Rainbow Children’s Medicare (RCML), known for pediatric excellence, announces an ambitious expansion plan to boost bed capacity by 270. Amidst this growth stride, the chain eyes opportunities in Chennai's vibrant healthcare market.

Ramesh Kancharla, RCML's Chairman, shares insights on CNBC-TV18 about their growth trajectory, aiming for a 16% increase in beds across Hyderabad, Bangalore, and Chennai by H2 FY24, aligning with their 25% margin targets. Anticipating mid-teen revenue growth, Kancharla foresees a potential EBITDA dip due to new unit integration in the latter half of the year.

Q2 FY24 reports a 3% profit uptick to ₹62.91 crore, with operational revenue climbing by 6.3% to ₹332.68 crore, painting a positive financial picture. However, a notable drop in hospital occupancy to 51% from 60% last year is attributed to recovering COVID-19 cases among children, CNBC reported.

RCML now plans to replicate its successful hub-and-spoke model from Hyderabad in Bangalore and Chennai, aiming for comprehensive coverage across southern cities, including Andhra Pradesh.

The company's stock demonstrates resilience, surging over 4% in the past month, buoyed by expansion plans and strong financial performance. As RCML gears up for this transformative growth, eyes are keenly set on its strategic moves in the evolving healthcare landscape.