Rainbow Children's Medicare (RAINBOW) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue from operations was ₹5,480.23 Mn, up 23.2% YoY; PAT was ₹838.93 Mn, up 10.9%, and post-Ind AS 116 EBITDA rose 14.2% to ₹1,699.8 Mn.

• H1 FY27 revenue from operations increased 27.6% to ₹10,180.08 Mn; PAT rose 13.1% to ₹1,464.33 Mn and post-Ind AS 116 EBITDA grew 20.6% to ₹3,046.3 Mn.

• The network had 26 hospitals across 11 cities and 2,685 current-capacity beds; Nellore and Guntur began operations in September 2026.

Financial highlights

• Q2 total income was ₹5,561.49 Mn, up 22.8% YoY; total expenses rose 26.8% to ₹4,446.45 Mn and PBT increased 8.9% to ₹1,115.04 Mn.

• Q2 pre-Ind AS 116 EBITDA excluding other income was ₹1,424.3 Mn, up 13.5% YoY; H1 was ₹2,506.5 Mn, up 21.2%.

• Q2 EBITDA margin was 31.0% versus 33.5% YoY, and PAT margin was 15.3% versus 17.0%; H1 EBITDA margin was 29.9% versus 31.7%.

• H1 total expenses increased 29.3% to ₹8,433.9 Mn, including doctor fees up 33.3% to ₹2,641.2 Mn and employee benefits expense up 28.6% to ₹1,420.3 Mn.

Outlook and guidance

• Management framed revenue growth expectations in the high teens; the pre-Ind AS EBITDA margin target remains 25%-26%, with temporary 0.5%-1% compression possible as new capacity ramps up.

• Capacity plans target 3,875 beds by FY30 and 5,000+ by FY32, with 1,190 identified additions through FY30 and ~1,125 further additions under discussion for FY28-FY32.

• Planned projects include Gurugram, Indore, Pune, Seegehalli, Nellore Phase 2, Coimbatore, Amaravati and Mumbai; Mumbai is likely to commence by Q1 FY28 and Coimbatore in H2 FY27-28.

• Most new hospitals are expected to reach EBITDA break-even in under two years; Delhi NCR hospitals are targeted to break even within two years.

• Mature hospitals target ~60% occupancy, with margins expected to remain similar or improve slightly; ARPOB growth guidance is 7%-8%.