Rainbow Children’s Medicare Q3 Results: 10.56% Net Profit Growth, ₹900 Cr Expansion Plan, and India’s First Fetal Heart Procedure
Business and Industry Overview
Rainbow Children’s Medicare Limited is a multi-specialty and perinatal care hospital chain in India with headquarters in Banjara Hills, Hyderabad. The company provides healthcare services for children and mothers. It was founded by Dr. Ramesh Kancharla & was incorporated in 1998 it is one of India’s most paediatric multi-specialty and perinatal care hospital chains. Its unwavering commitment to delivering specialized and high-quality healthcare services has been the driving force behind its success and growth. Currently, Rainbow Hospital Group operates 19 hospitals and 3 outpatient clinics across India. This includes eight hospitals in Hyderabad, four in Bangalore, and two each in Delhi, Chennai, Vijayawada, and Visakhapatnam. Rainbow Children’s Hospital (Banjara Hills & Marathahalli) is India’s first pediatric hospital to receive JCI’s Gold Seal of Approval, while BirthRight Fertility (Kondapur) is India’s first standalone fertility center with JCI accreditation.
The Indian paediatric hospitals market generated a revenue of USD 5,275.0 million in 2023 and is expected to reach USD 8,004.4 million by 2030. The Indian market is expected to grow at a CAGR of 6.1% from 2024 to 2030. It is experiencing rapid growth, driven by increasing awareness about child health, rising disposable incomes, and growing demand for specialized pediatric care, with the market projected to expand significantly in the coming years, particularly in areas like super-specialty care and advanced treatments for children; notable players include major hospital chains like Apollo Hospitals and Fortis, with a focus on establishing dedicated pediatric units within their facilities. But Rainbow Children’s Hospital is also considered to be one of the largest pediatric hospital chains in India, holding a significant market share in the pediatric hospital sector.
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The hospital’s multi-specialist team has recently successfully performed a Fetal heart procedure on 27 weeks 27-week-old baby. It has been recorded in history as it is the world’s first fetal heart procedure on 27 weeks 27-week-old baby. This remarks India’s advancing medical treatment and a very proud move for Indian doctors.
The hospital has also planned to add Rs 900 Cr for an additional 1000 beds over the next 4 years. “By 2027 we plan to have eight more hospitals with over 1,000 beds more,” said Rainbow Children’s Medicare chairman & managing director Dr Ramesh Kancharla. While a chunk of the expansion will be funded via internal accruals, about Rs 120 crore will come from the proceeds remaining from the Rs 1,581 crore initial public offering (IPO) it made last year. Rainbow had raised Rs 280 crore via a fresh issue and the remaining Rs 1,301 crore by way of an offer for sale (OFS) by promoters & promoter group and investors.
With the Q3 results coming up the company’s net profit of Rainbow Children’s Medicare rose 10.56% to Rs 68.69 crore in the quarter ended December 2024 as against Rs 62.13 crore during the previous quarter ended December 2023. Sales rose 18.49% to Rs 398.08 crore in the quarter ended December 2024 as against Rs 335.96 crore during the previous quarter ended December 2023.
Segmental information
Rainbow Children’s Medicare Limited (RCML) has two business segments: pediatric care and women’s care.
Pediatric care: It provides newborn care and pediatric intensive care units (ICUs). It includes taking care of babies, especially those who are sick or premature, in specialized units.
Pediatric multi-specialty services: It provides care for conditions like neurology, nephrology, gastroenterology, oncology, and cardiology. It has experts who specialize in different areas like brain problems (neurology), kidney issues (nephrology), stomach and digestion (gastroenterology), cancer (oncology), and heart conditions (cardiology).
Pediatric quaternary care: It provides organ transplantation and other complex care. This is for really serious cases, including things like organ transplants.
Women’s care
Obstetrics: It provides normal and complex obstetric care. Care for expectant mothers, from routine checkups to complicated deliveries.
Gynecology: It provides gynecology services which include multi-disciplinary fetal care, perinatal genetic, and fertility care. A range of services for women, including specialized care for unborn babies, genetic testing, and fertility treatments.
Subsidiary Information
- Rainbow Children’s Hospital Private Limited – RCHPL is a 100 % subsidiary of Rainbow Children’s Medicare.
- Rainbow Speciality Hospitals Private Limited – RSHPL is a subsidiary of Rainbow Children’s Medicare with 78.8 % of holdings.
- Rainbow Women & Children’s Hospital Private Limited – RWCHPL is a 100 % subsidiary of Rainbow Children’s Medicare.
- Rosewalk Healthcare Private Limited – RHPL is a 100 % subsidiary of Rainbow Children’s Medicare.
- Rainbow Fertility Private Limited – RFPL is a 100 % subsidiary of Rainbow Children’s Medicare.
- Rainbow C R O Private Limited – RCROPL is a 100 % subsidiary of Rainbow Children’s Medicare.
Q3 Highlights
- Net Profit has increased by 10.56% to ₹68.69 crore in Q3 FY25 compared to ₹62.13 crore in Q3 FY4.
- Sales have increased by 18.49% to ₹398.08 crore in Q3 FY25 compared to ₹335.96 crore in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 336.00 | 398.00 | 1,174 | 1,297 |
| Expenses | 218 | 264 | 774 | 865 |
| EBITDA | 275 | 147 | 430.00 | 470.00 |
| OPM | 35% | 34% | 34% | 33% |
| Other Income | 9 | 13 | 19 | 37 |
| Net Profit | 63.00 | 69.00 | 212 | 218 |
| NPM | 18.75 | 17.34 | 18.06 | 16.81 |
| EPS | 6.12 | 6.76 | 20.77 | 21.38 |