In its Q3 FY2026 financial results, Rainbow Children’s Medicare Ltd (NSE: RAINBOW) delivered a measured performance that reflected both steady growth momentum and the realities of operating in a capital-intensive healthcare expansion phase. The unaudited figures for the quarter ended December 31, 2025, highlight an expansion-led revenue trajectory alongside moderated margin performance, underscoring the company’s strategic emphasis on network scaling and operational consolidation.
Revenue and Profit Growth
For Q3 FY26, Rainbow Children’s Medicare reported revenue of ₹4,454.48 million (approximately ₹445.4 crore), marking an 11.9% year-on-year increase over ₹3,980.82 million in Q3 FY25. This solid top-line growth reflects sustained demand across pediatric, obstetrics, and related healthcare services — a segment that has shown resilience despite broader industry pressures.
On the profitability front, profit after tax (PAT) rose 7.2% YoY to ₹738.97 million (approximately ₹73.9 crore). Earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at ₹1,470 million, up 9.4% YoY, albeit with a slight EBITDA margin moderation to around 33.0%. The year-on-year increase in both PAT and EBITDA underlines resilient operating performance, even as incremental cost pressures and integration expenses from recent capacity additions temper margin expansion.
Operational Drivers and Network Expansion
Operationally, RCML’s quarter was notable for its capacity expansion and integration of new hospital assets. During Q3 FY26, the company commissioned a 100-bed hospital in Rajahmundry and a 90-bed facility in Electronic City, Bengaluru. These additions are part of a broader network scaling strategy aimed at deepening penetration in Tier-2 and Tier-1 markets, enhancing service accessibility, and diversifying regional revenue streams.
Capacity metrics further illustrate this growth: total capacity beds increased by approximately 18% YoY to 2,285, while operational beds rose 15% YoY to 1,758. The hospital chain achieved 9% growth in inpatient discharges and an 18% rise in outpatient consultations relative to the prior year, indicating strengthening utilisation trends across its facilities. Deliveries, a key revenue and clinical activity metric, expanded 16% YoY.
However, occupancy rates showed some softness, with occupancy at around 47.19% — lower than the prior year quarter — reflecting the typical ramp-up curve for newly opened facilities and competitive headwinds in select markets.
Strategic Transition and Leadership
A significant strategic development during the quarter was the appointment of Abrarali Dalal as Chief Executive Officer, a leadership decision aimed at steering the company through its transition from expansion-centric growth toward execution excellence and operational optimisation. This shift underscores RCML’s focus on driving consistency in clinical outcomes, enhancing service delivery efficiencies, and strengthening utilisation across its expanded network.
Nine-Month Performance and Outlook
For the nine months ended December 31, 2025, Rainbow Children’s Medicare reported sustained growth across major financial metrics. Revenue reached ₹12,432 million, up 8.5% YoY, while PAT for the period rose approximately 8.3% to ₹2,033 million. EBITDA for the nine-month period expanded 6.5% YoY, reinforcing the underlying stability of earnings amid capex-driven expansion.
Rainbow Children’s Medicare’s Q3 FY26 results reflect a healthcare provider navigating a critical phase of its growth journey. The company’s ability to register double-digit revenue growth, expand its hospital footprint, and deliver profit growth amid margin pressure speaks to the underlying strength of its business model and market positioning. While occupancy levels and margin compression warrant attentive strategic focus, RCML’s expanded scale, diversified service offerings, and leadership transitions suggest a calibrated approach to long-term value creation in India’s burgeoning pediatric and maternal healthcare sector.