Rainbow Children's Medicare (RAINBOW) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw strong revenue and profit growth, with new hospitals in Hyderabad, Bangalore, and Chennai well integrated and pioneering clinical achievements such as the world-first fetal balloon aortic valvuloplasty.

• IVF services, retail initiatives, and JCI accreditations for flagship hospitals and fertility services enhanced patient experience and operational excellence.

• Unaudited standalone and consolidated financial results for Q3 and 9M FY25 were approved, showing continued growth.

• Appointment of Ms. Shreya Mitra as Company Secretary and Compliance Officer effective 9 February 2025.

• Board approved the Employee Stock Option Scheme 2025 for up to 1,015,000 options, subject to shareholder and regulatory approval.

Financial highlights

• Q3 FY25 consolidated revenue grew 18.5% YoY to INR 3,980.82 million; nine-month revenue rose 20% to INR 11,457.59 million.

• Q3 EBITDA increased 14% YoY to INR 1,344 million; nine-month EBITDA up 16% to INR 3,752 million.

• Q3 PAT grew 10.2% YoY to INR 689.41 million; nine-month PAT up 12.2% to INR 1,876.74 million.

• EBITDA margin for Q3 was 33.8%; nine-month margin at 32.7%.

• Staff costs normalized to INR 50 crore per quarter after seasonal increases.

Outlook and guidance

• Expansion plans target increasing bed capacity from 1,935 to 2,715 by FY27-28, with 1,000 new beds by 2030, focusing on NCR, regional spokes, and tier-2 cities.

• New hospitals expected to break even in 12-18 months depending on location.

• ARPP/ARPOB growth expected in the 5%-11% range, driven by maturing centers and complex case mix.

• EBITDA margin guidance remains at 32.7% ±1% despite new hospital drag.

• IPO proceeds utilization continues as planned, with Rs 116.29 million unutilized as of 31 December 2024, temporarily invested in fixed deposits and current accounts.