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

Executive summary

• FY25 revenue grew 16.9%-17% YoY to INR 1,515.9 crore/₹15,159 million, with EBITDA up 14%-14.2% and PAT up 11.9%-12%.

• Q4 FY25 performance was modest due to seasonality, with 35% of pediatric segments seeing lower activity.

• Recognized for excellence in pediatric, perinatal, and clinical care, with multiple JCI and NABH accreditations and several awards.

• First pediatric liver transplant performed in Chennai; Bangalore received transplant license.

• Audited financials for FY25 received unmodified opinions; AGM scheduled for July 5, 2025.

Financial highlights

• Q4 FY25 revenue grew 8.5%-9% YoY to INR 370.1 crore/₹3,701 million; EBITDA up 8.7%-9% to INR 114.7 crore/₹1,147 million; PAT up 10.7%-11% to INR 56.5 crore/₹566 million.

• Full-year FY25 revenue rose to INR 1,515.9 crore/₹15,159 million; EBITDA up 14.2% to INR 489.9 crore; PAT up 11.9%-12% to INR 244 crore.

• EBITDA margin for FY25 was 32.3%; Q4 margin at 31%.

• ARPOB for FY25 was ₹55,853 (+5% YoY); ALOS increased 7.7%-8% YoY.

• Cash generation from operations was robust at INR 481.2 crore, with 90% EBITDA-to-cash conversion.

Outlook and guidance

• 124 beds expected to mature and 250 new beds to be added in FY26, mainly in Bangalore and Rajahmundry.

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

• EBITDA margin guidance remains at a minimum of 25% pre-Ind AS, with potential to achieve 26-26.5%.

• 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.