Rainbow Children's Medicare (RAINBOW) Q3 25/26 earnings summary

Executive summary

• Operational performance improved with growth in outpatients, footfalls, IP discharges, and deliveries, despite seasonality and holidays.

• Achieved 12% YoY revenue growth in Q3 FY26, reaching ₹4,454 million, with PAT up 7% to ₹739 million and EBITDA up 9% to ₹1,470 million.

• New units in Rajahmundry and Electronics City, Bengaluru, performed well and are nearing breakeven; acquired hospitals at Warangal and Guwahati have been integrated.

• Major capacity addition phase is concluding, shifting focus to operational excellence and occupancy improvement.

• Board approved unaudited consolidated and standalone results for Q3 and 9M FY26; statutory auditors issued unmodified review reports.

Financial highlights

• Q3 FY26 consolidated revenue was ₹4,454.48 million, up 12% YoY; PAT was ₹738.97 million, up 7% YoY; EBITDA was ₹1,470 million, up 9% YoY.

• 9M FY26 consolidated revenue was ₹12,432 million, up 9% YoY; PAT was ₹2,033.26 million, up 8% YoY; EBITDA was ₹3,995 million, up 6% YoY.

• Q3 EBITDA margin was 33%; 9M margin was 32.1%.

• ARPOB for Q3 FY26 was ₹58,362 (+9% YoY); 9M FY26 was ₹59,324 (+12% YoY).

• Inpatient discharges grew 9%, outpatient volume 18%, and deliveries 16% YoY for 9M.

Outlook and guidance

• Focus on driving occupancy to 55-60% through strengthened sales, marketing, and digital initiatives.

• Expansion plans include new hospitals in Hennur, Coimbatore, Gurugram, and Pune, targeting 3,165 beds by FY28-29.

• Expectation of positive EBITDA from most new units within a year; mature units to maintain strong margins.

• Revenue CAGR guidance remains at 18% over the medium term, despite current year softness.

• The company continues to monitor regulatory changes, including new labour codes, and will adjust accounting as needed.