Rainbow Children’s Medicare Ltd (NSE: RAINBOW) Q1 2026 Earnings Call dated Jul. 28, 2025
Corporate Participants:
Unidentified Speaker
Vikas Maheshwari — Group Chief Financial Officer
Ramesh Kancharla — Chairman and Managing Director
Analysts:
Unidentified Participant
Rahul Jeewani — Analyst
Damayanti Kerai — Analyst
Amit Agicha — Analyst
Anshul Agrawal — Analyst
Naveen Baid — Analyst
Sumit Gupta — Analyst
Alankar Garude — Analyst
Nitesh Dutt — Analyst
Virti Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Rainbow Children’s Medicare Q1 FY26 earnings conference call hosted by IAFL Capital Services Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Rahul Jiwani from IFL Capital Services Limited. Thank you. And over to you, sir.
Rahul Jeewani — Analyst
Hi. Good morning everyone. This is Rahul from IFL Institutional Equities. I welcome you all to the first quarter earnings conference call of Rainbow Hospitals being hosted by IFL from Rainbow. We have with us today Dr. Ramesh Kanchla, Chairman and Managing Director, Mr. Vikas Maheshwari Group CFO and Mr. Sourav Bandari, Head Investor Relations. Over to you sir for your opening comments.
Ramesh Kancharla — Chairman and Managing Director
Thank you, Rahul. Good morning everyone. Thank you for joining us today. We have entered a new financial year with a continued commitment to our long term vision to deliver high quality pediatric and pyranidal care proper geographies through a scalable, effective and deeply specialized network. Let me start with a few key strategic and operational updates for the quarter. Despite Q1 being seasonally softer, especially in the general pediatric outpatient and as well as inpatient volumes, we have delivered a steady financial performance. This growth was supported by strong momentum in the new hospitals and consistent demand for advanced services like pediatric specialties, multi specialties and quarterly care.
The revenue registered a growth of 7% amounting to 353 crores. The EBITDA increased by 11% to 103.6 crores while CAC registered a growth of 35% to 53.8 crores. The overall occupancy rate for the quarter was 40.2%. The newer hospitals added in the last two years are contributing in line with our expectations. During this quarter we have achieved a significant milestone by entering Warangal, a tri city with a population of 1.1 million with a catchment area of 3 million. Through the friction of a 76% majority stay in Kashanti Hospitals Warangal. This is a strategic move as we expand into Tai2 Cities with access to high quality pediatric care is limited.
Warangal. We now function as a spoke to our Hyderabad hub further strengthening our urban spoke model in Telangana. We are excited about this opportunity and value. It can add to our long term growth let’s talk about projects. Our project pipeline is pretty well intact where we continue to maintain our disciplined execution. Our regional hub hospital in Rajibandi of 100 beds is completed and are waiting for the final permissions to commence operations from the government in Bengaluru. The construction continues at this rate at Electronic City at 90 beds and Enur at 60 beds. Both projects are on track to become operational by end of Q2 of iPhone6 at November2.
The project work for 130 bed hospital is in progress in the National Capital region. The excavation work is progressing quite well at Both sectors. Sector 44 which is for 325 beds and sector 56 for 125 bed capacity. In Gurugram we are in advanced discussions to finalize an asset light built to suit Greenfield Hospital in Pune with 150 bed capacity. This calibrated approach reflects our ambition to scale PET capacity responsibly in existing cities as well as the new geographies. Well, the challenges continue to persist in international business due to higher tighter regulations in markets like Bangladesh, Oman and Sudan.
We are actively monitoring the situation, adapting to our strategies to focus on other countries. Clinically we are very encouraged to see continued growth in the pediatric specialties coronary care including organ transplantation. These services continue to be strong drivers of case mix enhancement and the revenue contribution. We are also pleased to see the steady ramp up in our newer hospitals confirming both scalability of our our model and the operational capability of our teams on the ground. I would like to take a moment to highlight two remarkable achievements that underscore the strength and expertise within the Rainbow Group.
An inspiring patient outcome from our Bengaluru Bone Marrow transplant unit. A 15 year old girl from Iraq with a sickle beta thalassemia, a complex and debilitating condition. Since instant she was going through miserable complications like a sickle cell crisis, avascular necrosis of the hip joint and multiple transfusions. She underwent a life saving bone marrow transplantation with the donor being the sibling. Despite facing a rare serious post transplant complications because of the blood group incompatibility, our team managed these complications with exceptional skill and care resulting in a successful outcome that truly reflects our multidisciplinary approach. In another breakthrough milestone, Dr.
Nageshwarao Koneki, Director of our Pediatric Heart Institute, was granted a US FDA patent for discovering the innovative multifunctional cardiac device named conarmf Occluder. This device is used to close the ventricular septal defects in the bottom of the chambers of heart and several other cardiac conditions. Like aortopulmonary windows and patient ductus osteriosis and other fistulas within the heart. So far it’s been used successfully in about 18,000 patients across 90 countries. These achievements clearly demonstrate that our clinical capabilities and the dedication of our teams reinforcing our position at the forefront of pediatric and perinatal healthcare in India.
Looking ahead, our priorities are very clear ensuring the timely commissioning of the projects of Regimentary and also two spoke hospitals in Bengaluru in this year deepening clinical capabilities by strengthening our center of Excellence, strengthening our sales and marketing function by bringing in experienced leaders and expanding the teams across key markets to deliver sustainable and scalable growth and also to support the future growth through inorganic mode as well as Greenfield and Brownfield opportunities. I want to take this opportunity to thank our medical teams and leadership teams for their dedication and hard work. We are grateful in our grateful to our stakeholders for their continued trust in building this much needed health care for women and children and I am confident of creating a significant value to our shareholders.
With that I now hand over to Group CFO Mr. Vikat Maheshwari to take you through the financial details for the quarter.
Vikas Maheshwari — Group Chief Financial Officer
Thank you sir. A very good morning to all of you and thank you for attending this investors conference call. I am pleased to brief you on financials, performance and key developments of Rainbow hospitals for the first quarter FY 2526 our operating revenue for the quarter is stood at 353 crores reflecting a growth of 7% when compared to a corresponding quarter of the previous financial year. Our EBITDA for the quarter stood at rupees 103.6 crores marking an 11% growth compared to the same period last year. The EBITDA margin for the current quarter is 29.4% which is an improvement of close to 1% from Q1FY25 due to effective cost discipline.
The profit after tax for the quarter is rupees 53.8 crore marking a growth of 35% in comparison to corresponding quarter of the last financial year. I am happy to share that Prashanti Hospital Warangal has been seamlessly integrated with Rainbow Hospitals. All systems including our IT which is his, SAP and HRNS have been integrated to the Rainbow Network in terms of operational performance. Outpatient volumes for the quarter witnessed a growth of 6% while inpatient and the deliveries do grew by 1% and 2% respectively when compared to corresponding period of last year. For the quarter our payer mix continued to remain steady and balanced with close to 52% of the revenue coming from the insurance and the balance 48% coming from the cash patients.
I am pleased to inform that our company balance sheet remains robust with net cash position of 735 crore as of 30th June 2025 and will support our ongoing capital expenditure plan. Given our current cash and anticipated internal accruals in the coming years, we remain confident in our ability to complete all planet capital expenditure through internal accruals without any debt financing. During the quarter the company has invested approximately rupees 41.5 crores in the capital expenditure. I am happy to share that we successfully concluded the AGM on 5th of July 2025 and the dividend to all the eligible shareholders has been credited on the same day.
With these insights I conclude my financial update. I now invite questions and suggestions from the participants. Thank you very much.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue you may press star and two. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Damianti Keria from hsbc. Please go ahead.
Damayanti Kerai
Hi, good morning and thank you for the opportunity. Sir, can you talk a bit more about the newer market where you’re planning to enter? So put Pune and Warangal which you mentioned. So just in terms of you know, the market opportunities, whether we should look at these newer market more similar to what you see in the Hyderabad market or these will be more like the, you know, Chennai or Bangalore market. So a bit more color on that will be helpful.
Ramesh Kancharla
Yeah see the. We have a very clear approach that now while we continue to add beds in Hyderabad Bang and Chennai and Andhra Pradesh we look for the newer geographies. Newer geographies one which is we are already kind of commenced our work in the national capital region though we have a hospital in South Delhi, the managed beds. The NCR is the new geography for us. Another new geography which we are kind of exploring is one is the Northeast, another one is now recently exploring opportunity in Pune. So when you look at the overall of the pediatrics as a children’s hospital and the cities which where I think we can really do well is that wherever there is it and also jobs for young people, that’s where the market is the large opportunity for us to do it which is obviously in NCR and also the Pune in other cities apart From Hyderabad and Bangalore.
We see it as significant opportunity for us to build up in a larger healthcare model for children and also integrating perinatal services within the hospital.
Damayanti Kerai
Okay, so Pune, you said you are in advanced discussion when this discussion will likely result in concluding the project.
Ramesh Kancharla
Yeah, we have agreed commercials and all those things before signing. I think the almost a legal is concluded and I think we’re just going to go ahead very in a couple of weeks time to do the signing.
Damayanti Kerai
Okay. So this year itself most likely you’ll see the Pune project to go ahead.
Ramesh Kancharla
Yeah, it would take about two and a half years time to commence the operations.
Damayanti Kerai
My next question is on your the newer hospital where you mentioned pickup is broadly in line with expectation. So just quickly on Sarjapur and Annanagar if you can share whether these are nearing cost break even or it will take some more time.
Ramesh Kancharla
Sajapur is breakeven and another is close to it. Now it probably take six months time during this current season. We should do it.
Damayanti Kerai
Okay, and my last question is in the previous call I guess you mentioned ARPP will be the better metric to look at the operational performance but you haven’t shared it. Maybe if you can share that on a, you know, regular basis in your presentation that will be helpful. When you mentioned ARPO might not be the right metrics to really look at your business. But for this quarter if you can just see like if you can just share how things have moved on moved in terms of RPP metrics.
Vikas Maheshwari
Yeah, because mentioned this side actually it is a derivative. So you know RPOB multiplied by allos if you do probably you will get it. But this is a good suggestion. We will publish the ARPP now going. Forward we’ll do this. So ARPP or year over year basis has you know increased by roughly 3%. So the trajectory which we have told you know the ASPP which is on the increasing trend and then we have seen 6 to 7% growth over a period of time. I think we are on the same trajectory one or two quarters here and there but the trajectory should be the same.
Damayanti Kerai
So broadly 6 to 7% growth is a normal range. Maybe the 3% number which you mentioned for 1Q is because this is a seasonally low quarter.
Vikas Maheshwari
Yeah, yeah, yeah. We can attribute this to that.
Damayanti Kerai
Okay. Okay, thank you.
Vikas Maheshwari
Thank you.
Ramesh Kancharla
Thank you.
operator
Thank you. The next question is from the line of Amit Agicha from edgy Hawa. Please go ahead.
Amit Agicha
Yeah. Good morning. Am I audible?
operator
eYes sir. You’re audibl
Amit Agicha
Thank you for the opportunity. Good morning. My question to Dr. Engagement. Could you elaborate on the retention strategy for full time doctors especially in tier 2 cities and what percentage of your doctors are on retailer model versus revenue share like the basic criteria with such a high training output like are you able to absorb trained doctors into your system effectively?
Ramesh Kancharla
Yes. So we’ve been actually one of the main thing for us is our doctor engagement model. So we look at the two different kind of doctors in the pediatric scenario you don’t see many of the style doctors which we normally go after and those things we look at the, the qualified and skill set doctors with skill set. So invest on them the first two, three years time they will be retainers. Once kind of they start doing very well they will get a variable fee. That’s how we’ve been operating and across all the geographies so it’s been a pretty stable and successful.
So retention is I think once the doctors are settled down, start doing very well and making their variable feeders they will continue to kind of be there because one of the reasons is that while stickable to doctors our model is that now so it’s a medical hospital, it’s more of service delivery. Your doctor requires much more of support from the hospitals and other colleague systems. So therefore it’s not an individual driving it, it’s combined a team is driving it. Which is why the stickiness, stickiness of doctors to rainbow model is very good. The more institutional model.
Amit Agicha
Percentage wise can you give like retainer model versus revenue share?
Ramesh Kancharla
Sorry? Oh I think majority of people. Majority of people. This is why I’m saying they’re all in the kind of various stages as a hospital is maturing. Then we’ll put them on to the kind of a revenue share model. So that makes them happy in growing both clinically as well as financially. So for example most of Hyderabad doctors are revenue shared model now and Bangalore also significantly under revenue shared model. And Chennai is still on the retainer model because it’s still an early phase for them. So this is how it works.
Amit Agicha
Thank you sir. And all this for the future.
Vikas Maheshwari
Thank you.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press participants and one on their touchstone telephone. The next question is from the line of Anshul Agarwal from mk. Please go ahead. The next question is from the line of Anshul Agarwal. Please go ahead sir.
Anshul Agrawal
Hi, good morning. Thank you for the opportunity. Hope I’m audible?
Vikas Maheshwari
Yes Anshul.
operator
Yes sir. You’re audible.
Anshul Agrawal
Great. So my first question is on the mature hospitals. Any comment on why volume growth has been volumes has been muted for this portfolio.
Ramesh Kancharla
Yeah. Anshul. So we have been. We have seen this in the Last quarter also Q4 and Q1 definitely. They are kind of both seasonally quite kind of muted the current year. I mean I don’t see it in detail in depth. I don’t see any specific reasons for this. I think it’s just generally a kind of a. It’s a very healthy period. What we have witnessed and what are the patients are coming. They’re only coming for a kind of vaccinations or some specialty care. It’s more of nutritional rises. So there’s no kind of a disease. Something significant for last four, five months, five, six months time.
That’s what we witnessed. The volumes wise when you look at it, the pediatric volumes significantly are significant for the. For the occupancies. Which is why you see the kind of the occupancies are platoon or some kind of some degrowth compared to the year on year side. So I’m sure once these are all things which kind of which are beyond our control. And I don’t see any reasons particularly for the degrowth for any other reasons like you know, cannibalism or competition or all those things. So we’re pretty confident that we come back. But once kind of things start settling up and operating side.
Absolutely. We are on top of the things.
Anshul Agrawal
Sure. A follow up on this, sir. So our surgical mix would have actually deteriorated in the current quarter. And so what would explain the jump in RPOBS or RPAPs given that surgical mix would have actually reduced.
Vikas Maheshwari
Let me add here till doctor comes here. See in the case of matured hospital overall the revenue grew by 2%. Okay. What has come down is the seasonal low value which is high number of the footfall etc. Those have been not there. So our critical care that continues to be remain robust. That is why you have seen you know once the low ticket pediatrics are not there. So high quality business remain intact. That had grew. That is why we are seeing the RPOP growth basically. Or if you look at ARPP also is grew. Right. So that remains constant. So overall revenue grew by 2%. The only thing which was that seasonally which was you know icing on the cape. It should have been. That is what is missing.
Ramesh Kancharla
No, the surgical mix function I think it’s not lower. I think surgical mix was pretty good actually last four, five months time. So kind of our surgical numbers are pretty good. So that’s one of the reasons to kind of have a lower alas because most of the surgeries are done for children are minimal access surgery. So that you see it’s two, three important things. Pediatric specialties and coronary care and pediatric surgical. These are the ones which reduces the ALRs and gives you better R part. So in the absence of a seasonal business obviously that’s what you see of 13% growth in our part.
Anshul Agrawal
Got it. So there have been no price hikes in the insurance compartment or cash at all. This is purely.
Ramesh Kancharla
For this year. Not yet. We are expecting these things to close probably at least for the Hyderabad and Bangalore and Chennai. We’re expecting this to happen sometime this year, probably next couple of months time.
Anshul Agrawal
Got it sir. And any update on the IVF business vertical? How is it faring? Have we added any have we added the IVF vertical in any newer hospital?
Ramesh Kancharla
No, I think the same. We have worked of 12 centers. Most of them are within our main hospitals. The growth is pretty impressive and we are probably kind of heading towards kind of doing 2,000 cycles by the end of the year and our revenue grow year on year by 50%. So that’s pretty impressive.
Anshul Agrawal
Got it. So just one last question. We’ll be maintaining our mid teens revenue guidance for the next couple of years. Or. We see any upward what do you call plans for this given the fact that we’re adding hospital beds aggressively.
Ramesh Kancharla
I think we are adding beds now because we just done acquisition and also we kind of almost 250 beds in pipeline to come into operations in the next two to three months time. So these almost 250 plus 100350 beds are going to be added and also kind of possibility of some acquisitions and they’re all around. So there’s enough number of bets are going to be added this year and we would expect our kind of that’s for the guidance which we have done about I mean late teens to 20% is the growth which we are anticipating.
So still three more quarters are there. I think now we are put pretty positive.
Anshul Agrawal
That’s it from my side. Thank you so much.
Ramesh Kancharla
Thank you.
operator
Thank you. The next question is from the line of Rahul Jivani from IFL Capital Services Ltd. Please go ahead sir.
Rahul Jeewani
Yes sir. On this Pune Greenfield Hospital which we have let’s say focused on now what led to you deciding Pune as a market within the West India market. So can you talk about in terms of the market potential within Pune and you choosing Pune for your west India foray.
Ramesh Kancharla
So Pune for the it’s a geographically Pune adds to Kind of extension of Hyderabad number one towards the west. And also you guys got a good draining and catchment areas Pune and we do get patients right from Sholapur and also the Palbani districts and those things. So this will become a kind of a natural extension of a Deccan plateau. So that’s. And also it is a Pune is young people’s, you know, city. So there are a lot of it itself is there significantly the significant insurance penetration is there and also other things though there is a competition there in a maternity site but when there is a kind of a lot of young population maternity care is there and definitely you require the advanced pediatric capabilities also ICF Pune as a benefit as a long term good addition to our the Rainbow 40 that gives you an opportunity to do a small hub and spoke as well because it is a fairly large city and also expanding pretty well.
Rahul Jeewani
Sure sir. And sir, what kind of a capex would we be incurring for this 150 bed greenfield hospital?
Ramesh Kancharla
So the, the it’s going to be built a greenfield hospital and the base building will be given to and I think basis on what we have agreed with them is probably about I mean somewhere it will be well under 1 crore. But still I’m yet to kind of clearly see that what the cost per bed is going to be. I would expect it to be somewhere around 80 lakhs per weight.
Rahul Jeewani
Okay, so largely in line with what we have done for our asset light hospitals previously.
Ramesh Kancharla
Absolutely.
Rahul Jeewani
Yeah sure sir. And second question on while the IP volumes were impacted because of seasonality, what we see is that the delivery volumes were also muted this quarter. So a 2% yoy decline. So what led to let’s say this muted or sluggishness in terms of the delivery volumes?
Ramesh Kancharla
We’re not really sure about it. We’ve been actually looking at it all the data and various things. I mean sometimes what happens is your previous year waiting times corresponds to the kind of deliveries also that’s one of the things and also what we have seen is that when you look at the other peer groups for example in Hyderabad, so there’s a large competitor the two groups which has maximum deliveries. One is Rainbow and Fernandez. So when you look at them they are also kind of a slightly muted about 2,3% mutated overall in the last quarter.
So there was some slump in the deliveries even in we do kind of seen in Bangalore also the similar phenomena on Chennai as follows. So I think that there are no strong reasons it may be a kind of whatever it is, you know, for Wedding seasons and correspondingly those things just been a kind of one of the you know, those situations that I don’t see any particular reasons that the drop in deliveries is because of any significant factor.
Rahul Jeewani
Sure sir. Sure sir. And this let’s say what this muted growth in delivery, was it across clusters or was specific to certain clusters?
Ramesh Kancharla
No, we have seen this in clear in the larger hospital which obviously they’re more competition around and the micro market hospitals which have been done in the last two, three years time, they are fairly good because the new hospitals their growth option is pretty good. So it’s nearly seen mostly in areas where there is a your hospitals are there in the competitive zones and those things. But everybody takes bit of share and also that deliveries is kind of no one is doing a big numbers. So but having said that we were there in this difficult busy season.
I mean this kind of these parts of the cities across in three cities. But we have not witnessed this particular phenomena in the past. We are exploring more deep into that and see that you know, how do you build our deliveries and volumes? Maybe I think we need to kind of get on not more marketing and other initiatives to kind of include in the population and also drive conceptually about our focus on natural birthing and those things. We need to reinvent ourselves to get back into the double east coast.
Rahul Jeewani
Sure, sir. And sir, on the inorganic opportunity at least is what you are evaluating and let’s say with an entry into the Pune market, would you be evaluating inorganic opportunities in other let’s say tier 2, tier 3 markets in Maharashtra as well?
Ramesh Kancharla
Well, I think if there are any suitable which actually for us to do such things now I’m sure we would look at it, I mean suitable in a sense for us whether these hospitals are built with quality and also what accreditations and also got a long term vision where we can build a scale and philosophy in those hospitals. Certainly.
Rahul Jeewani
Sure sir, answer. Can you update us on the opportunity which you were evaluating in Northeast?
Ramesh Kancharla
Yeah, we will probably come back to you very soon on that. You know, give you more details on that.
Rahul Jeewani
Okay, sure sir. And sir, just one request from me. Given that our business is slightly seasonal in nature and you talk about the fact that the general pediatrics business is what was impacted and tertiary and quarternary care you continue to see healthy growth. So if you can going forward split the business in terms of these different segmentals. So that will help us to better track the operating metrics in terms of how some of these dynamics are playing. So yeah request if you can share. That Data going forward.
Ramesh Kancharla
See Rahul, one of the problems with easy is that the children’s healthcare is a very medical business. And also we work in teams. Right. And also we work the child gets admitted in one department, gets different gets you know across to two other departments. It’s very difficult to kind of segmentalize the departmental wise and those things or most of them come to us as a sick child. We only discover that what the child has got a problem and also deposit them into particular particular specialty or what intensive care specialty problem on those things. It is actually pretty complex actually dividing to show that the segmental businesses of pediatric business.
So I mean let’s see. We’ll try and I’m not very sure how we can present it meaningfully.
Rahul Jeewani
Sure sir. If not that way maybe the split of the business between seasonal and non seasonal. Obviously there also you would have to take your judgment. But yeah, even that will be helpful. So thank you. So I will join back with you.
Ramesh Kancharla
Sure. Thank you. Thanks.
operator
Thank you. The next question is from the line of Naveen Baid from Nuama Asset Management. Please go ahead.
Naveen Baid
I’m not sure if this has been answered before but if I look at your matured hospitals despite poor inpatient volume what kind of explains the sharp rise in rpod. Especially in the mature hospitals what happens? Is it just a mix as Rahul was referring to?
Ramesh Kancharla
Yeah, what happens in the Q4 and especially in Q1? So generally it’s a holiday season, right? Most of the people go on holidays out of countries. The some cities like Bangalore and Hyderabad. IT zones get vacated by 40 to 50%. But what remains intact is that number the pediatric surgeries, pediatric surgeries or specialist is pediatric surgeries like urologists or neurosurgeries or whether it is, you know, enthroges. They all get done in the summer season because there is a preferred time for the parents to come and get the surgery started. So we do put large volumes of surgical work in these periods because people have done condensed to get them done in the holiday season and also healthy season.
So these are two things which actually spikes your surgical numbers. And along with the surgical numbers same time all the other surgical things also cardiac also goes at that time. Even the people prefer to do more transplants and other work also their elective ones during this season because it’s kind of quite a season less infection is infectious environment. So people want to do those things. So generally in the Q1 you do high quality business the lower volumes. But case mix up is much more superior. Which is why you See, our costs are definitely higher.
Naveen Baid
Just one more question. So you have a 800 bit edition. Kind of a pipeline over the next. Three years, how much of that is. Going to be on dash lake model?
Ramesh Kancharla
Other than 450 beds which are going to be in Gurgaon, at least 50% of satellite.
Naveen Baid
Okay, thank you.
operator
Thank you. The next question is from the line of Sumit Gupta from Senkam. Please go ahead.
Sumit Gupta
Hi, good morning. Thank you for the opportunity. I just wanted to know is there any better drag due to the new facilities this quarter?
Vikas Maheshwari
Sorry, your voice was not very clear.
Sumit Gupta
Hello, I’m audible now.
Vikas Maheshwari
Yes.
Sumit Gupta
Yeah. So was there any EBITDA track due to the new facilities in this quarter?
Vikas Maheshwari
No. So Sumit, we have not opened any facility in last 12 months. Right. What were the 3 facilities we have opened? It was in the quarter first, FY25 prior to that. So that drag has come down for sure. So that is what is the positively impacting also.
Sumit Gupta
Right. And with respect to the IVF like it contributes around 3%.
Vikas Maheshwari
It has gone to. Yeah, 3.2% type. Yeah.
Sumit Gupta
Okay. And just one clarity on ARPP average revenue per patient. So you are referring 3% for on a QOQ basis.
Vikas Maheshwari
Year on year basis.
Sumit Gupta
Okay, so just want to get clarification. So like. So like with respect to my discovery of nine basically with this. So just want to understand
Vikas Maheshwari
sounding of. Error because this I lost number and.
Sumit Gupta
Okay, understood.
Vikas Maheshwari
I lost maybe 20 rounded off there. So IP RPP is 3% increase here on your basis and OP is roughly 8%. So you know the 3, 3 and a half percent it should be. What is the on the fully basis.
Sumit Gupta
Okay, so for let’s say FY26 year end, FY27, how much alos should we expect? Around 2.65. So nearly this level or what?
Vikas Maheshwari
Yeah, we are very stable. RUB of 2.6 to 2.7548. I think in this range it should be the alloc prediction is very difficult job.
Sumit Gupta
Right. Yeah, I understand. Is that like like what can be the like minimum which you are like.
Vikas Maheshwari
That should be the tight range you can take.
Sumit Gupta
Perfect, sir. Thank you.
Vikas Maheshwari
Thank you.
operator
Thank you. The next question is from the line of Alankar Garudi from Kotak Institutional Equity. Before that, a reminder to all participants. Anyone who wishes to ask a question may press star and one on that touchstone telephone, please go ahead.
Alankar Garude
Hi, good morning everyone. Sir, can you help us understand the seasonality pattern seen by Rainbow over a slightly longer time frame, say over the past 10, 15 years and particularly Hyderabad the reason for this question is we’ve seen fair amount of ups and downs over the past few years. For instance, FY23 was a strong season, then 24 was a bit slow. First half. CY25 again has been a bit weak on the pediatric side. So the question is, prior to FY23, were we seeing similar kind of fluctuations across alternate years?
Ramesh Kancharla
Oh, we do see this kind of, you know, near or year end off of this kind of seasons basically healthy spells. If I go back and see the last 20 years time of experience, we have seen that at least twice in the past. At least once in five, six years time you will see that kind of. There is a fair bit of slump in, you know, overall. Then it kicks in and you know, come back again. But we have to see also one thing as things are actually moving towards different trends of the pediatrics. Unlike in the past, you don’t see any more diarrheas coming in the summer.
You don’t see any of the respiratory infections because of flu vaccines being done. Overall hygiene and nutrition is better and those things. The demographic of pediatric healthcare is changing. So that is one of the reasons what we are trying to do is it’s not. We are not a mom and pop source of the pediatrics. We want to build more strength in the pediatrics to see that we address the particular needs of the children and the more specialty base to drive more specialty base and more of kind of be on the side of deliver significant capability for disease pattern rather than just depending on the seasonal factors.
But what happens season? So far it’s been kind of if you have a three, four to five months of season when the patients need admissions. So when you don’t have a bed capacity then it’s not going to be a very welcome, it’s not going to be very happy scenario. So this is a very emotional healthcare model. So therefore you need to have a capacity which is a. Which can accommodate address children to treat when they require it. So rest of the times, you know, what do you do with that? So that’s another question about it.
So therefore moving forward to see. To do more of a significant. Build a significant capability to do the specialty work. That’s what I think what Rainbow would be aiming and looking at in future. So therefore the small seasonal ups and downs are not going to be a big matter to you. So in an evolving story of children’s health care in this country, it is not what it was 20 years ago. It was definitely not easy 10 years ago. But still, I mean we still see a significant seasonal impact. It’s too early to conclude because of six months of off season.
But it’s a long way for us to go to look at our medical businesses, not only children’s hospital, even adult hospital, to see how the seasonal play has been. Even you cover all the large health care, you know how much seasonal impact is there been there in even multispecialties for the last four, five years time. There’s been a significant seasonal impact for them also positively impacting revenues and profitability, revenues and growth. But we love to see that how things going to shape next three, four years time. It is something for us to reflect on and understand reposition our business model for future.
Alankar Garude
Got it sir. So maybe a couple of follow ups here. The first one is pharma companies have been commenting about seeing some pickup in the season over the past few weeks. Have we also seen some increase in the disease burden over the past few weeks?
Ramesh Kancharla
Yeah, there’s definitely there is some increase in there and the shift of the seasons. That’s also another thing which we do see unlike in the past, just because of a few rains is not going to of the season. So there need to be the change in the environment which makes people sick because of other factors of the wild, breeding or other infections and those things. So the of course when there’s a some monsoon time you will definitely see some pickup of the illnesses. And also we have become more resilient also unlike before, just because of runny nose, because of fever of one day people are not running to hospitals.
So they know how to take care of themselves by using simple medicines.
Alankar Garude
Understood. And secondly sir, broadly from one third currently offer revenues coming from critical care or beds being allocated for critical care. Very broadly say eight, 10 years back, what would that number have been?
Ramesh Kancharla
I think the ratios and proportions again it varies quarter season to season and largely it’s been rather the same. Maybe I think that’s probably a. I can’t put a really number or percentage how much it used to be difference between them. We had seasons like huge signs of food seasons where a lot of intensive care were full across the board. And we had seasons of dengue for nearly seven, eight years time. That again the season which persisted for long, long periods in the past. So those are the things accepting those situations. Otherwise you know, it’s been a kind of intensive care season is over four, five, six months time.
Rest of the times intensive care get filled because of the rare disorders, because of specialty problems like liver failures and renal failures or multi organ Dysfunctions or various other formats. But obviously you know the we are seeing a fairly healthy periods of time for the last probably about near time in the last year of our seasons. It was not so heavy. It was not that busy as a kind of compared to what it used to be. Two years of post Covid. Two years of post Covid was exceptional which is everyone felt sick disproportionately and also needing medications and needing admissions or needing intensive care services.
That’s not there anymore I think. Yeah, I think we deserve a benefit of healthy life. So I think that’s what is seeing in the last one year time.
Alankar Garude
Got it sir. And one final question on Tamil Nadu. Can the margins of the mature hospitals in Tamil Nadu reach say the margin levels of the mature hospitals in Bangalore over the next two to three years?
Ramesh Kancharla
I’m sure it will reach to Bangalore probably in about three to four years to hours and it will pick up.
Alankar Garude
Got it sir. That’s it from my side. Thank you and all the best.
Damayanti Kerai
Thank you.
operator
Thank you. Our next follow up question is from the line from hsbc. Please go ahead.
Damayanti Kerai
Hi, thank you for the opportunity again. Just wanted some clarity on Warangal unit. So it’s not part of 1Q numbers, right? It will be reflecting from 2Q onwards.
Vikas Maheshwari
Yes, that’s correct. So we have closed the transition on 2nd of July. So it will reflect from this quarter September quarter.
Damayanti Kerai
Okay. And can you also tell like what is the maturity profile whether it will be part of the mature hospital cluster or new hospitals and of the hundred beds, how many are operational currently?
Vikas Maheshwari
It is a new hospital, it will be a part of new hospital only.
Damayanti Kerai
Okay.
Vikas Maheshwari
Because we have to put up a lot of other work which they are not doing right now. So it will be a new hospital profile only. And right now they are occupied, something like that. You know, between 30 to 35 beds. And obviously as we are adding the doctors and going forward as we add a few clinical specialities, the occupancies will grow over a period of time.
Damayanti Kerai
Okay, so say like over next few years it has potential to move up to the corporate level occupancy like 50% or so or it could be better.
Vikas Maheshwari
I think we should keep the average. Where we should be.
Damayanti Kerai
Okay, thank you.
operator
Thank you. The next question is from the line of Nitesh Dutt from Berman Capital. Please go ahead.
Nitesh Dutt
Hi sir, thanks for the opportunity. I had a question on other income. This quarter it has increased by 33% quarter on quarter. Is there a one off component? Because basis the 735 crore cash. If I calculate basis the cash yield. It should have been slightly lower.
Vikas Maheshwari
No? So the treasury income was slightly better because of this debt funds where we have taken the positioning of interest rates coming down probably that got captured and you have seen this MTM gain on that. But yes, going forward I think that type of performance cannot be there. Understood. And so second question on the mature hospitals occupancy there’s been quite a fall 11% yui how do you see it given that in the past we have cycled weather patterns, rainfall etc. As reasons for the fluctuation. So was it one of the reasons? Or does higher competitive intensity or some degree of cannibalization were also the factors for the reduced occupancy? So occupancy for the matured hospital we have discussed, right? I think more or less the reason is of this pediatric season which is, you know, lagging behind.
So that was the one reason. Otherwise our tertiary quaternary care business remains very strong. That is why you are seeing both the occupancy dropped but overall matured units revenue grew by 2%. That shows the resilience of our business model of quaternary and tertiary care.
Nitesh Dutt
Understood. Thank you.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press the AND one on their touchstone telephone. Our next question is from the line of VTI Shah from Systematics Please go ahead. VTI ma’, am, please go ahead.
Virti Shah
So my question is was the RPAP improvement this quarter a one off thing or we can expect this to attend portfolio.
Vikas Maheshwari
So as we know in the previous questions we have answered what we should be just based on our ARPP because this alloc is one factor which you know little bit impacts on the ARPA plus the case mix. In this case the low ticket pediatrics business was slightly muted. That is why we are seeing you know overall IP numbers or the occupancy is lower but the tertiary and the quaternary business remained strong and that is why you have seen this R POP is strong but if you look at the complete ARPP you know it grew by at around 4 and a half percent including both IPOP income roughly grew.
By 4 and a half percent. So then should be the right matrix to judge.
Virti Shah
Thank you.
Vikas Maheshwari
Thank you.
operator
Thank you. Our next follow up question is from the line of Rahul Jivani from IIFL Capital Services Ltd. Please go ahead.
Rahul Jeewani
Yeah, thanks. Sir. Sir, can you also talk about the competitive intensity across your four markets of Hyderabad, Bangalore and Chennai. You pointed that the delivery volumes were muted in some of the larger hub hospitals because of some higher competitive intensity. So just in terms of how you are looking at the competitive scenario across your key markets.
Ramesh Kancharla
Yeah. I mean see Bharati is always competitive market across the. You know Bangalore’s intensity is very peak. And also Hyderabad has also been actually pretty competitive on the last four in the five six years time. So we’ve been sailing pretty well in the competitive landscape. But these the deliveries kind of staying plateau is I don’t think is any because of competition as per se. But we need to definitely have a kind of a suppose some of the VC deliveries. So we are a full time doctor engagement model and we focus on clinical excellence. We focus on natural birth.
We focus on certain things the VC deliveries whatever has been coming kind of they are the ones who can get fluctuated to other hospitals because of competition. See anyway we are not. We are not organization depend on the VC deliveries. We depend on the deliveries which comes to us this month. Therefore that’s why I say we need to kind of have a little more focus on I think greater degree of inclusivity and also our strategies in the marketing those things. I’m sure we’ll pull it back. I see is a big pro in Hyderabad. What we have seen in the last almost 15, 18 years time there are two organizations which are pineapple does large numbers and the both of us we never feel each other competitive.
And they have their strength. We have our strength. That’s why we’ve been kind of playing the game with a greater respect to each other. Of course there are a lot of boutique senses have come. I think none of them have done really significantly also in Hyderabad. And of course they have kind of a short term there may be some VC deliveries may get shifted but our core whatever the reputation which these two organizations enjoy is very different. We need to reposition ourselves. When I looked at other large organization which compete with us they also big one little bit.
I think there are some factors maybe whatever it is. That’s why I was asking our business analysts to see that now what were the number of weddings for the previous year? Are there any other reasons? Are these uncertain socioeconomics uncertain job opportunities and various other things are creating some degree of undecent people are not planning for pregnancy. We just need to see how what are the other reasons for that. I don’t think anyone championed it to do a big numbers also when we looked at that data also. So therefore kind of we’re not too concerned or worry about it.
So we’ll Come back probably end of the year we will know where we are. What is the growth rate we expected. This is probably was one of the quarters we’ve seen the degrowth.
Rahul Jeewani
Sure sir. So whatever competition is there is on the birthing market on your core let’s say tertiary and quaternary care business. You don’t see much of a competitive side there.
Vikas Maheshwari
No.
Rahul Jeewani
Answer. Just a clarification. What is the VC delivery?
Ramesh Kancharla
Oh, visiting them sometimes.
Rahul Jeewani
Oh, okay. Okay. Okay. Sure sir. Okay. Thank you sir. Yeah.
Ramesh Kancharla
Thank you.
operator
Thank you. Our next question is from the line of Adya Singh from Fin Dock. Please go ahead. Hello sir.
Unidentified Participant
To you is about the upcoming hospitals in Gurgram. When do you expect them to turn operation? What’s the state of that?
Ramesh Kancharla
We are expecting about September 27th calendar year. That’s where the time which we set our calendars. I think our product works on these kind of. I get the inputs to from the my project team is they say that they would complete by June, July and maybe set for September. October, September operations that water is the kind of guidance to me from the projects team.
operator
Thank you ladies and gentlemen. This was the last question for today. I now hand the conference over to the management for closing comments. Over to you sir.
Vikas Maheshwari
Yeah. Thank you all the people who have joined the call and for insightful questions. Thank you very much for that. Look forward to all of you attending our second quarter’s results. Thank you very much.
operator
Thank you on behalf of IIFL Capital Services limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.
Vikas Maheshwari
Thank you.
Ramesh Kancharla
Thanks a lot.