Rainbow Children’s Medicare Limited announced its results for Q2 FY26, marked by strategic acquisitions and expansion adding 350 beds. The company is progressing with new hospitals in Bengaluru, aiming for ~600 beds in the cluster by Dec 2025. Despite a softer financial performance this quarter, the focus remains on strengthening operations for future growth. Mr. Abrarali Dalal will be the Group Chief Executive Officer effective January 20, 2026.
Expansion and Strategic Moves
Rainbow Children’s Medicare Limited (RCML) has reported a quarter highlighted by significant expansion, including the addition of 350 beds via strategic acquisitions and greenfield projects. This enhances the company’s regional leadership. The Electronic City (~90 beds) and Hennur (~60 beds) hospitals in Bengaluru are nearing completion, with the Bengaluru cluster expected to reach approximately 600 beds by December 2025.
Financial Performance in Q2 FY26
The company experienced a softer financial performance in Q2 FY26 due to a reduced incidence of seasonal illnesses and an early festive season. Key financial figures include:
- Revenue: ₹4,448.0 Mn, a 6.5% increase year-over-year.
- EBITDA: ₹1,488.7 Mn, a 1.2% increase year-over-year.
- EBITDA %: 33.5%
- PAT: ₹756.2 Mn, a -4.3% decrease year-over-year.
- PAT %: 17.0%
Operational Highlights
Key operational metrics for the quarter include:
- Capacity Beds: 2,285, reflecting an 18% increase year-over-year.
- Operational Beds: 1,621, a 6% increase year-over-year.
- Occupancy: 51.95%
- IP Discharges: 28,380
- OP Consultation: 4,27,595
- Deliveries: 4,753
- ARPOB: ₹57,396, a 15% increase year-over-year.
Key Developments and Future Projects
Recent developments include the successful integration of Prashanthi Hospital (Warangal) and Pratiksha Hospital (Guwahati) into the Rainbow network. The Rajahmundry (~100 beds) hospital has commenced operations.
Project updates:
- Electronic City (~90 beds): Facility is ready, awaiting approvals.
- Hennur (~60 beds): Expected to commence operations by Jan-26.
- Coimbatore (~130 beds): Targeted for operations by the end of FY 27.
- Construction ongoing at Sector 44 (~325 beds) and Sector 56 (~125 beds), Gurugram (NCR).
- Pune (~150 beds): Project design phase.
The company maintains a strong balance sheet with total cash, equivalents, and investments of ₹5,558 Mn as of September 30, 2025. Capital expenditures of ₹2,606 Mn were made during the quarter.
Leadership Transition
Mr. Abrarali Dalal has been appointed as Group Chief Executive Officer, effective January 20, 2026.
Source: BSE
