Rainbow Children's Medicare (RAINBOW) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw strong revenue and profit growth, with revenue reaching ₹3,981 million and PAT at ₹689 million, supported by operational expansion to 1,935 beds across 19 hospitals in 6 cities.

• IVF services, retail initiatives, and clinical achievements such as the world’s first fetal balloon aortic valvuloplasty and minimally invasive brain tumor surgery highlighted clinical leadership.

• Maintained high standards in pediatric and perinatal care, with multiple JCI and NABH accreditations.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024 were approved, showing continued growth.

• Board approved the Employee Stock Option Scheme 2025 for up to 1,015,000 options and appointed Ms. Shreya Mitra as Company Secretary and Compliance Officer.

Financial highlights

• Q3 FY25 revenue grew 18.5% year-over-year to INR 398 crore (₹3,980.82 million); nine-month revenue rose 20% to INR 1,146 crore (₹11,457.59 million).

• Q3 EBITDA increased 14% YoY to INR 134 crore (₹1,344 million); nine-month EBITDA up 16% to INR 375 crore (₹3,752 million), with Q3 EBITDA margin at 33.8%.

• Q3 PAT grew 10.2% YoY to INR 69 crore (₹689 million); nine-month PAT up 12.2% to INR 188 crore (₹1,877 million).

• Staff costs normalized to INR 50 crore per quarter after seasonal increases; employee benefits and professional fees to doctors rose 13.5% and 22.2% YoY in Q3.

• Basic and diluted EPS for Q3 FY25 were Rs 6.76 (consolidated) and Rs 6.60 (standalone), both higher than the prior year.

Outlook and guidance

• Targeting addition of 1,000 beds by 2030, with 400 in NCR and 600 in regional spokes, and expansion to 2,715 beds by FY27-28.

• New hospitals expected to break even in 12-18 months depending on location.

• ARPP/ARPOB growth expected in the 5%-9% range, driven by maturing centers and complex case mix.

• IPO proceeds utilization continues as planned, with Rs 116.29 million unutilized as of 31 December 2024, temporarily invested in fixed deposits and current accounts.