Rainbow Children’s Medicare Limited operates a multi-specialty pediatric, obstetrics, and gynecology hospital chain in India. The company offers a wide range of services such as newborn and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care, obstetrics, and gynecology. It is country’s largest pediatric hospital chain with 16 hospitals spread across 6 cities.
Q1 FY26 Earnings Summary (April–June 2025)
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Total Income: ₹372.94 crore, up 5.4% QoQ and 9.0% YoY.
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EBITDA: Not directly reported for Q1 FY26, but implied margin steady given sequential profit growth.
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PAT: ₹53.81 crore, up 5.4% QoQ and up 35.4% YoY.
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EPS: ₹5.30, +6% QoQ and +35.9% YoY.
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Net Margin: Improved to 15% from 12% one year earlier; profit growth outpaced revenue growth due to better operational leverage.
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Q1 revenue met analyst consensus; EPS beat estimates by 16%.
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Recent Acquisition: Completed 76% stake in Prashanthi Medicare Pvt. Ltd for ₹32.6 crore, expanding presence in Andhra Pradesh.
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Management Strengthening: Appointment of Dr. Pranathi Subrahmanyam Maddirala as Senior Management Personnel.
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Shareholder Reward: Final dividend of ₹3 per share for FY25.
Key Management & Strategic Decisions Q1 FY26
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Integration of Acquisitions: New hospital in Andhra Pradesh to deepen reach outside core Hyderabad market.
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Continued Emphasis on Hub-and-Spoke Model: Helps drive occupancy and scale benefits.
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Talent Retention & Incentive Schemes: Grant of employee stock options to align incentives, support growth.
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Operational Focus: Maintaining cost discipline while ramping up new facilities, prioritizing utilization improvement and case-mix optimization.
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Outlook: Management reiterated a targeted 16% annualized revenue growth over next three years, in line with industry growth.
Caveats & Context
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There was a QoQ dip in Q4 due to seasonal occupancy pressure and losses from newly opened/under-ramp units, which is expected to self-correct as these ramp up.
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Full details of Q1 FY26 management commentary will be clearer after the earnings call; current information is based on reported numbers and announced strategic actions.
Q4 FY25 Earnings Summary (January–March 2025)
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Total Income: ₹353.88 crore, up 8.6% year-over-year (YoY) but down 14% quarter-over-quarter (QoQ).
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EBITDA: ₹114.7 crore, +8.7% YoY. Margin improved slightly to 31.0%.
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PAT (Net Profit): ₹51.06 crore, down 5.2% YoY and down 25.9% QoQ.
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EPS: ₹5.00, compared to ₹5.30 in Q4 FY24 and ₹6.80 in Q3 FY25.
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EBITDA Margin: 31% (flat YoY); occupancy declined ~200 bps YoY due to seasonality in paediatric segment. ARPOB (Average Revenue per Operating Bed) rose 7% YoY to ₹58,100 per day.
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Strategic Expansion: The company continued bed expansion—aimed for 1,000 more over FY25–FY28 (780 announced so far); three new units saw reported start-up losses.
Key Management & Strategic Decisions Q4 FY25
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Continued hub-and-spoke expansion model, announcing new centres predominantly in South India to strengthen market leadership.
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Focused on cost discipline, operational efficiency, and leveraging scale, which helped maintain margins despite new unit drag.
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Management noted that the bulk of new bed additions would be ramped up through FY26–28.
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No major cost-cutting measures; priority remained on growth and clinical hiring.
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Reported strong free cash flow (FCF) generation and maintained a healthy balance sheet