Rainbow Childrens Medicare Limited (RAINBOW)
₹1,248.90 +0.18% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Rainbow Childrens' revenue was ₹470 Cr (+33.2% year on year, +2.2% on the previous quarter), and net profit ₹62.5 Cr (+16.2% year on year); the operating margin was 28.6%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹470 | +33.2% | +2.2% |
| Operating profit | ₹135 | +29.9% | -7.1% |
| Net profit | ₹62.5 | +16.2% | -19.8% |
| EPS (₹) | 5.97 | +13.3% | -21.3% |
| Operating margin | 28.6% | — | — |
RAINBOW delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 61.62% of the RAINBOW shares traded on NSE were taken to delivery, against the stock's own 20-session average of 56.58%. That is close to its usual level.
Delivery in the last 5 sessions: 57.5% · 40.5% · 58.4% · 52.5% · 61.6%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Rainbow Children's Medicare has signed a 60-year lease agreement with the Andhra Pradesh Capital Region Development Authority (APCRDA) for ~2 acres of land in Amaravati. The company plans to construct a 250-bed super speciality children's hospital and perinatal care facility, to be developed in a phased manner. Capex outlay and exact commissioning timelines were not disclosed in the filing. This project reinforces Rainbow's footprint in Andhra Pradesh alongside existing locations like Vijayawada, Visakhapatnam, and Rajahmundry.
- Leased approximately 2 acres of land from APCRDA in Amaravati, Andhra Pradesh
- Lease tenure established for 60 years
- Planned capacity of 250 beds for a super speciality children's and perinatal care hospital
- Project to be executed in a phased manner; capex investment not disclosed
Rainbow Children's Medicare Limited announced that credit rating agency ICRA Limited has reaffirmed its issuer rating at [ICRA]AA with a Stable outlook on September 29, 2026. The rating reflects the company's established market position in pediatric healthcare and a sound financial profile with Rs 801 Cr debt and a 0.47 D/E ratio. As this is a routine reaffirmation without any rating upgrade, downgrade, or revision in outlook, there is no direct change to borrowing costs. The rating will become due for periodic surveillance within one year.
- ICRA reaffirmed the Issuer Rating of [ICRA]AA (Stable) on September 29, 2026
- No change in rating or outlook compared to the previous assessment
- Rating letter specifies surveillance due within one year from the communication date
Rainbow Children’s Medicare Limited announced the appointment of Mr. Sudarshan Patodia as Chief Financial Officer and Key Managerial Personnel, designated as Group CFO, effective September 23, 2026. Mr. Patodia brings nearly 20 years of finance experience, having previously served as CFO of New Delhi Centre for Sight Limited, VP of Finance at Vishal Mega Mart, and 14 years at ITC Limited. The Board of Directors also approved amendments to the company's Policy on Determination of Materiality of Events/Information. The CFO transition comes as Rainbow manages an annual revenue base of Rs 1,820 crore (TTM) with ongoing capacity expansions across North India.
- Appointment of Mr. Sudarshan Patodia as CFO and Group CFO effective September 23, 2026
- Appointee brings nearly 20 years of finance experience across healthcare, retail, and FMCG sectors
- Previously served as CFO at Centre for Sight and spent 14 years in various finance roles at ITC Limited
- Board meeting conducted on September 23, 2026, commencing at 5:30 PM and concluding at 5:45 PM
Rainbow Children's Medicare announced that its Nomination and Remuneration Committee granted 55,690 stock options under its ESOP 2025 scheme on September 23, 2026. Each option is convertible into one equity share of face value ₹10 at a discount of up to 20% to the closing market price on September 22, 2026. The vesting period spans from a minimum of 1 year to a maximum of 10 years, with an exercise window of up to 2 years post-vesting. The company also disclosed that 1,922 options were exercised (realizing ₹23,94,812) while 51,766 options lapsed due to employee resignations.
- Granted 55,690 stock options convertible into 55,690 equity shares
- Exercise price set at a discount of not more than 20% on the NSE closing price of September 22, 2026
- Options have a vesting period between 1 year and 10 years, exercisable within 2 years of vesting
- Reported 1,922 options exercised for ₹23,94,812 and 51,766 options lapsed
Rainbow Children's Medicare Limited has submitted an intimation regarding authorized Key Managerial Personnel (KMPs) under Regulation 30(5) of the SEBI LODR Regulations. The designated officials authorized to determine materiality and make stock exchange disclosures include the Chairman & Managing Director, CEO, CFO, and Company Secretary. This filing is purely statutory and procedural, having zero impact on operations, earnings, or capital structure.
- 4 Key Managerial Personnel authorized under Regulation 30(5)
- Filing submitted on September 23, 2026 pursuant to SEBI Master Circular dated January 30, 2026
- Authorized officials include CMD Dr. Ramesh Kancharla, CEO Mr. Abrarali Dalal, CFO Mr. Sudarshan Patodia, and CS Ms. Shreya Mitra
Rainbow Children’s Medicare Limited announced the appointment of Mr. Sudarshan Patodia as Chief Financial Officer and Key Managerial Personnel, designated as Group CFO, effective September 23, 2026. Mr. Patodia brings nearly 20 years of finance experience, having previously served as CFO of New Delhi Centre for Sight Limited, VP of Finance at Vishal Mega Mart, and 14 years at ITC Limited. The Board of Directors also approved amendments to the company's Policy on Determination of Materiality of Events/Information. The CFO transition comes as Rainbow manages an annual revenue base of Rs 1,820 crore (TTM) with ongoing capacity expansions across North India.
- Appointment of Mr. Sudarshan Patodia as CFO and Group CFO effective September 23, 2026
- Appointee brings nearly 20 years of finance experience across healthcare, retail, and FMCG sectors
- Previously served as CFO at Centre for Sight and spent 14 years in various finance roles at ITC Limited
- Board meeting conducted on September 23, 2026, commencing at 5:30 PM and concluding at 5:45 PM
Rainbow Children's Medicare Limited has announced the commencement of operations at its newly established 50-bed women's and children's hospital in Guntur, Andhra Pradesh. This follows the company's prior disclosure on July 29, 2026, regarding the project. The operational launch expands Rainbow's footprint in Andhra Pradesh, supporting its cluster-based regional presence alongside cities like Vijayawada and Visakhapatnam.
- Commenced operations at a 50-bed women's and children's hospital in Guntur, Andhra Pradesh
- Operational milestone achieved pursuant to earlier intimation dated July 29, 2026
- Adds to the company's regional South Indian network
Rainbow Children's Medicare has announced its schedule for in-person group meetings with analysts and institutional investors in Mumbai. The company will participate in the Kotak Healthcare Forum on September 18, 2026, the Anand Rathi G-200 Summit on September 21, 2026, and the J.P. Morgan Flagship India Conference on September 22, 2026. All sessions are planned as full-day group meetings. The company confirmed that no unpublished price sensitive information (UPSI) will be shared.
- Participating in Kotak Healthcare Forum 2026 on September 18, 2026, in Mumbai
- Attending Anand Rathi G-200 Summit 2026 on September 21, 2026, in Mumbai
- Engaging in J.P. Morgan Flagship India Conference on September 22, 2026, in Mumbai
- All scheduled sessions are in-person full-day group meetings with no UPSI shared
Rainbow Children's Medicare Limited announced that Mr. Srinath Metla has resigned from his position as Chief Strategy and Growth Officer (Senior Management Personnel) vide letter dated August 31, 2026, citing personal reasons. The company has accepted his resignation, and his last working day will be September 5, 2026. With the company actively pursuing expansions in NCR and integrating units in Guwahati and Warangal to sustain long-term growth, investors will monitor the succession for this strategic role.
- Chief Strategy and Growth Officer Srinath Metla submitted resignation on August 31, 2026
- Last working day designated as September 5, 2026
- Resignation attributed to personal reasons with no operational disruption reported
Rainbow Children's Medicare Limited announced the resignation of its Chief Financial Officer (CFO) and Key Managerial Personnel (KMP), Mr. Vikas Maheshwari, effective August 31, 2026, due to personal reasons. The Board accepted the resignation via circular resolution on August 25, 2026. The company stated that it has already identified a prospective successor for the CFO role, with the appointment pending formal procedures. The company reported TTM revenues of Rs 1,820 Cr and net profit of Rs 290 Cr.
- Resignation of CFO and KMP Mr. Vikas Maheshwari effective August 31, 2026
- Board approved resignation by circulation on August 25, 2026
- Departure stated to be due to personal reasons with no other material reasons cited
- Prospective candidate for the CFO position has been identified pending final formalities
Rainbow Children’s Medicare Limited has successfully completed the acquisition of a 64% partnership interest in Super Prime Medical Care LLP on August 14, 2026. This follows the initial Partnership Interest and Contribution Transfer Agreement (PICTA) signed on July 29, 2026. While the transaction value was not disclosed in this filing, the company is utilizing its strong net cash position of ₹560 crore to fund its inorganic growth strategy. This acquisition is part of Rainbow's broader plan to scale its specialized pediatric and maternal care network.
- Completed acquisition of 64% partnership interest and capital contribution in Super Prime Medical Care LLP.
- The transaction was finalized on August 14, 2026, following the agreement dated July 29, 2026.
- Acquisition aligns with the company's strategy to leverage its ₹560 crore net cash for scaling operations.
- The move supports the company's target of driving 25% growth in newer units through integration of M&A assets.
Rainbow Children's Medicare reported a strong start to FY27 with Q1 revenue growing 33% YoY and EBITDA increasing 29.9%. The management announced an aggressive 5-year expansion plan to add 2,500 beds, doubling its total capacity to 5,000 beds with a projected capex of ₹2,200 crore. The company is expanding its footprint into Western India with a 100-bed hospital in Mumbai (Malad) and is on track to commence Indore operations in Q3 FY27. The strategy emphasizes larger hospital formats (80+ beds) to maintain clinical excellence in pediatric super-specialties.
- Revenue grew by 33% YoY in Q1 FY27, driven by both mature and new facilities.
- Planned capex of ₹2,200 crore over 5 years to add 2,500 beds, reaching a 5,000-bed total capacity.
- Visibility established for 1,200 beds currently under various stages of development.
- Entry into Mumbai market with a 100-bed brownfield hospital in Malad expected by Q1 FY28.
- Acquisition of 70-bed Prime Children's Hospital in Nellore and a 50-bed lease in Guntur to strengthen the AP cluster.
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- Ope r a t i n g P r o f i t M a r g i n (O P M) s t a n d s a t 3 2.0% a s p e r l a t e s t a n n u a l d a t a
Rainbow Children's Medicare reported a robust Q1 FY27 with revenue growing 33.2% YoY to ₹470 cr, driven by a 28% surge in inpatient admissions and 25% in outpatient consultations. While EBITDA grew 29.9% to ₹134.6 cr, margins saw a slight compression of 71 bps to 28.6% as new facilities ramp up. The company announced a strategic entry into Mumbai via a 100-bed brownfield hospital and further strengthened its Andhra Pradesh presence with acquisitions in Nellore and Guntur. With a strong cash position of ₹612.9 cr, the company remains well-funded for its aggressive expansion pipeline.
- Revenue grew 33.2% YoY to ₹470 cr, representing approximately 27.6% of the previous TTM revenue.
- Capacity beds increased by 26% YoY to 2,435 beds, with operational beds rising 22% to 1,862.
- ARPOB (Average Revenue Per Occupied Bed) improved by 6% YoY to ₹67,256.
- Signed definitive agreements for a 100-bed hospital in Mumbai and acquired 120 beds across Nellore and Guntur.
- Cash and mutual fund investments totaled ₹612.9 cr as of June 30, 2026, to fund ongoing capex.
Rainbow Children's Medicare Limited (RCML) presented its Q1 FY27 operational update, highlighting a network expansion to 24 hospitals and 5 clinics across 9 cities. The company has reached a total capacity of 2,565 beds, supported by a workforce of over 1,075 full-time doctors. Key operational metrics for the quarter include 410,000+ outpatient visits and 4,900+ inpatient admissions. The company is actively executing its hub-and-spoke model, recently integrating acquisitions in Warangal and Guwahati while launching new spoke units in Bengaluru and Rajahmundry.
- Total bed capacity reached 2,565 across 24 hospitals, including 130 beds at the Malviya Nagar facility.
- Recorded 410,000+ outpatient visits and 4,900+ inpatient admissions during Q1 FY27.
- Network now spans 9 cities with 1,075+ full-time doctors following a 24/7 consultant-led model.
- Recent expansion includes the commencement of spoke hospitals at Rajahmundry, Electronic City, and HRBR (Bengaluru).
- Maintains a strong balance sheet with Rs 560 crore in net cash to fund ongoing NCR and South India expansions.
Financial Performance
Revenue Growth by Segment
Consolidated total income grew by 17.46% YoY to INR 15,668.74 million in FY 2024-25, driven by a 12.15% increase in In-patient volumes (98,395) and an 11.72% rise in Out-patient volumes (1,426,733). Pediatric and perinatal services remain the core revenue contributors.
Geographic Revenue Split
Hyderabad remains the primary revenue driver, though concentration is reducing as the company expands. New growth is being targeted in the National Capital Region (NCR) with two land parcels in Gurugram (Sector-44 and Sector-56) and recent acquisitions in Guwahati and Warangal.
Profitability Margins
Net Profit Margin stood at 16.11% in FY 2024-25, a slight compression from 16.83% in FY 2023-24. This was due to a 19.02% increase in total expenses, particularly employee benefits and professional fees, which outpaced revenue growth.
EBITDA Margin
EBITDA margin was 32.32% in FY 2024-25 (INR 4,898.88 million), down from 33.07% YoY. The 14.22% growth in absolute EBITDA was supported by optimized cost structures despite rising operational costs.
Capital Expenditure
The company has a capex commitment of INR 350-450 crore over the next 12 months as of June 2025. Significant investments are directed toward the NCR expansion and upgrading medical equipment to maintain a competitive edge in advanced treatments.
Credit Rating & Borrowing
The company maintains a strong liquidity position with cash and investments of INR 735.5 crore as of June 30, 2025. ICRA notes a strong financial profile with the ability to raise debt at short notice if required, though current growth is largely funded through internal accruals.
Operational Drivers
Raw Materials
Key cost drivers include Professional Fees to Doctors (representing a 20.84% increase in cost) and Employee Benefit Expenses (representing a 17.14% increase). Medical consumables and lab investigations also constitute significant operational outlays.
Import Sources
Not specifically disclosed, but medical equipment and specialized consumables are typically sourced from global medical technology hubs and domestic suppliers in India.
Capacity Expansion
Current workforce includes 3,972 permanent employees. Expansion includes groundbreaking at two sites in Gurugram and the integration of newly acquired units in Guwahati and Warangal to increase bed capacity.
Raw Material Costs
Total expenses rose 19.02% to INR 12,368.73 million. Professional fees to doctors and employee benefits are the largest components, rising 20.84% and 17.14% respectively, reflecting the high cost of specialized medical talent.
Manufacturing Efficiency
Occupancy rates improved to 50.53% in FY 2024-25 from 47.91% YoY. Average Length of Stay (ALOS) increased by 7.55% to 2.85 days, while ARPOB decreased by 3.39% to INR 53,962.
Logistics & Distribution
Not disclosed as a percentage of revenue; logistics primarily involve the movement of medical supplies and emergency ambulance services.
Strategic Growth
Expected Growth Rate
20%
Growth Strategy
Growth will be achieved by stabilizing mature units at 8-10% growth while driving 25% growth in newer units. The strategy includes completing NCR expansions by FY26, integrating M&A assets like Guwahati and Warangal, and leveraging high-yield mutual fund rebalancing (INR 171.21 million increase in income) to fund operations.
Products & Services
Pediatric super-specialty care (cardiology, nephrology, oncology, gastroenterology), obstetrics, gynecology, tertiary and quaternary care, and perinatal services.
Brand Portfolio
Rainbow Children's Hospital, Rainbow Children's Medicare Limited.
New Products/Services
Expansion into international patient services and deepening super-specialty offerings in cardio and oncology are expected to drive higher ARPOB.
Market Expansion
Aggressive expansion into North India (NCR) and strengthening presence in Chennai and Bengaluru to reduce geographic concentration in Hyderabad.
Market Share & Ranking
The company is a leading player in specialized pediatric care in South India and is currently scaling to become a national player.
External Factors
Industry Trends
The industry is shifting toward specialized 'single-specialty' hospitals. Rainbow is positioned as a pure-play pediatric and maternity provider, which typically commands higher margins (86-87% gross margins) compared to the 73-74% industry average for multi-specialty hospitals.
Competitive Landscape
Faces stiff competition from established multidisciplinary hospitals in Chennai, Delhi, and Bengaluru where Rainbow is a newer entrant with lower brand recognition.
Competitive Moat
Moat is built on a specialized clinical talent pool and a 'Great Place to Work' culture (certified 5 times), which helps in retaining doctors in a highly competitive market. The focus on high-complexity pediatric cases creates high switching costs and brand loyalty.
Macro Economic Sensitivity
Healthcare demand is relatively inelastic, but high inflation can increase staff costs and medical consumable prices, impacting the 32.32% EBITDA margin.
Consumer Behavior
Increasing preference for specialized pediatric care over general hospitals and rising demand for high-end perinatal services among urban populations.
Geopolitical Risks
Minimal direct impact, though global supply chain disruptions can delay the procurement of advanced medical machinery for the Gurugram expansion.
Regulatory & Governance
Industry Regulations
Subject to Clinical Establishments Act, biomedical waste management rules, and potential government-mandated price caps on essential treatments and surgeries.
Environmental Compliance
Compliant with waste management guidelines; focus on reducing water consumption and identifying health and safety hazards.
Taxation Policy Impact
Effective tax rate is approximately 25.99% (INR 857.74 million tax on INR 3,300.01 million PBT).
Legal Contingencies
Exposure to medical litigation and high compliance standards; however, no specific high-value pending court cases were quantified in the provided text.
Risk Analysis
Key Uncertainties
Rapid technological advancement leads to swift equipment obsolescence, requiring frequent capital outlays. Failure to attract/retain top-tier medical talent could impact patient footfalls and revenue by 15-20%.
Geographic Concentration Risk
High dependence on the Hyderabad market for a significant portion of earnings, though this is being mitigated by the NCR and South India expansion.
Third Party Dependencies
Dependency on key consultants and doctors; the loss of key medical personnel is a critical risk to operational continuity.
Technology Obsolescence Risk
High risk due to the capital-intensive nature of healthcare; the company must constantly reinvest in state-of-the-art infrastructure to remain competitive.
Credit & Counterparty Risk
Trade receivables turnover is 20.52 days, indicating healthy collections and low credit risk from insurance providers and TPA partners.
