Rainbow mature hospitals account for 73% of H1 revenue

Rainbow Children's Hospital’s mature hospitals accounted for 73% of group revenue in H1 FY27, with 64% of group beds and a 27% pre-Ind AS EBITDA margin. Rainbow’s five new hospitals held 11% of beds but supplied 4% of revenue, reporting 25% occupancy and a negative 22% pre-Ind AS EBITDA margin.

How was Rainbow revenue divided by hospital maturity?

Rainbow’s 14 mature hospitals generated 73% of group revenue in H1 FY27, compared with 22% from seven emerging hospitals and 4% from five new hospitals. Mature hospitals also represented 64% of group beds, while emerging and new hospitals accounted for 25% and 11%, respectively.

Rainbow classifies a mature hospital as one operating for more than five years, an emerging hospital as one operating for two to five years, and a new hospital as one operating for up to two years. The mature cluster’s revenue share was 9 percentage points above its 64% bed share, whereas the new cluster’s revenue share was 7 percentage points below its 11% bed share.

The presentation identifies Banjara, Secunderabad, LB Nagar, Hyderabad, Kondapur, Vijayawada, Marathahalli, BG Road, Madhapur, Guindy, Rosewalk, RCHL, Hebbal and Vizag as the 14 mature hospitals. The maturity-wise figures cover 26 hospitals and state that earnings before interest, tax, depreciation and amortisation, or EBITDA, are considered on a pre-Indian Accounting Standards, or pre-Ind AS, basis.

Why did Rainbow’s new hospitals report negative EBITDA?

Rainbow’s five new hospitals reported a negative 22% pre-Ind AS EBITDA margin in H1 FY27, alongside 25% occupancy and average revenue per occupied bed, or ARPOB, of Rs 43,000. The presentation does not disclose a specific reason for the negative margin.

The new cluster’s occupancy was 25 percentage points below the mature cluster’s 50%, and its ARPOB was Rs 26,000 lower than the mature cluster’s Rs 69,000. It also generated 4% of group revenue from 11% of group beds, compared with the emerging cluster’s 22% revenue contribution from 25% of beds.

Rainbow’s emerging hospitals recorded a 24% pre-Ind AS EBITDA margin, 43% occupancy and ARPOB of Rs 60,000 in H1 FY27. This placed the emerging cluster 19 percentage points higher than the new cluster on occupancy and Rs 17,000 higher on ARPOB, while its EBITDA margin was positive rather than negative.

How did Rainbow’s mature hospitals perform year on year?

Rainbow’s mature hospitals increased inpatient discharges by 4% to 40,723 in H1 FY27 from 38,981 in H1 FY26, while capacity beds remained at 1,550 and operational beds stayed at 1,202. Occupancy increased to 49.6% from 48.6% over the same period.

ARPOB at mature hospitals rose 13% to Rs 68,962 in H1 FY27 from Rs 61,299 in H1 FY26. Average length of stay, or ALOS, declined 2% to 2.68 days from 2.74 days, meaning discharge growth and the increase in ARPOB occurred without a change in the cluster’s stated operational-bed count.

Rainbow excludes beds at Rainbow Madhukar, New Delhi, from the mature-hospital operating key performance indicators. The maturity table reports rounded ARPOB of Rs 69,000 and occupancy of 50% for mature hospitals, while the detailed operational page gives ARPOB of Rs 68,962 and occupancy of 49.6% for H1 FY27.

How did Rainbow’s emerging hospitals perform year on year?

Rainbow’s emerging hospitals increased inpatient discharges by 54% to 16,052 in H1 FY27 from 10,391 in H1 FY26. Operational beds rose 29% to 476 from 370, while capacity beds were unchanged at 635 in both periods.

Occupancy at emerging hospitals increased to 43.1% in H1 FY27 from 38.9% in H1 FY26, and ARPOB rose 10% to Rs 59,770 from Rs 54,105. ALOS fell 8% to 2.34 days from 2.54 days, compared with a 2% decline in ALOS at mature hospitals.

Rainbow lists OMR, Financial District, Himayat Nagar, Sarjapur, Anna Nagar, Warangal and Guwahati as emerging hospitals. Rainbow Guwahati commenced operations on September 1, 2025, and the emerging cluster’s 106-bed increase in operational beds occurred during the comparison between H1 FY26 and H1 FY27.

What were Rainbow’s group financial results and revenue mix?

Rainbow reported revenue of Rs 1,018 crore in H1 FY27, up 28% from Rs 797.7 crore in H1 FY26. EBITDA rose 21% to Rs 304.6 crore from Rs 252.5 crore, while profit after tax, or PAT, increased 13% to Rs 146.4 crore from Rs 129.4 crore.

Rainbow’s reported EBITDA margin was 29.9% in H1 FY27, down from 31.7% in H1 FY26, while PAT margin declined to 14.4% from 16.2%. These reported margins differ from the 25% group EBITDA margin in the maturity-wise table, which Rainbow explicitly labels as pre-Ind AS.

Rainbow’s specialty mix included 64% pediatrics, 31% women care and 5% in-vitro fertilisation, or IVF, in H1 FY27, compared with 66%, 30% and 3% in H1 FY26. Cash represented 64.2% of total revenue and insurance 35.8%, versus 64.3% and 35.7% a year earlier; the payor profile includes outpatient revenue.

Conclusion

Rainbow’s H1 FY27 data shows that mature hospitals remained the principal contributor to revenue and pre-Ind AS EBITDA, generating 73% of group revenue with 50% occupancy and a 27% margin. Emerging hospitals supplied 22% of revenue and a 24% margin, while the newer five-hospital cluster had a smaller 4% revenue contribution, 25% occupancy and a negative 22% margin.

The disclosed unresolved matter is whether new hospitals can increase their 25% occupancy and Rs 43,000 ARPOB toward the levels recorded in older clusters. Readers can also track the emerging cluster following the September 1, 2025 opening of Rainbow Guwahati, as operational beds in that cluster rose to 476 in H1 FY27 from 370 a year earlier.