Rainbow Children's Medicare (RAINBOW) Q4 24/25 earnings summary

Executive summary

• FY25 revenue grew 17% year-over-year to ₹15,159 million, with EBITDA up 14% and PAT up 12%; Q4 saw modest performance due to seasonality, but strong results in pediatric surgery, multi-specialty care, and obstetrics.

• Operates 19 hospitals and 5 clinics across 6 cities with 1,935 beds, using a hub-and-spoke model for scalable care delivery.

• Multiple accolades received, including Great Place to Work, Best Place to Work for Women, and Best Pediatric and Women's Hospital by Newsweek.

• Audited standalone and consolidated financial results for FY25 were approved with an unmodified opinion; 27th AGM scheduled for July 5, 2025.

• International business revenue declined to INR 30.7 crore from INR 44 crore year-over-year due to reduced healthcare permits in key countries.

Financial highlights

• Q4 FY25 revenue grew 9% year-over-year to ₹3,701 million; full-year revenue up 17% to ₹15,159 million; EBITDA up 14% to ₹4,899 million; PAT up 12% to ₹2,442.27 million.

• Q4 EBITDA margin was 31%, full-year EBITDA margin at 32.3%; PAT margin for FY25 was 16.1%.

• Cash generation from operations was robust at INR 481.2 crore for the year, with a 90% conversion rate from EBITDA.

• ARPOB for FY25 increased 5% to ₹55,853; ALOS increased by 7.7% year-over-year to 2.85 days.

• Dividend of ₹3 per share recommended, totaling ₹304.66 million, subject to AGM approval.

Outlook and guidance

• 124 beds will move from new to mature category in FY26; 250 new beds to be added, mainly in Bangalore and Rajahmundry.

• Expansion plans to add 780 beds by FY28, with new hospitals in Hyderabad, Bengaluru, Coimbatore, Gurugram, and Rajahmundry.

• Pre-Ind AS EBITDA margin guidance remains at a minimum of 25%, with potential to achieve 26-26.5% as in previous years.

• Revenue CAGR expected in the late teens to 20% over the next three years.

• CapEx plan of INR 650 crore over the next three years remains unchanged.