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 9.13 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
Consolidated revenue rose 33.2% YoY to ₹4,699.85 million for Q1FY26, with net profit up 16.2% YoY to ₹625.40 million.
- ₹90 Cr Mumbai hospital planned Jul 29
Rainbow executed definitive documents for a new 100-bed children's and women's hospital in Malad, Mumbai, with an estimated project cost of ₹90 Crore.
- Expansion into Guntur, AP Jul 29
₹15 crore investment to establish a 50-bed women's and children's hospital in Guntur, Andhra Pradesh, targeting September 2026 commissioning.
- Nellore hospital stake acquired Jul 29
Rainbow to acquire 64% stake in Super Prime Medical Care LLP for ₹19.84 Cr, adding 70 beds in Andhra Pradesh.
- 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 on July 29, 2026, declaring a final dividend of ₹3.5 per share for FY26 and approving re-appointment of key directors.
- Q1FY27 earnings call held Jul 31
Audio recording of Q1FY27 earnings call released, covering financial and operational performance for the quarter ended June 30, 2026.
- Earnings call date announced Jul 23
Rainbow scheduled its Q1FY27 earnings conference call for July 31, 2026, to discuss results for the quarter ended June 30, 2026.
TL;DR: Rainbow Childrens Medicare delivered strong Q1 results with 33% revenue growth and 16% profit growth, while aggressively expanding its footprint with three new hospital projects across Mumbai, Guntur, and Nellore totaling over ₹124 Cr in investment. No material headwinds are visible in recent news. The ESG upgrade and consistent dividend signal management confidence. The trend is clearly positive with multi-city expansion likely to drive medium-term bed capacity and revenue growth.
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]