Rays of Belief Limited reported a consolidated EBITDA of ₹50 million for the quarter ended June 30, 2026 (Q1FY27), a significant jump from ₹5 million in the corresponding period last year. The company’s EBITDA margin expanded to 19.86% from 4.45% year-on-year.

The improvement in profitability was underpinned by robust top-line growth. Consolidated revenue from operations stood at ₹253.14 million, reflecting a substantial increase from ₹107.06 million recorded in Q1FY26. The Board of Directors approved these unaudited standalone and consolidated financial results on September 28, 2026, which were reviewed by Suri & Sudhir, Chartered Accountants.

Financial Performance Overview

The shift from loss to profit was driven by robust top-line growth and improved operational efficiency. Employee benefits expense increased to ₹108.44 million from ₹65.84 million year-on-year, while other expenses rose to ₹94.43 million from ₹36.52 million. Despite the rise in costs, the significant jump in revenue allowed for positive operating leverage, resulting in a net profit of ₹27.87 million compared to a loss of ₹5.37 million in Q1FY26.

Segment Analysis: India and USA

The company operates across two primary geographical segments: India and the USA. In Q1FY27, the USA segment contributed ₹128.23 million to revenue, slightly exceeding the India segment’s contribution of ₹124.91 million. This represents a major shift from Q1FY26, where India accounted for over 91% of total revenue.

The USA segment reported a profit before tax and finance costs of ₹18.13 million, while the India segment contributed ₹21.81 million. The balanced contribution highlights the diversification of the company’s earnings base following its recent listing and international expansion.

What the Numbers Show

A key observation is the rapid scaling of the US operations alongside margin expansion. Revenue from the USA grew from ₹8.96 million in Q1FY26 to ₹128.23 million in Q1FY27, indicating aggressive expansion or consolidation effects. Concurrently, total assets grew to ₹553.80 million from ₹448.59 million in the prior year, supporting this operational scale-up. The company also noted that Mom’s Belief US Inc acquired City Pro Group Inc in September 2026, which may impact future consolidated figures.

Subsequent Events and Listing

Rays of Belief Limited was listed on the National Stock Exchange of India Limited and BSE Limited on September 8, 2026. Consequently, the comparative figures for the quarter ended June 30, 2025, were prepared by management and were not subject to audit or review, as the company was unlisted at that time. The statutory auditors have issued limited review reports for the current quarter’s financials.

Rays of Belief Limited has acquired 100% equity in City Pro Group Inc for $2 million through its wholly owned subsidiary, Mom's Belief US Inc. The transaction, completed on September 18, 2026, makes City Pro a step-down subsidiary of the Indian listed entity.

The acquisition aims to strengthen the group’s footprint in the United States healthcare sector, specifically in pediatric developmental and special education services. City Pro Group Inc operates clinics across New York, including the Bronx, Brooklyn, Manhattan, and Long Island.

Transaction Details

The deal was executed as a cash consideration transaction. No governmental or regulatory approvals were required for the acquisition. The Company Secretary, Mayank Bhargava, confirmed that the acquisition does not constitute a related-party transaction and that promoters hold no interest in the target entity.

Target Profile

City Pro Group Inc, incorporated on July 14, 1995, is a New York State Department of Health-approved Early Intervention Program provider. It delivers services primarily under contracts with New York State, the New York City Department of Education, and Long Island school districts.

Strategic Significance

Rays of Belief Ltd reported FY26 consolidated revenue of ₹81.66 Cr, while City Pro Group reported FY25 revenue of US$11.43 Mn (~₹97.27 Cr). The acquisition brings together two established revenue-generating platforms, significantly enhancing the Group's scale and positioning it for a meaningful increase in consolidated revenue as the businesses are integrated.

The deal expands Mom's Belief's U.S. operating footprint through an established local platform and adds Early Intervention and special education capabilities to the Group's international healthcare platform. It also creates a structured platform for cross-border knowledge sharing between India and the U.S., providing an opportunity to strengthen the Group's 136-centre Indian network through relevant clinical and operating practices.

What the Numbers Show

City Pro Group Inc demonstrated revenue stability between fiscal years 2024 and 2025, with turnover remaining nearly flat at approximately $11.4 million. This follows a sharper growth phase from 2023 to 2024, where revenue increased by roughly $1.7 million. The acquisition price of $2 million represents a multiple of less than two times the target’s trailing twelve-month turnover.