Hi. Good morning, everyone.

This is Rahul from IIFL Capital. I welcome you all to the third 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.

Abrarali Dalal, Group CEO; Mr. Vikas Maheshwari, Group CFO; and Mr.

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

Medicare Limited earnings call for Q3 FY '26 and nine months ended December 31st, 2025. I would like to start with a few key strategic and operational updates for the quarter.

Our operational performance showed steady improvement across all the key performance indicators, including outpatients footfalls, IP discharges, and deliveries. Growth has been quite satisfactory, considering the festivities, year-end holidays, and ongoing seasonal impact.

The new units performed well with a steady improvement both in IP and OP volumes. The acquired hospitals at Warangal and Guwahati have operationally well integrated into Rainbow network.

Both these hospitals are performing well and in line with our expectations. During the quarter, we commissioned a 100-bed hospital at Rajahmundry, strengthening our presence in coastal Andhra Pradesh.

The performance of this hospital so far has been exceptional and is very close to breakeven in few months' time. The nine- The 90-bed spoke hospital in Electronic City, Bangalore, just commenced operations, reinforcing our footprint and advancing the hub-and-spoke model in Bengaluru.

With these additions, the company has largely completed the planned expansion for the current cycle, and now transitioning from the phase of capacity additions to the execution. For the Q3 FY '26, the company reported revenue of ₹445.4 crores, growing at a 12% and EBITDA of ₹147 crores with a growth of 9% and a PAT of ₹73.9 crores, a growth of 7% compared to the Q3 of the last financial year.

Occupancy for the quarter stood at 47.2%. Coming to projects, the 60-bed spoke hospital in Hennur in Bangalore City is in concluding stages, and they're waiting for the final governmental approvals.

We expect to commence operations in few weeks' time. The construction has started at the regional hub hospital at Coimbatore of 130 beds.

We're targeting to commence operations by end of the '27. Our upcoming Gurgaon hospitals expansion in Sector 44 and Sector 56 NCR, the execution is at brisk pace.

Right now we are at the basement stage slab, and we're hoping to complete the basement slabs in few months' time. The greenfield regional hub hospital in Pune of 150 beds has received forest land approvals from government, and the excavation work has just started.

On the clinical side, I would like to present our experience of first liver transplant in Bangalore hub hospital. 11-year-old child was referred with a chronic liver disease with jaundice and losing weight.

Evaluation by our pediatric liver team concluded that the child has got a advanced liver disease, and the only hope for the child to survive on long-term is a liver transplantation. We discussed with the parents and assessed both the parents for the liver donation.

The mother was more suitable for liver donation. Therefore, the transplant team has actually done a proper workup of both of donor and recipient and done the transplantation using the left lobe of the mother to the child.

The whole transplant procedure went very smoothly. The postoperative period was very uneventful.

The transplanted liver started working. The mother was discharged at day seven, and our child was discharged at day 18 postoperatively with normal liver functions.

Though this was the first liver transplant in this hospital, systems were so robust to support the seamless transplant procedure. We are grateful for the mother who not only gave birth to this child and also gave a second lease of life by donating her left lobe of liver.

I'm pleased to say that now we perform the pediatric liver surgery across all our hub hospitals in Hyderabad, Bangalore, and Chennai. As a pediatric liver specialist, I'm so excited and very proud of our teams who were able to commence three liver transplant programs in the last six years' time with a survival of 94%.

Clinically, we continue to see a strong traction across pediatric specialties and quaternary care with improving case mix and a growing contribution from complex and high-end procedures. Our teams across the network remain focused on delivering high quality outcomes supported by full-time consultant-led model with a strong multidisciplinary collaboration.

I'm pleased to welcome Mr. Abrarali Dalal as a Chief Executive Officer.

I'm sure his leadership and experience will be a strong addition to the organization. As I look forward, I would like to reiterate that the major capacity addition in the last two years have almost concluded, and we are now focusing on operational excellence, patient experience, and strengthening our sales and marketing, to improve our occupancies across the group level.

I'm sure with our focused executive plans, we will be able to deliver a great outcomes and value for our stakeholders. With that, I now hand over the mic to Mr.

Abrarali to introduce himself before passing the mic to Mr. Vikas Maheshwari for the financial update.

Thank you, sir. Good morning, everyone.

I come with over 25 years of experience across the healthcare, telecommunications, and FMCG industry. My career spans leadership roles in operations, strategy, and business development.

My previous track record has largely been in managing turnaround, brownfield expansion, driving clinical excellence, and brand repositioning, mostly in the healthcare industry. In my previous role, I led the growth journey of Sahyadri Hospitals for six years, and successfully completed the two transitions from Everstone Capital to OTPP in October '22, and then from OTPP to Manipal recently in October '25.

I look forward to contributing to Rainbow at this important juncture with a clear focus on improving occupancies, enhancing service levels, and building scalable, sustainable operations for a long-term growth. Thank you so much, and over to you, Vikas.

Thank you, Mr. Abrarali.

A very good morning to all of you, and thank you for attending this investors' conference. I'm pleased to brief you on the financial performance and the key developments of Rainbow Hospitals for the third quarter and the first nine months of FY '25-'26.

Operating revenue for the quarter stood at ₹445 crores, reflecting a growth of 12% when compared to the corresponding quarter of the previous financial year. For the first nine months, our revenues stood at ₹1,243 crores, reflecting a growth of 9% when compared to the same period of the previous financial year.

Our EBITDA for the third quarter amounted to ₹147 crores, marking a 9% growth compared to the same period last year. For the first nine months, our EBITDA stood at close to ₹400 crores, reflecting a growth of 6% when compared to the first nine months of the previous financial year.

The EBITDA margin for the current quarter is at around 33%, while for the first nine months, our EBITDA margin is 32.1%. The profit after tax for the quarter is ₹74 crores, a growth of 7.2% in comparison to the corresponding quarter of the last financial year.

For the first nine months, our PAT stood at ₹2,303 crores, reflecting a growth of 8.3% when compared to the first nine months of the previous financial year. In terms of the operational performance, inpatient discharges, outpatient volume witnessed a growth of 9 and 18%, respectively, when compared to the corresponding period of the last financial year.

Deliveries grew by an impressive 16% when compared to the corresponding period of last year. Our payer mix continue to remain robust and balanced with 51% of the revenue coming from the insurance and the balance 49% coming from the cash patients.

For the first nine months, the payer mix remains more or less same, where the cash stands at 48% and 52 at insurance. I am pleased to inform that our company continue to maintain a robust balance sheet with a cash position of ₹579 crores as of December 31st, 2025.

These funds will support our ongoing capital expenditure, merger and acquisitions plans. With our current cash and anticipated internal accruals in the coming quarters, we are well positioned to complete all our planned capital expenditures using internal resources.

During the quarter, company has invested ₹57 crores in capital expenditures toward expanding and enhancing our services at existing and upcoming hospitals. With these insights, I conclude my financial update.

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

Hi, sir. Congratulations on [unclear] on a new high, right?

Just wanted to understand, sir, what are we thinking regarding occupancy? Because now we have enough capacity, how are we thinking of growing occupancy?

Question on occupancy, how do we build occupancy?

Yeah. Current occupancy is about 47.2.

This year, we have seen that the seasonal mutedness dropped the growth, strictly more so in the mature hospital groups, like in Hyderabad, Andhra, and Bangalore. That's what actually depressed the occupancy levels.

What we have seen is that occupancy's been lower in pandemic occupancy numbers the lowest pediatric in general pediatric, direct pediatric. These are the three segments which in the last call also kind of expressed quickly earlier that these three segments which have actually not been performed because of a seasonal mutedness.

Rest of the kind of a overall other segment is actually been well-positioned. Generally, Q2 and Q3 are the seasonal quarters, this year very unusually we've not seen any kind of the seasonal illnesses which impacts our footfalls and IP admissions.

Sure, sir. We get that.

In terms of longer term, we are now below 50% utilization. What can we see or what can you think of doing to grow that basically?

Dhananjay, your voice was not very clear actually.

Okay. Hello?

Okay. Can you please repeat again?

I was saying, sir, right now, we're below 50% utilization. What are we thinking longer term on how we could move that?

Cuz see, once we get that, then our margins and numbers could be increasing significantly, and even our growth will be there. Anything we're trying to pinpoint back on how to grow occupancy?

No, absolutely, because every plan is in place for the next year to drive the occupancies and also that's why I said, we have actually strengthened our sales and marketing. We have got a senior leadership in this position.

Also, Mr. Abrarali joining us and also we are looking at kind of driving the aggressive sales and marketing.

Also, to see that the other avenues of actually improving our occupancies, and we're also evaluating that, to see that whether some of the hospitals whether CGHS would work. Have got the revised rates, in that evaluation, but we've not taken a call yet.

I think these are all things which will definitely kind of we are seriously looking forward to improve our occupancies to kind of north of 55%. That's where I think we deliver great results.

North of 65%?

55 to 60%.

Okay. Would we look at also increasing now more capacity in the near term, or would we now just focus on occupancy, occupancy, occupancy?

We have done a large capacity addition, almost 780 beds in the last two years. Also our pipeline is very strong, and the deliverables are going to come in next 18 months, 24 months' time, next set of beds.

We have a 1.5 years of clear operational to execute our recent addition of the beds. I think in a way, this is actually positions us very well to kind of to do the great execution, try to drive our occupancies, drive our operational outcomes.

Okay. Sir, for ALOS, average length of stay, for this 2.73, what are we targeting?

Is this a fair number we should target going ahead, or how should one look at this?

Dhananjay, hi. This is Vikas.

With respect to the ALOS, it has been broadly in the range of 2.6 to 2.8.

Yes.

The mean is somewhere 2.7 plus-minus. I think that is the right trajectory for our business model.

Fine. Fantastic.

ARPOB growth at some stage, let's say we're actually doing really well on ARPOB. Now, we've already reached 60,000.

Would it be fair to assume that ARPOB has peaked out, or do we see that also improve from

here? Inflation-adjusted ARPOB growth may be there, but the right metrics is to check our ARPP, basically.

Okay.

Because ALOS keeps changing.

Uh-huh.

If you look at our IP ARPP, I think that is the most important parameters to check.

You all disclose ARPOB, right?

We expect it to yeah, 5 to 7% CAGR growth. One or two quarters here and there there may be some aberrations, but over a longer period, we have seen it is growing by 6

to 7%. Fine.

Sure. Thank you so much.

Thank you so much, and best of luck. Thank you.

Thanks, Dhananjay.

Thanks for taking my question. First on the new hospitals.

Is it possible to give more details about how Guwahati, Warangal, Rajahmundry are scaling up? What kind of patients are we getting, and how is the insurance empanelment?

Also a follow-up on that, could you please give us the occupancy and margin details for each of these three hospitals during the quarter?

Thanks, Prithvi is a good question. As company policy, we don't give the geography-wise details.

Since you have asked for the details, what we saying that whatever the acquisitions we have done, at the time of acquisitions, those companies like Guwahati was doing close to ₹8 crores revenue per month. I think it is doing slightly better than that per month right now.

Warangal, when we have acquired, was doing close to 2, ₹2.5 crores revenue per month, depending upon the month, 2.2 times. I think we have reached to that trajectory again So, and we are improving as insurance empanelments are happening, it is improving now.

As far as the insurance empanelment is concerned for the both Guwahati and Warangal, happy to share that 70% of the insurance empanelment is done. Two or three large insurance companies where the empanelment is pending, our team is in touch with them.

Hopefully, before February, March, we should see that those empanelments are also in place. The company is completely focused on as far as the business enabler DS are required in terms of the empanelment with the government departments or the insurance.

We are on top of that.

Anything on the margins?

Margins are for the Guwahati is as per the company level. For the Warangal, it is on the improvement path.

It is EBITDA positive, but it is on the improvement path now.

You also made a point that Rajahmundry has broken even in the first quarter. Is it right?

Yeah. It's close to breakeven, close to breakeven in the first quarter, yeah, in the last month.

The things are good in Rajahmundry. I think good traction both in outpatient footfalls, inpatients.

Intensive care is doing very well, lots of transports. I think doing very well because the coastal Andhra Pradesh Rainbow is a very well-known.

It's kind of household name. We've got a great team and doing very well.

Given the way these hospitals are scaling up, is it fair to assume that maybe in 2 years, these margins can be in line with company's margins?

Some of the geographies, definitely, that's what we expect and hope for, but not everywhere could be the same one. It all depends on the competitive landscape and also their price points.

Both of them drives where they are. In the long term, I think we look at on a consolidate figure what always we tell about 24, 25% margins, that's where Rainbow should actually aim it and keep that margins while we're growing.

Okay. One last question from my side.

If it be ARPOB or ARPP, we saw a high growth this year. It might be also because of non-seasonal business.

Let's assume we get back the seasonal business next year, will the ARPOB or ARPP growth rate will be lower than inflation rate just for next year if the seasonal business comes back?

No. When you have a seasonal business proportionate to the IP business and also the large intensive care business, it will not impact much.

When you have a seasonal business which is kind of a simple illnesses occupying the one bed days, two bed days, definitely it will lower because because you got lots and lots of children getting admitted for one day, two days where the billing is very small. I think what's important for us is that we have a large part of business which is pretty standard, which is obstetrics, intensive care services, newborns, and pediatric specialties, pediatric surgical.

These are all pretty standard regular business what we have. The seasonal business Q2 and Q3 which comes on top of it, and gives a lot of occupancies and lots of outpatients and diagnostics, and it drives the top line significantly.

Seasonal business drives top line significantly. That's why always kind of look at it, what's important is that on a business which you're doing is with a solid good business which you have got underlying business, and on top of it, when you have seasonal business and drives the both footfalls as well as occupancies, that gives a handsome growth top line as well as the EBITDA.

Rest of things is kind of not because is the season the quarter-to-quarter may vary, but at the yearly level, we need to look at it to see that if we have a ARPP of 5, 6% is growing is healthy.

Got it. I just have a bookkeeping question because you had recent hires, CGO and some senior level.

Do we expect an increase in employee expenses, or it's already in the books?

Prithvi, as a senior leadership joins, and we have already completed our capex plans, etc., we are expecting a growth from the revenue also coming up, and corresponding EBITDA margins also improving from there. Though, obviously, the new leadership whatever is joining, there may be a cost.

As a percentage to the revenue which increased, we believe that in next two, three quarters, it will stabilize there.

Understood. That's all from my side.

Thanks. Thank you.

Hi, sir. Congrats on a great set of numbers.

I think some part of my question already got clarified in the earlier questions, but I just wanted to understand why there has been some decline in the volumes and our revenues are flat as compared to the previous quarter, but there's been some decline in OP and IP volumes. We've started our Rajahmundry facility also this quarter.

How exactly should we look at a decline in volumes? Was it just because of seasonality, or there was something else that impacted it?

Oh, it's clearly seasonality. What we have seen What has happened when you look at we had a high base last year.

We had a pretty high season the last year in terms of occupancies, in terms of outpatient things. When it comes to seasonal muted, that whatever is a kind of the numbers in the outpatient footfalls or the seasonal business related occupancy is gone off, especially in the mature units.

Where we are kind of Hyderabad and Bangalore and these areas Vijayawada. That is actually shows the kind of overall flat curve on the seasonal business side.

This is exactly why you're seeing a the lower occupancies across the group, more so in the mature units.

Understood. Sir, just another thing about hospitals.

When we start a unit, we've started three units recently, how long does it take for them to start ramping up, for them to start contributing meaningfully to financials?

Okay. For example, the Rajahmundry, we have started it.

I think for the next financial year, Rajahmundry will contribute positive EBITDA, no doubt. Electronic City in Bangalore will take about 15 months' time, that's what it is.

We are likely to start in few weeks' time the Hennur, that will not take more than a year time to kind of a breakeven. This is more or less by next year, I think most of our last 2 years of units would be EBITDA-positive, that's what we expect it to be.

In Chennai, in Bangalore except Electronic City, most of them will be contributing to positive EBITDA.

All right. That's all I had, sir.

Thank you.

Thank you.

Hi, thank you for the opportunity. Hope I'm audible.

Anshul.

Great. First question was while you have suggested the timelines of the breakeven for the Bangalore units, would it be possible to guide or quantify the losses that we could expect in the coming quarter or any period as such till these units breakeven?

Also, a follow-up on that is Rajahmundry, I think in the last call, if you mentioned that we're expecting it to break even within 12 to 15 months, but I think we're on track to break even within two quarters. Any particular reason that we want to call out or any change that we've seen that has happened versus our earlier expectations that has led to this strong performance in that unit?

No. Obviously, the Rajahmundry is our brand equity is very, very high in that Godavari district, that every household knows about Rainbow.

There, we got a great team. We're able to create few great teams in Rajahmundry, and we are doing a lot of intensive care services over there, and the demand is fairly good.

Based on kind of what our capabilities and competency, that obviously, now, that traction is pretty good, much better than we expected in Rajahmundry. Because we have got a unit in Visakhapatnam, other unit in Vijayawada, both this is in between 200 kilometers on either side.

This is a potential area and also strong with the potential delta area. That's why it's actually done very well.

There are lots of towns nearby Rajahmundry, they're all contributing significant numbers to the kind of Rajahmundry unit.

Got it. Would you be able to quantify the losses or guide towards what kind of losses can we build in for the Bangalore units in the upcoming quarters?

Anshul, for two units, which is Electronic City and the Hennur, which is getting open in few weeks' time from here,

for the full year for the FY '26-'27, I think the loss assumption EBITDA loss assumption of ₹5, ₹6 crores is a fair assumption,

basically. Each unit.

Each unit. Both units combined, right?

Not per unit.

Per unit. So ₹10 crores for both.

I would say about 12 to 15. 12 to 15.

₹15 crores loss, Anshul, you should budget it.

Got it. Second question what I had was on the mature portfolio.

While I understand the seasonality impact in the current quarter as well, we are hearing incremental newsflow around competition sort of in the single specialty ramping up and another multispecialty hospital sort of coming up with a new hospital in Hyderabad itself. While we obviously can't call out if seasonality will return next year, but do we foresee mature hospitals to sort of lag given the fact that increasing competition, funding for other hospitals is on the rise, especially in our core markets?

Oh, there's no doubt about it. The competition has been there for the last 10, 12 years' time in Hyderabad, it's always been there.

The it's increasing, there's no doubt about it. The multispecialties who have lost their the pediatric business and obstetric business, they are trying to kind of say that we also want to do a mother and child within the large multispecialty hospital, and also standalone small small hospital mom-and-pop stores, all these things, everyone is competing with the outpatient footfalls, delivery segment, and those areas.

See, when it comes to kind of the the children who requires high-end care, who are sick, who definitely come to Rainbow. Because number of local hospitals coming, definitely some outpatients What we need to figure out it see that now, how do we actually capture the larger market?

Obviously, cities are also growing, and also the more and more and more younger families are coming into the city. We need to see and how we can actually capture larger footfalls into our network, which means we may have physical hospitals, we kind of we have in plans to do start some the clinics in the local geographies, because the traffic conditions are getting worse.

This is what the requests are coming. Obviously, we will have our own plans to kind of see the competing at the this local small mom-and-pop stores or small-small children's hospitals, how do we position ourselves.

This is a ongoing phenomenon. I'm sure this will kind this will keep us engaged and try to do overcome all these challenges.

Got it. Also, would we be maintaining our sort of high-teens top-line growth aspirations/goal despite all these challenges in the mature hospitals or core geographies?

I'm sure challenges are there everywhere. When you have six, seven multispecialty hospital groups in each city, they have challenges, but they're overcoming.

The same way for us. I think at one see the challenge is not there for us at the pari passu level, equal and there are no equivalent player to Rainbow.

At least they're all about 7, 10 years behind to us. That's where it is.

What is the small leakages wherever OPD footfalls, people aspiration to go to nearby, will it solve those problems? I think that is what we try to work around because we have got close to 1,000 beds in Hyderabad, and we're going to continue to kind of expand ourselves to the OPDs multiple ways and also more units.

This will be continuous, ongoing phenomenon. I don't think we're going to sit quietly and see that everyone grows.

That's you have a brand equity, you have a kind of reachability to the population, that will continue to you continue to drive it as a leader.

Got it. Very clear, sir.

Just one last question. Are there any immediate plans to increase the operational beds at the Guwahati hospital?

I see that we only have 85 operational beds, whereas the capacity is around 150 beds. Are there any immediate plans to increase operational beds there?

I think in about next three, four months' time, those will probably come into the probably a kind of new financial year early part will come into operation those beds.

Great. Thank you.

That's it from my side. All the very best.

Thank you. Thanks a lot.

Yeah. Hi, sir.

Can you hear me?

Yes, Rishi.

Yeah. Hi, sir.

A few questions. A lot of questions have been asked on occupancy, and the rationale has been seasonality-led occupancy decline.

I just wanted to understand, are we exploring any other business models, maybe smaller clinics to bring in patient flow from slightly further distances so that even if seasonality doesn't work for us, yet our mature hospitals can rise up to 60% occupancy? Just what initiatives we are taking there?

The plans are on the way. I think we are looking at doing some small clinics, the formats, we are working on that.

Probably about in 6 months' time, they're all in the execution phase.

Okay. All right.

That's great to hear. Secondly, I wanted to understand the international patients is the big rationale behind our Gurgaon hospital investment that we're doing.

We want to make it a global hub for international patients for pediatrics. Given how we've seen a lot of volatility in geopolitical relations, what hedging mechanisms or what mechanisms are we implementing so that even if there is a disruption, we still don't suffer it extremely highly when we end up operationalizing that hospital?

It's a good question. That we're already kind of the process So, Gurgaon strategic plan is actually is we will start working on it from the probably from the mid or a lot of because still about 1.5, 18 months, 24 months away, the Gurgaon.

Obviously, we need to well before we need to start think about it strategically how we're going to position the hospital, what kind of the doctor mix we're going to have it, and also the specialties, and also what how the positioning in the hospital, and it's a huge exercise which we know how we could we have plans definitely plans to work around. International is definitely as one of the bigger ailment when you're in Delhi, especially as a superspecialty children's hospital like other multispecialties.

We would like to get that kind of opportunity. Hopefully, things may settle down also, but of course, we do we do need to reinvent which are the international markets which kind which are going to be convenient for you to kind of have the patience.

Meanwhile, in the already case are also working on the kind of a derisking mechanisms how to kind of work around and overcome the challenges. Where the some of the like in Bangladesh, it's become really challenging now.

I think it's a long way, long story, we need to work on that, and we are cognizant about the geopolitical volatility.

All right, I understand. Maybe pick this up once we're closer to the operationalization of the Gurgaon hospital.

Third question I had was on the hospital operationalization delays that you've experienced over the past 1 year, some because of construction timelines, some because of government delays in permissions. Just wanted to understand, has there been some sort of root cause analysis being done on how to ensure that we hit our timelines on hospital operationalization and change in the process that needs to be done, any technology change that can help us reduce the timeline for construction?

Just to get your view on that.

It's a great question, actually. We are working on that actually to see that, now, how do we actually see PMCs, and how do you strengthen it, how do you see use the technology to see that, now, the construction timelines are are executable timelines or can they compare Can they get compressed or can we do it like within the timelines?

A lot of times what we are experienced is it is because of two aspects. One is wherever you require permissions, governmental Bangalore hospitals, clearly it's kind of a delay from the government because there is a there is a division of the Bengaluru metropolitan area into four zones.

I think in the process, definitely, about 2, 3 months delays have happened. Having said that, in the last, 6, 7 years' time, we have not seen the delays more than one or two quarters.

I think that mostly one quarter or two quarters, none of them been delayed definitely 9 month 9 to 12 months' time a year long. In Coimbatore, I think we had to go for re re-sanctioning of the drawing.

That's why it's taken off 6 months extras, which been communicated because we had to put a new capex and those things. We have communicated to the our, in the concalls, but, the now things are going very well.

Now from this, it's predictable. The delays happen in the two two two phases.

One is in the sanction approvals planning stage. Second thing is on the execution side.

If you've got a if you if you have a challenging teams or something difficulties or the other they are contractors and those things. Thirdly is the the final permissions from the government.

These are the three phases. I think the middle one is in our hands.

The first and last one is I think we have to depend on the local government and their policies and how they how they See, sometimes there elections comes, the local global body elections. They will take away 4, 5 months' times.

You can't do anything about it, because nobody works. These are all the each challenges changes from city to city and state to state.

Right, right. All right, it's good that we're working at least on the things that we can control.

Hopefully, through some technological construction equipment changes, we can ramp it up quicker. Finally, you mentioned you're exploring CGHS sign-up to ramp up occupancy given the new rates.

Just wanted to understand how much is the rate differential now versus our current rates for cash patients?

No, I think there's a huge difference. That's why we are still in the benchmark, and we'll have to take a call on that now.

Which hospital, where, where there are lots of beds availability, which geography, that's something that now we'll take about 2, 3 months' time to make such decisions. Because we have not been in the business of doing a government schemes so far.

This is the first time we ever we are looking at it. We want to be conscious about what calls we're going to take it.

It's going to get kind of beneficial in a big way without compromising our ARPOBs or overall our margins, then we will take it up. It will be patchy, but not at the whole organization level.

Sir, what would be the percentage difference in the pricing?

No, we still we have to kind of do the work on it.

Okay. All right.

Okay. Thank you.

That's it from my end.

Hi. Thanks for taking my question.

Just a follow-up on occupancy, and sorry to harp on it. If the seasonality continues to remain subdued going into the next year, do we see ourselves going past 50% occupancy levels, just driven by the measures that we are undertaking?

Of course, Bansi. I think seasonality is one factor, and also that number of action items which we have in front of us to drive the occupancies, I'm sure we'll be able to deliver next year definitely about 55%.

This is what we are looking at it. Now we have strengthened significantly our sales and marketing and various other the initiatives to drive the occupancies.

Also, there's a significant investments are going to go into the digital initiatives. These are all things that I'm sure going to work, and now I know the last six months, I've been dissecting our own business, where and how to do business without much depending on the seasons.

This is what now the current exercise what we are doing it. We're hopeful that we'll overcome this.

Of course, the any medical hospital, the seasonality is an essence, and also we cannot escape or avoid the seasons and also illnesses in this country. Therefore, this is probably I see it as a one of the odd year, and next year is going to be different.

It's not going to be the same.

Thanks for that, sir. Besides these, marketing led efforts, if you could illustrate, the efforts that you are, undertaking, are these in lines of, adding more doctors, or, again, doing more complex work, you know?

If you could illustrate, what are these efforts?

Of course, one is strengthening of specialties and doing more and more the advanced care and also the tertiary care and all complex things. Now, for example, we started liver transplant program in 5 years ago in Hyderabad.

It's going well. We do second largest number of liver transplants in the country in our Hyderabad Banjara Hills.

We started in Chennai, it's going very well, the program last 1 year. Now Bangalore is commenced.

Obviously, we look to push that program probably to do about 100 transplants next 16, 18 months' time. That is how we look at it.

How do we kind of build our strength in a pediatric superspecialty under neurosurgical, cardiac programs, all other things. The next thing is to see that, now, how to drive the intensive care on the more complex disease.

That's another one. Of course, we were pediatric surgical work, pediatric subspecialty like orthopedics and those things.

We're focusing on every single pediatric subspecialty, how we can grow each one of them. Especially the hub hospitals, eventually to become a kind of, not depend much on the seasons to kind of go with the regular business like our hub hospital Banjara Hills how it plays up throughout the year.

We would like to see more and more hub hospitals play in a similar fashion.

All right, noted. Sir, just a second bookkeeping one.

If you could comment on how the IVF business has trended, and what is it contributing in terms of revenues in this quarter, and on an annualized basis, what is it in terms of run rate? Also Butterfly Essentials, our retail endeavor?

Bansi, for the IVF business, it is at around 4% of the revenue, which we have reached to that stage. It is at around 17 or ₹18 crores of the business, 4% of the business which we have reached.

It's a good scale-up for which we have done. As far as Butterfly is concerned, it is growing.

On the quarter basis, it is doing something like that, ₹4 crores of the revenue, which is means is 1% of total overall revenue. It's still growing phase.

I think the IVF has a more scale to grow up than Butterfly.

All right. Are you dissecting margins for IVF or not at this point in time?

No, we are looking at this margin on the broader level, at the gross level, Bansi. It is on the company level margin as in not something that is a EBITDA-dilutive segment.

I don't think IVF deludes EBITDA. It's definitely in line with company EBITDA, maybe better as we move forward.

All right, thank you.

Thanks for the opportunity. Is the company actively investing in improving digital user experiences, and do you expect any meaningful revenue contribution from it in coming quarters or in coming financial years?

That's true. We have kind of finalized our digital strategy and marketing and digital strategy.

Also, we are also looking forward to kind of do the significant capex in future to see that how we become like a digital front-door hospital. Because we operate in a women and children's hospital, more of a digital native population.

Of course, in a digital way is something is going to be very significant. I think a lot of upside is there for us, I personally believe.

We are working on that. Almost we formed the good plan to go ahead with our digital landscape and digital marketing.

Yeah. Apart from marketing, I would like to know if the user experience kind of thing, like some app and

Yeah. We're refashioning right from our website to the patient app and the doctors' one and also making ourselves to be completely EMR-based.

These are taking its own time, but I think our more focus is going more towards the patient app and also the online consultations and also the payment gateways. I think these are all going to get started very soon.

Okay. Okay.

Thank you. That's all from my side.

Thank you.

Yeah. Hi, sir.

Sir, can you also talk about in terms of the ramp-up which we would have seen in the international business? Because I think for the past couple of quarters, on the international business also, we had seen some sort of an impact because of what's happening geopolitically.

Where is the international business training now, and what kind of a trajectory do you expect over the next, let's say, 2 years?

Yeah. I think we just slowly come back to the 2%.

I think original we budgeted about 4%, but I think because of a geopolitical situations, I think dominant we used to get a lot of patients from Bangladesh and Sudan and Kenya. These are the two of them got affected significantly, that's why Somalia is another one.

Somalia had a ban also from Hyderabad, so that's again significantly impacted. We've come up to 2% of the revenue now.

I think that's still not very meaningful to me. I think we are trying to kind of revisit our international plan which are include more new countries, explore new markets to see that we can get back into the 4, 5% of the revenue.

Sure, sir. Sir, with respect to the acquired assets, what was the contribution, let's say, in third quarter?

Contribution in terms of what, Jeewani?

In terms of top line.

The Guwahati will be close to 26, ₹27 crores. For the Warangal, should be at around ₹7 crores.

Okay. So, ₹34 crore kind of a contribution for the quarter?

Yes.

Sure, sir. Sir, if we adjust that, obviously, the organic growth has been mid-single digit only.

We are talking about a recovery going into '27, '28. What comfort do you have now that we would see that recovery playing out in '27 and '28?

Rahul, two points see, in the last 12 months, the company has significantly invested into senior leadership in terms sales and marketing, which we have announced also like Mr. Srinath has joined.

Now Mr. Abrarali Dalal has joined as a CEO to drive.

We have revamped our units heads and the cluster head wherever it was required. We're taking the corrective measures for that.

We have, as sir has briefed you earlier is that in the call, that we have significantly increasing our presence into the digital initiatives, brand repositioning, etc. A lot of things are happening.

At the same time, if you look at our seasonal impact is started at around quarter four of the last year, right? This low base also should help to get on to that.

Sure, sir. Just on seasonality, obviously, what happens for us is one year we see a very strong season followed by a weak season next year.

Now, let's say, if one had to evaluate the business over a medium- to a long-term perspective, would you say that maybe the growth potential for our business is mid-teens kind of a number over the next 5-year period versus our earlier guidance of 18 to 20% CAGR?

I think we have to take a CAGR of a four 4-year CAGR. It is a various CAGR which clock around 18%, that's what my personal view is.

Whatever the experience of running this hospital group, except in this year, which maybe when we may touch to kind of double digit, but a 17, 18% growth has always been there for us in the past. That's what we would aim, and we would like to reach to.

That's our safe zone, what we feel.

Sir. You are still sticking to that, let's say, an 18% kind of a revenue CAGR over a medium-term period?

Absolutely.

Okay. Sure, sir.

Thank you. I will join back the queue.

Sir, just a one follow-up question. If you look at our margins, the margins are quite high.

That's also because the kind of treatment that we provide at the hospitals. Just, given that the competition is increasing, are we seeing any signs of the pricing coming in, and is there a risk for margins to come down?

I think the margins see the model which we operate here kind of a very fixed kind of a model, right? When you do very well, for example, we do occupancy 55% the north of 55%, and our margins are achievable.

It's our hospital is more medical hospital. More depends on multiple shoulders rather than one two one two shoulders.

This is why they are fixed costs are high. When you perform very well, you drive kind of an excellent outcomes.

When you kind of drive you get poorly, as well vice versa, it comes down significantly. That the threshold is very important for us, because when you even at 50% for occupancy for year-long, still we are able to manage the margins because of underlying core business is strong.

That's what we have to see it.

Thank you, sir.

Hi, good morning, everyone. Sir, you touched upon Telangana and Bangalore briefly.

Similarly, can you touch upon your performance across some of the other clusters as well?

Yeah. I was talking to you about Chennai in the previous calls about Chennai is actually improving pretty well, and overall in a good trajectory.

All the three hospitals, I think Guindy and Anna Nagar are doing very well. Sholinganallur also kind of started showing a good ramp-up.

I think we are positioning our Chennai very well for the next year. The next cluster is Andhra Pradesh.

Andhra Pradesh will be very promising for us because we strengthened the doctor team and leadership doctor team in Visakhapatnam. That will give us a very positive outcomes.

We're also planning to see that now we can do our cardiac program in Visakhapatnam. Also, we operate currently 100 beds, we plan to kind of operationalize another 50 beds in Visakhapatnam.

Vijayawada is always does very well. Because Rajahmundry is joined the team kind of, it's by third month is coming closer to the breakeven.

Andhra cluster will definitely be like another Hyderabad for us in future. Going to Delhi, that Delhi performance has been okay, but I wouldn't say that's a great, great performance.

The small hospital, Rosewalk, has turned around, doing very well. Malviya Nagar, because of our structure and also managing these beds and the challenges of that high cost and all those things, won't allow us to have kind of more than eight, 10% EBITDA.

That's been always a challenge. Otherwise, whole hospital overall has done well in terms of obstetrics, obviously, does very well.

In South Delhi, I think we do the maximum number of deliveries in South Delhi. Obstetrics is very good.

The pediatric specialties, it's not a kind of a hospital where you have a lot of space to build advanced care specialties, build up those things. It's kind of a mid-sized hospital, that's where we're struggling.

Also with the high cost and paying a lot of money to the society. These are the challenges always been.

I think as a hospital, we have good name, and we'll continue to kind of build our credibility in that area. That's what's important for us at the moment because of upcoming Gurgaon hospitals in a few years' time.

Guwahati is a great addition. I think great addition.

We're actually recruiting the specialty doctors, and hopefully that, in the next year, the mid-year or so, that we wanted to kind of launch cardiac program in Guwahati. That's a great acquisition, that's again will join the like Hyderabad and Andhra cluster, will join the company EBITDA.

That's what our expectation.

Just to follow up on Guwahati, given your experience so far, I know it's early days, but just given your experience so far, do you get the same confidence about adding more spokes in the region, and if yes, by when would you be deciding on your growth plans in the region?

I think our partner is pushing hard to do things, but we want to take our own time to see Manipur has got its own challenges, Nagaland has got its own challenges. We wanted to study and understand more about potential versus challenges.

I think we'll take a near time to think about it.

Got it, sir. Sir, the second question is would it be fair to say that we will be playing bit of a catch-up to some of the leading multispecialty hospital companies when it comes to some of these sales and marketing activities, digital initiatives, etc.?

Of course, we have to. I think there's a significant ramp-up what what we have to do.

I personally believe that, the where we are and where we are need to reach to is a long gap, which we're actually been working on it. This is work in progress now.

I think, in years 2 years down the line, I think there's a lot of build-up is going to happen in the digital and technology side as well as kind of a marketing side.

Maybe a crude way of asking the question, on a scale of say 1 to 100, if the leading multispecialty players are at 100 when it comes to these marketing activities, digital initiative, etc., where would we be at this point of time?

I think we would be somewhere around 30, 40. I won't rate myself more than that.

See, this is why it is such an important thing for me. Rainbow is always grown as a kind of a very organic, very doctor-driven, very community-inclusive, this once.

Rainbow is kind of organization not built on sales and marketing and digital. Because the way the things are moving, word of mouth is getting shifted online ratings, right?

Also cities are becoming very, very fragmented and very, very cosmopolitan, and also people rather than asking for opinion about neighborhood, they go to the digital platform. That is the world we are in.

I think we need to be in the forefront. If you ask me that now, where we should be, we probably should be somewhere higher than multispecialties than lower than multispecialty as we move forward.

Our penetration.

Understood, sir. One final question.

Sir, there's been a lot of discussion on seasonality, and we've seen that impact on us for a few quarters now, and maybe two quarters 2 years back as well. From your understanding, how do you see some of these global pediatric hospitals dealing with seasonality?

Are they doing something different which we can try and do, or this is just par for the course?

Okay. There are two kinds of a hospitals we have in global level, like hospitals which are superspecialized, like a Children's Hospital Philadelphia and those ones, which are a mid-sized hospitals, which are like Cincinnati and those hospitals.

I did have a call recently with Cincinnati, I think what are the things what they see. See, what a season does in pediatrics is, season actually I'm not talking about coughs and colds getting admitted.

When there is a viral infections when there is unusual bugs in the system, not only the well children coming into the hospital because of sickness, these are the ones which actually tilts the balance of the children with the chronic diseases. Children with the cardiac problem, children with the neurological problem, children with the various other problems, they are the people actually get affected a lot more in the seasons.

That is what the volume which comes and gets deposited into the intensive care services. The lot of times we think about a seasonal illness is causing because children who have got underlying problems and there is a trigger and they show up when they need a care, sometimes they need a larger care.

That's what season plays up. It's the same phenomenon, whether it is in India or outside.

In India, we are a lot more of secondary and tertiary pediatrics compared to kind of some of the superficial children's hospital like in America, but mid-sized hospitals behave exactly the same like us in America also.

That's helpful, sir. Thank you, and all the best.

Yeah. Thanks a lot.

Thank you, all the participants, for joining today's conference call. A very insightful questions and few of the suggestions by the participants, and thanks for that.

Your continued support is instrumental to our strategic journey. If there are any questions later on after this call, please do write to us or connect with us at [email protected].

Thank you. Thank you, everybody.

Thank you. Thank you.