Thanks for sharing this. This was very helpful in assessing company.
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Rainbow Children’s Medicare -
Q4 and FY 26 results and conceal highlights -
Q4 outcomes -
Revenues - 460 cr, up 24 pc
EBITDA - 145 cr, up 26 pc
PAT - 78 cr, up 38 pc
Bed capacity @ 2375, up 23 pc
IP patients @ 27.2k, up 16 pc
Deliveries @ 5.1k, up 22 pc
Occupancy @ 45 pc, down 3 pc
ARPOB @ 62.4k, up 8 pc
Mature hospital ( > 5 yrs ) occupancy @ 52 vs 50 pc ( No of beds @ 1371, flat YoY )
New hospitals ( < 5 yrs ) occupancy @ 36 vs 36 pc ( No of Beds @ 1004, up 76 pc )
Mature : New hospitals ARPOB @ 67.3k : 52.4k
FY 26 outcomes -
Revenues - 1703 cr, up 12 pc
EBITDA - 544 cr, up 11 pc
PAT - 281 cr, up 15 pc
Current bed capacity -
Hyderabad + Telangana - 1040 ( include acquisition of Prasanthi hospital @ Warangal in Q2 FY 26 ) - 8 hospitals in Hyderabad + 1 in Warangal
Bengaluru - 605 ( Electronic City hospital commenced operations in last week of Jan 26 and 1 more hospital @ HRBR went live in first week of May 26 ) - 6 hospitals
NCR - 24 - 1 hospital ( excludes Malvia Nagar hospital where the company provides medical services )
AP - 359 - 3 hospitals
NE - 150 ( via acquisition of Pratiksha hospital @ Guwahati in Q3 FY 26 ) - 1 hospital
Chennai - 270 beds - 3 hospitals
Total - 23 hospitals
Upcoming bed capacity -
Coimbatore - 130 beds in H2 FY 28
Gurugram - 325 + 125 beds in H2 FY 28
Pune - 150 beds in FY 29
Bengaluru - 80 beds in FY 29
Indore - 100 beds in FY 29
Notes from previous concalls -
Newly commissioned hospitals at Rajamundhry ( AP ) and Electronic City Bengaluru are off to a very good start. The two acquired hospitals are also performing as per expectations
Have added a lot of new beds ( aprox 700 beds ) in last 2 yrs. Next round of meaningful bed additions should happen after 18 months or so. They have this interim window to ramp up occupancies
In the process of making a roadmap to open clinics in catchment areas to drive more traffic towards company’s speciality hospitals ( to ramp up their occupancies )
Company believes, they were trailing the mkt wrt their digital marketing initiatives. Have now identified this weakness and are now trying to fix it in an aggressive fashion. Digital reviews r replacing the word of mouth marketing. Company is now waking up to this reality
Notes from Q4 concall -
Net cash on books @ 575 cr - sufficient to drive all organic and inorganic growth initiatives ( as they also generate ample cash )
Capex in FY 26 stood @ 217 cr
Not looking to acquire assets below 50 beds ( with an option to expand to 100 beds or so ). Also looking to enter new micro markets
Construction of building @ Indore shall be done by company’s partner and then lease out the building to Rainbow. Company shall spend on the equipment / installations etc
IVF revenues in FY 26 stood @ 61cr. Revenues from International patients stood @ 29 cr for full FY
Also operate 3 standalone IVF centers ( 2 in Bengaluru + 1 in Hyderabad ). Rest are co-located with company’s hospitals. IVF business should keep growing @ 25 CAGR for next 3 yrs or so
Avg maint capex / yr is around 45 - 50 cr
Avg capex / new bed addition is generally @ 70 - 75 lakhs per bed
Have a very good mkt share in the super speciality paediatric / neonatal work
Disc: holding, investment position, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes
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