Rainbow Children's Medicare (RAINBOW) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue grew 6.5% year-over-year to ₹4,448 million, with H1 FY26 revenue up 7% to ₹7,977 million; net profit for Q2 FY26 was ₹756 million, down 4% year-over-year, but H1 FY26 profit rose 9% to ₹1,294 million.

• Operational softness in Q2 due to low seasonal illness and early festive seasons impacted occupancy, but specialty services and cost management remained strong.

• Strategic acquisitions in Warangal and Guwahati were fully integrated, and a new 100-bed hospital was commissioned in Rajahmundry, expanding regional coverage.

• Leadership was strengthened with the appointment of a new Group CEO, Mr. Abrarali Dalal, effective January 2026.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025.

Financial highlights

• Q2 FY26 revenue grew 6.5% year-over-year to ₹4,448 million; H1 FY26 revenue up 7% to ₹7,977 million.

• Q2 FY26 EBITDA was ₹1,489 million (33.5% margin); H1 FY26 EBITDA was ₹2,525 million (31.7% margin).

• Q2 FY26 PAT was ₹756 million, a 4% decrease year-over-year; H1 FY26 PAT up 9% to ₹1,294 million.

• ARPOB in Q2 FY26 increased 15% year-over-year to ₹57,396.

• Q2 FY26 occupancy rate was 52%, down from 59.9% in Q2 FY25.

Outlook and guidance

• Expect normalization of patient volumes and occupancy in upcoming quarters as seasonal factors abate.

• Targeting 20% consolidated revenue CAGR over the next 2–3 years, including M&A contributions.

• Expansion plans target 3,165 beds by FY29, with new hospitals in Pune, Coimbatore, and Gurugram.

• Margin expansion anticipated as new hospitals scale up; base EBITDA margin guidance remains at 25%.

• International business expected to recover to pre-disruption levels, aiming for 10% of topline in five years.