Rainbow Children’s Medicare Limited announced its Q2 FY27 financial results, reporting a robust 23.2% year-on-year growth in operating revenue, reaching INR548 crore. The company also saw significant growth in EBITDA and PAT, by 14% and 11% respectively. Key operational highlights include the commencement of new hospitals and continued expansion across various cities, reinforcing its growth trajectory.
Strong Financial Performance in Q2 FY27
Rainbow Children’s Medicare Limited has announced its financial results for the second quarter and first half of FY27. The company reported an operating revenue of INR548 crore for the quarter ended September 30, 2026, marking a substantial 23.2% increase compared to the corresponding quarter of the previous financial year. For the first half of FY27 (H1 FY27), revenue stood at INR1,018 crore, reflecting a growth of 27.6%.
EBITDA and PAT Growth
EBITDA for the second quarter grew by 14.2% to INR170 crore, with the EBITDA margin at 31%. For H1 FY27, EBITDA was INR304.6 crore, up 20.6% year-on-year, with an EBITDA margin of 29.9%. Profit after tax (PAT) for the quarter was INR83.9 crore, an increase of 10.9%. H1 FY27 PAT stood at INR146.4 crore, a growth of 13.1%.
Operational Expansion and Development
During the quarter, Rainbow Children’s Medicare commenced operations at a newly acquired 70-bed hospital in Nellore and a new 50-bed hospital in Guntur, strengthening its presence in coastal Andhra Pradesh. The company also received 2 acres of land in Amaravati to build a pediatric specialty hospital. Significant capacity expansion is underway with 1,050 beds in pipeline. New hospitals are planned in Indore, Malad (Mumbai), and Coimbatore, with operations expected to commence in Q3 FY28 and Q1 FY28 respectively.
Clinical Excellence and Digital Initiatives
The company highlighted its commitment to clinical excellence, including a complex liver transplant surgery on a 6-week-old baby. Rainbow Children’s Medicare is also implementing a comprehensive clinical governance framework, the ‘One Rainbow Model’, and successfully rolled out a new HIS with EMR at its Hyderabad hub hospital. Digital initiatives, including a new CRM software, loyalty card ‘Shield’, and upcoming website and patient app, are enhancing patient engagement and conversion.
Market Strategy and Outlook
The marketing expense is currently around 2% of revenue, with a focus on community engagement, digitization, and corporate partnerships. The company aims for a 60% occupancy in its mature hospitals. While expanding into new cities, the focus remains on organic growth and strategic M&A opportunities. The company anticipates maintaining healthy EBITDA margins of around 25%-26% (pre-Ind AS) even with ongoing expansion.
Key Financial Highlights (Q2 FY27 vs Q2 FY26)
- Operating Revenue: INR548 crore (+23.2%)
- EBITDA: INR170 crore (+14.2%)
- PAT: INR83.9 crore (+10.9%)
Key Financial Highlights (H1 FY27 vs H1 FY26)
- Operating Revenue: INR1,018 crore (+27.6%)
- EBITDA: INR304.6 crore (+20.6%)
- PAT: INR146.4 crore (+13.1%)
Source: BSE
