Updated - May 27, 2026 at 04:38 PM.

Ramesh Kancharla, Founder-Chairman, Rainbow Children’s Medicare

Rainbow has been on an expansion mode of late. How has been the capacity addition in FY26?

We had a couple of rough quarters earlier, but this year has addressed many concerns. We added nearly 500 beds in FY26, the highest in our history. Traditionally, we looked at adding around 300 beds annually, but acquisitions changed the scale. The acquisitions in Guwahati and Warangal have done very well. Rajahmundry has also exceeded expectations because Rainbow already had strong brand recognition in the Godavari districts. Now our total beds are 2,500.

What was the investment in these acquisitions?

The Guwahati acquisition involved a 76 per cent stake with a transaction value of about ₹230 crore. In Warangal, we invested around ₹35-36 crore for a 76 per cent stake. Both acquisitions have integrated well.

What will be the company’s priorities in FY27?

In FY27, we will focus more on strengthening operations rather than aggressive expansion. We now have a CEO, Abrar Ali, driving execution and strategy. My focus is on strengthening the clinical model and standardising care across hospitals. Whether it is Chennai, Bengaluru or Delhi, patients should experience the same systems, SOPs and quality standards. We are aggressively pushing protocolisation and standardisation of care. The second focus area is customer experience. We have created a separate vertical for this and brought in professionals from the hospitality sector to improve patient engagement and service delivery. We are exploring some acquisition opportunities. They might not be of too big tickets. If they materialise, they may add around 100-150 beds. Otherwise, FY27 will not see major bed additions. A larger expansion pipeline is expected from FY28 onwards.

How do you see Rainbow’s growth trajectory over the medium term?

Over the next three years, by FY30, we should be doubling our revenue and EBITDA from current levels. We are already strongly profitable and clock around 25 per cent EBITDA margins.

What is the company’s financial position?

We currently have close to ₹700 crore cash on the balance sheet. At the end of last year, we had disclosed around ₹592 crore cash. Annual cash generation is roughly ₹250-300 crore. We have not taken loans over the last decade and, being a listed company, we have sufficient flexibility to raise funds if required.

How do you view the broader private healthcare sector in India?

India’s private healthcare sector has progressed phenomenally in terms of accessibility, quality and skill. In many cities, healthcare standards are comparable to developed countries. India has also rapidly expanded capabilities in complex procedures. For example, the country now performs around 7,000-8,000 liver transplants annually, which reflects the depth of healthcare expertise available. District-level healthcare has also improved significantly over the years. Cities such as Warangal, Karimnagar, Vijayawada and Rajahmundry now have hospitals capable of handling many critical cases locally before referring highly complex patients to metro centres.

What are the major trends shaping healthcare over the next few years?

AI and technology will dramatically improve transparency in healthcare. Patients today can access detailed information about doctors and hospitals through digital platforms and AI tools. This will benefit hospitals that consistently deliver high-quality outcomes. Healthcare providers will increasingly need to invest in technology, transparency and digital engagement. The biggest shift ahead will be technology-driven efficiency and informed patient choice.