Rainbow Children’s Medicare Limited announced its financial results for Q3 FY26, reporting revenue of INR 445.4 crores, a 12% increase year-over-year. EBITDA grew by 9% to INR 147 crores, while profit after tax (PAT) increased by 7% to INR 73.9 crores. The company is focused on improving occupancy rates to between 55%-60% to drive stronger operational and financial outcomes. Occupancy for the quarter stood at 47.2%.
Financial Performance
Rainbow Children’s Medicare Limited reported a revenue of INR 445.4 crores for Q3 FY26, reflecting a 12% growth compared to the same quarter of the previous year. For the first nine months, revenues reached INR 1,243 crores, a 9% increase year-over-year. EBITDA for Q3 FY26 was INR 147 crores, a 9% rise, with a margin of approximately 33%. The Profit After Tax (PAT) for the quarter stood at INR 74 crores, demonstrating a growth of 7.2%.
Operational Highlights
Inpatient discharges and outpatient volumes experienced growth rates of 9% and 18%, respectively. Deliveries saw an impressive growth of 16%. The company maintained a strong cash position of INR 579 crores as of December 31, 2025, and invested INR 57 crores in capital expenditures. Occupancy for the quarter stood at 47.2%.
Strategic Initiatives
The company completed a liver transplant at its Bengaluru hub hospital. A new 100-bed hospital was commissioned in Rajahmundry, and a 90-bed hospital commenced operations in Electronic City, Bangalore. Rainbow is focused on improving occupancy to a targeted range of 55% to 60%. The company is also working to strengthen sales and marketing initiatives, including digital marketing and exploring selective CGHS empanelment at revised rates.
Expansion Plans
Construction has begun on a 130-bed regional hub hospital in Coimbatore. An expansion of the Gurgaon hospital in Sector 44 and Sector 56 NCR is underway, and excavation work has started for a greenfield regional hub hospital in Pune with 150 beds. Expansion efforts are largely completed and the company is focused on execution.
Future Outlook
The company aims for a long-term EBITDA margin around 24% to 25%. Rainbow is targeting revenue growth with a CAGR of approximately 17% to 18% over a four-year period. Management anticipates achieving its occupancy objectives through strategic investments, digital initiatives, and by offering more complex and high-end procedures.
Source: BSE
