Hi. Good morning, everyone.

This is Rahul from IIFL Capital. I welcome you all to the fourth quarter earnings conference call of Rainbow Hospitals being hosted by IIFL.

From Rainbow, we have with us today Dr. Ramesh Kancharla, Chairman and Managing Director, Mr.

Abrar Dalal, Group CEO, Mr. Vikas Maheshwari, Group CFO, and Mr.

Saurabh Bhandari, Head of Investor Relations. Over to you, sir, for your opening comments.

Oh,

thank you, Rahul. Good morning, everyone, and thank you for joining us for Rainbow Children's Medicare Limited earnings call for Q4 and financial year ending March 31st, 2026.

As I reflect on year gone by, I would like to start with a few key strategic and operational updates for the quarter as well as the year. FY26 has been the landmark year for Rainbow with a company adding nearly 500 beds, the highest annual capacity addition in its history, significantly strengthening our platform for long-term growth across key markets.

The investments made over the last two years are now beginning to reflect on our performance with Rainbow delivering its highest-ever quarterly revenue and achieving 20% year-on-year growth. Our key operating metrics include outpatient footfalls, inpatient discharges, and deliveries continued to witness healthy growth across both mature as well as the new hospitals.

Importantly, the occupancies remained stable despite substantial bed additions. The acquired hospitals at Warangal and Guwahati have integrated seamlessly into the Rainbow network and continue to scale up well operationally.

In addition, the newly commissioned hospitals, Rajahmundry, HRBR Layout in Bangalore, Sarjapur in Bangalore, Mahadevapura IVF center in Bangalore, are witnessing good patient traction. We are pleased with the response in Bengaluru where we managed to onboard highly reputed consultants across pediatrics, obstetrics, neonatal, and fertility specialties.

Today, Rainbow is the largest pediatric and perinatal care provider in Bangalore city. As we enter the next phase of growth, our focus firmly is centered on improving occupancies, clinical excellence, and patient experience.

Mr. Abrar Dalal has transitioned seamlessly into the role of CEO, Chief Executive Officer position, and is actively driving day-to-day and strategic operations across the organization.

I'm also extremely proud to share that Rainbow has once again been recognized as a great place to work, making sixth recognition in the last seven years with outstanding employee satisfaction score of 90%. Coming to financials, for Q4 FY26, the company reported revenue of ₹459.9 crores, a growth of 24%, EBITDA of ₹144.7 crores with a growth of 26%, and the PAT of ₹78.2 crores, a growth of 38% compared to the Q4 of the last financial year.

Occupancy for the quarter stood at 45.3%. Coming to projects, we have further strengthened our projects team with onboarding of a director of the projects for timely execution of our projects.

The regional hub hospital in Coimbatore of 130 beds is in active construction phase now, and we expect to commence operations in H2 FY28. We continue to make significant good progress in our Gurgaon projects, where we are trying to fast-track the Sector 56 of 125 beds to commence operations in H2 FY28, and a large super specialty hub in Sector 44 of 325 beds is expected to commence operations in Q1 FY29.

We have received all statutory approvals for regional greenfield hub hospital in Pune of 150 beds, excavation work is in progress now. We have also signed lease agreement for a greenfield spoke hospital of 80 beds in Bangalore city at a micro-market is called Seegehalli, which is very close to ITPL and Hoskote.

This is rapidly growing micro-market. This will be our seventh hospital in the city.

We have entered into an agreement for built-to-suit 100-bed hospital in Central Indore, and it's in the permission stage. We have also entered into MOU to run pediatrics and obstetrics services in 200-bed multi-specialty hospital, which is owned by the same owner.

This multi-specialty belongs to same owner, and he would be building for us a 100-bed hospital in the neighboring site. Therefore, it would allow us to kind of transfer our practice seamlessly in two years' time into the new premises.

With the current expansions, what we have nearly 900-plus beds in the execution phase, which are all likely to kind of complete in about two and a half years' time. As I conclude, I want to reiterate the strategic priorities as we enter into the next phase of growth.

My role will be to working very closely with the CEO and senior management personnel to drive growth, service excellence, and consultant engagement. Strengthening Rainbow clinical offerings significantly in all our hub hospitals as well as the regional spoke hospitals to focus and also focus on clinical outcomes.

With the success of two acquisitions which are been done last two years' time, we are very excited about looking at the acquisitions which are aligned to our philosophy, and also where we can add at the scale. Also we are looking at some new spoke hospital in existing cities, and we are firming up our plans for the new geographies as well.

With that, I now hand over the mic to Mr. Abrar Dalal before the Mr.

Vikas gives financial update. Thank you.

Thank you, Dr. Ramesh.

Good morning, everyone, and thank you for joining us today. It has been a little over four months since I joined Rainbow and I'm extremely pleased with the depth of clinical excellence, quality culture, and strong organizational foundation that the company has built over the years.

Rainbow today are highly differentiated and scalable platform in women and children healthcare, supported by a strong brand, full-time consultant-led model, and an outstanding clinical team across the network. Over the last few months, I've spent good time engaging closely with our unit leadership teams, clinicians, and functional heads across the organization.

One of the key opportunities ahead of us is to further improve occupancies, consultant engagement, service mix, patient experience, and operating leverage across the network, particularly as the recent capacity additions mature over the coming years. I am now deeply involved in our operating review cadence and transformation initiatives, and building a more data-driven and execution-focused organization.

This includes strengthening dashboarding and performance tracking systems, institutionalizing structured review mechanisms, and improving accountability across units for sharper execution at hospital level. In parallel, we're making meaningful investments in sales and marketing, doctor engagement, and patient conversion initiatives to accelerate growth momentum and improve asset utilization across the network.

I'm looking forward to working closely with the leadership team to drive aspirational yet achievable growth of 20% in the current year while maintaining margins. Further, I remain highly optimistic about Rainbow's long-term growth opportunity and our ability to create a sustainable value for all stakeholders.

Thank you so much, and I'd like to hand over the call to Vikas. Thanks.

Thank you, Mr. Abrar.

A very good morning to all of you, and thank you for attending this investors conference. I am pleased to brief on the financial performance and the key developments of Rainbow Hospital for the fourth quarter and the financial year ended 31st March 2026.

Our operating revenue for the quarter stood at ₹460 crores, reflecting a growth of 24% compared to the corresponding quarter of the previous financial year. For the full year FY26, our revenue stood at ₹1,703 crores, reflecting a growth of 12% compared to FY25.

Our EBITDA for the quarter amounted to ₹145 crores, marking a growth of 26% compared to the same period last year. For the FY26, our EBITDA is stood at ₹544 crores, reflecting a growth of 11% compared to the previous financial year.

Our EBITDA margin for the current quarter stood at 31.5%, while for FY26, our EBITDA margin is stood at 32%. Profit after tax for the quarter is stood at ₹78.2 crores, reflecting a growth of 38%.

Ex of deferred tax adjustment, the PAT growth is at around 17% over the corresponding quarter of the previous financial year. For the FY26, our PAT is stood at ₹282 crores, registering a growth of 15.3% compared to FY25.

In terms of operational performance, inpatient discharges, outpatient volumes, and the deliveries witnessed a very healthy growth of 18%, 19%, and 22% respectively during the quarter, reflecting strong demand momentum across both mature and newly commissioned hospitals. Our payer mix continued to remain very robust and balanced, with insurance and cash contributions remaining broadly stable during the quarter and for the full year.

We had 47.5% cash business for the quarter, while the insurance business was at around 52%. I am pleased to inform that the company continued to maintain a strong balance sheet and healthy liquidity position of ₹594 crore rupees, which provides adequate flexibility to support our ongoing capital expenditure plans, growth initiatives, and the potential inorganic opportunities.

With our current cash position and anticipated internal accruals, we remain well-positioned to fund all planned expansions through the internal resources. Our operating cash flow to pre-Ind AS EBITDA is at around 72.8%, reflecting a strong cash conversions post tax payment.

During the quarter, we invested ₹61 crore rupees on the ongoing capex plan, and for the full year, we have invested close to ₹217 crore rupees capex towards expanding and strengthening capabilities across existing and upcoming hospitals, in line with our long-term growth strategy. With these insights, I conclude my financial update.

I now invite questions and suggestions from the participants. Thank you.

Good morning to the team. I have two questions.

My first question to Mr. Dalal is, looking ahead, how do you see Rainbow's operational modules evolving to balance scale with efficiency?

What measures have been taken to strengthen hospital network resilience, automation, and patient delivery standards across the diverse geographies? That's my first question.

I'll ask my second question after. Thank you.

Yeah.

I think to answer your first question, operationally, we're getting a lot of tech into place. We are getting a new CRM software which we're working on.

I think at this point, Rainbow has a lot of leads which come in because of the various activities we do in, and we are strengthening our operational capabilities to convert these leads. One is tech, and that is going to be largely play a large role in strengthening the operational capabilities.

My second question to Mr. Vikas is, from a technical standpoint, how is the company optimizing its capital structure to balance growth investments in new hospitals and technologies with keeping the debt under control, especially given the capital-intensive nature of the business?

Can you elaborate in detail on the framework being used for cash flow forecasting, interest rate risk management, and working capital efficiency to ensure liquidity while still maintaining the profits above the green zone? Thank you.

It's a great question. Actually, if you look at our balance sheet, we have been a cash-rich company, we don't have any debt in our books right now.

Our balance sheet has close to ₹700 crore rupees cash right now while we speak, and whatever the capex we have done so far has been funded through internal accrual. Whatever the pipelines we have of close to 900 beds which we have just announced in our presentation, all will be funded through our internal accruals, and we are not foreseeing any borrowings from that.

Thank you, and best wishes.

Thank you.

Hi. Thank you for the opportunity.

Two questions. First, can you bit elaborate on your M&A strategy?

Now you mentioned you are looking to expand meaningfully with assets which are aligned to your philosophy. Which will be the markets where you are mainly looking to acquire assets and what kind of hospital in terms of size or ticket size which you are intend to look for?

Yeah. Yes, Damayanti.

Right now what we have, as I said, is about 900 900 beds. They're all kind of in various stages of building, coming into operations.

It is a now moving forward with our great experience of two acquisitions, both have turned extremely well, and what we are again looking at some more of the acquisitions. Definitely, we would look at the size of the operations and also the scope of what we can build on top of it.

Now I would optimistically look at anything nothing less than about at least to have a 50 beds to scale up to 100 beds. The smaller ones is going to be difficult for us, and this is how we look at it.

Wherever there's a scalability and alignment and also where the micro-market is good, we will definitely be looking at it. Also, of course, the larger players or multi kind of unit players, we will definitely welcome about it.

We will look at it proactively and see how we can actually kind of look at them as a acquisitions. That's one strategy.

Another one is kind of a new geography. Which are the geographies which are probably are going to be a kind of a cities which are evolving cities, which are got a growth potential.

I think we're work in progress. Probably about three months' time, we will come out with our growth plan.

If I understand correctly, you intend to look assets pan-India, as you mentioned wherever opportunities are good, there is attractive micro-markets, you will look to add assets there?

Absolutely.

That's good to hear. Then sir, this Indore arrangement, you mentioned 200 beds, which is existing hospital, it is an operational and management contract for you?

Is that right?

No, 200 bed is a multi-specialty hospital which is being built by a doctor entrepreneur. He's building for us in the neighborhood site 100-bed of a specialty children's hospital with women services.

Meanwhile, since it's a new hospital of 200 beds, he invited us to kind of drive that to do a pediatric and obstetrics business in that hospital exclusively. We felt it's kind of a good opportunity so that our entry becomes much faster and we can build our business from this hospital and transfer it to the new premises in two years' time whenever the new unit is ready.

That is a very clear arrangement which we have made.

Under this arrangement, what are the financial arrangements very broadly if you can highlight?

Damayanti, thanks for this question. The arrangement will be that we will be given a space in the existing operational hospital, where we will have the admission being done at our name, we will discharge the patient, we will deploy our doctors and the nurses to that area to handle the pediatrics and the mother care and the prenatal care and NICU, PICU.

We will deploy our team. It will be a subset till time the new facility at the adjacent gets operational.

The revenue will accrue to us. The

revenue will be in our name. Yes, it is not an O&M contract.

Okay. This 200 bed is a total capacity.

Out of that, how many will be for the pediatric care part which you will manage?

I think we have designated beds about for the newborn pediatric intensive care. When it comes to kind of the rooms and all, it's very open and it could be about 50 or 60 or 70.

It doesn't really matter, really, as much as we can do it. That's how we positioned.

There are about 25 beds in the intensive care services.

25 25 beds in the intensive care, okay. Pediatrics and neonatal intensive care,

yeah.

Okay. Thank you, sir.

I'll get back in the queue.

Thank you.

Just

No, no, I was just checking Damayanti whether the clarity is there or any follow-up question is there on that.

Sure, sure.

Hi, good morning, everyone. Sir, out of this 18% growth in IP discharges in the fourth quarter, how much was organic?

Alankar, around 9% has come from our acquired units and the balance of acquired and plus the new units, and the rest is organic. 8 9% to 10%.

Okay. If I strip off the acquired units only, how much would the growth be, the mature plus the existing units?

Acquired unit is contributing between 7% to 8% depending upon the month which we are calculating. At around 8% of the revenue is coming from the acquired units, which is Guwahati and the Warangal.

This is revenue, Alankar, not volumes.

Okay. Will the mix in volumes be any significantly different?

Almost, this should be in the same line, Alankar. Okay.

Then

the question is, we've seen a improvement in the organic growth after a few quarters. Just wanted to understand the sustainability of it.

How much of this improvement can we attribute to the digital initiatives as well as the marketing initiatives that talked about in the previous call? If you can elaborate on where are we now in this journey, you mentioned about technology in the opening remarks, but on digital marketing, where are we in this journey right now?

Alankar, I think, see, as I said, we will be doing a lot of tech initiatives. The tech initiatives will be targeted towards operations, as I said in the earlier remark, and towards a lot of promotional sales and marketing activities.

I think we're looking at two new things. One, as I said, is the CRM software, and second is a new hospital information software.

I think what we need to do is as we digitally and promotionally increase our bandwidth in terms of investments, talk more about our doctors, create more visibility about our doctors, I think as and when the patient funnel starts inquiring about Rainbow, we will use the tech to convert. I think we have started this journey somewhere, couple of months back, and of course, a long way to go, but we have seen some improvement.

Some of the improvement that you've seen the volume could be attributed to this, but I will not really bet all my money on that, but going forward in the next two or three months, I think you'll see a big difference and which maybe we'll talk about in the end of the first quarter.

Got it, sir. The second question is, if you look at ALOS for us, it's somewhere around 2.7, 2.75 days.

Is there any scope to reduce ALOS further?

I think, Alankar, we are industry best, right? It is at 2.7, and consistently for the last three years if you look at, more or less we are in the same range, plus minus 0.1, right?

I think this is where we stand right now.

Difficult to go significantly beyond this number.

I'll give my perspective, Alankar, about the ALOS. In a children's hospital and women's hospital, the recovery is always faster with the women and children because they're young people, and it's really not in your hands.

Whether you want to increase the ALOS, it's not in your hands. We want to decrease the ALOS, is not in your hands.

It's very natural. I think a case mix change will probably influence to an extent as we move forward.

If you got long chronic cases, which are going to stay, the long-term ICU stays and those things, and if the obstetrics is going up, definitely ALOS will come down further. I think that is where the balance is.

It's very natural in building a business like this. We will know over a period of time the next couple of years and how things are going to be.

I think we are very comfortable with the ALOS of about 2.7, 2.8.

Got it, sir. That's helpful.

The other question was, can you qualitatively talk about your performance across the key clusters, specifically Hyderabad, Bangalore, Chennai, and even if you can talk about Madhukar, how's been the performance say in FY26 fourth quarter and what are your expectations over the coming years? Thank you.

I think whatever it is we've been earlier talking about the seasonal backdrops and those things, and actually if you look at the year, it's kind of very straight line of performance perhaps peaking towards the Q4. That's all because of the quality mix as well, improvement of quality mix of the patients, and also that we have substantially increased the complexities and case mix, and also there is a certain increase in the fertility business.

Obstetrics have come from earlier it used to be about 28%, 20% 28% to 30%, now is shifted to 32%. There is a dynamics of change, and that's another important thing is we'll move probably a kind of shift away from the little bit of seasonal dependency to kind of more of to drive the business 360 degrees.

Of course, seasons will play out for every organization, but I think we've become less seasonal dependent and also try to improve. That's why one of the points I've said is that improving our clinical mix and also strengthening our clinical model at all the hub hospital as well as the regional spokes kind of onboarding the specialty doctors, trying to do more complex cases.

Sir, if you can help break your response across the three main clusters: Hyderabad, Bangalore, Chennai, and even Madhukar, any qualitative comments on the performance, where are we in the journey of taking Bangalore closer to Hyderabad levels or even Chennai closer to Bangalore, any color on that would be really helpful, sir.

Definitely. When it comes to kind of ICU services got a lot more strengthened in both Bangalore and Chennai, that's number one.

Also specialty services have actually strengthened further, especially in Bangalore of our Marathahalli hub. Number of doctors and also the overall service mix has improved, and the number of the BMTs and renal transplant going in Chennai.

These are all things which kind of we are try to get Bangalore and Chennai move closer to it. Of course, it will take time.

For example, Chennai is kind of first year itself we have done about 10 liver transplants. With that, we can actually have a kind of a government tie-up and do more transplants in Chennai.

That will improve the intensive care services as well. Similarly in Bangalore that we have got a complete stack of all the specialty doctors.

Driving kind of a next advanced care is a more important in Bangalore. Mind you, pediatric specialty hospital takes its own time, and I think I'm very happy that things are panning out very well in Bangalore as well as in Chennai.

Got it, sir. One final question with your permission.

We've seen some consolidation of the top two players at least on the maternity side last week in the mother and child segment. From a competition standpoint, can it change anything at all for Rainbow?

I think we are well, let's put it to say answer this two ways. We are a largest children's healthcare player both in terms of size as well as what we can deal with.

There's no one in the in the country which have come anywhere closer to us in terms of deliverables and specialties, advancements, what we do. That's absolutely kind of we are undisputed leader.

Number two is the mother care, which is obstetrics, perinatal, what we call as a perinatal services, which is more scientific and deliveries. We do about 20,000 deliveries, and we don't really overstate it all the times because same time, probably we are second or third largest the maternity chain.

Also now with the last two years, we have started fertility, it is fairly fast growing. I do not want to compare ourselves or match ourselves with any of the boutique boutique chains, which are more of mom-and-pop stores because their sizes are less than 50 beds or 30 25 to 30, 40 beds.

We don't do any hospital which is less lowest is 50 beds. Even that lowest 50 beds are only 10% of the hospitals.

We are more and more pushing towards the larger hospital spaces and also stronger offerings, I mean stronger wider offerings and also kind of a stronger clinical strength within the organizations. That is how we want to position ourselves to be kind of this this is a been a kind of given by the medical entrepreneur.

We always look for a kind of clinical excellent excellence and also building healthcare for the country in the space of children's and women.

Understood, sir. Thank you and all the best.

Thanks, Alankar.

Sir. Just a few clarifications again on the Indore hospital.

Sir, this incremental let's say 100-bed new pediatric unit which is being built, I am assuming that the capex for that unit will be done by the partner. What would be Rainbow's investment if we have to do anything there, and if you can also talk about what kind of revenue-sharing arrangement we have with the partner?

The project which is going to build is basically he would do the base building with a semi-warm shell and give it to us on the lease. It is like any other hospitals which we lease it on the long term, 20 to 30 years lease, it's the same model.

All the capex which is going to be for the interiors and medical capex will be done. There is the revenue share is

It's a

lease

It's a lease rental payment only.

I think there's a lease rental payment to be done to the owner.

As of now, the arrangement is for the 200-bed existing multi-specialty hospital, you are just managing the pediatric unit for them, and once you move to this new 100-bed unit, this would function as a normal leased hospital for you?

Exactly. We're trying to consolidate Indore.

Sure, sir. Then what kind of because obviously this is not part of the expansion plan which you have put out in the PPT, what kind of a spend do you envisage for this 100-bed Indore hospital?

I think we will go with

it's early days, but probably like any other regional spoke hospital, about ₹70 lakhs, ₹65 to ₹70 lakhs per bed will incur.

Sure, sir. Commissioning you said over the next two-year period?

I think likely two years.

Sure, sir. Sir, my second question is with respect to performance across the mature and new hospitals.

Now while on the new hospital side, we saw a very significant increase in capacity to the tune of 80%, despite that we were able to hold on to occupancies in new hospitals. If we look at the mature hospitals for the full year, we have seen a decline in occupancy, while on the ALOS as well on the mature hospitals, there has been some decline.

Can you qualify in terms of what led to the decline in occupancies for the mature hospitals apart from let's say a weaker seasonal business which we might have seen last year? Okay.

I think we have discussed in the last two quarters in earnings calls as well, I think one of the main reasons seasonal hospitals, when there is a seasonal hit comes, the mature hospitals are the ones which actually the occupancies drops because the seasonal top-up was not there. That was primarily reason of the Q2 and Q3 were the ones.

On the Q4, we actually turned positive and I think we are kind of clocked about

About 52% occupancy there.

Occupancy in the Q4,

yes,

Q4. I think some of the things which we have already addressed it, as I said earlier, I think it's not that seasonal dependency is something which we are looking at it.

We have to come out of the seasonal dependency and also build a wider spectrum and a larger stack of things, and also definitely the obstetrics share has also increased, and also fertility share is increased, and also the specialty mix is going to increase. Seasons will make a difference, definitely there's no doubt about it.

I think as we move forward in future, I think we would actually see a significantly that independence from the season.

Sure, sir. Just on the seasonal business, in the past the seasonal business has contributed around ₹10 to ₹12 crore of our overall top line.

Let's say, what would have been the contribution in FY26 for the seasonal business, and if you can also call out the contribution from the IVF segment and the international business for last year?

Okay. If you see that we have grown 12% last year growth overall, had seasonal business been there, it would have been about 18% to 20% of growth overall.

That was not there. That's how we say that, as Abrar was earlier saying about it, with the current quarter performance, we would expect it to kind of a clock 20% growth for the 20 the current upcoming financial year.

That is taking all this in consideration of whatever the growth initiatives we are doing it. One important thing is that, as you said, international business really has taken a hit last year as well because of a geopolitical situations.

Dominantly we used to get a patient from Bangladesh and some of the

Somalia Somalia,

Nigeria. Because a lot of reporting has happened Somalian and Nigerians and those people.

Therefore, the local coordinators were not really available, there is a significant dip in the

International

international business to the expected level. In fact in Q4 you have seen the war also escalate, so that has also affected the flights from Middle East, so that has also impacted the international business in the Q4, Rahul.

Sure, sir. Can you call out the number just for bookkeeping purposes, both international patient and the IVF revenue contribution?

Rahul, the revenue from the international patient remained almost flat than the last year. It was at around ₹30 crore rupees, to be precise ₹28.9 crore rupees for the financial year FY26.

As far as the IVF is concerned, is almost for the full year, it is 3.7% of the total revenue, but it is increasing quarter-on-quarter. For the quarter four, it was 4.1%.

For the full year, it is 3.7%.

Yeah. In absolute number terms, IVF business for full year was ₹60 crores.

₹61.4 [crore], yeah.

Sure, sir. I will join back the queue.

Thank you. Thanks for answering my questions.

Thank you.

Hi. Good morning, everyone.

I am retail investor and also customer of Rainbow. I have seen the different experience between Hyderabad and Vizag branches.

As we are entering into new cities, how are we ensuring the same quality standards maintained at new branches or new spoke hospital?

Yeah. Mahesh garu, I think what you said these are very right.

That's something which we are really working on, actually as a big initiative as One Rainbow culture. Where there's a lot of clinical inputs we have a kind of a team of people working on it and trying to ensure that protocolization and also the SOPs for the medical, how we kind of operate across the group.

Because children's hospital is a very medical hospitals, we need to have a standardization, SOPs, and protocolization something which the Hyderabad, Vijayawada, Bangalore works in very, very similar. Definitely we need to expand it to the across the board because now we have 25 hospitals.

This has been a significant initiative from my side to my senior doctor team, which we have been actively working on that.

Because I have observed this pattern like most of the jobs are in urban cities and they when they come to hometowns and they prefer Rainbow because the same quality they prefer, but they're experiencing little bit quality gaps, so that's why.

Thanks for bringing that. We will definitely kind of ensure that this is going to be addressed very seriously.

Good morning, sir. Could you provide the revenue numbers for pharmacy for full year FY26 and Q4?

Sorry, Anubhav, there was disturbance. Can you please repeat your question?

Sir, could you provide the pharmacy revenue numbers for Q4 as well as FY26?

Pharmacy numbers. See, Anubhav, as a process, right, we don't disclose this amount, but in the reverse way if you want to calculate, if you look at our pharmacy sales is at around 12% and 13% is the cost, right?

On that, there will be a some margins. Based on that, you can calculate what is the revenue share on that.

We don't disclose it separately, Anubhav.

Sure, sir. Thank you.

Thank you.

Yeah. Am I audible?

Yes.

Thank you for the opportunity and congratulations to the management for a great set of numbers. My first question is on the dedicated IVF center we have at Mahadevapura Bangalore.

Now that we have our full year revenues from IVF at around 3.7%, how are we envisaging the ramp-up and what would be the drivers for it in the next two to three years?

I think most of our fertility facilities are within the main hospital so far. We got a couple of standalone in Bangalore and one in Hyderabad.

One of how we look at our fertility business is to see that mainly on the quality of the doctors and also framework of ethics, and also how the internal doctors support our fertility business and B2C. Far, we've been very happy with the way fertility is actually the growth of the fertility, and in the last two years' time.

I would expect that our growth would definitely be a kind of a 25% year-on-year for at least next three years' time.

Thank you for that. My second question is on the capex.

Can you please help us with the figure of capex for the next two years along with the bifurcation of maintenance and growth?

Vedant, our capex, as you have told correctly, we can bifurcate into two. As the maintenance capex is close to ₹40, ₹45 crore rupees per year on overall units of 25 units which we have.

As far as the capex is concerned, again you can bifurcate into two parts. The major part of the capex is our Gurgaon facility, where we are building it ourselves, right?

We have acquired the land and we have already spent some of the amount on that. We expect that another ₹400 crore rupees to go on building up the whole hospital at the Gurgaon.

As far as the balance Coimbatore, Pune, and other facility, you can take at around ₹70 lakh rupees per bed for the capex.

₹70 lakh rupees per bed.

At around ₹65 to ₹70 lakh rupees per bed you can take that figure.

Okay. Is there any capex included regarding Indore in this?

Indore you can add 100 beds. Right now we have a pipeline of 900 beds inclusive of our Gurgaon project, right?

Excluding that, there will be a 450 beds. On that you can take ₹70 lakh rupees per bed, roughly ₹300, ₹350 crore rupees will go towards Coimbatore, Pune, and Indore, others, Seegehalli facility, etc.

The balance, around ₹400 crore rupees will go towards, ₹400 to ₹500 crore rupees will go for our Gurgaon project in the next two years' time.

Okay. Thank you so much.

Thank you.

Yeah. Hi, good morning, everyone, and thanks for the opportunity.

I have a question on the occupancy. Like in your opening remarks, you highlighted that improving occupancy and service mix is one of the areas that you are working on.

Can you highlight some near-term and medium-term levers for the occupancy improvement and service mix improvement?

I think the occupancies what we look at are that would drive our budgets and those things, the desirable occupancies is about anywhere about 56% to 58% at the group level. I think we will deliver every single number, and that's what is expected of our model.

Where we have a kind of the peaks of occupancy some months, and also off-peaks of because of the holidays and various health seasons. If we do a blended occupancy about the 56% to 58%, and we will deliver every single number.

That's how we look at it. In terms of service mix changes, yes, of course, our hubs will be different and spoke hospitals will be different.

Spoke hospitals will definitely be a kind of more you're looking at a volume-driven business growth, and hub hospitals both as well as volumes as well as kind of service mix in terms of specialty mix, in terms of more numbers doing it, surgical number, or more intensive care admissions, more specialty patients to be treated. For example, some of the super specialties like liver transplants, we projected significant ramp-up on liver transplants for the current year.

All these things are going to kind of play out for the achieving of our top line. Sir,

are there segments within healthcare like within the pediatric care that you currently do not have presence in and are intending to build presence in those categories?

We have a complete stack of all the specialties in Hyderabad, and we have got almost 60%, 70% in Bangalore, which we are kind of trying to build more and more in Bangalore as well as in Chennai. Children's super specialties are something which is takes its own time because of these are the new-age new specialties which kind of new to the country, which we are building it over a period of time, and we built it very well in Hyderabad, which we are doing it fast phase in Bangalore and Chennai.

We are like a mirror image of multi-specialty hospital of adult where is focused on children's multi-specialty. That's what we've been doing it and we've been pretty successful on that.

Sir, would you be able to share some number as to what in your kind of core hubs like Hyderabad, what would be our market share in the super specialty services? Would we have a very dominant share, like most of the cases coming to Rainbow?

Definitely, we most of the coming. It's difficult to establish the market share because we don't know how where and everything happens.

Obviously, among the pediatric players, nobody else does anything significant. Vishal, recently we engaged with CRISIL for the industry report on the pediatrics and others on the market which we stand.

That work is in progress. Once that report is finalized, we will share that more authentically with the data with you.

Because right now the data is very, very fragmented, right? It is not available.

We have taken the help of CRISIL. They are building it up, that stack for us.

Great. Thank you very much.

This will be very helpful. Thank you.

Thanks.

Sir. Sir, just on this geographic expansion which you are targeting, now with let's say the Delhi hospitals, we would have a presence in north, Pune provides us an entry into Maharashtra, and now we have announced this Indore hospital as well into Central India.

Let's say M&A opportunities which you are looking at would largely be focused in these three clusters or you are looking at outside as well? I forgot about Guwahati as well, you have Guwahati northeast.

If you can talk about this geographic expansion which you are targeting in some of these newer markets?

Rather than looking at what the specificity of the market, I think it's more important is that what kind of opportunities available and in what markets and how would we look at it those markets. I think that is how we look at it.

I think we have been looking around to see what exactly opportunities we have and which would work out for us. I don't think we are specific about geographies, and we are trying to do across the country anywhere.

Sure, sir. Sir, why I was asking because let's say in our core clusters of Hyderabad, Bangalore, and Chennai, we have adopted this hub-and-spoke model where we have a larger hub hospital and the spokes feed into the hub.

In these, obviously Delhi has one hub and one spoke, but for some of these other markets, wouldn't you want to have a similar kind of a hub-and-spoke approach to expansion?

Eventually once we have an opportunity, for example Guwahati, we have acquired the hospital and I think it's seamlessly integrated. We are building up more specialties over there and also we would positively look at what else to be done in the northeast market.

We just kind of working on it. How do we kind of address the other areas?

Our vision is to see that wherever we go, offer the pediatric care through the hub-and-spoke model. Based on the city and the size of the city and also accessibility of your hospital, not necessarily we go on hub and spoke every area.

For example, place like Indore, you don't need a spokes again. If you go into other cities, smaller cities like the Raipur, one hospital is good enough.

Place like Pune, definitely you would look at hub-and-spoke model. Based on the city and population and accessibility, traffic conditions, various other factors influences us to kind of take decision on hub and spoke.

Sure, sir. Maybe within some of these smaller cities where you might expand, we might have just one or two hospitals without necessarily having a hub.

Sure.

Sure, sir. That's it from my side.

Thank you.

Thank you.

Good morning and congratulations for a good set of numbers. My question was on the ARPOB.

If you could give some color on the drivers of ARPOB this quarter and for the whole year as well? How much of was it price-driven and how much of it was it mix-driven?

I think ARPOB is about 8% growth, right? 8% ARPOB growth now.

ARPOB is in our case is dominantly a kind of case mix. Case mix, and also some tweaking is increasing ARPOB because of fertility also definitely adds to the ARPOB, right?

Correct.

These are the two reasons mainly to ARPOB to grow, and also pricing also plays an ARPOB year-on-year.

How do we see this number two, three years down the line?

I think we have to look at both ARPOB and as well as ARPP together and see that when we look at the growth, I would say in ARPP, because it's difficult to say month-on-month ARPOB, quarter to quarter ARPOB. ARPOB yearly we can look at it, and ARPP is the ones I think it gives a better visibility, which we always say about 5%, 6% of growth of ARPP.

Annual.

Annually,

yeah. Thank you.

On the growth side, if I see this quarter, a good chunk of growth came from the maturing hospitals. If you could give us some sense which geographies were the key drivers and where are we seeing a quick ramp-up other than Hyderabad?

I think we've seen the growth across the group, which is Hyderabad, Bangalore, Chennai, and Andhra Pradesh as well. Those are the dominant markets for us.

On the mature side, from a long time, we have seen the occupancy has been rangebound near the 54%, 55%, 55%, 56% kind of number. Historically it was around 60%, 61%.

Do you think we could get back to those figures? Because I think it's been long since we have got such figures in mature side.

I'm sure I think that's what we expect it to be a 60% mature hospitals for the coming year. I think that's what is if we need to drive our budgets and the numbers, we will have to do a 60% of mature units, and blended about 56%, 57%.

Thanks. That's from my side.

Thank you.

Thank you, investors, for joining the conference call and giving your views and asking the thoughtful questions. Thank you very much for this.

If you have any questions, you can reach out to Investor Relations at Rainbow Hospitals or you can email us directly. Thank you very much.

Thank you.

Thank you, everyone.