Rainbow Childrens Medicare Ltd
Rainbow Childrens Medicare Ltd
Healthcare ServicesKey Fundamentals
SmallcapHospitalsHealthcare ServicesInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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44 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
1- Company's median sales growth is 22.8% of last 10 years
Weaknesses
1- Stock is trading at 9.11 times its book value
Growth Rate
AI Analysis — Bull vs Bear
Rainbow Childrens Medicare is a specialized pediatric and perinatal hospital chain with a market cap of approximately ₹14,950 crore, trading at a PE of 51.9x. The company has delivered a 10-year sales CAGR of 22% and expanded bed capacity by ~50% over FY20-25 to 1,935 beds (reaching 2,435 by Q4 FY26), while maintaining EBITDA margins around 31-32% in FY26. However, profit growth has decelerated to a 3-year CAGR of just 6% and the stock trades at 9x book value with a debt-to-equity of 0.54.
- Strong long-term revenue growth with 10-year compounded sales CAGR of 22% and TTM sales growth of 18%, reflecting consistent demand for specialized pediatric care
- Significant capacity expansion from 1,935 beds in FY25 to 2,435 beds by Q4 FY26, with a target of 2,715 beds by FY27-28, providing a clear visible growth runway
- Healthy EBITDA margins of 32% in FY26, with management guiding margins to remain above 25% even during expansion phases
- FY25 full-year revenue grew 16.9% YoY to ₹1,516 crore, demonstrating consistent top-line momentum
- ARPOB (average revenue per occupied bed) increased 15% YoY to ₹57,396 in Q2 FY26, indicating improving revenue intensity per bed
- Niche positioning in pediatric and perinatal care with limited listed competition, creating a differentiated moat in a growing segment
- Geographic diversification into new cities including Bengaluru, Guwahati, Warangal, and Rajahmundry, expanding from its Hyderabad base to 23 hospitals across 9 cities
- Q4 FY26 revenue grew 24% YoY to ₹459.9 crore and net profit jumped 36.7% YoY to ₹77 crore, showing accelerating momentum
- Stock trades at 51.9x PE and 9.02x price-to-book, a steep premium that leaves limited room for execution missteps
- Compounded profit CAGR has decelerated sharply to just 6% over 3 years versus 44% over 5 years, indicating margin pressure from expansion costs
- Occupancy rate dropped to 52% in Q2 FY26 from 60% in Q2 FY25, suggesting new bed additions are diluting utilization metrics
- Debt-to-equity stands at 0.54 with total debt of ₹734 crore in FY25, which could rise further with aggressive expansion plans
- Dividend yield of just 0.24% offers negligible income return to shareholders at current valuations
- Stock price declined 4% over the past 1 year (CAGR), underperforming broader market indices despite revenue growth
- ROE has moderated to 16% in the last year from a 5-year average of 19%, reflecting dilution from capital deployment into new beds yet to mature
- Seasonal volatility in patient volumes can cause significant QoQ swings, as seen in Q1 FY27 EBITDA margin declining 282 bps QoQ to 28%
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Strong Q1 revenue up 33% Jul 30
Q1FY26 consolidated revenue rose 33.2% YoY to ₹4,699.85 million with PAT of ₹625.40 million, up 16.2% YoY.
- ₹90 Cr Mumbai hospital planned Jul 29
Definitive documents executed for a new 100-bed children's and women's hospital in Malad, Mumbai, with estimated project cost of ₹90 Crore.
- 64% stake in Nellore hospital Aug 14
Completed acquisition of 64% partnership interest in Super Prime Medical Care LLP for ₹19.84 Cr, adding 70 beds in Andhra Pradesh.
- New 50-bed Guntur hospital Jul 29
₹15 crore investment to establish a 50-bed women's and children's hospital in Guntur, AP, targeting September 2026 commissioning.
- ESG rating upgraded to Strong Jul 23
CRISIL ESG assigned a Core ESG rating of 73 for FY 2025-26, upgrading Rainbow from 'Adequate' to 'Strong' category.
- ₹3.5 per share dividend declared Jul 29
28th AGM concluded with ₹3.5 per share dividend for FY26 and re-appointment of key directors approved.
- Q1FY27 earnings call recording released Jul 31
Audio recording of Q1FY27 earnings call held on July 31, 2026, covering financial and operational performance for quarter ended June 30, 2026.
- Earnings call date announced Jul 23
Scheduled earnings conference call for July 31, 2026 to discuss Q1FY27 results.
TL;DR: Rainbow Childrens Medicare is executing an aggressive multi-city expansion strategy with new hospitals in Mumbai, Guntur, and Nellore while delivering strong top-line growth of 33% YoY. Financial performance is solid with healthy profitability and improving ESG credentials. No visible headwinds in recent news flow. The growth trajectory looks positive as bed capacity additions across AP and Maharashtra should drive revenue in FY27-28.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 287 | 333 | 336 | 341 | 330 | 417 | 398 | 370 | 353 | 445 | 445 | 460 | 470 |
| Expenses | 199 | 215 | 218 | 236 | 236 | 270 | 264 | 255 | 249 | 296 | 298 | 315 | 335 |
| Operating Profit | 88 | 118 | 118 | 106 | 94 | 147 | 134 | 115 | 104 | 149 | 147 | 145 | 135 |
| OPM % | 31% | 35% | 35% | 31% | 28% | 35% | 34% | 31% | 29% | 33% | 33% | 31% | 29% |
| Other Income | 8 | 8 | 9 | 13 | 12 | 11 | 13 | 15 | 20 | 8 | 11 | 4 | 13 |
| Interest | 15 | 13 | 14 | 17 | 18 | 18 | 18 | 18 | 18 | 19 | 20 | 20 | 21 |
| Depreciation | 25 | 27 | 28 | 32 | 34 | 35 | 35 | 34 | 34 | 36 | 40 | 41 | 42 |
| PBT | 56 | 85 | 85 | 69 | 53 | 105 | 94 | 77 | 71 | 102 | 98 | 87 | 84 |
| Tax % | 25% | 26% | 26% | 26% | 26% | 25% | 27% | 27% | 25% | 26% | 24% | 10% | 26% |
| Net Profit | 42 | 63 | 63 | 51 | 40 | 79 | 69 | 57 | 54 | 76 | 74 | 78 | 63 |
| EPS in Rs | 4.04 | 6.2 | 6.12 | 5.02 | 3.89 | 7.77 | 6.76 | 5.55 | 5.27 | 7.41 | 7.14 | 7.59 | 5.96 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 169 | 234 | 321 | 402 | 543 | 719 | 650 | 974 | 1,174 | 1,297 | 1,516 | 1,703 | 1,820 |
| Expenses | 128 | 204 | 266 | 332 | 391 | 519 | 485 | 666 | 774 | 865 | 1,022 | 1,155 | 1,245 |
| Operating Profit | 41 | 30 | 55 | 69 | 151 | 201 | 165 | 308 | 400 | 432 | 494 | 548 | 575 |
| OPM % | 24% | 13% | 17% | 17% | 28% | 28% | 25% | 32% | 34% | 33% | 33% | 32% | 32% |
| Other Income | 10 | 16 | 11 | 10 | 8 | 10 | 10 | 19 | 31 | 37 | 51 | 42 | 35 |
| Interest | 3 | 3 | 3 | 4 | 42 | 48 | 46 | 56 | 58 | 63 | 77 | 82 | 81 |
| Depreciation | 9 | 18 | 22 | 28 | 60 | 69 | 73 | 83 | 90 | 112 | 138 | 151 | 159 |
| PBT | 38 | 24 | 41 | 47 | 58 | 93 | 56 | 187 | 282 | 295 | 330 | 358 | 371 |
| Tax % | 35% | 28% | 24% | 22% | 22% | 41% | 29% | 26% | 25% | 26% | 26% | 21% | — |
| Net Profit | 25 | 17 | 31 | 36 | 45 | 55 | 40 | 139 | 212 | 218 | 244 | 282 | 290 |
| EPS in Rs | 26.74 | 18.22 | 33.78 | 8.25 | 10.14 | 12.68 | 9.1 | 14.7 | 20.77 | 21.38 | 23.97 | 27.4 | 28.1 |
| Div. Payout % | 7% | 11% | 7% | 12% | 10% | 16% | 0% | 14% | 14% | 14% | 13% | 13% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 9 | 9 | 9 | 44 | 44 | 44 | 44 | 94 | 102 | 102 | 102 | 102 |
| Reserves | 166 | 275 | 308 | 307 | 317 | 350 | 391 | 498 | 958 | 1,157 | 1,367 | 1,547 |
| Borrowings | 22 | 24 | 26 | 24 | 476 | 501 | 529 | 592 | 570 | 765 | 764 | 891 |
| Other Liabilities | 34 | 41 | 55 | 73 | 89 | 123 | 116 | 112 | 140 | 146 | 145 | 236 |
| Total Liabilities | 231 | 349 | 399 | 448 | 926 | 1,019 | 1,081 | 1,296 | 1,771 | 2,170 | 2,377 | 2,775 |
| Fixed Assets | 78 | 123 | 174 | 296 | 702 | 702 | 772 | 858 | 931 | 1,253 | 1,398 | 1,756 |
| CWIP | 35 | 31 | 7 | 12 | 23 | 43 | 29 | 6 | 23 | 20 | 28 | 79 |
| Investments | 7 | 2 | 6 | 0 | 3 | 10 | 18 | 22 | 58 | 308 | 571 | 404 |
| Other Assets | 111 | 194 | 212 | 140 | 199 | 265 | 262 | 409 | 759 | 590 | 380 | 535 |
| Total Assets | 231 | 349 | 399 | 448 | 926 | 1,019 | 1,081 | 1,296 | 1,771 | 2,170 | 2,377 | 2,775 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 26 | 17 | 36 | 48 | 127 | 170 | 143 | 224 | 329 | 321 | 396 | 420 |
| Investing | -20 | -107 | -33 | -42 | -117 | -117 | -83 | -175 | -465 | -226 | -268 | -259 |
| Financing | -7 | 93 | -1 | -7 | -9 | -52 | -61 | -44 | 143 | -102 | -118 | -147 |
| Net Cash Flow | -1 | 3 | 1 | -2 | 2 | 2 | -1 | 4 | 7 | -7 | 10 | 14 |
| Free Cash Flow | -35 | -46 | -21 | -103 | 42 | 96 | 67 | 162 | 188 | -32 | 250 | 204 |
| CFO/OP | 95 | 88 | 79 | 88 | 94 | 95 | 102 | 93 | 103 | 95 | 97 | 95 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 11 | 10 | 16 | 14 | 24 | 22 | 25 | 15 | 16 | 20 | 19 | 22 |
| Inventory Days | 39 | 35 | 48 | 36 | 32 | 55 | 36 | 28 | 43 | 53 | 52 | 67 |
| Days Payable | 121 | 107 | 142 | 151 | 197 | 202 | 190 | 121 | 182 | 180 | 170 | 162 |
| Cash Conversion Cycle | -72 | -62 | -79 | -100 | -141 | -124 | -130 | -78 | -123 | -107 | -100 | -73 |
| Working Capital Days | -35 | -36 | -28 | -31 | -26 | -18 | -17 | -16 | 73 | 43 | 19 | 8 |
| ROCE % | 22% | 11% | 14% | 14% | 16% | 16% | 11% | 23% | 24% | 19% | 19% | 17% |
Documents
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Company Information
Rainbow Children's Medicare Limited operates a multi-specialty pediatric, obstetrics, and gynecology hospital chain in India. The company offers a wide range of services such as newborn and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care, obstetrics, and gynecology. [1] It is country’s largest pediatric hospital chain with 16 hospitals spread across 6 cities.[2]