Rainbow Children's Medicare posts Q2 FY26 results, outlines growth plans

Rainbow Children's Medicare Limited announced its Q2 FY26 operating revenue at INR444.8 Crores, a 6.5% growth compared to the previous financial year. For H1, revenue reached INR797.7 Crores, a 6.7% increase. EBITDA for Q2 was INR148.8 Crores, up 1.2%, with H1 EBITDA at INR252.5 Crores, a 4.9% growth. The EBITDA margin for Q2 stood at 33.5%, while H1 was 31.7%. Q2 profit after tax (PAT) decreased by 4.3% to INR75.6 Crores, though H1 PAT grew 9% to INR129.4 Crores.

The company's operational performance in Q2 experienced softness due to low seasonal illnesses, leading to lower patient volumes in general Paediatrics and Paediatrics intensive care. This resulted in lower occupancy levels and a transient impact on financial performance, with the overall occupancy rate for the quarter at 52%. Outpatient volumes grew 5.7%, and deliveries increased by 6.8%, but inpatient volumes saw a 1% de-growth. The payor mix remained robust, with 52.8% of revenue from insurance and 47.2% from cash patients in Q2.

Rainbow Children's Medicare is advancing its strategic acquisitions and expansions, having integrated Prashanthi Hospital in Warangal and Pratiksha Hospital in Guwahati. The company also commissioned a new hospital in Rajahmundry and is preparing to launch two new spoke hospitals in Bengaluru. Future projects include regional hub hospitals in Coimbatore and Pune, alongside ongoing construction in Gurugram, with a total capital expenditure of INR600 crores planned over the next three years for Pune and Coimbatore projects.