Rainbow Childrens Medicare Limited Earnings Summary — Q4 FY2026
Rainbow Children's Medicare Reports Moderate Revenue Growth with Margin Resilience Amid Geographic Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹470 Cr is 33.2% higher year-on-year.
- Revenue has compounded at 15.3% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹61 Cr is 13.2% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 8.0% annualised across the period.
- Operating margin stands at 28.6% in Q1 FY2027.
- Operating margin compressed by 71 bps year-on-year.
- Over the last two years operating margin has expanded by 27 bps.
- PBT margin is 17.9%.
- Expenses grew 34.5% against revenue growth of 33.2%.
- Operating profit of ₹135 Cr is 29.9% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 67/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 470 | 460 | 445 | 445 | 353 | 370 | 398 | 417 | 330 | 341 |
| Expenses | Improving | 335 | 315 | 298 | 296 | 249 | 255 | 264 | 270 | 236 | 236 |
| Operating Profit | Improving | 135 | 145 | 147 | 149 | 104 | 115 | 134 | 147 | 94 | 106 |
| Operating Margin | Stable | 28.6% | 31.5% | 33.0% | 33.5% | 29.4% | 31.0% | 33.8% | 35.2% | 28.4% | 30.9% |
| Other Income | Volatile | 13 | 4 | 11 | 8 | 20 | 15 | 13 | 11 | 12 | 13 |
| Interest | Stable | 21 | 21 | 20 | 19 | 18 | 18 | 18 | 18 | 18 | 17 |
| Depreciation | Improving | 42 | 41 | 40 | 36 | 34 | 34 | 35 | 35 | 34 | 32 |
| Profit Before Tax | Improving | 84 | 87 | 98 | 102 | 71 | 77 | 94 | 105 | 53 | 69 |
| Tax | Volatile | 21 | 9 | 24 | 27 | 18 | 20 | 25 | 26 | 14 | 18 |
| Net Profit | Improving | 61 | 77 | 73 | 75 | 54 | 56 | 69 | 79 | 40 | 51 |
| Net Margin | Stable | 12.9% | 16.8% | 16.3% | 16.9% | 15.2% | 15.2% | 17.3% | 18.9% | 12.0% | 14.9% |
Key Takeaways
- Revenue grew 24.3% year-on-year to ₹460 crores, demonstrating sustained demand in the niche pediatric segment.
- Net profit saw a significant 36.8% YoY jump, primarily aided by a sharp reduction in effective tax rate to 10% this quarter.
- Operating Profit Margin remained healthy at 31%, although it softened compared to the 33% seen in the preceding two quarters.
- Borrowings increased to ₹891 crores by year-end, reflecting capital-intensive expansion and bed capacity additions.
- The company maintains a strong doctor-partnership model, which continues to drive high clinician retention and specialized care quality.
- Expansion into NCR and other clusters is ongoing, with significant focus on the 'Rainbow' and 'Birthright' brands.
- Cash flow from operations remains robust at ₹420 crores for the full year, supporting aggressive capex plans.
Management Guidance
Management remains focused on adding 1,000+ beds over the medium term. They intend to deepen penetration in established Hyderabad and Bengaluru clusters while expanding the hub-and-spoke model into new territories like NCR and other urban centers.
Sentiment Shift
Stable
While margins faced slight quarterly pressure, the strong year-on-year revenue and profit growth, combined with high operational consistency, reinforces the company's position as a high-quality compounder.
Outlook
The outlook remains healthy with a clear roadmap for capacity expansion and a focus on maintaining high ARPOB and occupancy through specialized pediatric quaternary care.
From the Annual Report (Key Quotes)
“Strategy of involving senior clinicians as partners has led to high doctor retention, a critical success factor.”
“Clear roadmap for adding 1,000+ beds over the medium term without compromising on the quality of care.”
“The business has demonstrated exceptional compounding, with a 10-year sales CAGR of 22%.”
Official Quarterly Documents
This summary is AI-generated from Rainbow Childrens Medicare Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.