Rainbow Children's Medicare sees 20% quarterly revenue growth over next six quarters

Rainbow Children’s Medicare expects its revenue to grow about 20% each quarter over the next three to six quarters, supported by stable occupancy and operational efficiency, CMD Dr. Ramesh Kancharla said. He added that the company expects its average revenue per patient (ARPP) to rise 5-6%, while average revenue per occupied bed (ARPOB) may fluctuate because of seasonal trends and new hospitals in Tier-II cities.

Dr. Kancharla said the July-September 2025 quarter reflected the seasonal nature of the business, with lower volumes and occupancy. “Volumes have come down, occupancies have come down,” he said, but added that ARPOB stayed “pretty healthy because of the superior case mix.” Higher-value cases, he noted, helped support margins even as seasonal demand dipped.

He said Rainbow’s mod