Rainbow Childrens Medicare Limited (RCML) has made a strategic move to expand its presence in Northeast India by acquiring a majority stake in Pratiksha Hospital, Guwahati. The company's board of directors approved the acquisition on August 11, 2025, marking a significant step in RCML's national growth strategy.

Key Highlights of the Acquisition

• RCML will acquire 76% of the fully diluted equity share capital and 100% of the Non-Convertible Redeemable Preference Shares (NCRPS) of Pratiksha Women & Child Care Hospital Private Limited.
• The total investment is approximately ₹171.00 crore, with ₹129.96 crore for equity shares and ₹41.04 crore for NCRPS.
• The acquisition will be funded through RCML's cash reserves and internal accruals.
• The transaction is expected to be completed within 30 days and does not require any governmental or regulatory approvals.

About Pratiksha Hospital

Pratiksha Hospital is a 150-bed NABH-accredited facility in Guwahati, Assam, with 100 operational beds and an additional 50 beds expected to become operational within six months. Founded in 1995 by Dr. Pramod Kumar Sharma, the hospital specializes in:

• Pediatric care
• Obstetrics and gynecology
• Infertility treatments and IVF services
• Laparoscopic surgeries
• Neonatology and pediatric critical care

Strategic Implications

This acquisition marks Rainbow's entry into Northeast India, expanding its network to 21 hospitals across 8 cities with approximately 2,185 total beds. The move aligns with RCML's vision to expand into underserved markets for specialized healthcare.

Dr. Ramesh Kancharla, Chairman & Managing Director of RCML, commented, "We warmly welcome Pratiksha Hospital into our family. This partnership empowers us to reach a wider community and deliver top-tier pediatric and maternal care to the families of Assam and Northeast India."

Integration and Rebranding

Post-acquisition, the hospital will be rebranded as 'Pratiksha Rainbow Children's Hospital' and fully integrated into Rainbow's national network. The integration will include:

• Unified branding
• Alignment of clinical protocols
• Implementation of centralized systems and governance
• Connection to Rainbow's regional hubs in Hyderabad, New Delhi, Bengaluru, and Chennai

Market Opportunity in Northeast India

The acquisition taps into a significant market opportunity in Northeast India:

• Guwahati serves as the healthcare capital for 7 Northeast states and Bhutan
• The region has a population of approximately 50 million
• There is a growing demand for quality tertiary and quaternary care
• The area is currently underserved in terms of specialty care, particularly in pediatric and maternal health

Financial Details

This strategic move by Rainbow Children's Medicare Limited not only expands its geographical footprint but also reinforces its position as a leading provider of pediatric and women's healthcare services in India. The acquisition of Pratiksha Hospital is expected to enhance RCML's ability to provide comprehensive, high-quality care to families in the Northeast region.

Rainbow Childrens Medicare , a leading pediatric and perinatal healthcare provider, reported a steady financial performance for the first quarter, despite facing seasonal softness in pediatric volumes.

Financial Highlights

The company's revenue grew by 7% year-on-year to ₹353.00 crores. EBITDA increased by 11% to ₹103.60 crores, while profit after tax surged by 35% to ₹53.80 crores. The overall occupancy rate for the quarter stood at 40.2%.

Operational Performance

Outpatient volumes witnessed a growth of 6% compared to the same period last year. However, inpatient and delivery volumes saw a slight decline of 1% and 2% respectively. The company maintained a balanced payer mix with 52% of revenue coming from insurance and 48% from cash patients.

Strategic Expansion

Rainbow Children's Medicare made a significant move by entering the Warangal market through the acquisition of a 76% stake in Prashanthi Hospital. This strategic expansion into a Tier 2 city with a population of 1.1 million and a catchment area of 3 million aligns with the company's hub-and-spoke model in Telangana.

Project Pipeline

The company's project pipeline remains robust with several developments:

• A 100-bed regional hub hospital in Rajahmundry is completed and awaiting final permissions.
• In Bengaluru, construction is progressing for a 90-bed hospital in Electronic City and a 60-bed facility in Hennur, both expected to be operational by the end of Q2.
• A 130-bed hospital project is underway in Coimbatore.
• In the National Capital Region, exploration work is progressing for a 325-bed hospital in Sector 44 and a 125-bed facility in Sector 56, Gurugram.
• Advanced discussions are ongoing for a 150-bed greenfield hospital in Pune.

Clinical Achievements

The company highlighted two significant clinical achievements:

1. A successful bone marrow transplantation for a 15-year-old girl from Iraq with a complex sickle beta-thalassemia condition.
2. Dr. Nageswara Rao Koneti, Director of the pediatric heart institute, was granted a U.S. FDA patent for an innovative multifunctional cardiac device named KONAR-MF Occluder.

Future Outlook

Rainbow Children's Medicare maintains its focus on timely commissioning of new projects, deepening clinical capabilities, and strengthening sales and marketing functions. The company is targeting late teens to 20% revenue growth and expects to add around 350 beds this year through new hospital openings and acquisitions.

Dr. Ramesh Kancharla, Chairman and Managing Director, commented on the results, saying, "Despite Q1 being seasonally softer, especially in general pediatric outpatient and inpatient volumes, we have delivered a steady financial performance. This growth was supported by strong momentum in new hospitals and consistent demand for advanced services like pediatric specialty, multi-specialties, and quaternary care."

With a robust balance sheet showing a net cash position of ₹735.00 crores as of June 30, Rainbow Children's Medicare is well-positioned to support its ongoing capital expenditure plans and future growth initiatives.