Rainbow Children's Medicare Limited gains Super Prime control

Rainbow Children's Medicare Limited acquired a 64% partnership interest in Super Prime Medical Care LLP for up to Rs 19.84 crore and gained control on 14 August 2026. The transaction created Rs 10.581 crore of goodwill, while Super Prime added Rs 2.866 crore of revenue and Rs 5.3 lakh of profit to consolidated results after acquisition.

What did Rainbow pay for Super Prime?

Rainbow agreed to pay up to Rs 19.84 crore for the 64% partnership interest, comprising Rs 18.51 crore of upfront cash and Rs 1.33 crore of additional consideration contingent on successful integration. The contingent payment had not become unconditional in the disclosure for the quarter ended 30 September 2026.

Rainbow executed the Partnership Interest and Contribution Transfer Agreement with Super Prime’s existing partners on 29 July 2026. The agreement set out the acquisition of the controlling interest, while the closing conditions were completed on 14 August 2026. The filing does not disclose a timetable or further measures for assessing successful integration.

Rainbow accounted for the transaction under Indian Accounting Standard 103, the standard covering business combinations. It recognised Rs 14.423 crore of net assets, including intangible assets other than goodwill, alongside Rs 10.581 crore of goodwill. The results note does not break down the acquired intangibles or explain the components of goodwill.

The six-month cash-flow statement reports Rs 18.327 crore for purchase of investment in the subsidiary limited liability partnership, net of cash and cash equivalents acquired. This differs from the Rs 19.84 crore maximum consideration because the cash-flow line is net of acquired cash, while the purchase-price disclosure includes the Rs 1.33 crore integration-linked amount.

When did Rainbow gain control of Super Prime?

Rainbow gained control of Super Prime on 14 August 2026 after satisfactory completion of closing conditions under the agreement. Super Prime was consolidated from that date, rather than from 29 July 2026 when the transaction documents were signed or from the start of the quarter on 1 July 2026.

The 64% acquisition left the other partners with 36% of Super Prime. Rainbow recorded that retained interest as Rs 5.193 crore of non-controlling interest at 30 September 2026. Non-controlling interest represents the portion of a consolidated subsidiary that is not attributable to the parent company.

Super Prime appears among Rainbow’s subsidiaries in the auditor’s review report with effect from 14 August 2026. The filing says the group has one business segment, medical and healthcare services, and operates in one geographical segment, India. It therefore does not provide separate operating measures for Super Prime, such as beds, patient volumes or occupancy.

What did Super Prime contribute after acquisition?

Super Prime contributed Rs 2.866 crore of revenue and Rs 5.3 lakh of profit to Rainbow’s performance from 14 August 2026 to 30 September 2026. These figures cover only the post-acquisition period and cannot be treated as a full-quarter or annual contribution.

Before Rainbow acquired control, Super Prime generated revenue of Rs 9.438 crore in the financial year ended 31 March 2026. The filing does not disclose Super Prime’s profit for that year, its pre-acquisition assets and liabilities, or a pro forma group result assuming the acquisition had occurred on 1 April 2026.

Rainbow reported consolidated revenue from operations of Rs 543.023 crore in the quarter ended 30 September 2026, compared with Rs 444.799 crore a year earlier and Rs 469.985 crore in the preceding quarter ended 30 June 2026. Total income was Rs 556.149 crore and profit after tax was Rs 81.893 crore, compared with Rs 75.624 crore in the September 2025 quarter.

Super Prime’s Rs 2.866 crore post-acquisition revenue is included within the group’s September-quarter revenue of Rs 543.023 crore. The filing does not identify how much of the year-on-year increase in group revenue, from Rs 444.799 crore to Rs 543.023 crore, came from Super Prime rather than Rainbow’s existing operations.

How did the deal affect Rainbow’s balance sheet and cash flow?

Rainbow’s consolidated goodwill was Rs 167.472 crore at 30 September 2026, up from Rs 156.890 crore at 31 March 2026. The Rs 10.582 crore increase was close to the Rs 10.581 crore goodwill recognised on the Super Prime acquisition, with the Rs 10,000 difference arising from the figures reported in the balance sheet and acquisition note.

Total assets rose to Rs 2,958.555 crore at 30 September 2026 from Rs 2,774.842 crore at 31 March 2026. Total equity increased to Rs 1,735.874 crore from Rs 1,663.588 crore over the same period, while aggregate non-controlling interest rose to Rs 21.884 crore from Rs 15.514 crore, including Super Prime’s Rs 5.193 crore balance.

For the six months ended 30 September 2026, Rainbow generated operating cash flow of Rs 217.768 crore and used Rs 86.947 crore in investing activities. Capital expenditure on property, plant and equipment, other intangibles and assets under development was Rs 138.170 crore, exceeding the Rs 18.327 crore investment in Super Prime, net of acquired cash.

Rainbow also disclosed transaction documents dated 29 July 2026 for developing a new children’s and women’s hospital in Malad, Mumbai through Rainbow Women & Children's Hospital Private Limited. Rainbow diluted 24% of its stake in that subsidiary in connection with the capacity addition, but the filing does not state an opening date or investment amount for the Malad hospital.

Conclusion

Rainbow’s acquisition gives it control of Super Prime for a maximum Rs 19.84 crore, subject to the Rs 1.33 crore integration-linked payment. The transaction added Rs 14.423 crore of recognised net assets, Rs 10.581 crore of goodwill and Rs 5.193 crore of non-controlling interest, while contributing Rs 2.866 crore of revenue in the initial consolidation period.

The next disclosed matter to watch is whether successful integration triggers the remaining Rs 1.33 crore payment. Rainbow also has a disclosed Malad capacity-addition plan through Rainbow Women & Children's Hospital Private Limited, although the 31 October 2026 filing provides no project cost, commissioning target or opening schedule.