Rainbow Childrens Medicare , a leading pediatric healthcare provider, has maintained its revenue growth guidance of 18-20% for the fiscal year 2026, despite facing seasonal challenges in the first quarter. The company's management expressed confidence in strengthening demand for its services in the upcoming quarters.

Strong Q1 Performance

In the first quarter of FY26, Rainbow Children's Medicare demonstrated resilience by posting a robust EBITDA margin of 29.40%. This performance underscores the company's operational efficiency and ability to maintain profitability even during slower periods.

Expansion Plans and Margin Outlook

Dr. Ramesh Kancharla, Chairman and Managing Director, indicated that while the company's margins have been strong, they may face some pressure in the coming months. This is primarily due to the planned operationalization of three new hospitals, adding approximately 250 beds to Rainbow's network. Despite this expansion, the company has provided a clear margin guidance for FY26:

Revenue Growth Drivers

Rainbow Children's Medicare is projecting a 6% year-on-year growth in average revenue per patient, aligning with earlier projections. This increase is attributed to:

1. Stronger case mix, including:

   • Pediatric surgical services
   • Specialty care
   • Quaternary care services (e.g., cardiac transplants and neurosurgeries)

2. Surgical revenues showing robust momentum with at least 15% growth in both volume and value

Seasonal Impact and Occupancy

The company reported an overall hospital occupancy rate of around 40% during the quarter, which was affected by a seasonal slowdown in:

• Outpatient services
• Pediatric intensive care segments

However, management remains optimistic about improved occupancy rates in the coming quarters as demand strengthens.

Financial Results Publication

As per the LODR (Listing Obligations and Disclosure Requirements) data, Rainbow Children's Medicare has published its financial results for the quarter ended June 30, 2025, in Business Standard and Mana Telangana newspapers on July 28, 2025. This demonstrates the company's commitment to transparency and compliance with regulatory requirements.

Rainbow Children's Medicare continues to focus on expanding its services and maintaining strong financial performance. While facing short-term challenges due to seasonality and expansion costs, the company's management remains confident in achieving its growth targets for FY26.

Rainbow Children's Medicare Limited , a leading pediatric and obstetrics healthcare chain, has announced its financial results for the first quarter of fiscal year 2026, along with several strategic initiatives to strengthen its market position.

Financial Highlights

The company reported growth in its consolidated financial performance for the quarter ended June 30, 2025:

Rainbow Children's Medicare's consolidated revenue from operations reached Rs. 3,529.29 million in Q1. The company's profit after tax stood at Rs. 538.05 million, with a basic earnings per share of Rs. 5.27.

On a standalone basis, the company reported revenue from operations of Rs. 3,347.48 million and profit after tax of Rs. 517.20 million, with basic earnings per share of Rs. 5.09.

Strategic Initiatives and Expansion

The company has undertaken several strategic moves to expand its operations:

1. Acquisition of Prashanthi Hospital: Rainbow Children's Medicare completed the acquisition of a 76% equity stake in Prashanthi Medicare Private Limited for Rs. 326 million. This acquisition marks the company's expansion into new territories.

2. Employee Stock Option Plan: The company granted 140,810 stock options under its Employee Stock Option Scheme 2025 (ESOP 2025) to eligible employees.

3. Senior Management Appointment: Dr. Pranathi Subrahmanyam Maddirala, Clinical Director of Obstetrics and Fetal Medicine, has been designated as Senior Management Personnel.

Dividend Payout

Rainbow Children's Medicare paid a final dividend of Rs. 3 per equity share for the financial year 2024-25 on July 5, 2025.

The company's robust financial performance and strategic initiatives position it well for continued growth in the pediatric and obstetrics healthcare segment.