Rainbow Childrens Medicare Ltd

<dhhead>CHAIRMAN'S MESSAGE </dhhead>

Advancing Healthcare with Purpose

AT RAINBOW, CLINICAL EXCELLENCE IS NOT JUST A BENCHMARK IT IS THE VERY FOUNDATION OF OUR IDENTITY. OUR STEADFAST COMMITMENT TO QUALITY, INNOVATION, AND PATIENT-CENTRIC CARE, CONTINUES TO DRIVE EXCEPTIONAL OUTCOMES ACROSS THE FULL SPECTRUM OF PEDIATRIC AND PERINATAL SERVICES.

It is my privilege to present the Integrated Annual Report of

Rainbow Children’s Medicare Limited for the financial year 2024-25. This year holds special significance as we celebrated our 25th anniversary. A silver jubilee is not just a milestone; it is a moment to reflect on the journey that brought us here, one built on compassion, trust, and an unwavering commitment to excellence in pediatric and perinatal care.

This milestone reflects the values we hold dear, the culture we’ve nurtured, and the resilience that has carried us through the challenges and triumphs alike. To commemorate this occasion, we came together to celebrate the people and the purpose that define us. It was a moment of pride to honor a large number of our team members for their invaluable contributions over the years.

As we look ahead, we do so with deep gratitude, renewed conviction, and a clear sense of purpose. The next phase of our journey holds immense promise, and we remain committed to growing with integrity, staying rooted in our mission, and continuing to deliver care that truly makes a difference.

At Rainbow, clinical excellence is not just a benchmark - it is the very foundation of our identity.

Our steadfast commitment to quality, innovation, and patient-centric care continues to drive exceptional outcomes across the full spectrum of pediatric and perinatal services. I would like to highlight a few clinical achievements that are particularly close to my heart. These cases are a reflection of the depth of expertise within our clinical teams and reaffirm our ongoing commitment to delivering the highest standards of tertiary and quaternary care.

In one case, a four-year-old with severe dengue, brain swelling, and dangerously high inflammation markers was admitted. The treatment involved mechanical ventilation, bronchoscopy, and three cycles of plasmapheresis. With coordinated care across multiple specialties, the child made a steady recovery and was discharged healthy after two weeks. In another complex case, an eight-year-old child presented with neck swelling, sepsis, and multi-organ dysfunction. Emergency renal support, surgical debridement, ventilation, and rehabilitation were required. The combined efforts of our intensive care and surgical teams led to a full recovery, and the child was discharged in three weeks.

At BirthRight, a 32-year-old first-time mother with a complex medical history · including nephrotic syndrome, chronic hypertension, type 2 diabetes, and ischemic heart disease · successfully delivered under our care. A multidisciplinary team worked in close coordination to ensure a safe pregnancy and delivery, reflecting our strength in high-risk maternal care.

This year, we further strengthened our credentials, with fertility services at Rainbow Children’s Hospital Kondapur receiving re-accreditation from JCI and Rainbow Children’s Hospital in Visakhapatnam receiving NABH accreditation. With these, we continue to remain the only pediatric hospital chain in India with three hospitals accredited by the Joint

Commission International (JCI) and 13 NABH-accredited hospitals across the network.

FY 2024-25 was a year of strong growth, demonstrating the resilience of our business. We achieved an operating revenue of 15,158.7 million, marking a 16.9% year-on-year growth, driven by consistent performance in our mature hospitals and increasing contributions from newer ones (under five years old).

Our hub-and-spoke model grew stronger, with new hospitals seamlessly integrating into the Rainbow network. While upholding high clinical standards and excellent patient care, we efficiently managed operational expenses through disciplined cost control.

Despite the additional costs of expanding new hospitals, we maintained a healthy EBITDA margin of 32.3%, highlighting our scalability and efficiency. Our newer hospitals are progressing as expected, while mature hospitals continue

THIS YE WE FURTHER AR, STRENGTHENED OUR CREDENTIALS, WITH FERTILITY SERVICES AT RAINBOW CHILDREN’S HOSPITAL KONDAPUR RECEIVING RE-ACCREDITATION FROM JCI AND RAINBOW CHILDREN’S HOSPITAL IN VIS AKHAPATNAM RECEIVING NABH ACCREDITATION.

to achieve steady organic growth.

Overall occupancy for the year stood at 50.5%, with mature hospitals at 57.8% and new hospitals at 36.5%.

Rainbow currently operates 1,935 beds across 19 hospitals in six Indian cities, with a strategic focus on geographic expansion, particularly in Southern India and the National

Capital Region (NCR). Over the next three years, we plan to enhance our capacity by adding ~1,000 beds, strengthening our presence in key markets.

In Bengaluru, we are expanding our hub-and-spoke footprint with a

90-bed brownfield spoke hospital in Electronic City and a 60-bed hospital in Hennur, respectively. Both hospitals are anticipated to commence operations by Q2 FY 2026.

We are also entering new regional hubs with high growth potential.

A 100-bed hospital in Rajahmundry is on track to be operational by the first quarter of FY 2026, while a 130-bed hospital in Coimbatore is expected to be operational by the end of FY 2027.

In the NCR, our expansion plans comprise a 300-bed flagship super-specialty hospital at

Sector 44 and a 100-bed spoke hospital at Sector 56 in Gurugram.

With regulatory approvals already secured, both hospitals are scheduled to commence operations by calendar year 2027, significantly strengthening our footprint in North India.

This strategic expansion aligns with our vision of reinforcing our integrated hub-and-spoke model, improving patient accessibility, and driving excellence in clinical outcomes across our expanding network. At the same time, the Company is actively exploring strategic acquisition opportunities, aiming to collaborate with existing promoters to expand into newer regions.

Our focus is particularly on the North

East, where there is a significant need for enhanced healthcare infrastructure and services.

I would like to take this opportunity to highlight a few key initiatives undertaken over the past year to expand our service offerings:

Recognizing the rising demand, we have expanded our IVF services and now offer advanced reproductive care across 12 facilities, further reaffirming our commitment to accessible, high-quality fertility treatment.

Our IVF services continue to gain strong momentum, driven by clinical excellence, brand trust, and exceptional patient care. As a strategic growth driver, this segment remains well-positioned for continued expansion, and we are confident in our ability to further strengthen our leadership in the fertility space.

OUR COMMITMENT TO DIGITAL TRANSFORMATION IS DRIVING MEANINGFUL ADVANCEMENTS IN BOTH PATIENT CARE AND OPERATIONAL EFFICIENCY. BY EMBRACING TECHNOLOGY ACROSS THE SYSTEM, WE ARE CREATING SMARTER, MORE CONNECTED HEALTHCARE EXPERIENCES.

At Rainbow, we continuously evolve to address the emerging healthcare needs of children and their families, not only through clinical excellence but also by fostering holistic well-being. Cognizant of the increasing prevalence of childhood developmental and behavioral challenges, we have established an ~8,000-square-feet, state-of-the-art Child Development Center at our Banjara Hills campus in Hyderabad. This pioneering facility sets a new benchmark in pediatric developmental healthcare in India, integrating multidisciplinary specialists under one roof to provide comprehensive therapies in a supportive environment.

Aligned with our vision of the patient experience beyond clinical care, we launched Butterfly Essentials · a specialized initiative offering a carefully curated range of baby and women’s care products. Now operational across

17 hospitals, Butterfly Essentials provides families with convenient access to safe, natural, and hospital-approved essentials, further enriching the overall care experience.

Over the last few years, we built a strong foundation for quaternary care at our Banjara Hills facility, consistently delivering excellent clinical outcomes. Building on this success, we are now expanding advanced services in Bengaluru and Chennai.

Our kidney and bone marrow transplant programs are already underway, and we recently performed our first successful liver transplant in Chennai. With regulatory approvals received, we look forward to formally launching our liver transplant program at Bengaluru soon, further strengthening our quaternary care offerings.

Our commitment to digital transformation is driving meaningful advancements in both patient care and operational efficiency. By embracing technology across the system, we are creating smarter, more connected healthcare experiences.

Our advanced hospital information system ensures real-time data access across departments, supporting timely and well-informed decisions for both caregivers and administrators. The deployment of our Patient App and Portal has enhanced accessibility, allowing patients to easily connect with doctors and access their health records · broadening our digital outreach. Furthermore, we have fortified our cybersecurity framework, implementing robust data privacy measures to ensure that enhancing patient information remains secure and trustworthy.

Looking ahead, our focus is on mapping the patient journey across all initiatives, enhancing electronic medical record (EMR) capabilities for doctors, and integrating intelligent systems for effective decision-making.

Like many in the Indian healthcare sector, our international business faced challenges this year due to geopolitical developments and regulatory constraints in key regions, including Bangladesh, Oman, Kenya, Somalia, and Sudan, resulting in a temporary decline in patient inflows. In response, we have intensified engagement with health authorities and local stakeholders to ensure smoother access to care. At the same time, we are expanding our focus to high-potential markets such as the Philippines, Mauritius, Uganda, and Zimbabwe, where we see significant opportunities for growth.

Recognizing the increasing demand for advanced pediatric and maternal healthcare in emerging markets, we are strengthening collaborations with medical professionals and hospitals across Africa and neighboring countries. These efforts aim to reinforce Rainbow’s position as a trusted healthcare destination while building a more resilient and diversified international patient base.

Our people are the cornerstone of Rainbow’s success. Cultivating a culture of learning, growth, and well-being is a priority across all levels of the organization. We continue to invest in talent development, ensuring a steady pipeline of qualified doctors, nurses, and paramedics to support our expanding network while maintaining our standards of clinical excellence.

Rainbow takes pride in running one of India’s largest pediatric training programs, offering 230+ DNB (Diplomate of National Board) seats across our network. Our comprehensive training ecosystem also includes super-specialty programs, equipping healthcare professionals to manage complex, high-acuity pediatric and maternal cases. In addition to in-house training, we are exploring the establishment of dedicated training centers for paramedical and nursing staff to address a critical need in India’s healthcare landscape.

We are proud to have been conferred two prestigious recognitions by The Economic Times: Best Pediatric Hospital and Best Organization for Women.

As we continue to grow, we remain dedicated to building a future-ready workforce that embodies our core values and supports our mission. Additionally, we are honored to have received the “Great Place to Work” certification for the fifth time in 2025, highlighting our continuous efforts to cultivate a work environment that prioritizes the well-being and growth of our team members.

At Rainbow, we take our role in contributing to society beyond core healthcare delivery seriously. Sustainability and social responsibility are not just ideals; they are integral to the way we operate. We continue to collaborate with local communities and government programs to enhance access to maternal and child healthcare, particularly for underserved populations.

In our commitment to environmental responsibility, we have adopted green hospital practices across our network, focusing on energy-efficient infrastructure, waste reduction, and water conservation to minimize our ecological footprint. Additionally, through health camps, parental education programs, and digital outreach, we actively promote awareness around pediatric and maternal health, ensuring families are empowered with the knowledge they need to make informed health decisions.

In line with our commitment to responsible governance and transparent ESG disclosures, we are continuously enhancing our sustainability data management practices. By focusing on standardizing environmental data collection and optimizing the use of our information systems, we aim to improve both operational efficiency and environmental stewardship.

Looking ahead, we remain focused on strengthening our leadership in pediatric and perinatal healthcare through a balanced and sustainable growth strategy. Expansion will be driven by scaling mature hospitals through the addition of new specialties and clinical talent, accelerating the performance of newer hospitals, and commissioning three new facilities in FY 2025-26, which will increase capacity by ~13% (250 beds).

The Southern region remains our stronghold, with strong brand recognition and sustained demand driving growth. We will continue to expand our hub-and-spoke network, enhance accessibility, and reinforce our market leadership in key cities.

Our planned entry into Gurugram marks a pivotal step in our North India expansion strategy. As we establish our presence in the NCR, we will assess further opportunities in micro-markets, guided by patient needs and regional healthcare dynamics.

Simultaneously, we are actively exploring strategic acquisitions in the Western and North eastern regions, targeting institutions that align with our clinical standards, operating philosophy, and long-term vision. Our approach emphasizes comprehensive regional coverage, ensuring sustained impact rather than isolated expansions.

Our strong financial position provides the foundation to execute these growth plans effectively. With a robust balance sheet, we are well-positioned to fund our expansion through internal accruals, minimizing reliance on external debt and further strengthening our financial resilience.

In closing, I would like to express my sincere gratitude to my fellow Board members for their valuable guidance, and to our doctors, employees, and leadership team for their dedication and hard work. I also extend heartfelt thanks to our shareholders for their continued trust and support.

Importantly, I am deeply thankful to the young parents, pediatricians, and the wider community who place their trust in us every day. Their continued faith inspires us to build a more inclusive, community-driven model of healthcare that truly responds to the needs of children and families.