Rainbow Children's Medicare (RAINBOW) Q1 25/26 earnings summary

Executive summary

• Achieved steady financial performance in a seasonally soft quarter, with revenue for Q1 FY26 growing 6.9% year-over-year to ₹3,529.3 million and PAT up 35.4% to ₹538.1 million, driven by new hospitals and advanced pediatric and neonatal services.

• Expanded network with a 76% stake acquisition in Prashanthi Hospitals, Warangal, strengthening the urban spoke model in Telangana and making it a subsidiary.

• Continued disciplined execution of project pipeline, with several new hospitals under construction or awaiting regulatory approval, and the network now comprising 20 hospitals across 7 cities with 2,035 beds and over 925 doctors.

• Clinical highlights include successful complex bone marrow transplants, rare neonatal surgeries, a US FDA patent for a pediatric cardiac device, and JCI re-accreditation for flagship hospitals.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board on July 26, 2025.

Financial highlights

• Revenue from operations increased 6.9% YoY to ₹3,529.3 million in Q1 FY26; EBITDA margin improved to 29.4% from 28.4% YoY.

• PAT rose 35.4% YoY to ₹538.1 million; consolidated profit after tax for Q1 FY26 was ₹538.05 million.

• Outpatient volumes grew 6%, inpatient volumes declined 1%, and deliveries declined 2% year-over-year.

• ARPOB for Q1 FY26 was ₹58,057, up 13% YoY; ALOS was 2.76 days.

• Net cash position stood at INR 735 crores as of June 30, 2025.

Outlook and guidance

• Targeting timely commissioning of Rajahmundry and two Bangalore hospitals within the year, with expansion plans including Hennur, Electronic City, Coimbatore, Gurugram, and Rajahmundry, aiming for 2,865 beds by FY28.

• Expecting late teens to 20% revenue growth for FY26, supported by 350+ new beds coming online.

• Pune greenfield hospital project to be signed soon, with operations expected in 2.5 years.

• Ongoing evaluation of inorganic opportunities in Northeast and Maharashtra.

• Employee Stock Option Scheme 2025 (ESOP 2025) was approved, with 140,810 stock options granted to eligible employees.