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.

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.