Rainbow Children's Medicare (RAINBOW) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue grew 6.5% year-over-year to ₹4,448 million, with H1 FY26 revenue at ₹7,977 million, up 7%.

• Q2 FY26 PAT was ₹756 million, down 4% year-over-year, but H1 FY26 PAT rose 9% to ₹1,294 million.

• Q2 FY26 EBITDA was ₹1,489 million (33.5% margin); H1 FY26 EBITDA at ₹2,525 million (31.7% margin).

• Integration of Prashanthi (Warangal) and Pratiksha (Guwahati) hospitals completed, expanding network capacity.

• Appointment of Mr. Abrarali Dalal as Group CEO effective January 2026 to drive the next growth phase.

Financial highlights

• Q2 FY26 revenue: ₹4,448 million; H1 FY26 revenue: ₹7,977 million.

• Q2 FY26 EBITDA: ₹1,489 million (33.5% margin); H1 FY26 EBITDA: ₹2,525 million (31.7% margin).

• Q2 FY26 PAT: ₹756 million, down 4% YoY; H1 FY26 PAT: ₹1,294 million, up 9%.

• ARPOB in Q2 FY26 increased 15% YoY to ₹57,396; occupancy rate at 52%.

• Outpatient volumes up 5.7% and deliveries up 6.8% year-over-year.

Outlook and guidance

• Targeting 20% CAGR revenue growth over the next 2-3 years, including M&A.

• Margin expansion anticipated as new capacities scale up; base EBITDA margin guided at 25%.

• Expansion plans target 3,165 beds by FY29, with new hospitals in Pune, Coimbatore, and Gurugram.

• International business expected to recover to pre-disruption levels, aiming for 10% of topline in five years.

• Focus on replicating the hub-and-spoke model in Chennai and NCR, and expanding into tier-2 cities in Southern India.