Rainbow Children's Medicare (RAINBOW) Q1 25/26 earnings summary

Executive summary

• Achieved steady financial performance in a seasonally soft quarter, with consolidated revenue of ₹3,529.29 million in Q1 FY26, up 6.9% year-over-year, and growth driven by new hospitals and advanced pediatric and neonatal services.

• Net profit rose 35.4% year-over-year to ₹538.05 million, with EBITDA up 10.6% to ₹1,036 million and margin at 29.4%.

• Expanded network with a 76% stake acquisition in Prashanthi Hospitals, Warangal, strengthening the urban spoke model in Telangana.

• Clinical highlights include a successful complex bone marrow transplant and a US FDA patent for a pediatric cardiac device.

• Leadership changes included the designation of Dr. Pranathi Subrahmanyam Maddirala as Senior Management Personnel.

Financial highlights

• Revenue from operations grew 6.9% year-over-year to ₹3,529.3 million in Q1 FY26.

• EBITDA increased 11% year-over-year to ₹1,036 million, with a margin of 29.4%.

• Profit after tax rose 35.4% year-over-year to ₹538.05 million.

• Outpatient volumes grew 6%, inpatient volumes by 1%, and deliveries by 2% year-over-year.

• Net cash position stood at INR 735 crores as of June 30, 2025.

Outlook and guidance

• Targeting timely commissioning of Rajahmundry and two Bangalore hospitals within the year, with expansion plans to reach 2,865 beds by FY28.

• Expecting late teens to 20% revenue growth for FY26, supported by 350+ new beds coming online.

• Pune greenfield hospital project to be signed soon, with operations expected in 2.5 years.

• Ongoing evaluation of inorganic opportunities in Northeast and Maharashtra.

• ESOP 2025 approved, granting 140,810 stock options to eligible employees.