Rainbow Children's Medicare (RAINBOW) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue, EBITDA, and PAT, with Q2 FY25 revenue up 25.5% year-over-year to ₹4,175 million and PAT up 25% to ₹790 million, driven by strong growth across all key operating metrics and positive patient feedback, despite international business headwinds.

• Operational expansion continued, with bed capacity up 17% year-over-year to 1,935 beds and new hospitals in Hyderabad, Bengaluru, and Chennai reaching operational stabilization.

• Launched Butterfly Essentials retail brand and established a comprehensive Child Development Center, with operations commencing in November 2024, to address rising behavioral and developmental issues in children.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024 were approved and reviewed, with no material misstatements identified by auditors.

Financial highlights

• Q2 FY25 revenue grew 25.5% year-over-year to ₹4,175 million; H1 FY25 revenue up 20.6% to ₹7,477 million.

• Q2 FY25 EBITDA rose 25.1% to ₹1,471 million; H1 FY25 EBITDA up 17.3% to ₹2,408 million; EBITDA margin for Q2 at 35.2%, H1 at 32.2%.

• Q2 FY25 PAT increased 25.1% to ₹790 million; H1 FY25 PAT up 13.5% to ₹1,187 million.

• Outpatient and inpatient volumes grew 20% and 22% year-over-year, respectively; deliveries up 12%.

• Total expenses in Q2 FY25 increased 26.7% year-over-year to ₹3,234 million.

Outlook and guidance

• Confident in sustaining current EBITDA margins (plus or minus 1%) over the long term, with seasonality impacting quarterly margins.

• Expansion plans to increase total bed capacity from 1,935 to 2,715 by FY27-28, with 380 new beds expected over the next 24 months across Rajajinagar, Bangalore (Hebbal, Electronic City), and Coimbatore.

• Focus on expanding in NCR after consolidating in current core markets; further expansion in Hyderabad and Bangalore will be demand-driven.

• Child Development Center to commence operations in November 2024.