Rainbow Children’s Medicare Limited reported a strong start to FY27, with Q1 revenue growing 33% year-on-year to ₹470 crore and EBITDA rising 29.9% to ₹134.6 crore. The company also unveiled ambitious expansion plans, aiming to add 2,500 beds over the next five years, taking its total capacity to 5,000 beds.
Strong Q1 FY27 Performance
Rainbow Children’s Medicare Limited has announced robust financial results for the first quarter ended June 30, 2026. The company reported an operating revenue of ₹470 crore, marking a significant 33% year-on-year growth. This performance was driven by contributions from both mature and newly commissioned hospitals.
EBITDA for the quarter stood at ₹134.6 crore, a 29.9% increase year-on-year, with an EBITDA margin of 28.6%. Profit after tax grew 16% year-on-year to ₹62.5 crore. Operational metrics also showed healthy growth, with inpatient discharges up 28%, outpatient consultations by 25%, and deliveries by 23%.
Strategic Expansion Ahead
Looking forward, Rainbow Children’s Medicare is embarking on a significant expansion journey. The company plans to add approximately 2,500 beds over the next five years, aiming to increase its total network capacity to 5,000 beds. This expansion is expected to involve an investment of around ₹2,200 crore.
Key expansion projects include:
- A 100-bed brownfield hospital in Malad, Mumbai, expected to commence operations in Q1 FY28.
- The acquisition of Prime Children’s Hospital in Nellore (70 beds) and an additional 30-bed Maternal Care Block in Andhra Pradesh.
- A new 50-bed hospital in Guntur, Andhra Pradesh, expected to begin operations shortly.
- Commencing operations in the Indore hospital in Q3 FY27 and a spoke hospital in Gurgaon in Q3 FY28, followed by a hub hospital in Gurgaon in Q1 FY29.
- Development of a 150-bed hospital in Pune and a spoke hospital in Bangalore expected to commence operations in FY29.
The company is also strengthening its presence in high-growth markets such as Bhubaneswar and Raipur, and strategically entering new metros like Mumbai and the Delhi NCR region. These expansions are designed to leverage the company’s hub-and-spoke model for broad geographic coverage and operational efficiency.
Financial Outlook
Rainbow Children’s Medicare is confident in its growth trajectory, expecting to double its revenue over the next four years, driven by sustained revenue growth of around 20% annually. The company aims to return EBITDA margins to the 24%-25% range by the end of the fiscal year.
Source: BSE
