Rainbow Children's Medicare Reports Q2 FY26 Results, Appoints New CEO

Rainbow Childrens Medicare , a leading pediatric healthcare provider, has announced its financial results for the second quarter of fiscal year 2026 and the appointment of a new Chief Executive Officer.

Financial Performance

For the quarter ended September 30, 2025, Rainbow Children's Medicare reported the following consolidated results:

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	4,448.00	4,174.60	6.5%
EBITDA	1,488.70	1,470.80	1.2%
EBITDA Margin	33.5%	35.2%	-176 bps
PAT	756.20	790.10	-4.3%
PAT Margin	17.0%	18.9%	-192 bps

The company's revenue grew by 6.5% year-over-year, reaching ₹4,448.00 million in Q2 FY26. However, profit after tax (PAT) decreased by 4.3% to ₹756.20 million compared to the same quarter last year.

Operational Highlights

Operational beds increased to 1,621, up 6% from Q2 FY25
Occupancy rate stood at 51.95%, down from 59.86% in Q2 FY25
Inpatient discharges decreased slightly by 1% to 28,380
Outpatient consultations grew by 6% to 427,595
Deliveries increased by 7% to 4,753

Strategic Developments

Rainbow Children's Medicare completed two significant acquisitions during the period:

Acquired a 76% stake in Prashanthi Medicare Private Limited for ₹326 million
Acquired a 76% stake in Pratiksha Women & Child Care Hospital Private Limited for ₹1,710 million

These acquisitions are expected to strengthen the company's presence in new markets and expand its service offerings.

New CEO Appointment

The Board of Directors has appointed Mr. Abrarali Dalal as the Chief Executive Officer, effective January 20, 2026. Mr. Dalal brings over 25 years of experience in healthcare and allied sectors, with expertise in leading multi-location hospital networks and driving operational excellence.

Management Commentary

Dr. Ramesh Kancharla, Chairman & Managing Director of Rainbow Children's Medicare Limited, commented on the quarter's performance: "While Q2 was seasonally softer, it was also a quarter of strategic progress for Rainbow. We completed our first acquisition in the Northeast, launched Rainbow at Rajahmundry, and are set to open two more hospitals in Bengaluru shortly. With a significant part of our expansion now complete, our focus will move toward strengthening business operations and driving sustainable growth across our network."

Future Outlook

The company continues to expand its footprint and aims to increase its bed capacity from the current 2,285 to 3,165 by FY 2028-29, as per its expansion plan.

Rainbow Children's Medicare remains focused on providing comprehensive pediatric, obstetric, and gynecological care across its network of 22 hospitals and 5 clinics in 9 cities.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.25%	-0.59%	+1.86%	-0.31%	-15.23%	+201.13%

Rainbow Childrens Medicare Limited (RCML), a leading pediatric multi-specialty and perinatal care hospital chain in India, has marked a significant expansion in Andhra Pradesh with the inauguration of a new 100-bed hospital facility in Rajahmundry. This strategic move strengthens the company's presence in the state and enhances its capacity to provide specialized healthcare services in the region.

Key Highlights of the Expansion

New Facility: The newly opened hospital in Rajahmundry boasts approximately 100 beds, increasing RCML's total bed capacity to about 2,285 across India.
Strategic Location: Rajahmundry serves as a key demand center for both East and West Godavari districts, with an addressable population of nearly 10-12 million in the surrounding areas.
Comprehensive Services: The hospital offers a full spectrum of pediatric and perinatal care, including:
- 24/7 consultant-led emergency care
- Advanced NICU and PICU facilities
- Specialty pediatric clinics
- High-risk obstetrics
- Fetal medicine
- Laparoscopic gynecology
- Fertility services under 'BirthRight by Rainbow'
Investment: The total project cost for the new hospital is approximately ₹60.00 crore, financed through internal accruals.

Expanding Network and Capabilities

Dr. Ramesh Kancharla, Chairman and Managing Director of RCML, commented on the development, stating, "The launch of our hospital in Rajahmundry is a significant step in Rainbow's journey of enabling quality pediatric and perinatal care across Andhra Pradesh. This 100-bed facility is designed to serve the Godavari belt, one of the most prominent growth corridors in the state."

The Rajahmundry hospital represents RCML's third new facility, following recent additions in Warangal and Guwahati. With this expansion, RCML's network has grown to 22 hospitals and 5 clinics across 9 cities in India.

Strategic Importance

The new hospital in Rajahmundry is positioned as a regional hub to address healthcare needs across the East and West Godavari regions. The location was chosen due to its:

Large population base
Steady economic activity from agriculture, aquaculture, and allied sectors
Increasing urban development

Financial and Operational Context

As of the most recent quarter, RCML reported an occupancy rate of 40.20% across its facilities. The company's expansion strategy combines greenfield developments with selective acquisitions to expand reach and diversify across high-growth healthcare markets.

Looking Ahead

Rainbow Children's Medicare continues to focus on taking advanced care closer to where it is needed most. The company's commitment to building and investing in healthcare infrastructure aligns with its goal of creating a reliable healthcare ecosystem for children and mothers across India.

This expansion not only enhances RCML's presence in Andhra Pradesh but also reinforces its position as a leading provider of specialized pediatric and perinatal care in the country.