Rainbow Children's Medicare Limited – Investor Presentation Summary

Key Operational Highlights

  • Total operational hospitals: 26 hospitals across 11 cities with total bed capacity of 2,685 beds
  • Q2 FY27 group occupancy: 49% with ARPOB of ₹63,000
  • Mature hospitals (14 hospitals): 54% occupancy, ₹67,000 ARPOB, contributing 73% of group revenue
  • Emerging hospitals (7 hospitals): 47% occupancy, ₹59,000 ARPOB, contributing 22% of group revenue
  • New hospitals (5 hospitals): 27% occupancy, ₹43,000 ARPOB, contributing 4% of group revenue
  • Commencement of Operations in Q2 FY27: Rainbow Nellore (70 Capacity Beds, 55 Operational Beds) & Rainbow Guntur (50 Capacity Beds, 40 Operational Beds) commenced on 1st September 2026; Rainbow HRBR commenced on 1st May 2026 with 60 capacity beds (48 operational beds)

Segment-wise Performance

Hospital clusters categorized by maturity:

  • Mature Hospitals (completed 5+ years): 14 hospitals, 73% of group revenue, 63% of group beds, 54% occupancy, 28% EBITDA margin
  • Emerging Hospitals (2-5 years): 7 hospitals, 22% of group revenue, 25% of group beds, 47% occupancy, 26% EBITDA margin
  • New Hospitals (0-2 years): 5 hospitals, 4% of group revenue, 12% of group beds, 27% occupancy, -16% EBITDA margin

Financial Highlights

Q2 FY27 Performance:

  • Revenue from operations: ₹5,480.2 million, up 23.2% YoY
  • Total income: ₹5,561.5 million, up 22.8% YoY
  • EBITDA (Post Ind AS 116): ₹1,699.8 million, up 14.2% YoY
  • EBITDA (Pre Ind AS 116): ₹1,424.3 million, up 13.5% YoY
  • Profit before tax: ₹1,115.0 million, up 8.9% YoY
  • Profit after tax: ₹838.9 million, up 10.9% YoY

H1 FY27 Performance:

  • Revenue from operations: ₹10,180.1 million, up 27.6% YoY
  • Total income: ₹10,388.4 million, up 25.8% YoY
  • EBITDA (Post Ind AS 116): ₹3,046.3 million, up 20.6% YoY
  • EBITDA (Pre Ind AS 116): ₹2,506.5 million, up 21.2% YoY
  • Profit before tax: ₹1,954.6 million, up 12.5% YoY
  • Profit after tax: ₹1,464.3 million, up 13.1% YoY

Expense Breakdown Q2 FY27:

  • Cost of materials consumed: ₹737.7 million, up 18.6% YoY
  • Employee benefits expense: ₹751.8 million, up 27.9% YoY
  • Finance costs: ₹220.0 million, up 16.7% YoY
  • Depreciation and amortization: ₹446.1 million, up 24.5% YoY
  • Professional fees to doctors: ₹1,403.0 million, up 32.0% YoY
  • Other expenses: ₹888.0 million, up 29.4% YoY

Geographical Revenue Split

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Balance Sheet Snapshot

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Capex & Cash Flow Health

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Strategic & R&D Initiatives

  • Hub-and-spoke operating model: Hub hospitals provide comprehensive outpatient, inpatient care with focus on tertiary and quaternary services; spokes provide emergency care in pediatrics and obstetrics
  • Full-time consultant-led clinical service with 24/7 commitment in child-centric environment
  • Country's largest pediatric DNB training programme in private healthcare
  • Unique doctor engagement model with doctors working exclusively on full-time, retainer basis
  • Multidisciplinary teams with 1,100+ full-time doctors
  • Level-4 NICU and approximately 1/3 of beds dedicated to critical care
  • Quaternary capabilities including transplants, ECMO, fetal medicine, neonatal surgery
  • 3 JCI-accredited and 14 NABH-accredited hospitals

Industry Trends & Business Environment

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Management Commentary & Growth Outlook

  • Expansion strategy: Moving towards Pan-India presence with existing projects underway
  • Coimbatore expected to get commissioned by H2 FY27-28
  • Rainbow Mumbai hospital likely to commence by Q1 FY28
  • Indore: Currently operating 25 beds, ~100 beds independent facility likely to be commissioned by end of FY29
  • Mission: To provide highest standards of care for mother, fetus, newborn and children
  • Vision: The measure of success is in the number of smiling faces

Institutional Shareholding

As on September 30, 2026, institutional shareholders holding more than 1%:

  • ICICI Prudential & ISIF Equity Fund: 5.5%
  • DSP Mutual Fund: 3.4%
  • Franklin Templeton Investment Funds: 2.3%
  • HDFC Life Insurance Company: 2.1%
  • Abu Dhabi Investment Authority: 2.1%
  • Vanguard Fund: 2.0%
  • Tata Mutual Fund: 1.9%
  • Axis Mutual Fund: 1.6%
  • Nippon Mutual Fund: 1.6%
  • Ashoka Whiteoak / Ashoka India: 1.5%
  • Motilal Oswal Mutual Fund: 1.5%

Clinical Achievements

  • Performed South India's smallest pediatric liver transplant on a 2.9 kg baby
  • Pediatric liver transplant programme across Hyderabad, Chennai and Bengaluru has completed 107 transplants with overall survival rate of 95%
  • Successfully treated rare case of lipoprotein glomerulopathy in a 2.5-year-old child
  • Successfully performed complex surgery for polymelia (extra limb formation) in a newborn

Board Composition

  • Dr. Ramesh Kancharla: Chairman & Managing Director
  • Mr. Santanu Mukherjee: Independent Director
  • Ms. Sundari Raviprasad Pisupati: Independent Director
  • Dr. Dinesh Kumar Chirla: Whole-time Director
  • Dr. Adarsh Kancharla: Non Executive Director
  • Mr. Aluri Sriniyasa Rao: Independent Director
  • Board includes Women Director and Independent Directors
  • Committees: Nomination & Remuneration, Audit, Stakeholders Relationship, CSR & ESG, Risk Management, Treasury Management