Rainbow Children's Medicare (RAINBOW) Q4 25/26 earnings summary

Executive summary

• Achieved record quarterly revenue in Q4 FY26 with 24% year-on-year growth, reaching ₹4,599 million, and 12% growth for FY26 at ₹17,031 million; PAT increased 38% in Q4 to ₹782 million and 15% for FY26 to ₹2,815 million.

• Operational expansion included new hospitals in Warangal, Guwahati, Rajahmundry, and Bengaluru, increasing total bed capacity to 2,435; Bangalore is now the largest pediatric and perinatal care provider in the city.

• Outpatient footfalls, inpatient discharges, and deliveries saw healthy growth across both mature and new hospitals.

• Recognized as a great place to work for the sixth time in seven years, with a 90% employee satisfaction score.

• Audited standalone and consolidated financial results for FY 2025-26 were approved with unmodified audit opinions; a final dividend of ₹3.50 per equity share was recommended.

Financial highlights

• Q4 FY26 revenue: ₹4,599 million (+24% YoY); FY26 revenue: ₹17,031 million (+12% YoY); Q4 FY26 PAT: ₹782 million (+38% YoY); FY26 PAT: ₹2,815 million (+15% YoY); Q4 FY26 EBITDA: ₹1,447 million (+26% YoY); FY26 EBITDA: ₹5,442 million (+11% YoY); EBITDA margin: Q4 31.5%, FY26 32%.

• Standalone revenue for FY26: ₹15,456.60 million; standalone net profit: ₹2,500.16 million.

• Basic and diluted EPS (consolidated) for FY26: ₹27.41.

• Inpatient discharges, outpatient volumes, and deliveries grew 18%, 19%, and 22% respectively in Q4.

• IVF revenue for FY26: ₹61.4 crore (3.7% of total revenue), rising to 4.1% in Q4.

Outlook and guidance

• Targeting 20% revenue growth in FY27 while maintaining margins; expansion plans include new hospitals in Coimbatore, Gurugram, and Pune, targeting over 3,200 beds by FY29.

• Ongoing focus on improving occupancies, clinical excellence, and patient experience as new capacity matures.

• IVF business expected to grow at 25% CAGR over the next three years.

• Employee compensation restructured in line with new labour codes, impacting provisions.

• Mature hospital occupancy expected to return to 60% in the coming year; blended occupancy target 56-58%.