Rainbow Children's Medicare Q2 revenue rises 22%, profit 11%

Rainbow Children's Medicare Limited reported consolidated revenue from operations of Rs 543.02 crore for the quarter ended 30 September 2026, up 22.1% from a year earlier. Profit after tax rose 10.9% to Rs 81.89 crore, as total expenses increased 26.8%, led by higher professional fees to doctors, employee benefits and other expenses.

How much did Rainbow Children's Medicare's Q2 revenue grow?

Rainbow Children's Medicare's revenue from operations rose 22.1% year on year to Rs 543.02 crore in the quarter ended 30 September 2026, from Rs 444.80 crore in the quarter ended 30 September 2025. Revenue also increased 15.5% from Rs 469.99 crore in the quarter ended 30 June 2026.

Total income was Rs 556.15 crore in the September 2026 quarter, up from Rs 452.99 crore a year earlier and Rs 482.70 crore in the June 2026 quarter. Other income was broadly unchanged year on year at Rs 8.13 crore, versus Rs 8.20 crore, meaning the increase in total income principally came from medical and healthcare operations.

For the six months ended 30 September 2026, Rainbow Children's Medicare recorded revenue from operations of Rs 1,018.01 crore, compared with Rs 797.73 crore in the corresponding 2025 period. That was a 27.6% increase, while total income for the half year rose to Rs 1,038.84 crore from Rs 825.94 crore.

Which costs rose faster than revenue in Q2?

Rainbow Children's Medicare's total expenses rose 26.8% to Rs 444.65 crore in the September 2026 quarter, exceeding the 22.1% growth in revenue from operations. Professional fees to doctors increased 32.0% to Rs 140.30 crore, employee benefits expense rose 27.9% to Rs 75.18 crore, and other expenses grew 29.4% to Rs 88.80 crore.

Depreciation and amortisation increased 24.5% to Rs 44.61 crore, while cost of materials consumed rose 18.6% to Rs 73.77 crore. Finance costs were Rs 22.00 crore, up 16.7% from Rs 18.85 crore. Compared with the June 2026 quarter, total expenses increased from Rs 398.74 crore, including doctor fees of Rs 123.82 crore and employee benefits of Rs 66.85 crore.

Profit before tax was Rs 111.50 crore, up 8.9% from Rs 102.37 crore a year earlier. Based on the reported consolidated figures, profit before tax represented 20.0% of total income in the September 2026 quarter, compared with 22.6% in the prior-year quarter, reflecting expense growth that outpaced income growth.

What was Rainbow Children's Medicare's Q2 profit and earnings per share?

Rainbow Children's Medicare reported consolidated profit after tax of Rs 81.89 crore for the quarter ended 30 September 2026, compared with Rs 75.62 crore in the September 2025 quarter. The Rs 6.27 crore increase in profit followed a Rs 98.22 crore increase in revenue from operations and a Rs 94.02 crore increase in total expenses.

Tax expense was Rs 27.61 crore, compared with Rs 26.75 crore a year earlier, after profit before tax increased by Rs 9.13 crore. Basic and diluted earnings per share were Rs 8.10, against Rs 7.41 in the prior-year quarter; Rainbow Children's Medicare stated that quarterly earnings per share were not annualised.

Profit attributable to owners was Rs 82.09 crore, compared with Rs 75.25 crore in the September 2025 quarter. Non-controlling interests accounted for Rs 1.80 crore of quarterly profit, up from Rs 3.74 lakh, while total comprehensive income was Rs 83.71 crore after an other comprehensive loss of Rs 17.90 lakh.

How did Rainbow Children's Medicare perform in the first half?

Rainbow Children's Medicare generated first-half profit after tax of Rs 146.43 crore for the six months ended 30 September 2026, up 13.1% from Rs 129.43 crore in the corresponding 2025 period. Total expenses increased to Rs 843.39 crore from Rs 652.20 crore, while profit before tax rose to Rs 195.46 crore from Rs 173.74 crore.

Net cash flow from operating activities was Rs 217.77 crore for the six-month period, compared with Rs 207.59 crore a year earlier. Net cash used in investing activities declined to Rs 86.95 crore from Rs 124.81 crore, as purchases of property, plant and equipment, other intangibles and assets under development fell to Rs 138.17 crore from Rs 302.27 crore.

Total assets were Rs 2,958.56 crore at 30 September 2026, compared with Rs 2,774.84 crore at 31 March 2026. Cash and cash equivalents were Rs 32.55 crore, down from Rs 33.89 crore at the March year-end, while total lease liabilities rose to Rs 968.22 crore from Rs 890.98 crore.

What expansion and acquisition actions did Rainbow Children's Medicare disclose?

Rainbow Children's Medicare disclosed a proposed capacity addition through development of a new children and women's hospital in Malad, Mumbai. On 29 July 2026, it executed definitive transaction documents through Rainbow Women & Children's Hospital Private Limited and diluted a 24% stake in that subsidiary.

On the same date, Rainbow Children's Medicare signed a Partnership Interest and Contribution Transfer Agreement to acquire a 64% partnership interest in Super Prime Medical Care LLP. The agreement specified an upfront cash payment of Rs 18.51 crore and contingent consideration of Rs 1.33 crore payable upon successful integration, for total potential consideration of Rs 19.84 crore.

Rainbow Children's Medicare acquired control of Super Prime Medical Care LLP from 14 August 2026 after the closing conditions were met. From acquisition to 30 September 2026, the LLP contributed Rs 2.87 crore of revenue and Rs 5.30 lakh of profit; it had generated Rs 9.44 crore of revenue in the year ended 31 March 2026.

Conclusion

Rainbow Children's Medicare's September-quarter results show operating revenue expanding faster than profit, with revenue from operations rising 22.1% and profit after tax increasing 10.9%. Professional fees to doctors, employee benefits, other expenses and depreciation all increased, lifting total expenses by 26.8% and reducing the reported profit-before-tax share of total income from the prior-year quarter.

The next reporting periods will show the effect of the proposed Malad hospital capacity addition and the integration of Super Prime Medical Care LLP, consolidated from 14 August 2026. Rainbow Children's Medicare also disclosed that its Employee Stock Option Scheme 2025 allows up to 10.15 lakh equity shares, and that 58,260 options were granted during the six months ended 30 September 2026.