Shalby Limited (SHALBY) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Shalby Ltd.'s Q4 and Financial Year 2026 Earnings Call, hosted by Ilara Securities India Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kashish Thakur from Alara Securities. Thank you, and over to you, sir.

Thank you, Ikra. Good evening, everyone. We welcome all the participants to Shalbi Limited Q4 and FY26 earnings call hosted by Alara Securities. Today we have with us senior management representatives 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 Shalbi MedTech. After that, we will open the floor for question and answer for all the participants. I will now hand over the call to Mr. Jigar Todi for important disclaimers regarding any forward-looking statement that may be made in today's call. Over to you, Jigar.

Thanks, Kashish. Good evening, everyone. Our investor's 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 2 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, sir.

Yeah, thank you, Jigar. Good evening, everyone. I'm pleased to welcome you all to Shelby Limited Q4 FY26 earning call. I would walk you through the consolidated financial of the quarter four of the 26 on year-on-year basis comparing to the last quarter of the same year of FY25. For the Q426, the company delivered a healthy improvement across key financial parameters, consolidated revenues to that. 295.5 CR has against 270.2 CR in Q425, registering a growth of 9.4% on year-on-year basis. Abita improved significantly to 37.4 CR as against 26.2 CR in the Q4 of 25, reflecting a strong growth of 43.1% year-on-year basis. Abita margin stands now to 12.7% as compared to 9.7% in the Q4 of 25. Solidated BTs ends at 9.6 crore compared to a loss of 0.7 crore in Q425, with the EBITDA margin improving to 3.3%. Our consolidated PAC stands at 18.5 CR with a PAC margin of 6.2% as against loss of 12.2 CR in the Q425. This is also by the reason of EBITDA and coupled with a change in our tax regime, reflecting a profitability increase in our current quarter, and that would be a benefit to our profitability in the coming subsequent years. Moving to full-year performance of FY26 reflects a continued operational improvement and strong profitability across the group. Consolidated revenue of FY26 stands at 1168.2 crore as compared to 1114.6 crore in FY25, reflecting a strong growth of 4.8% year-on-year basis. Our EBITDA stands at 169.6 crore as against 160.2 crore in FY25. EBITDA margins remain healthy at 14.5% versus 14.4% in FY25. Consolidated PBT stands at 60.6 crore as against 55.7 crore in FY25, reflecting a growth of 8.7% year-on-year basis with a margin improving to 5.2%. Our consolidated FAT stands at 34.7 crore as against 1.9 crore in FY25, demonstrating a substantial improvement in our profitability by reason of the... The group continues to maintain a healthy balance sheet with a comfortable gearing ratio of 0.4x with a net debt of 446.2 crore. Now I would walk you through the standalone performance of the Q4 of 26. Stand-alone revenue for the Q426 stands at $230.4 crore as against $214.2 crore in Q425, registering a growth of 7.6% year-on-year basis. Our stand-alone EBITDA stands at $37.1 crore as against $38 crore in Q425. EBITDA margin was at 16.1% as against 17.7% in the corresponding quarter last year. Our stand-alone PBT stands at 23.5 CR as against 25.7 CR in Q4 of 25, with a PBT margin of 10.2%. Stand-alone PBT increased significantly to 53.7 CR compared to 15 crore in the Q4 of 25, with a PAT margin improving to 23.3% in Q4 of 26 as against 7% in the Q4 of 25. At the standalone level, our net debt stands at 43.8 crore. Our standalone ROC for Q426 on annualized basis stands at 10.8%. Our additional ARCOB has shown a growth of 2.7%, standing today at 42,689 compared to

41,585 in the corresponding quarter last year.

Our loss has stood at 3.81 days compared to 3.68 days in the Q425. Moving to the occupied beds, our occupied beds in the Q4 are 649, as against 633 in the Q4 of 25, reflecting a growth of 2.4% year-on-year basis, with an overall occupancy of 48%. However, if we exclude our Shelby International, the unit in Gurgaon, our occupancy at the group level stands at 50% during the quarter. The pair mix for the Q4 stands for the Q4. At 33% self-pay, 37% insurance, and 30% of the government business. Now, coming to Shelby International, the Gurganam unit, our revenue stands at 21.5 CRS in Q426 compared to 22.8 CR in the Q4 of 25. This decline was primarily attributable to the ongoing geopolitical situation in the Middle East, impacting our little-of-hour operations coming through for the international patient coming in our ground unit, although this has been partly also offset by our growing business in the Asia and GIS countries. Our call for the Shelby International stands at 88,592, while our loss has been 3.44 days during the Q4. International patients contributed to 47% of the operating revenue of Shelby International in the Q4 26. Our overall international business at the group level had been in the Q4 of 26 had been about 12.8 CR comprising 3.6 CR coming from the Shelby multi-specialty hospitals and 9.1 CR from Shelby International Hospital. At Shelby, our continued focus remains on strengthening clinical excellence and delivering superior patient outcome across our network hospitals. We are also pleased to share that during FY26, the group has successfully completed 70 transplants, including 31 kidney transplants and 19 liver transplants. In addition, Through our Shelby Academy initiative, we continue to invest in developing future health care talent during FY26. More than 2,400 participated across various disciplines, including physiotherapy, nursing, laboratory, nutrition, clinical programs, and other academic initiatives. This also includes the launch of BBA and MBA program in health care management for the first time with partnership with Sheree Veshnavi, Vidyamp, Pete, and Indore. Now, I would hand over the call to my coolie, Mr. Deepakhanan,

for sharing the insights on the medical implant business. Thank you, Amit. Good evening, everyone, and thank you for joining us.

Financial year 26 has been a defining year for Shaldee MedTech as we transition from build and invest phase to a scale and execute phase. Over the past 12 months, we have focused on strengthening our implant platform, expanding our international footprint, improving operating leverage, and laying the foundation for long-term innovation-led growth. I'm pleased to share that our efforts are now beginning to reflect meaningfully in our financial and operational performance. For quarter four, financial year 26, consolidated revenue stood at approximately 40 crores, reflecting strong growth of nearly 45% year-on-year and about 32% sequentially. More importantly, we delivered a significant turnaround in profitability with a consolidated EBITDA improving to over 3.7 crores compared to a loss of 9.3 crores in the corresponding quarter last year. This marks the second consecutive quarter of positive EBITDA performance, underscoring the continued improvement in operational efficiency and business momentum. For the full year, financial year 26, consolidated revenue crossed 135 crores, representing growth of approximately 46% over financial year 25. EBITDA improved sharply from a lost position of 4.85 crores in financial year 25 to a positive EBITDA of approximately 6.7 crores in financial year 26. This improvement reflects the operating discipline and strategic initiatives implemented across manufacturing, sourcing, product mix, and market expansions. One of the most encouraging aspects of Financial Area 26 was the strong momentum in our India business and the improving performance trajectory of our international subsidiaries, particularly in North America. The business is now demonstrating stronger operating leverage at volume scale. Operational transformation and cost optimization. Over the last two years, we have been systematically building a more efficient and globally competitive operating model. During financial year 26, we continued our focus initiatives around COGS optimization, manufacturing efficiency, packaging value engineering, and supply chain restructuring. These efforts contributed materially to margin recovery during the year. At the same time, we made meaningful progress on inventory productivity. While inventory levels remained elevated as a part of our global expansion strategy, inventory efficiency improved materially during financial year 26, with days of inventory reducing significantly compared to previous years. Going forward, we remain focused on further improving inventory terms, implementing demand-driven planning systems, and strengthening our multi-vendor sourcing strategy under our China Plus One framework. Market expansion and commercial progress, financial year 26 was also a strong year of commercial expansion. We deepen our presence across India, United States, Japan, and Southeast Asia, while simultaneously advancing regulatory approvals and channel partnerships in several new markets. Today, Shaldi MedTech products are present across multiple global geographies, and we are actively progressing expansion opportunities in markets, such as Vietnam, Malaysia, Nepal, Iraq, Argentina, and broader Latinx regions. Within India, we continue strengthening our footprint across key orthopedic clusters and fusion networks. Our academic engagement strategies get excellent traction during the quarter through conferences, cadaveric workshops, bioskills programs, and the clinical education initiators conducted across Indore, Ahmedabad, Delhi, and Coimbatore. These engagements are important because our strategy is not only to sell implants but to build long-term surgeon confidence, clinical evidence, and institutional partnerships. Innovation and technology remain central to our long-term strategy. During financial year 26, we continue to strengthen our product pipeline and technology collaborations. One of the most exciting opportunities ahead is our robotic partnership with Turexo, where we are working towards scaling from pilot deployments to commercial adoption across selected markets. We are also building a broader innovation pipeline extending through financial year 30 with multiple active development projects focused on next-generation orthopedic solutions, implant design optimization, and evidence-backed clinical outcomes. Our Tux platform continues to gain traction, and we are investing in multi-center clinical studies and registry-driven data generation to strengthen its long-term positioning. Designed in India, engineered for the world. A defining strategic pillar for Shelby MedTech is our belief that India can become a globally respected hub for orthopedic design and innovation. Our vision is not only to become merely a low-cost manufacturing player. Our ambition is to build a design-led orthopedic company originating from India and competing globally through innovation, agility, and clinical relevance. We believe India offers unique advantages, access to diverse patient anatomies, world-class engineering talent, cost-intelligent R&D, and proximity to some of the world's fastest growing healthcare markets. Accordingly, we are strengthening our India-based design and R&D ecosystem through academic collaborations, clinical research partnerships, anatomy-focused implant design, and proprietary sizing libraries tailored for Asian and emerging market populations. We believe the next generation of orthopedic growth will come from products designed specifically for India, Southeast Asia, Africa, and emerging global markets, not simply adapted from Western systems. People and organizations, as we scale globally, building leadership depth and organizational capability remains a major priority. During financial year 26, we strengthen recruitment, employee engagement, training systems, and leadership development programs across sales, quality, R&D, and commercial functions. We are now building the second layer of leadership across regional sales, regulatory, engineering, and project management functions to support the next phase of expansion. Outlook for financial year 27, as we enter financial year 27, we believe Shelby MedTech is positioned at an important inflection point. The heavy lifting around platform creation, regulatory groundwork, manufacturing capability, commercial network building is substantially behind us. Our focus now shifts towards scaling revenues, improving profitability, accelerating innovation, and driving global market penetration. We will continue to focus on expanding global market access, accelerating product innovation, strengthening robotics and digital integration, driving further operating leverage, improving supply chain efficiency, building clinical evidence and surgeon engagement, enhancing return ratios and cash discipline. Our long-term ambition remains clear to build the first globally respected India-headquartered orthopedic implant company, delivering world-class outcomes at India Competitive Economics. I would like to thank our surgeons, channel partners, employees, shareholders, and customers for their continued trust and support as we build the next phase of growth for Shelby Midtags.

Thank you, and over to you, Dhiram. Yeah, now we can start with the Q&A.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and 1 on their 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 will wait for a moment while the question queue assembles. We will take our first question from the line of Soham from Prosperitry. Please go ahead.

Hello. Hello, sir. Am I audible?

You are audible. Please listen.

First of all, thank you for the opportunity, sir. My question was like, could you throw some color on the profitability of the international business? Because although our Indian business is doing really well, because of the lack from the international business, it is reflecting in our consolidated numbers. So could you throw some light on the profitability of the international business? And if not, when would it become profitable?

That's my question.

So, if I'm right, I believe your question is towards the international patients coming to our Gurgam and other units. Is that right?

Yes.

Okay, yeah. So, the business has been growing, and at overall level, in our Gurgam unit, 60% of the international patients contribute to the revenue. And this has been a, this maintains a healthy profitability margin. Although in the quarter four, this had got impacted by the U.S. and Iran conflict, but our teams had geared up and it has been offsetting with the growing business in our African and serious countries, including Uzbekistan, Tajikistan, and also the African regions, including Sudan. So, there has been a good momentum, and we have been seeing a strong comeback in the current quarter into the months of April and May. So, this stands quite profitable, and we are confident to see an upside of this.

So, talking about the profitability of the international business in the US about the implants. So, what about the profitability of those?

So, the implant business is already, if you look at it to the second consecutive quarter of having a positive EBITDA. Right. So we have come out of that whole challenge of having, you know, where we were bleeding at EBITDA levels. We still have some distance to go to get it into a double digit EBITDA as well as convert the cash flow to be positive, which we are working towards it. We should start seeing better results quarter on quarter from now.

Sir, my second question would be on the borrowing. Sir, if you look at the past 4-5 years, the borrowing and we call it debt, it is growing. So, if you could throw some colour on why we are like raising debt and where it is being used.

Yeah, thank you for this question. Thanks for this question. See, in the past, this borrowing that you had seen onto our balance sheet had been largely by the reasons of the two acquisitions which we had done in the recent years, one in the U.S. and another into the Gurgam unit. And further on, since we have already done a break-even into our business internationally, we find that further the increment into the borrowings would not be that significant, and we will soon, as being stated into our international business performance, we would be looking for the cash flow in the short-term to medium-term around, and then our debt-to-equity ratio still stands healthy and would be on the improving pace.

Okay, so thank you. Thank you.

Thank you. Next question is from the line of Sanchita Sur from Robo Capital. Please go ahead.

Hi, thank you for the opportunity. My question was specifically regarding the Shelby International Hospital. So, I just wanted to know when exactly can we see this particular hospital reach EBITDA break-even level? Like, can I get a timeline of when exactly we can start seeing some profitability here?

Thanks for this question. See, by the restriction, we cannot comment on the timeline, but we are very confident to see this happening in the short term only. This is also by the reason that there had been many major developments happening in this hospital, including NABH cardigan, which we have just received into the month of FAD, which will also help us to do further more tie-ups, increase in our rates, and further more renewals happening onto our top TPS. This will be contributing to a significant upside on to the revenue. Also, as I covered in my previous answer, our growing business into the Africa and CIS countries also has started contributing to it. Our marketing presence there is also doing, including a lot of outreach and the branding activities which are happening. So, that would all would be contributing to a significant upside into our revenue. Also, we have worked very, have taken certain efficient measures onto our cost side, cost optimization, that is also reflected into the EBITDA margin, which you may be able to see into our investor presentation, that our EBITDA margin has significantly increased as compared to the FY25. Also, to reflect our confidence into this hospital, we had recently infused an equity of 60 crore, taking our equity share up from 87% approximately to 91% into the recent quarter. So, we are very confident to see the EBITDA and the healthy profit margins coming into the short term in this hospital.

Okay. And for my second question, can I know what the console EBITDA margin would be looking like in FY27 and FY28? EBITDA margin and the expected best levels as well?

So, see, we are looking at a healthy upside by the measures which you have covered out here. It would not be so, it would not be that we are restricted to comment on the numbers, but we are very confident to see a healthy upside to maintain the good upside into our business.

Okay. And so my last question would be, can I know why the number of operational beds would are down year on year?

So, this is also by the reason, if you notice that we had closed down our two SOCs, which were Rajkot and Lucknow, they had not been, they have closed down, and that is leading to an overall reason of decrease, that you see as a decrease in the occupancy percentage. They had been a bit of negative for us, since we had closed down that, it would be contributing to also a better margin on the EBITDA front in the coming quarters.

Okay, that's all for Mayim, thank you.

Thank you. Next question is from the line of Tashish Thakur from Ilara Securities. Please go ahead.

Yeah, hi. Thank you for the opportunity. Two questions from my end. The first question is, what kind of tax rate we should build in for FY27?

So, thank you for this question. Now, at the Shelby Limited, we have moved to the new tax regime. So, it would be a lower tax of 25% as compared to 35% of the taxes we had been under in the earlier years, and it had contributed to our profitability this year, and in the coming years also, it would be a recurring benefit to our P&L and cash flow.

Sure. Second question is on the KPEX. What kind of KPEX we have occurred in FY26 and what we are targeting for FY27?

So, see, we have been investing heavily onto our ONCO and radiation, and also on our international business. So, our capex had been about a 160 CR, which had been largely coming by the reason of the LINAC bunkers, which we have invested into our units, including you, Surat, and Krishna. And also, we are heavily investing onto the robotics, which would be giving all these capex measures which we have taken. We are confident to see a very large upside into the coming quarters into our revenue and profitability. So these are the broad numbers as being stated.

Understood. And for any guidance for FF27?

So, mostly I have covered as to the measures which we have taken on various fronts including the CAPEX, including our specialty doctors being implemented. We have been operating with an average doctor size of 350 which into the Q4 recently since we have hired many super specialty doctors and total size has gone up to 400. At our average, at our group level, so we are pretty confident to see a significant upside into our revenue and our EBITDA, and since we have already heavily invested into our CAPEX into the FY26, we do not see a large spending coming into the FY27 and onwards that will be able to save our significant cash flows.

Understood. One question is on PK Health. Since last two quarters or three quarters, we have seen a significant doctor addition, doctors leaving, doctors adding in the facility. How is the situation over there as of now? Is it stable?

So, yeah, in the Q4 and in the recent month, it had got stable a lot. We had a turbulence into the quarter two and quarter three where there had been a leadership change and we witnessed some of the attention of the doctors, but we have strongly come back into the Q4 and in the current month which we are talking, we have been seeing a large upside into our ortho business, our ENT business. The way we had been struggling due to the reasons which I cited was the urology and DMT, wherein already the super specialty doctors have joined and few are in pipeline to join.

So we see a very strong position which would be further improving from here.

Understood. And one last question, what kind of revenue contribution might be there from FOSO hospitals or FOSO facilities?

It would not be significant. The FOSO hospital, which had been loss-making, had been already shut. We have few profitable FOSO running, but they are not significant to the revenue guarantee.

Understood. Thank you. Thank you. I will join.

Thank you.

Thank you. Next question is from the line of Pinaki Banerjee from AUM Capital Private Limited. Please go ahead.

Good evening, sir, and thanks for the opportunity. So my first question is, from FY23 to FY25, your top line has shown a CAGR growth of 15% to 16%. So why it has suddenly dropped to 5% single digits now in FY26? Is there any reason for it?

So, see, the reason has been... Into our few units, one large asset at overall level, if I talk about the hospital, our Gurgaab unit, which has been into the turbulence into our quarter two and quarter three, this has contributed to some extent. Our international business, which has been impacted by the U.S. and Iran conflict. Some of the, there had been turbulence in some of the government schemes which had contributed to some decrease into the patient, inpatient in the quarter two, quarter three, and also the doctor attrition which had been addressed into the Q4. This few reasons which had led to these reasons which have been taken care now and addressed properly, and we are strong, we are pretty confident to see a significant upside as previously covered in the answer.

Okay, sir, my next question is, you have opened a dedicated oncology unit in Mumbai in February 26th. So, sir, can you throw some light on this? Actually, are you striving on the next area of growth in the oncology segment?

No, just to correct you, you may verify this. We had not opened any oncology in Mumbai. Rather, we have been doing very heavy on the oncology investment in Surat and Krishna, where we have invested into the onco bunkers, and we have been already having three onco bunkers in Indore and Jaipur and Naroda units, including the recent investment into Pet City and Scan also, which is for the oncology. So, yes. Our oncology investments includes the recent which I have spoken and not the Mumbai one. Yes, but in Mumbai, we have recruited super specialty surgeons into our Mumbai for onco-medicine and health care.

Okay, so that's one from my end. Thanks for all.

Yeah, thanks.

Yeah, please go ahead, sir. Yeah, okay.

Thanks, thanks. Thanks for coming.

Mr. Banerjee, you want to ask more questions?

No, that's all for my end, ma'am. Thanks.

Thank you. Next question is from the line of Mikhail Gupta from Bayou Capital. Please go ahead.

Thank you for the opportunity. So, if I take a long-term 4-5-year view, let's say 2030, what would be the contribution from implant business in the revenue?

So, the implant business at 2030,

we're looking at somewhere close to 600 to 650 crores from a top-line standpoint because we are not just focusing only on the top-line, we're also working towards to get to a good solid double-digit emitter upwards of 15%. But five years, we should be in the range of about 600-700 crores with a good

double-digit positive emitter. Okay.

And what should be in the same time horizon? What should be the steady state growth of our hospital and pharma business? Can we take 10 to 15% as a considerate number for the modeling purpose?

Yes.

So, from here, we are looking at a sustainable growth of minimum 15% as a CAGR, if I talk about the long-term plan. Also, without any significant capex, because our current installed capacity also supports us to take an upside of 40% to 50% with the NINPRA we have. So, we see a healthy EBITDA margin and very strong cash flows also into the long range, if I talk about.

Okay, last question from my side. So, I think earlier, maybe a year back, we had the plans to have 50 franchisee models. Are we shifting? Are we waiting from that particular plan?

So, So, you know, we are basically, after starting the... The franchisee model, we did realize that, you know, often the kind of standards that we want to maintain at, you know, the different locations is often not, you know, taken as seriously as we do, you know. And then, you know, we did feel that, you know, compromising on that is not something that we would like to do. So, you know, we don't, I mean, we have continued the franchisees and we'll continue to look for franchisees. But it seems like, you know, we may not be able to do it as aggressively as we had planned earlier. But we will be very picky and, you know, we will still continue to look for franchises.

Do you have specific number in just conservative number by at the same time or as we earlier spoke about?

Well, there's no specific number, very honestly, and even the existing units, if you see, you know, they don't contribute very significantly to the top line or bottom line. So, even if the number, you know, if I give you a number, it's not going to be a very significant part of a very meaningful part of the whole scheme of things.

Yeah, in that case, then you can focus and shift your energies to the more poor business, right, instead of…

That is where the energies will be focused on, on the hospital's mainstream business and the implant business.

Okay, thank you.

Thank you. Next question is from the line of Shubham Bharni from Purnartha Investment Advices. Please go ahead.

Hi, sir. Thanks for the opportunity. My first question is why your gross margin is decreased during the quarter?

Your question is towards the EBITDA?

No, gross margin specifically. Earlier, our gross margin range around 90%, which has now decreased to 85%. Any reason for that?

So, see, if we have to factor in our

gross margins, there had been a slight.

Dr. Kost would impact EBITDA margin, not gross margin.

The other reasons also includes our investments onto the Ongo. We're in onco treatment at times need the expensive medicines to take care of the patient. Since we are going on to the onco side, this is also leading to some of the cost upside and impacting a little on our gross margin. However, we are augmenting some measures to address this also. We are exploring with our doctors to keep the same quality standards while maintaining our gross margin.

Got it. So, what gross margin we should build in? It would be around 85% or it will insert a little bit?

We would be seeing a good upside to it from here. However, we have to still implement certain of the measures and we will be able to more competently comment out.

Okay. And my second question is, how are new initiatives are doing? Like, we have invested heavily on doctors and added new therapies in several hospitals. So, how they are doing and when they will start reflected in numbers?

So, they have started showing very good signs already, including the doctors which we have recruited and which are in pipeline. And I have also covered the investments which we have done on to the robotics, pet city, radiation bunkers as a CAPEX. They are contributing significantly to our revenues. So overall, all these measures where the doctor's stability is being there, our CAPEX, our TPA renewals, certain conditions like NABH and our Gurgam unit. So, including all these bases and few more, we are pretty confident to see a significant upside into the short term to medium term from here.

The short term here, you meant to say by Q1 or Q2?

Q2 onwards, it would be there for sure. Q1 would also start reflecting

some of the indicators.

Got it. And my last question is related to government business. So our government business has increased in current quarter too, while sales and insurance are going down. So any specific reason for this? Because earlier you have told that we are looking to reduce our government business.

So, see, government business, yes, there are certain challenges associated with it. When you have to recover the money from the government, it takes time, but this is also an improving process. But importantly, the government business also is being increasing at our end as a share. However, the CGHSM rates are also being getting revised, which would be giving an upside to 78% into our revenues, and as soon the CGHSM rates are revised, the other government schemes also follow this. So, this would be a positive indicator to our top line in the coming quarters.

So, CGHR rates has been revised. So, when it will be effective or when it will get implemented?

So, it has got revised recently. So, we have started seeing a little upside of it into the whole scheme of things. It would be coming into the coming quarters as I studied from quarter 1 to quarter 2 and onwards. And we are yet to see properly the upside which will be followed by other schemes including RGHS and ECHS and the corporates, those who follow these rates.

Got it. And last one, what occupancy are we looking for next year?

So, we are looking at good upside. More importantly, including the units like Gurgaon, which has not been performing better in the Q2, Q3, and other of the units, especially including Indoor and Surat, which has little underperformed in the recent years, and the measures which have been implemented are giving us good confidence to see an upside into our overall occupancy.

So, it would be north of 50% in coming year?

Yeah, for sure. Yeah, it would be a single, it should be good, a better number from there.

Got it. Thank you so much.

Thank you. Next question is from the line of Soham from Press Pirate Green. Please go ahead.

Sir, one of the questions I missed was you said that the foreign business is being affected because of the U.S.-Iran conflict. So, sir, like, taking into consideration the events, I don't think the war is going to, like, end, like, very early because of the statements of Donald Trump. So... What do we expect in terms of the conflict and how would the numbers be in terms of Q1, Q2, and if it was a whole financial area of 27, because the conflict is kind of unpredictable. So how do we take care of that?

Yeah, you are right. The situation is uncertain. Our teams have taken many good initiatives around this. Our international business, although the U.S. Iran is impacting us a little, but our other, as I stated in previous answers, our international business into the CIS countries and African countries is showing us a very good and confident momentum. This has actually helped us to explore new markets wherein the patient inflows have significantly helped us, and our domestic operations into our Gurgaon unit is also helping us out, although there could be still good, there could be an impact to this. But we, while we have explored other of the countries, we don't see this to remain a significant impact for us in the coming quarters. And also, if we understand the medical agencies and the situations, there are certain surgeries, significant part of the surgeries which the patient can't delay for longer. So they figure out a way and we are still able to get them to our hospitals.

Okay, sir, as you said that we have expanded into various countries, but would that be the perfect substitute in terms of numbers and margins to the businesses or the countries where this is affected due to the U.S.-Eran conflict?

Yeah, definitely when you get to new markets and you explore it out, you get to augment some of the measures which help us to get the good market share there also. So while if this new market helps us to get the patients and if we all be fortunate enough to see this war to be settling down and it probably has to settle down one day, so we would be seeing most of the upside coming again back which would be a backlog coming back to our hospitals.

Okay, thank you. Thank you. Thank you, Thompson.

Thank you. A reminder to all the participants, if you wish to ask a question, please tell star and 1. We will take our next question from the line of Kashish Thakur from Alara Securities. Please go ahead.

Thank you for the opportunity again. Sir, if you can just briefly highlight what can be our expansion plan for next probably two years or so, and what kind of EBITDA hit can we expect from the similar expansion? Going ahead.

So, uh... The expansion plans would include a very selective picking wherever if we see any profitable opportunity to the size of the beds which we operate at meeting our quality standards. So, we will be exploring it out. This continues, and expansion also includes the expansion into the few countries onto the mid-tech sites, including the countries like onto the…

Including Myanmar and Vietnam,

where we are very shortly expecting certain of the product approval coming forward. So, both on the hospital side and the medtech side, we may see certain of such expansion contributing to our overall growth into profitability and cash flows.

Understood, sir.

So, how many medtech products as of now we have approval?

So, we have right now, see, the categories are two categories that we play in, which is knee and hip. And within knee, we have different knees right now. As of now, we have three different, four different types of products within the knee category. And in the HIP category right now, we have three different types of HIP categories. Now, we will be adding more in time to come. We are not adding any new category as of now. We will be adding more products into the same category.

Understood, sir. Thank you. Thank you so much. This was all for mine.

Thank you. Ladies and gentlemen, we will take that as the last question for today. I now hand the conference back to the management for closing comments.

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, everyone.

Thank you very much. On behalf of Elara Securities India Private Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your line.