Rainbow Childrens Medicare Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 548.00 Cr (+23.20% YoY) and PAT growth of +10.90% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 31, 2026 |
|---|---|
| Revenue (Q2) | Rs. 548.00 Cr (+23.20% YoY) |
| PAT (Q2) | Rs. 83.90 Cr (+10.90% YoY) |
| EBITDA margin | 31.02% (-245 bps YoY) |
| EPS (Q2) | Rs. 8.10 (+9.30% YoY) |
Revenue grew 23.2% YoY to Rs.548.0 Cr, tracking ahead of management's ~20% FY27 guidance, while EBITDA hit a record Rs.170.0 Cr with margin up 237 bps QoQ to 31.02% — the first sequential stabilization after a four-quarter slide. The offset is PAT-to-owners growth of only 9.1% as doctor fees and D&A outpace revenue, plus a step-up in non-controlling interests. Cash conversion (CFO/PAT 1.49x) and on-schedule execution of the Malad and Nellore transactions support the expansion thesis.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "YoY revenue likely ahead on base effect, acquisitions and new-unit ramp; the seasonal component in-line to behind" | +23.2% YoY, +16.6% QoQ (Rs.548.0 Cr) | Played out |
| Margins | "margin direction should remain governed by new-unit ramp … rather than input costs" — compressing vs 33.5% comparative | 31.02% vs 33.47% YoY (−245 bps) — but +237 bps QoQ — the YoY compression played out; the sequential direction turned up, so margins are not still compressing quarter-on-quarter | Partially |
| Occupancy test | "the occupancy print vs 52.0% (Q2 FY26) … the key test" | Not disclosed in the filing | Not observable |
| Capex | "consistent with the plan" | Rs.138.2 Cr H1 vs Rs.600 Cr FY27–29 budget | Played out |
| Execution (Malad docs, Indore) | watch-list: Malad completion Q2 FY27; Indore Q3 FY27 | Malad documents executed 29-Jul-2026; Indore not addressed | Partially |
| New CFO margin framework | "reaffirms the 24%–25% pre-Ind AS EBITDA margin target by end-FY27 and keeps the pre-Ind AS definition intact" | Filing silent — a call item for 2-Nov-2026 — remains open for the call | Not observable |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Revenue growth ~20% in FY27; double in ~4 years | Q4 FY26 and Q1 FY27 earnings calls | +23.2% YoY, +27.6% H1 (consolidated) | On Track |
| EBITDA margin 24–25% pre-Ind AS by end FY27 | Q1 FY27 earnings call | 31.02% reported (post-IndAS 116); pre-Ind AS basis not derivable from the filing | Too Early |
| Capex Rs.600 Cr over FY27–29 | Q2 FY26 / Q1 FY27 calls | Rs.138.2 Cr in H1 | On Track |
| Malad definitive documents completed Q2 FY27 | Q1 FY27 press release (subsequent events) | Documents executed 29-Jul-2026 | Met |
| "While margins have been under some pressure, our overall EBITDA pool has continued to grow" | Q1 FY27 call | EBITDA Rs.170.0 Cr, +14.2% YoY, record level despite margin −245 bps YoY | Confirmed |
| Seasonal demand to become "the icing on the cake" / reduced seasonality dependence | Q1 FY27 & Q4 FY26 calls | Cannot be fully tested — no Q2 KPI slide in the filing; Q2 margin +237 bps QoQ is consistent but not proof | Too Early |
| Acquisitions "expected to be EBITDA-positive and integrate smoothly without significant drag" | Q1 FY27 call | Nellore: Rs.0.05 Cr profit on Rs.2.87 Cr revenue in ~1.5 months — roughly breakeven, no drag — early | Confirmed |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.