Rainbow Children's Hospital to add 900 beds, with half coming up in NCR

Rainbow Children's Hospital Group is accelerating its pan-India expansion with nearly 900 new beds planned over three years, half of which will come up in the NCR

Hyderabad-based Rainbow Children’s Hospital Group, one of India’s largest specialised paediatric and perinatal care chains, is accelerating its northward expansion with plans to add nearly 900 beds over the next three years, of which about 450 will come up in the National Capital Region (NCR).

 

The expansion marks a strategic shift for the predominantly south-focused hospital network, which built its reputation on tertiary and quaternary paediatric care across Telangana, Andhra Pradesh, Karnataka and Tamil Nadu.

 

“Our next big strategic bet is Delhi NCR. NCR is the future of children’s healthcare for North India, with Gurugram emerging as a major healthcare hub,” said Dr Ramesh Kancharla, founding chairman, Rainbow Children’s Hospital.

 

“Over the next two years, we will add around 450 beds in NCR across two hospitals -- one 325-bed flagship and one 125-bed spoke hospital.”

 

Overall, Rainbow plans to add close to 900 beds across high-growth markets, with an outlay of around ₹900 crore as it would be using a mix of asset-light and greenfield hospitals.

 

The pipeline includes about 90 beds at Electronic City and 60 beds at Hennur in Bengaluru, around 150 beds in Pune, and approximately 130 beds in Coimbatore. The Pune unit will be developed using an asset-light satellite model and is currently in the design phase.

 

“Over the next three years, we aim to add close to 900 beds across key high-growth markets, ensuring advanced paediatric and perinatal care is accessible to more families,” Kancharla said.

 

On investments, the company expects total capital expenditure of about ₹800 crore to ₹900 crore for the expansion.

 

“We will use a mix of greenfield and asset-light satellite models. Satellite hospitals cost around ₹70 lakh per bed, while asset-heavy hospitals like Gurgaon will cost more,” Kancharla said.

 

He added that the company has around ₹500 crore on its balance sheet and strong operating cash flows, and does not foresee the need for external funding. 

Founded in 1999 as a focused children’s hospital specialising in neonatal intensive care, paediatrics and emergency services, Rainbow integrated obstetrics and perinatal care in 2007.

 

Kancharla, who trained and worked in the UK, said children’s hospitals differ fundamentally from multispecialty hospitals as they are emergency-driven, consultant-led and require full-time multidisciplinary teams operating round-the-clock in a child-centric environment.

 

Demand for specialised mother-and-child hospitals has gained momentum post-Covid, as families increasingly prefer focused facilities over general hospitals for maternal and paediatric care. Rainbow currently operates approximately 2300 beds, making it the largest children’s hospital chain in the country.

 

Brokerages remain positive on the growth outlook.

 

Axis Direct said Rainbow is well positioned for sustained expansion, with management guiding for a 20 per cent consolidated revenue CAGR over the next two to three years, supported by the addition of nearly 780 beds over the past two years and a strong pipeline of new units. The appointment of a professional Group CEO is also expected to strengthen execution and operational discipline.

 

Systematix Institutional Equities highlighted robust traction in newer units and improving diversification, while noting that large flagship hospitals in markets such as NCR could help maintain a balanced mix between tertiary and quaternary care, which currently contributes about 40 per cent of revenues.

 

With half of its near-term expansion now anchored in the NCR, Rainbow is positioning itself to tap into North India’s high birth volumes and Delhi-centric referral flows, while continuing to consolidate its southern stronghold.