Rainbow Childrens Medicare Limited has completed the acquisition of a 64% partnership interest and corresponding capital contribution in Super Prime Medical Care LLP. The transaction was finalized on August 14, 2026, marking the closure of the deal previously announced by the company.

The acquisition follows the execution of a Partnership Interest and Contribution Transfer Agreement (PICTA) dated July 29, 2026. The agreement was entered into by Rainbow Childrens Medicare Limited, the existing partners of Super Prime Medical Care LLP, and the LLP itself. Under the terms of the PICTA, the company acquired the stake from the existing partners, referred to as sellers in the disclosure.

Transaction Details

The company confirmed that the acquisition process was concluded on August 14, 2026. This update serves to inform stakeholders that the transfer of partnership interest and capital contribution has been successfully executed as per the earlier intimation provided on July 29, 2026.

The details of this corporate action have been disclosed to the National Stock Exchange of India Limited and BSE Limited. The information is also available on the company’s investor relations website for public record.

Shreya Mitra, Company Secretary and Compliance Officer at Rainbow Childrens Medicare Limited, signed the disclosure letter confirming the completion of the transaction.

Rainbow Childrens Medicare Limited reported a robust start to FY27, with operating revenue rising 33% year-on-year to ₹470 crore in Q1FY27. The growth was driven by balanced contributions from mature hospitals, newly commissioned facilities, and recent acquisitions, signaling strong operational momentum as the company expands its geographic footprint beyond South India.

The company’s EBITDA grew 30% year-on-year to ₹134.6 crore, maintaining a healthy margin of 28.6%, while profit after tax (PAT) increased 16% to ₹62.5 crore. These financial improvements were supported by operational efficiencies, including a 28% rise in inpatient discharges, a 25% increase in outpatient consultations, and a 23% jump in deliveries. Occupancy rates improved to over 41%, reflecting sustained patient demand across the network.

Financial Performance and Operational Metrics

Rainbow Childrens Medicare delivered broad-based growth across key clinical metrics during the quarter. The payor mix remained resilient, with cash and insurance contributions accounting for approximately 48% and 42% of revenue, respectively. The company maintained a strong balance sheet, with cash, cash equivalents, and investments standing at ₹613 crore as of June 30, 2026. Capital expenditure for the quarter was approximately ₹56 crore, primarily focused on expanding capabilities across existing hospitals and upcoming projects.

Expansion Strategy and New Markets

Management highlighted significant progress in its expansion journey, including the signing of a definitive agreement for a 100-bed brownfield hospital in Malad, Mumbai, expected to commence operations in Q1FY28. This marks Rainbow’s entry into Western India, a strategic market with long-term opportunities. Additionally, the company acquired Prime Children’s Hospital in Nellore and signed a lease for a 50-bed hospital in Guntur, strengthening its presence in Andhra Pradesh. With these additions, the total bed capacity in the ratio reached 500 beds.

Looking ahead, Rainbow plans to add 2,500 beds over the next five years, expanding its network capacity to 5,000 beds through an estimated capex of ₹2,200 crore. The company has visibility on 1,200 beds under various stages of development. Key upcoming projects include hospitals in Indore (Q3FY27), Coimbatore and Gurgaon Sector 56 (Q3FY28), and Pune and Bangalore Seegehalli (FY29).

What the Numbers Show

The divergence between revenue growth (33%) and PAT growth (16%) highlights the initial rating losses at newly commissioned hospitals, which pressured net margins despite strong EBITDA performance. However, the stable EBITDA margin of 28.6% demonstrates operational discipline and cost management efficiency. Management indicated that organic revenue growth stood at 24% on a like-to-like basis, with acquisitions contributing approximately ₹38 crore. The company expects EBITDA margins to return to the 24%–25% range on a pre-Ind AS basis by the end of the year as new hospitals mature and operating leverage improves.

Clinical Milestones and Digital Initiatives

Rainbow Childrens Medicare underscored its clinical excellence with notable milestones, including a complex pediatric ECMO retrieval from Guwahati and the successful treatment of an 8-year-old boy with multiple life-threatening injuries. These cases reinforced the company’s capability in managing high-acuity pediatric emergencies. On the technology front, the company enhanced its digital ecosystem through CRM platform upgrades and patient conversion initiatives, aiming to improve operational visibility and data-driven decision-making.

The filing was signed by Shreya Mitra, Company Secretary and Compliance Officer, on August 4, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.