Rainbow Children's Medicare (RAINBOW) Q3 25/26 earnings summary

Executive summary

• Achieved 12% year-over-year revenue growth in Q3 FY26, reaching ₹4,454 million, with PAT up 7% to ₹739 million and EBITDA up 9% to ₹1,470 million.

• Nine-month FY26 revenue grew 9% to ₹12,432 million, with PAT up 8% and EBITDA up 6%.

• Operational expansion included new hospitals in Warangal, Guwahati, and Rajahmundry, increasing total bed capacity to 2,375 across 23 hospitals in 9 cities.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2025 were reviewed and approved by the Board on 28 January 2026.

• Statutory auditors issued unmodified (clean) limited review reports for both standalone and consolidated results.

Financial highlights

• Q3 FY26 consolidated revenue: ₹4,454.48 million (+12% YoY); PAT: ₹738.97 million (+7% YoY); EBITDA: ₹1,470 million (+9% YoY).

• Nine-month FY26 consolidated revenue: ₹12,431.76 million (+9% YoY); PAT: ₹2,033.26 million (+8% YoY); EBITDA: ₹3,995 million (+6% YoY).

• Q3 EBITDA margin: 33.0%; PAT margin: 16.6%. 9M EBITDA margin: 32.1%; PAT margin: 16.4%.

• ARPOB for Q3 FY26: ₹58,362 (+9% YoY); 9M FY26: ₹59,324 (+12% YoY).

• Cash position of INR 579 crore as of Dec 31, 2025, supporting ongoing capex and M&A.

Outlook and guidance

• Expansion plans include new hospitals in Hennur, Coimbatore, Gurugram, and Pune, targeting a total bed capacity of 3,165 by FY28-29.

• Targeting occupancy improvement to 55-60% in the coming year through strengthened sales, marketing, and digital initiatives.

• Expecting most new units to be EBITDA positive within a year; Rajahmundry already near breakeven.

• Maintaining medium-term revenue CAGR guidance of 18%.

• The company continues to monitor regulatory changes, including new labour codes, and will adjust accounting as needed.