Rainbow Children's Medicare (RAINBOW) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 saw modest performance due to a quiet season, with 35% of pediatric business segments remaining low, but strong results in pediatric surgery, multi-specialty care, and obstetrics.

• Achieved 17% year-over-year revenue growth in FY25, reaching ₹15,159 million, with EBITDA up 14% and PAT up 12%.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2025, were approved, with auditors issuing an unmodified opinion.

• New beds added during the year have been integrated and are performing well; first pediatric liver transplant completed in Chennai, and a liver transplant license secured for Bangalore.

• Rainbow received multiple accolades, including Great Place to Work, Best Place to Work for Women, and Best Pediatric and Women's Hospital by Newsweek.

Financial highlights

• FY25 revenue grew 16.9% to INR 1,515.9 crore (₹15,159 million), with Q4 FY25 revenue up 8.5% to INR 370.1 crore (₹3,701 million).

• FY25 EBITDA margin was 32.3%, with Q4 at 31%; PAT margin for FY25 was 16.1%.

• Standalone net profit for FY25 was ₹2,375.85 million; consolidated net profit was ₹2,442.27 million.

• Cash generation from operations was robust at INR 481.2 crore for the year, with a 90% conversion rate from EBITDA.

• ARPOB for FY25 increased 5% to ₹55,853; occupancy rate decreased to 50.5% from 53.9% in FY24.

Outlook and guidance

• 124 beds will move from new to mature category in FY26; 250 new beds to be added, mainly in Bangalore and Rajahmundry.

• Expansion plans include commissioning new hospitals in Rajahmundry, Electronic City, Hennur, and Coimbatore over FY25-27, targeting a total bed capacity of 2,715.

• Pre-Ind AS EBITDA margin guidance remains at a minimum of 25%, with potential to achieve 26-26.5% as in previous years.

• Revenue CAGR expected in the late teens to 20% over the next three years.

• Gurgaon hospitals expected to be operational by late 2027.