RAINBOW
Large CapRainbow Childrens Medicare Limited
Pharma
Rainbow Children's Medicare is India's largest pediatric hospital chain with 24 hospitals and 5 clinics across 9 cities. It offers comprehensive pediatric, perinatal, and fertility care, operating on a hub-and-spoke model with a full-time consultant-led service. The company has a total bed capacity of 2,435.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 1/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 57/100Rev +24% YoY · PAT +37% YoY · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹460 Cr | +24.3% | +3.4% |
| EBITDA | ₹145 Cr | +26.1% | -1.4% |
| Operating margin | 31.0% | +0 bps | -200 bps |
| PAT | ₹78 Cr | +36.8% | +5.4% |
| PAT margin | 17.0% | +155 bps | +33 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 Revenue grew 24% YoY to INR 4,599 Mn, with PAT up 38% YoY to INR 782 Mn, driven by new hospital commencements and increased operational beds. FY26 Revenue rose 12% YoY, PAT 15% YoY. Overall occupancy declined slightly YoY for both Q4 and FY26.
The company demonstrates strong financial growth, leveraging its hub-and-spoke model and new capacity additions. However, the slight decline in overall occupancy, particularly in mature hospitals, suggests potential dilution from new, ramping-up facilities. Sustained growth hinges on efficient ramp-up of new beds and maintaining utilization in existing ones.
Inpatient Income Payor Profile (Q4 FY26)
Latest issuer-disclosed distribution across 2 reported categories.
Hub-and-Spoke Expansion
Replicating successful hub-and-spoke model in Chennai and NCR, with plans to expand into Tier-2 cities of Southern India.
New Hospital Commencements
Commenced new 60-bed HRBR Hospital and a dedicated IVF centre at Mahadevapura, Bengaluru, strengthening network.
Comprehensive Care
Offers a full suite of pediatric, perinatal, and fertility services, including quaternary care and advanced fetal medicine.
Doctor Engagement Model
Unique full-time, retainer-based doctor model ensures 24/7 consultant-led care, fostering high retention and loyalty.
HRBR Hospital, Bengaluru
New 60-bed hospital commenced operations from May 1, 2026.
Mahadevapura IVF Centre, Bengaluru
Dedicated ~10,000 sq. ft. IVF centre commenced operations.
Coimbatore
~130 beds expected to be commissioned by H2 FY27-28.
Gurugram (Sector 44 & 56)
~325 beds planned for Sector 44 in FY27-28 and ~125 beds for Sector 56 in FY28-29.
Occupancy Dilution
Overall occupancy declined to 45.3% in Q4 FY26 (-3% YoY) and 46.3% in FY26 (-8% YoY), with mature hospitals also seeing a drop.
New Hospital Ramp-up
New hospitals, including recent acquisitions and commencements, require time to achieve optimal occupancy and profitability, impacting overall utilization.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Q4 results show both sequential momentum (QoQ) and annual growth (YoY), which are relevant for assessing recent operational trends and overall annual performance. FY26 results are best read YoY for full-year comparison.
Operational Beds
Q4 FY26: 2,375 (+23% YoY); FY26: 2,375 (+23% YoY).
Occupancy
Q4 FY26: 45.3% (-3% YoY); FY26: 46.3% (-8% YoY). Mature hospitals occupancy: Q4 FY26: 51.8% (+2% YoY); FY26: 51.0% (-9% YoY).
IP Discharges
Q4 FY26: 27,165 (+18% YoY); FY26: 104,514 (+6% YoY).
OP Consultations
Q4 FY26: 424,702 (+19% YoY); FY26: 1,598,970 (+12% YoY).
Expansion Strategy
Management aims to replicate the hub-and-spoke model in Chennai and NCR, and expand into Tier-2 cities of Southern India.
Integrated Services
Committed to providing comprehensive women and child healthcare, with synergies between pediatric and perinatal services.
Quality & Training
Pioneering the largest pediatric DNB training program in private healthcare, recognized as MRCPCH Examination Centre.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Overall Occupancy | 46.3% (FY26) | Stabilization and improvement, especially in new hospitals, to drive revenue growth. |
| New Hospital Ramp-up | 11 hospitals under 5 years of operations | Occupancy and profitability trends in these new facilities to assess successful integration. |
| ARPOB | INR 60,141 (FY26) | Sustained growth, indicating pricing power and favorable case mix. |
| Expansion Timelines | Coimbatore (H2 FY27-28), Gurugram (FY27-28, FY28-29), Pune (FY28-29) | Adherence to commissioning schedules for planned capacity additions. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
The Hennur (Bengaluru) facility (~60 beds) is expected to commence operations by January 2026, subject to approvals.
"expected to commence operations by January 2026, subject to approvals"
The regional hub hospital at Coimbatore (~130 beds) is expected to be ready by the end of FY27.
"expected to be ready by the end of FY27"
All planned capital expenditures will be completed through internal accruals without any debt financing.
"complete all planned capital expenditures through internal accruals without any debt financing"
Prashanthi hospital in Warangal and Pratiksha hospital in Guwahati are expected to see an uptick in revenue from December onwards.
"we expect to see an uptick from December onwards"
Outcome check: Revenue YoY averaged 11.8% across 1 later quarter(s).
Trend score and candlestick chart
54NeutralSMA20 +7.3% / mo
Technical chart
RAINBOWweekly · 3Y-16.2%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 52. Wait for confirmation.
- SMA20 rising (~6.8% over last month) — short-term momentum positive.
- RSI(14) at 52 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 19% off 52W high · 22% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Growth contributes 18/25 to the score.
- Cash flow contributes 7/10 to the score.
Main drags
- Fair-value margin of safety is negative at -15.3%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Balance sheet is weaker at 7/15; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Management has 100% delivered/partly-delivered outcomes on 1 checked claims. It ranks around the 79th percentile of the scored universe and 71st percentile within Pharma. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Pharma: 71st pctile, median 70 · Large: 58th pctile, median 74
87 documents indexed, but claim history is not strong enough yet.
1/4 claims checked · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.2%.
- ▸10 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 48.80
- P/B
- 8.29
- EV/EBITDA
- 20.91
- Market Cap
- 13641.00Cr
Profitability
- ROE
- 17.90%
- ROCE
- 18.20%
- ROA
- 10.16%
- Dividend Y
- 0.26%
Growth (CAGR)
- Revenue 5Y
- 21.00%
- EPS 5Y
- 48.00%
- Revenue 3Y
- 13.00%
- EPS 3Y
- 10.00%
Balance Sheet
- Debt/Equity
- 0.54
- Interest Coverage
- 6.97×
- Altman Z
- 8.26
- Book Value
- 162.00
Cash Flow
- FCF Yield
- 1.18%
- FCF Positive Y
- 10/5
- OCF
- 420.00 Cr
- EPS TTM
- 27.40
Shareholding
- Promoter Hold
- 49.84%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 52%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.