-term growth.

Management targets 15%+ CAGR in hospitals and pharma, with implant revenue expected to reach INR600-700 crores by 2030.

Tax rate revised to 25% under the new tax regime for FY27.

Overall Tone: Positive

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹295.5 Cr	+9.4%
Net Profit	₹18.5 Cr	Improved from -₹12.2 Cr
EBITDA	₹37.4 Cr	+43.1%
EPS	₹1.37 (Q4 FY24)	N/A
OPM	15.91% (Q4 FY24)	N/A

What Changed

Shalby Limited demonstrated significant improvement in profitability during Q4 FY26, with revenue increasing 9.4% YoY to ₹295.5 crores and EBITDA rising sharply by 43.1% to ₹37.4 crores. The company returned to profitability with a PAT of ₹18.5 crores, reversing a loss of ₹12.2 crores recorded in the same quarter of the previous year. Full-year FY26 results showed revenue of ₹1,168.2 crores, up 4.8% YoY, while EBITDA grew to ₹169.6 crores and PAT reached ₹60.6 crores. Management attributed the positive trajectory to strong international performance, particularly in African and CIS markets, which offset challenges in U.S. and Iran. The company is progressing toward achieving double-digit EBITDA margins in its implants segment. Capex of ₹160 crores in FY26 was allocated toward robotics and LINAC bunkers to enhance technological capabilities. The revised tax rate of 25% under the new regime is expected to support margin stability in FY27. The company reaffirmed its long-term growth targets, including 15%+ CAGR in hospitals and pharma, and a target of INR600-700 crores in implant revenue by 2030.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Shalby Limited	56.47	Not available	Not available	1,707.85
Sun Pharmaceutical Industries Limited	41.28	15.11%	20.34%	4,50,643.09
Divi's Laboratories Limited	72.41	16.56%	22.09%	1,79,470.03
Torrent Pharmaceuticals Limited	80.06	N/A	N/A	1,49,108.91

Shalby’s P/E ratio of 56.47 is higher than Sun Pharmaceutical (41.28) and comparable to Divi’s Laboratories (72.41), indicating market expectations of future growth. However, peer companies demonstrate stronger ROE and ROCE metrics, suggesting higher capital efficiency. Shalby’s market capitalization is significantly lower than Sun Pharmaceutical but comparable to Divi’s and Torrent in scale.

Risks & Concerns

No specific risks were highlighted in the filing beyond operational execution challenges in international markets.

Near-term margin pressure may persist due to ongoing strategic investments in robotics and LINAC bunkers.

Dependence on international markets for profitability growth exposes the company to geopolitical and regulatory risks.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	275.63	-2.99	12.3%
Q2FY25	267.54	2.36	12.2%
Q1FY25	278.89	14.74	16.21%
Q4FY24	244.23	16.04	15.91%

The company’s profitability has shown improvement over the quarters, with Q4 FY26 marking the return to positive PAT after a loss in Q3FY25. OPM has remained relatively stable, ranging between 12.2% and 16.21%, indicating consistent operational performance. Revenue growth has been steady, with a notable acceleration in Q4 FY26. The trend reflects improving financial health and effective cost management over the recent quarters.

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