ECONOMIC OVERVIEW
Global Economy
The global economy remained stable in 2025 by navigating changing trade policies and different regional outcomes. Technology investments in areas such as artificial intelligence helped balance the effects of tariffs and policy changes. Global inflation reached a steady 4.1% as several countries reported lower figures than expected. This environment provided global operations and research teams with a more predictable cost structure.
The ongoing Russia-Ukraine war continues to disrupt global energy markets and supply chains, creating uncertainty for commodity prices and trade flows. Escalating Middle East conflicts further strain oil supplies and heighten inflationary pressures across economies. These developments challenge manufacturing sectors worldwide while testing international diplomatic responses.
World GDP growth reached 3.3% for the year with varying results across different areas. Advanced economies grew by 1.7% while the United States saw a 2.1% increase from technology spending and financial support. The euro area grew by 1.4% and Japan by 1.1%. Emerging markets performed better with 4.4% growth where India reached 7.3% and China saw 5.0% expansion. These high performing markets remain essential for global reach and patient access.
I Financial conditions were generally helpful despite some market changes, and high- growth technology stocks performed better than the wider market. Global trade volumes stayed consistent because of strong technology exports from Asia.
Trade tensions decreased after a truce between the United States and China lowered tariffs and paused export limits on electronic components and minerals. The United States also removed certain agricultural tariffs which kept overall rates similar to previous levels. While policy concerns were lower than the peaks seen in late 2025, they remained higher than the year before.
Financial conditions were generally helpful despite some market changes, and high-growth technology stocks performed better than the wider market. Global trade volumes stayed consistent because of strong technology exports from Asia. Central banks managed inflation through small policy changes, including rate drops in the United States and the United Kingdom. These actions helped maintain a stable financial environment against trade and political challenges.
Outlook
The mid-term global economic outlook suggests a period of sustained growth with projections of 3.3% for 2026 and 3.2% for 2027. This positive trend is driven by a shift toward technology-led productivity, particularly the use of artificial intelligence in industrial and medical fields.
Advanced economies are expected to expand by 1.8% in 2026. The United States is likely to lead this group with 2.4% growth, supported by fiscal incentives and healthcare tax reliefs from the One Big Beautiful Bill Act. This legislation and the recovery from the late 2025 federal shutdown create a strong framework for healthcare spending and private investment. While the Eurozone faces slower growth at 1.3%, it remains a stable pillar of the global economy. Japan is expected to grow by 0.7% under new fiscal policies.
Emerging markets remain a high-growth frontier with momentum staying above 4.0%. China is expected to grow by 4.5% due to domestic stimulus and more predictable trade with the US. India remains a global leader with a 6.4%
growth rate and serves as a critical hub for manufacturing and digital health innovation. Growth in the Middle East at 3.9% and in Sub-Saharan Africa at 4.6% reflects regional stabilization and presents opportunities to reach more patients globally.
The financial environment is expected to improve as inflation drops toward 3.4% by 2027. Lower price pressures and interest rate cuts in the US and UK should make it easier to fund large-scale research and development projects. While global trade growth may slow to 2.6% because of tariff adjustments, the technology and pharmaceutical sectors remain strong to ensure the continued delivery of essential medicines.
Indian Economy
The Indian economy exhibited resilience in FY2025-26 amid global trade uncertainties and market fluctuations. First Advance Estimates indicate real GDP growth of 7.4% alongside Gross Value Added at 7.3%. These figures underscore the strength of a domestic demand-led growth trajectory. Robust agricultural performance bolstered rural earnings. Urban consumption gained momentum from stable jobs and easing inflation.
I Inflation touched a record low of I 1.7% over the first nine months of FY2025-26. This stability amplified household purchasing power. Expectations remain anchored ahead.
India achieved a landmark by overtaking Japan to rank as the worlds fourth-largest economy. Current GDP stands at $4.18 trillion. Projections position the country to claim third place by 2030 with a $7.3 trillion economy. This trajectory reaffirms Indias status as the fastest-expanding major economy. Domestic demand, durability and structural reforms provide firm backing.
Private consumption continues as the key engine. Lower inflation and rising real wages fuel this momentum. Public capital expenditure reached 12.2 lakh crore. Such outlays advanced infrastructure and stimulated sectors like manufacturing, construction, and energy. Initiatives such as Viksit Bharat 2047 advance self-reliance and capacity enhancement despite external headwinds.
Inflation touched a record low of 1.7% over the first nine months of FY2025-26. This stability amplified household purchasing power. Expectations remain anchored ahead. The RBI forecasts 2.0% for the full
year. Prudent fiscal measures and consistent bank credit growth underpin this outlook. The banking system shows fortitude with ample capital buffers and minimal non-performing assets. Foreign exchange reserves surpass $700 billion. These reserves equip India to navigate international turbulence.
The Union Budget 2026-27 reinforces commitment to balanced growth and fiscal prudence. Emphasis persists on infrastructure and manufacturing investments. This aligns with aspirations for a developed India. Priorities include energy transition, digital progress, and aid for small and medium enterprises. Steps to streamline regulations and expand credit access promise to lift industrial output and lay the groundwork for enduring expansion.
Outlook
The outlook for the Indian economy stays positive and stable. Projections place real GDP growth for FY2026-27 between 6.8% and 7.2%. These estimates highlight Indias ability to preserve strong momentum despite worldwide uncertainties.
Government spending on infrastructure will continue to provide solid support. Private sector investments keep rising steadily. Policy measures and capacity building further reinforce the manufacturing base. The services sector holds its reliable growth path. Digital progress and resilient exports lend additional strength.
INDUSTRY OVERVIEW
1. GLOBAL AND INDIAN MACROECONOMIC OVERVIEW
The April 2026 update to IMFs World Economic Outlook (WEO) report employs a scenario-based approach to present the forecast for 2026 and 2027. In this approach, the scenario in which the ongoing conflict in the Middle East has limited duration, intensity, and scope so that the disruptions stemming from it dissipate by mid-2026 is assumed for modeling a ‘reference forecast based on which forecasts are drawn for adverse and severe scenarios in which the conflict becomes more protracted, or the resumption of production and transport activities takes longer because of possible scaring from closing of or damage to energy infrastructure. Hence, the impact on global economy which crucially depends on the conflicts duration, intensity, and scope is projected as shown below:
Variation in projections for different regions in adverse and severe scenarios
| f | Projections for adverse scenario |
Projections for severe scenario |
Inflation |
For Advanced Economies and China: increase by 50 basis points by 2027 | For Advanced Economies and China: increase by 100 basis points by 2027 |
| For Emerging Economies: increase by 90 basis points by 2027 | For Emerging Economies: increase by 130 basis points by 2027 | |
Oil prices |
Rise by 80% starting in Q2 of 2026 | Rise by 100% starting in Q2 of 2026 |
| Fall to 20% above baseline in 2027. | Stay at 2026 level in 2027 | |
| Return to historical norms in 2028 | Return to historical norms in 2028 | |
Gas prices |
For Europe, Asia: rise by 160% in Q2 of 2026 | For Europe, Asia: rise by 200% in Q2 of 2026 |
Food prices |
Increase by 2.5% in 2026 | Increase by 5% in 2026 |
Corporate spreads |
For Advanced Economies and China: increase by 50 basis points in 2026 | For Advanced Economies and China: increase by 100 basis points in 2026 |
| For Emerging Economies: increase by 100 basis points in 2026 | For Emerging Economies: increase by 200 basis points in 2026 |
Source: IMFs World Economic Outlook - April 2026 update, Crisil Intelligence
Risks to the outlook remain tilted on the downside on account of escalation of geopolitical tensions, flaring up of trade-related disputes, reevaluation of profit expectations regarding AI potentially leading to decline in investments and an abrupt correction in financial markets, and larger fiscal deficits and increasing public debt which could put pressure on long-term interest rates. On the upside, economic activity could be further lifted by AI-related investment and supported by renewed momentum for structural reforms and by a sustained easing in trade tensions.
In February 2026, the Ministry of Statistics and Programme Implementation (MoSPI) released a new series of national accounts estimates with base year of FY2022-23 as it represents a recent normal year (after COVID). This base revision was undertaken to capture structural changes that have taken place in Indias economy and to leverage the availability of comprehensive data on different sectors of the economy.
Under the new 2022-23 series, Indias real GDP grew from 261.2 trillion in FY2023 to 323.1 trillion in FY2026, logging a CAGR of 7.4% between FY2023 and FY2026. Further, as per Provisional Estimates, Indias real GDP grew at 7.7% in FY2026. Major drivers of this growth have been the secondary and tertiary sectors as they registered growths of 8.8% and 9.3%, respectively. Indias economy is tied to West Asia for energy, trade, investment, and remittances. Ongoing conflict and global disruptions have led to increased costs, weaker export demand, and manufacturing challenges due to reliance on imported inputs, compounding domestic issues like sub-par monsoons. Crisil has laid out the following macroeconomic outlook for FY2027.
Crisils projection for India for FY2027
| Macroeconomic variables | Estimated for FY2026 | Forecast for FY2027 |
| Real GDP growth (%) | 7.6 | 6.6 |
| CPI inflation (%) | 2.0% | 5.1% |
| 10-year government security (G-sec) yield (March average, %) | 6.7% | 7.0% |
| Current account balance (% of GDP) | -0.8% | -2.2% |
| Exchange rate (March average, /$) | 92.8 | 93.5 |
Source: Crisil Intelligence
Notes:
FRE - First Revised Estimates, PE: Provisional Estimates, P - Projected Indias FY27 projection is Crisils forecast
Source: Ministry of Statistics and Programme Implementation (MoSPI), Crisil Intelligence Private consumption continues to anchor Indias economic growth
Indias private final consumption expenditure (PFCE) grew by 6.4% between FY2023 and FY2026, wherein growth between FY2025 and FY2026 stood at 7.7%. This growth in consumption is supported by the positive impact of GST rate rationalization, stable employment conditions, rising real purchasing power, steady rural consumption resulting from strong agricultural performance, and gradual rise in urban consumption aided by the rationalization of direct and indirect taxes.
PFCE at constant prices (2022-23 series), FY2023-26
Year |
FY23 | FY24 | FY25(FRE) | FY26(PE) |
| PFCE (In Billion) | 149,228.3 | 157,852.6 | 166,998.5 | 179,938.7 |
| % Share of GDP | 57.1% | 56.4% | 55.7% | 55.7% |
Note: FRE: First Revised Estimates; PE: Provisional Estimates Source: MoSPI, Crisil Intelligence
Indias GDP is driven by three key forces
Indias health expenditure as a % of GDP is among the lowest in the world
According to the latest data in the Global Health Expenditure Database compiled by the WHO, in 2023, Indias expenditure on healthcare was 3.3% of its GDP. When compared with other countries, Indias healthcare expenditure as a share of its GDP emerges as one of the lowest in the world, trailing not only developed countries such as the US and the UK, but also developing countries such as Vietnam and Thailand. Per capita healthcare expenditure in India stood at $84.7 in 2023, whereas that of the US stood at USD 13,473.2. In percentage terms, Indias per capita healthcare expenditure is 11.1% of the per capita healthcare expenditure of China.
Source: Global Health Expenditure Database, World Health Organization (accessed in April 2026); Crisil Intelligence India is far from thresholds
India lags behind the global average in hospital bed availability. The IPHS recommends a desirable benchmark of 20 beds per 10,000 population, with 10 beds per 10,000 considered the minimum essential standard.
Bed density norms under IPHS 2022
| Health facility | Norms stated under the Indian Public Health Standards | |
| Bed density per health facility | Population to be served per health facility | |
Primary health centers |
6 indoor/observation beds | 20,000 - 30,000 |
Community health centers |
30 beds | 80,000 - 1,20,000 |
Sub-district hospitals |
31-100 beds | 1,00,000 - 5,00,000 |
District hospitals |
101-500 beds | Up to 30,00,000 |
Source: MoHFW, Crisil Intelligence
The adequacy of a countrys healthcare infrastructure and personnel in terms of its bed density, physician density, and nurse and midwife density is key to assessing the quality of healthcare delivered in the country.
Bed density refers to the number of hospital beds available per 10,000 population in a country, where hospital beds include inpatient beds available in public, private, general, and specialized hospitals and rehabilitation centers. At the global level, there are no widely accepted standards for bed density. However, in India, bed density norms for different health facilities are stated in the Indian Public Health Standards (IPHS 2022).
Increasing medical education capacity in India to support healthcare industry
Indias medical education capacity has expanded, with MBBS seats rising from ~51,348 (2014) to ~1,29,025 (2025) and colleges doubling, indicating strong supply-side improvement. India has 819 medical colleges with a total of 1,29,025 MBBS seats, nearly evenly split between government (63,682) and private/trust (65,343) institutions, indicating a balanced public-private contribution to medical education capacity.
The below-mentioned table highlights the distribution of accreditedseatsacrosspediatricandwomenshealth-related medical specializations in India. MD Pediatrics accounts for 4,177 seats, representing ~10.8% of the total 38,411 MD seats, indicating a notable share within postgraduate medical education. In womens health, MS Obstetrics & Gynecology comprises 4,667 seats, contributing nearly 23.9% of the total 19,510 MS seats.
The pediatric speciality and super-speciality segment collectively include 4,614 seats across disciplines such as pediatric surgery, neonatology, pediatric gastroenterology, cardiology and oncology. Similarly, womens health and reproductive medicine specializations together account for 4,779 seats, with obstetrics and gynecology constituting the majority share.
Estimated Pediatric Speciality and Super Specialty seats
Specialization |
Seats |
| MD - Pediatrics | 4,117 |
| M.Ch - Pediatric Surgery | 222 |
| DM - Neonatology | 114 |
| Neonatology | 20 |
| DM - Pediatric Oncology | 10 |
| DM - Pediatric Neurology | 6 |
| DM - Pediatric Gastroenterology | 5 |
| Pediatric Nephrology (DM/M. Ch) | 10 |
| Diploma in Pediatrics | 2 |
| Diploma in Child Health | 31 |
| DM - Pediatric Hepatology | 3 |
| M.Ch - Pediatric Orthopedics | 10 |
| DM - Pediatric Cardiology | 6 |
Total |
4,616 |
Source: NMC Website (May 2026), Crisil Intelligence
Estimated Women Health and Reproductive Medicine specialization seats
Specialization |
Seats |
| MS - Obstetrics & Gynecology | 4,667 |
| M.Ch - Gynecological Oncology | 32 |
| Diploma in Obstetrics & Gynecology | 52 |
| MD - Obstetrics & Gynecology | 28 |
Total |
4,779 |
Source: NMC Website (May 2026), Crisil Intelligence
The table presents accredited DNB broad/super-speciality/fellowship seats and DNB post diploma seats across multiple medical specialties related to pediatrics, neonatal and Obstetrics and Gynaecology.
DNB broad/super-speciality/fellowship seats
| Specialty | No. of Accredited Seat(s)* | DNB post diploma | Specialty | No. of Accredited Seat(s) | DNB post diploma |
| Fetal Radiology | 4 | NA | Pediatric Gastroenterology | 12 | NA |
| Gynecological Oncology | 27 | NA | Pediatric Hemato- Oncology | 35 | NA |
| Obstetrics and Gynecology | 425 | 373 | Pediatric Nephrology | 8 | NA |
| Pediatric Anesthesia | 22 | NA | Pediatric Orthopedics | 2 | NA |
| Pediatric Cardiology | 41 | NA | Pediatric Surgery | 8 | NA |
| Pediatric Critical Care | 40 | NA | Pediatric Surgery (Direct 6 Years Course) | 19 | NA |
| Pediatric Emergency Medicine | 2 | NA | Pediatric Urology | 3 | NA |
| Pediatric Endocrinology | 4 | NA | Pediatrics | 509 | 442 |
| Neonatology | 47 | NA |
Total |
No. of Accredited Seat(s)* | DNB post diploma |
| 1,208 | 815 |
Note:
*(Broad/Super/Fellowship)
Source: NBEMS Website, Crisil Intelligence
DNB post diploma seats
Pediatrics - DCH (NBEMS) |
No. of Accredited Seat(s) |
| Pediatrics - DCH (NBEMS) | 522 |
| Obstetrics & Gynecology - | 563 |
| DGO (NBEMS) | |
Total |
1,085 |
Source: NBEMS Website, Crisil Intelligence
Healthcare PFCE increased by ~7% in FY25 to 8,608.9 billion
The share of health expenditure in PFCE (2022-23 series) in FY24 logged 8,052.5 billion crore, which was 5.1% of the total PFCE in FY24. In FY25, the share of health expenditure in total PFCE rose to 5.2%, while the total absolute value stood at 8,608.9 billion.
Private expenditure on health and its share in PFCE (2022-23 series)
Year |
Expenditure on health in INR billions | Share of health expenditure in PFCE (%) |
| FY23 | 8,106.4 | 5.4% |
| FY24 | 8,052.5 | 5.1% |
| FY25 | 8,608.9 | 5.2% |
Source: Ministry of Statistics & Programme Implementation, Crisil Intelligence Governments health spending grew by CAGR 9.2% in FY18-26
Governments expenditure on healthcare, in terms of budgeted outlays made for both the MoHFW and the Ministry of Ayush, has grown considerably over the last 10 years, registering a CAGR of 9.2% over the period FY18-26. However, government spending on health as a percentage of the governments total spending remains low.
Key government schemes in healthcare (focused on maternity and childcare)
RISK GROUP |
MITIGATION MEASURES |
India Newborn Action plan |
• The India Newborn Action Plan (INAP) is developed in response to the Global Every Newborn Action Plan (ENAP) and was launched at the World Health Assembly in June 2014 for accelerating the reduction of preventable newborn deaths and stillbirths in the country |
Saksham Anganwadi & Poshan 2.0 |
• Integrates ICDS, POSHAN Abhiyaan, Scheme for Adolescent Girls into 3 verticals: nutrition support, ECCE (early childhood care & education), and infrastructure upgrade (Saksham Anganwadis. |
Mission Shakti |
• Dual verticals: ‘Sambal (safety & security) and ‘Samarthya (empowerment); includes schemes like One Stop Centres (OSC), Women Helpline (181), Beti Bachao Beti Padhao (BBBP). |
| • Focus on 24x7 emergency support, declining Sex Ratio at Birth (SRB), and DBT-based benefits (PMMVY) to enhance womens welfare & economic participation. | |
Mission Vatsalya |
• Umbrella for Integrated Child Protection Scheme (ICPS) ensuring care, protection, rehabilitation of children in difficult circumstances. |
| • Emphasizes institutional + non-institutional care, child welfare services, and convergent action for holistic child development. | |
Janani Shishu Suraksha Karyakaram (JSSK) |
• Launched in 2011, JSSK aims at eliminating out-of-pocket expenses for pregnant women and sick infants by entitling them to free delivery, including cesarean section, free transport, diagnostics, medicines, other consumables, diet and blood in public health institutions |
LaQshya |
• Launched in 2017, LaQshya aims to improve the quality of care in labor room and maternity operation theaters to ensure that pregnant women receive respectful and quality care during delivery and immediate post-partum |
Reproductive and Child Health (RCH) portal |
• It is a name-based web-enabled tracking of pregnant women and new-born to ensure provision of regular and complete services to them including antenatal care, institutional delivery and post-natal care |
Anaemia Mukt Bharat (AMB) strategy |
• As a part of POSHAN Abhiyan aims to strengthen the existing mechanisms and foster newer strategies to tackle anemia which include testing & treatment of anemia in school going adolescents & pregnant women, addressing non-nutritional causes of anemia and a comprehensive communication strategy |
Surakshit Matritva Aashwasan (SUMAN) |
• Launched in 2019, SUMAN aims to provide assured, dignified, respectful and quality healthcare at no cost and zero tolerance for denial of services for every woman and new-born visiting the public health facility to end all preventable maternal and new-born deaths |
Janani Suraksha Yojana (JSY) |
• Launched in 2005 with the objective of reducing maternal and neonatal mortality, JSY promotes institutional delivery among pregnant women especially with weak socio-economic status i.e. women from Scheduled Castes, Scheduled Tribes and BPL households. |
Pradhan Mantri Surakshit Matritva Abhiyan (PMSMA) |
• PMSMA (2016): Provides free, assured Antenatal Care (ANC) to pregnant women on the 9th of every month, with a focus on quality check-ups and early risk detection. • e-PMSMA focus: Targets high-risk pregnancies (HRP) through tracking, financial incentives, and ASHA support (3 extra visits); 5.9+ crore women examined (as of March 2025). |
Village Health, Sanitation and Nutrition Day (VHSND) |
• It is an outreach activity for provision of maternal and childcare including nutrition. |
Stabilizing childbirth volumes, alongside improved maternal and pediatric health parameters, indicates a shift toward quality-focused healthcare delivery
Source: HMIS, World Bank, Crisil Intelligence
Between 2020-2021 and 2024-2025, total number of reported deliveries in India decreased from 20.3 million in FY21 to 19.8 million in FY25, owing to decrease fertility rate, urbanization, greater female education and workforce participation.
This is in line with global trends, between 2021-2024, the global fertility rate declined from 2.24 to 2.19 in 2024. During the same period, Indias fertility rate declined from 2.01 to 1.96.
Furthermore, between NFHS-4 and NFHS-5, the share of urban districts in total deliveries decreased slightly from 28.0% to 26.6%, indicating a marginal shift toward rural areas. This transition can be attributed to higher fertility rates in rural areas (2.1 children per woman compared to 1.6 children per woman in urban areas), leading to more deliveries as well as strengthening of rural healthcare infrastructure, including the expansion and upgradation of Primary Health Centers (PHCs), Community Health Centers (CHCs), and district hospitals.
Northern and eastern states have higher fertility rates compared to national average
A regional assessment further highlights significant disparities in fertility patterns across the country. States in the northern and eastern regions, particularly Bihar (2.7), Jharkhand (2.2), Uttar Pradesh (2.2), and Rajasthan (2.1), continue to report Total Fertility Rates (TFRs) at or above the national average. Bihar remains the state with the highest TFR in the country, although it has registered a notable decline from 3.0 in NFHS-5 to 2.7 in NFHS-6. The sustained high fertility levels across these states are indicative of strong underlying demand for maternal, child, and pediatric
healthcare services, thereby presenting substantial growth opportunities for healthcare providers, hospitals, and allied service sectors operating in these geographies. However, the conversion of this latent demand into tangible healthcare consumption will remain contingent on a range of socio-economic and infrastructural enablers, including household income levels, accessibility and availability of quality healthcare, awareness and health literacy, etc.
In contrast, southern states, including Kerala (1.8), Tamil Nadu (1.7), Karnataka (1.8), Andhra Pradesh (1.8), and Telangana (1.9), along with western states such as Maharashtra (1.8) and Goa (1.6), continue to report fertility rates below the replacement level. This trend reflects demographic transition, supported by higher female literacy, greater urbanization, and broader adoption of family planning practices. While volume-driven maternal and pediatric demand may be relatively moderate, these regions are emerging as hubs for sophisticated and specialized healthcare services, including advanced fertility treatments, IVF and reproductive medicine, neonatal intensive care, genetic screening, etc.
Overall, the regional variations in fertility rates point to a complementary, two-tiered healthcare opportunity. The northern and eastern belts, including parts of the north-east, are expected to anchor volume-driven demand for obstetrics, gynecology, neonatal, and pediatric services, contingent on investment in healthcare infrastructure and improved access to quality medical care. Meanwhile, the southern and western states are poised to lead in specialized, technology-intensive, and premium healthcare offerings.
State-wise fertility rate in India
Total fertility rate (children per woman) |
NFHS 6 | NFHS 5 |
| Bihar | 2.7 | 3.0 |
| Jharkhand | 2.2 | 2.3 |
| Meghalaya | 2.2 | 2.9 |
| Uttar Pradesh | 2.2 | 2.4 |
| Lakshadweep | 2.2 | 1.4 |
| Madhya Pradesh | 2.1 | 2.0 |
| Rajasthan | 2.1 | 2.0 |
| Harayana | 2.0 | 1.9 |
| Nagaland | 2.0 | 1.7 |
| Chhattisgarh | 1.9 | 1.8 |
| Gujarat | 1.9 | 1.9 |
| Telangana | 1.9 | 1.8 |
| Uttarakhand | 1.9 | 1.9 |
| Andhra Pradesh | 1.8 | 1.7 |
| Himachal Pradesh | 1.8 | 1.7 |
| Karnataka | 1.8 | 1.7 |
| Kerala | 1.8 | 1.8 |
| Maharashtra | 1.8 | 1.7 |
Total fertility rate (children per woman) |
NFHS 6 | NFHS 5 |
| Chandigarh | 1.8 | 1.4 |
| Jammu and Kashmir | 1.8 | 1.4 |
| Odisha | 1.7 | 1.8 |
| Tamil Nadu | 1.7 | 1.8 |
| Tripura | 1.7 | 1.7 |
| Dadra & Nagar Haveli and Daman & Diu | 1.7 | 1.8 |
| Assam | 1.6 | 1.9 |
| Goa | 1.6 | 1.3 |
| Mizoram | 1.6 | 1.9 |
| Punjab | 1.6 | 1.6 |
| West Bengal | 1.6 | 1.6 |
| Ladakh | 1.6 | 1.3 |
| NCT of Delhi | 1.6 | 1.6 |
| Puducherry | 1.6 | 1.5 |
| Arunachal Pradesh | 1.5 | 1.8 |
| Sikkim | 1.0 | 1.1 |
| Andaman and Nicobar Islands | 0.9 | 1.3 |
| 2.0 | 2.0 |
Source: NHFS, Crisil Intelligence
India demonstrates progress in maternal and child health indicators, yet lags persist when benchmarked against developed economies, necessitating enhanced healthcare infrastructure, super-speciality care expansion, and comprehensive systemic reforms
Mortality Indicators
Mortality and still birth rates in India have shown a steady decline across all key indicators over the past decade. Neonatal mortality fell from 26.0 (2015) to 17.3 (2023), infant mortality from 36 to 23 (2024), and under-5 mortality from 43.7 to 27.7 (2023), reflecting consistent improvement in child health outcomes.
Maternity Mortality rate: Indias maternal mortality rate fell from 129 (2015) to 80 (2023), showing strong improvement and now performing better than the global average (~197), though still above Malaysia, Singapore and other developed economies. The decline is driven by better institutional care and health programs, with further gains dependent on rural access and care quality.
Still birth rate: Indias stillbirth rate has declined from 17.3 (2015) to 11.8 (2023), showing steady improvement, as it is better than global average (~14.3) though it remains higher than countries like Malaysia, Singapore and other developed economies. The decline is driven by better maternal care, institutional deliveries, and antenatal monitoring. Going forward, further reduction will depend on improving rural healthcare access and high-risk pregnancy management.
Neonatal Mortality rate: Indias neonatal mortality rate declined from 20.2 (2020) to 17.3 (2023), now aligning closely with the global average (~17.3), though still higher than Indonesia and significantly above Malaysia, Singapore and other developed economies. The improvement reflects targeted gains in institutional deliveries, SNCU/NICU capacity, and early neonatal care (first 7 days focus), a critical shift since most infant deaths occur in this window. Further progress will hinge on strengthening preterm care, skilled birth attendance, and last-mile rural neonatal interventions.
I Mortality and still birth rates in India have shown a steady decline across all key indicators over the past decade. Neonatal mortality fell from 26.0 (2015) to 17.3 (2023), infant mortality from 36 to 23 (2024), and under-5 mortality from 43.7 to 27.7 (2023), reflecting consistent improvement in child health outcomes.
Infant Mortality rate: Indias infant mortality rate declined from 36 (2015) to 23 (2024), showing steady improvement and now performing better than the global average (~28), though still higher than Malaysia, Singapore and other developed economies. The decline is driven by better neonatal care, vaccination, and institutional deliveries.
Under 5 Mortality rate: Indias under-5 mortality rate declined from 32.4 (2020) to 27.7 (2023), outperforming the global average (~38) but still above Malaysia, Singapore and other developed economies. The improvement is driven by gains in immunization, nutrition, and early childhood care, reflecting broader child health system strengthening. Further reduction will depend on targeting neonatal causes and addressing rural health gaps.
Adolescent Mortality rate (age 10-14): Indias adolescent mortality rate declined from 2.5 (2020) to 2.2 (2024), remaining below the global average (~3) but higher than Malaysia, Singapore and other developed economies. The gradual decline reflects improvements in basic healthcare access and disease prevention, though progress is slower given lower baseline mortality. Further gains will depend on injury prevention, nutrition, and adolescent-focused health interventions.
Birth Outcome Indicators
Pre- term prevalence rate: India Preterm birth rate is estimated to have stabilized at ~13%, reflecting sustained improvement and controlled prevalence levels. Conversely, the United States has experienced a marginal increase from 9.7% to 10.0%, indicating emerging or escalating risk factors. Most other nations, including China, Nigeria, Ethiopia, and the Democratic Republic of Congo, have demonstrated relatively static trends with minimal variation.
Low birth weight (LBW) babies prevalence rate:
Prematurity is the most common reason for a baby weighing less than 2.5kg at birth. A baby gains much of its weight in the last weeks of the pregnancy. Weighing less than 2.5 kilos at birth is closely linked to high rates of neonatal mortality and ill health later in life.
Share of new-born having weight less than 2.5kg*
| Parameter | NFHS 4 | Share of health expenditure in PFCE(%) |
| Share of new-born having weight less than 2.5kg* | 18.2% | 18.2% |
Source: NFHS 4 and 5, Crisil Intelligence
Stunting prevalence: According to World Health Organization data, the prevalence of stunting among children under five has remained stable from 2020 to 2024, staying around 32-33%.
Overweight prevalence: Based on model estimates of data from World Health Organization (WHO), % share of Overweight prevalence among children under 5 years of age has increased to 3.7% in 2024 from 2.7% in 2020 due to rising consumption of unhealthy processed foods, reduced physical activity and lifestyle changes.
Quality of Care Indicators
Share of pregnant women registered for antenatal care (ANC): There was a notable improvement in antenatal care registration in India, with the percentage of pregnant women registered increasing from 59.0% to 70.0%, between NHFS 4 and NHFS 5, indicating enhanced coverage and awareness of maternal health services.
Trend in total number of pregnant women registered for antenatal care (ANC)
| Parameters | NFHS 4 (2015-2016) | NFHS 5 (2019-2021) | NHFS 6 (2023-24) |
| Share of pregnant women registered for antenatal care (ANC) | 59.0% | 70.0% | 76.2%* |
* Mothers who had an antenatal check-up in the first trimester (%)
Source: NFHS-5, NFHS-6 Crisil Intelligence
Share of institutional deliveries: The share of institutional deliveries in India has increased significantly from 79% (FY16) to 96.4%
(December 2025), reflecting strong improvement in access to formal healthcare facilities. The steady rise indicates enhanced maternal healthcare infrastructure, awareness, and government interventions, leading to safer childbirth practices.
| Parameters | NFHS 4 (20152016) | NFHS 5 (20192021) | NFHS 6 (202324) | Dec 2025 |
| Share of institutional deliveries | 79.0% | 88.6% | 90.6% | 96.4% |
Source: NFHS-5, NFHS-6, PIB report posted on 20 Apr 2026, Crisil Intelligence
Hysterectomy prevalence: Hysterectomy prevalence in India shows a gradual increase, rising from 3.2% (NFHS-4) to 3.3% (NFHS-5). Furthermore, the private sectors share has also increased from ~67% in NHFS-4 to ~70%+ in NFHS-5, indicating growing dependence on private healthcare. Key drivers include menstrual disorders, uterine prolapse, fibroids, aging, socioeconomic factors, and insurance coverage (PMC).
Share of women and newborn babies availing postnatal care: Womens postnatal checks within two days after birth declined from 65% (NFHS-4) to 61% (NFHS-5), with health facility-based checks dropping from 75% to 63% while home-based care doubled from 23% to 46%. Conversely, newborn postnatal checks surged from 27% to 82%, with facility-based coverage increasing dramatically from 29% to 87%. The maternal decline likely reflects healthcare system strain, increase load due to institutional deliveries, economic barriers, and lack of awareness.
Share of women with symptoms of postpartum complications: Between NFHS-4 (2015-16) and NFHS-5 (2019-21), the prevalence of massive vaginal bleeding increased from 19.7% to 23.0%, while cases of very high fever rose from 15.2% to 17.8%, signaling an escalating burden of postnatal morbidity. This trend can be attributed to several interconnected factors. Enhanced institutional delivery rates and improved clinical documentation have likely strengthened the identification and reporting of complications.
Share of c-section deliveries and duration of stay:
India has witnessed a substantial and sustained increase in caesarean section rates, rising from 19% in FY19 to 27% in FY25. This upward trajectory signals a fundamental shift in delivery patterns that carries significant implications for healthcare infrastructure and resource planning.
With cesarean deliveries accounting for over one-quarter of all births and continuing to rise, the cumulative demand on surgical facilities, and specialized postnatal care services is expected to increase moving forward.
2. ASSESSMENT OF THE INDIAN HEALTHCARE DELIVERY INDUSTRY
With long-term structural factors supporting growth of the Indian healthcare delivery market, renewed impetus from PMJAY (Pradhan Mantri Jan Arogya Yojana) and government focus shifting towards the healthcare sector, the healthcare delivery market is expected to grow at a CAGR of 10-12% between fiscals 2025 and 2030 to 11.2-12.2 trillion. The CAGR for OPD is expected at 8-10% and for IPD at 10.5-12.5%.
The overall healthcare delivery market is fragmented, with large private hospitals making up around 20% in fiscal 2025 as affluent and upper-middle-class patients often choose private players. Additionally, with government facilities overburdened, the PMJAY schemes demand will mostly be met by private providers, further increasing their share.
Note: IPD indicates inpatient department at government and private hospitals, while OPD indicates outpatient department at private hospitals, government hospitals and private clinics. The above segmentation includes both government and private healthcare service delivery organizations
Source: Crisil Intelligence
Cardiac sciences represented the largest single specialty at 17% in fiscal 2025
In fiscal 2025, the Indian healthcare delivery market was estimated at 7.0 trillion, with cardiac sciences accounting for the largest single-specialty share at 17%, followed by oncology at 12%. This reflects the rising incidence of heart disease and cancer, driven by lifestyle risks, pollution and increasing life expectancy. Orthopedics (11%), renal sciences (8%), neurosciences (9%) and gastro sciences (9%) collectively contributed more than one-third of the market, supported by higher detection of chronic disease, join disorders, digestive ailments, wider adoption of advanced diagnostics and specialized procedures, etc.
Notably, pediatric care vertical accounted for ~26% share, underpinned by Indias large child population, rising awareness around child health and nutrition, growing incidence of pediatric chronic conditions, etc.
Growth drivers of the healthcare delivery industry
A combination of economic and demographic factors is expected to drive healthcare demand in India.
The healthcare market is characterized by structural trends such as a sustained rise in chronic disease burden, increasing consumer adoption of digital health modalities, expanding clinician capacity constraints, heightened demand for operational efficiency, and the maturation of data infrastructure enabling predictive, personalized care.
The PMJAY scheme and ABDM initiative launched by the government would also support the industry
Source: Crisil Intelligence
Key challenges facing the healthcare delivery industry
Despite the significant potential and opportunities in Indias healthcare industry, many challenges remain. Some of these include inadequate health infrastructure and disparities in the quality of services provided based on affordability and healthcare financing.
3. ASSESSMENT OF PEDIATRIC CARE INDUSTRY IN INDIA
Overview of pediatric market in India
Pediatric market size expected to grow by CAGR ~12-14% between fiscal 2025 and 2030
To arrive at the pediatric health care market size, we have assumed patients in the age bracket of 0-18 years. In-patient cases at public and private hospitals, and out-patient cases at public and private hospitals and cases at private clinics have been considered to arrive at the market size.
The Indian pediatric healthcare market has grown at 13% CAGR from FY2020 to FY2025, reaching 1,838 billion. This growth has been driven by government initiatives expanding immunization, child nutrition, and preventive care coverage, alongside rising household incomes enabling families to invest in quality healthcare beyond basic care.
Crisil Intelligence projects the Indian Pediatric market to expand at a 12-14% CAGR during FY2025-FY2030, reaching 3,240-3,540 billion by FY2030. Growth will be driven by healthcare infrastructure expansion in tier-2 and tier-3 cities, rising availability of specialized services such as pediatric cardiology, nephrology, neurology, and oncology, and the proliferation of pediatric super-specialty hospitals. Increasing prevalence of lifestyle-related conditions in children, including obesity, diabetes, and respiratory disorders, along with technological advancements in neonatal care and minimally invasive surgery, will further support demand and improve outcomes.
Regionally, the South (30-32%), North (27-29%), and West (25-27%) collectively account for ~82-88% of the market, supported by higher healthcare awareness, strong economic activity, and developed infrastructure, while the East trails at ~14-16% due to limited access to specialized care and socio-economic challenges. This distribution is expected to remain largely unchanged through FY2030.
While respiratory and haematological conditions remain core focus areas, there is a rising incidence of congenital anomalies, rare genetic disorders, and neurological conditions
While respiratory disorders, hematological conditions, and renal diseases continue to dominate, advanced diagnostic technologies and enhanced screening protocols are significantly improving detection of congenital anomalies, rare genetic disorders, and complex neurological conditions, necessitating specialized expertise and comprehensive long-term care pathways.
The market spans multiple high-burden areas: respiratory diseases (pneumonia, asthma, tuberculosis), hematology (inherited disorders, nutritional deficiencies), renal disorders requiring dialysis and transplantation, infectious diseases supported by immunization programs, expanding NICU/ PICU critical care, cardiac interventions for congenital
heart diseases, and pediatric oncology with improving survival rates. Endocrinology, dermatology, dentistry, and management of chronic, autoimmune, and rare diseases are also gaining prominence due to lifestyle changes and better diagnostics.
These evolving disease patterns have fueled demand for pediatric super specialties that address critical conditions including congenital heart disease, childhood cancers, neurological disorders, developmental disabilities, and organ failures requiring highly specialized interventions beyond general pediatric care. Growth is driven by greater awareness, improved diagnostics, rising incomes, broader insurance coverage, government support, and new specialty hospitals in urban areas. However, challenges persist including uneven facility distribution, high costs, specialist shortages, limited health-seeking behavior, social stigma, and insufficient infrastructure outside major cities, which continue to restrict access to quality care.
Key pediatric health conditions
| HEALTH CONDITIONS | DESCRIPTION | CONCERNED SUPER SPECIALTY/SERVICES |
Congenital heart disease |
Considering a birth prevalence of congenital heart disease as 9/10001, the estimated number of children born with congenital heart disease in India is more than 2,00,000 per year. Of these, about one-fifth are likely to have serious defects, requiring an intervention in the first year of life. | Pediatric Cardiology & cardiothoracic surgery |
Oncology |
Childhood cancer impacts over 2,00,000 children annually and is projected to escalate to 21 million diagnoses by 2030. According to the National Cancer Registry Programme, in India, childhood cancers (0-14 years) constitute 4.0%2 of all cancer cases. The surge in childhood cancer cases in India mirrors a global trend. | Pediatric hemato-oncology & bone-marrow transplant services |
Pediatric neurology and epilepsy |
Epilepsy is a chronic brain disorder marked by recurrent seizures. Many children experience a mild form that resolves naturally, while others have persistent cases requiring lifelong medication. In India, prevalence of pediatric epilepsy is about 0.8%3. | Pediatric neurology / epileptology |
Pediatric pulmonology and infectious diseases |
As per NHFS- 5, among children under five years, 2.8%4 suffered from ARI in the two weeks preceding the survey, and 56.1% sought treatment for ARI. India is one of the 15 highest burdened countries in terms of total pneumonia episodes and related childhood mortality. In India, acute respiratory infection (ARI) related diseases are estimated to account for 13-16% of all child deaths among pediatric hospital admissions. | Pediatric pulmonology & pediatric infectious- disease medicine |
ADHD |
ADHD is the most prevalent mental disorder among children, with its occurrence ranging from 1.6% to 17.9%5 in India, reflecting regional variations. ADHD is a neurodevelopmental disorder marked by inattention, hyperactivity, and impulsivity. It acts as a hurdle in brain development, affecting thinking, emotions, and behavior. The significant impact of ADHD during childhood underscores the need for early intervention and treatment by mental health professionals. | Developmental pediatrics & child-adolescent psychiatry |
Autism |
Autism spectrum disorder (ASD) is a complex neurodevelopmental condition characterized by deficits in social interaction, communication difficulties, and repetitive behaviors that profoundly impact the lives of affected individuals and their families. The estimated prevalence in India is 1.126 per 100 children aged 2-9 years, i.e., 1 in every 68 children is affected with autism. | Developmental pediatrics, pediatric neurology, behavioral therapy services |
Transplants |
Solid organ transplants (SOT) are the ideal replacement therapy for end organ failures. In India, 1,5227 pediatric transplants were conducted from 2013 to 2020, majority being kidney and liver. Despite being LMIC adequately trained professionals make India the third-largest transplanting country and fifth in pediatric transplants. | Pediatric Transplant Surgery (liver, kidney, heart) & Pediatric Intensive Care |
Speech therapy |
Solid organ transplants (SOT) are the ideal replacement therapy for end organ failures. In India 1,522 7pediatric transplants were conducted from 2013 to 2020, majority being kidney and liver. Despite being LMIC adequately trained professionals make India the third largest transplanting country and fifth in pediatric transplants. | Audiology and speech language pathology |
| The National Sample Survey Organization report shows that in rural India, 8.9% are children with speech disability in the age group of 0-14 yrs. In the same age group, the urban statistics are 8.3%.8 Prevalence studies have typically estimated that from 7 to 12%8 of the elementary school-age population have speech defects. The field of audiology and speech language pathology is relatively new in India compared to the western countries. | ||
Neuro/muscles |
The burden of neurological disorders in children in India is enormous with overall prevalence rate of 1-3% in children <5 years of age9. Unlike that in developed countries, largely preventable conditions such as epilepsy, CNS infections, and neurodevelopmental disorders constitute over 80% of the burden. Simple preventive measures such as mass immunization, health care and sanitation can significantly reduce CNS infections and their associated epilepsy and disability. | Medications, specialized therapies, dietary adjustments, surgical or advanced treatments |
Mental health |
The National Mental Health Survey 2016 found that teenagers had a 7.3% prevalence of illness, distributed equally across boys and girls. However, it was greater in metropolitan metro areas, and the prevalence of anxiety issues was 3.6%, with depression-related conditions at 0.8%10. | Psychiatry and counseling |
Congenital issues |
In India, more than 1.7 million children are born with birth defects every year. 8% of under 5 deaths are due to congenital anomalies11. The term birth defect encompasses a diversity of health conditions including physical malformations such as cleft lip or palate, chromosomal abnormalities such as Down syndrome, functional defects including sensory deficits such as congenital deafness. Birth Defects have been recognized globally as a major contributor to neonatal and infant mortality and disability. | Pediatric surgery |
Notes:
1. As per the research article published Dec 2018 2. As per the research article published Feb 2025 3. As per the research article published in Aug 2025 4. As per NHFS-5 5. As per the research article published Jan 2020 6. As per the research article published Apr 2024 7. As per the Korean Journal of transplantation research article published online, November 2022. 8. As per the research
article published in September 2020 in International Journal of Community Medicine and Public Health 9. As per the article published online in January 2024 in National Academy of Medical Sciences. 10. As per the research article published May 2024 on National Library of Medicine 11. As per World Health Organization Website
Source: NLM, WHO, Crisil Intelligence
Overview of neo-natal care market in India
A neonatal intensive care unit (NICU), also known as an intensive care nursery (ICN), is an intensive care unit (ICU) specializing in the care of ill or premature new-born infants.
NICU market expected to pose growth of CAGR 11.5%-13.5% between FY2025-30
To arrive at NICU market size, we have taken into consideration number of NBSU & level I admissions, number of SNCU at public & private facilities & level II admissions, and level III admissions at public & private facilities.
The Indian NICU market has expanded at a CAGR of 11% during fiscal 2020-2025 to reach 50 billion by FY25, supported through investments in critical care infrastructure, establishment of dedicated neonatal units, and progressive improvements in clinical outcomes. Government initiatives, including the expansion of Special Newborn Care Units (SNCUs) under the National Health Mission, alongside private sector investments in super-specialty hospitals, established a foundation for specialized neonatal care services.
As of FY25, the South region is estimated to lead the Indian neonatal market with a share of 32-34%, followed by the West region at 27-29%. The dominance of these two regions can be attributed to a higher concentration NICUs, advanced maternal and neonatal healthcare infrastructure, greater awareness around neonatal care, and higher per capita incomes. The West region is followed by the North region, which is estimated to account for ~23-25%, with demand underpinned by a large birth cohort and expanding healthcare access. The East region is estimated to hold the reminder share of 15-17%, reflecting gradual improvements in neonatal care facilities.
Moving forward, the North region is projected to increase its share to 24-26% by FY30, potentially driven by improving healthcare infrastructure and capacity additions in the region. The South region, while expected to marginally moderate to 31-33%, is projected to retain its position as the leading regional market, supported by its established healthcare ecosystem.
Overall, the NICU market in India is estimated to grow at a CAGR of 11.5%-13.5% from FY25 to FY30, reaching 85-95 billion by FY30. This growth will be fueled by increased demand for high-quality neonatal care, ongoing government and private sector initiatives, adoption of advanced technologies such as ECMO, and improved detection and management of high-risk and congenital cases. Expanding health insurance coverage and enhanced neonatal transport systems further strengthen Indias maternal and child health infrastructure.
Neonatal healthcare landscape in selected key cities
Crisil Intelligence estimates that the number of NICU beds available in key cities - Bengaluru, Mumbai (includes Mumbai Metropolitan Region), Delhi NCR, Chennai, and Hyderabad would range around 10,000-11,000 inclusive of private and public facilities. Some of the key pediatric focused hospital chains present in the above cities are as follows:
Key growth drivers for pediatric healthcare services and neo-natal care units
GROWTH DRIVER |
DESCRIPTION |
DEMAND SIDE |
|
Rising disease detection & early diagnosis |
Increased screening, diagnostics, and high institutional deliveries ( 96%+) are enabling early identification of neonatal complications and congenital disorders, significantly boosting demand for pediatric super-specialist interventions (NICU, pediatric surgery). |
Growing health awareness |
Parents are increasingly opting for specialized pediatric centers over general hospitals, driven by awareness around better survival rates, advanced neonatal care, and superior clinical outcomes. |
Rising insurance coverage & affordability |
Expansion of government schemes and private insurance is improving affordability of high-cost pediatric treatments (NICU stays, complex surgeries), thereby increasing access and utilization of super-specialist services. Low health-insurance penetration limits access to quality care for lower-income groups, though coverage has grown to 573 million people in FY24 (41% penetration). Penetration is expected to rise to 40-45% by FY26, which along with PM-JAY should increase hospitalization and drive demand for healthcare delivery services. |
Rising Income to make quality pediatric healthcare affordable |
The proportion of poor in India declined from 16% in fiscal 2016 to 14% in fiscal 2021. Conversely, the proportion of those in the middle- and high-income groups increased from 85% to 86%. By fiscal 2031, this share is expected to reach 95%, supported by growth in per capita income |
Rise in maternity age |
The share of births among women aged 25-29 has increased and is expected to remain the largest contributor, rising from 27.5% in 2010 to 33.9% in 2020 and 36.6% by 2030. Similarly, the 30-34 age group shows a notable increase (from 10.8% in 2010 to 21.1% by 2030), while younger age groups (15-24) are witnessing a decline. |
Patient-centric care preference |
Pediatric super-specialist centers offer focused care, shorter wait times, and superior patient experience, which is critical for time-sensitive and high-risk pediatric cases requiring rapid intervention. |
Accessibility & network expansion |
Growth of pediatric focused chains and referral networks is improving access in Tier 2/3 cities, ensuring closer proximity and higher patient inflow to pediatric super-specialist centers. The government is expanding access through Ayushman Bharat (PM-JAY) for economically vulnerable patients. With PM-JAY coverage, India is likely to need 0.64 million additional beds over the next 10 years, especially in tier 2 and 3 cities, supported by measures like viability gap funding. |
Demographic & epidemiological factors |
Indias large birth cohort ( 20 million annually) combined with rising lifestyle-related pediatric conditions and continued demand from preterm birth and low weight birth is driving sustained demand for specialized pediatric care. |
SUPPLY SIDE |
|
Faster scalability |
Pediatric specialty centers offer a faster path to breakeven and greater scalability relative to multi-specialty hospitals. Their lean operating structure, coupled with an asset-light, hub-and- spoke expansion strategy, enables wider reach and improved penetration across Tier 2 and Tier 3 markets. |
Higher standardization and advanced technology adoption |
Pediatric super-specialty enables standardized clinical protocols, faster turnaround time, and better resource utilization, while investment in NICU, ventilators, neonatal imaging, and pediatric surgical technology improves survival rates, drives precision care, and attracts higher patient volumes. |
Increased service offering (comprehensive pediatric care) |
Pediatric super-specialty centers evolve into one-stop solutions covering NICU, PICU, pediatric surgery, diagnostics, and rehabilitation, enabling end-to-end care for complex and high-risk cases, improving outcomes and strengthening clinical expertise. |
Expansion of PG seats and specialized workforce |
Growth in pediatric PG seats ( 4,300 out of 56,000 total) is gradually improving the availability of trained pediatric specialists (neonatologists, intensivists), supporting expansion of super-speciality centers, though demand still exceeds supply. |
Obstetrics is a medical specialty dealing with the fields of birth and related issues. Obstetrics involves care provided during pre-conception, pregnancy, childbirth, and immediately after delivery, whereas Gynecology involves care of all other womens health issues.
New-age offering for obstetrics care is gaining prominence in urban areas
Some of the new-age offerings offering for expectant mothers by private/ specialized maternity chains including includes personalized diet and nutrition consultancy, yoga classes, breastfeeding & lactation classes, lactation consultation, baby fetal brain development classes, baby childcare sessions, antenatal classes, physiotherapy, labor and delivery classes, Lamaze, and professional photography moments for mother and child to capture initial moments. The new age offering for expected mother revolves not only around ante-natal care and check-ups but also on experiential care and offerings to make the journey of being a mother comfortable, memorable and luxurious.
I Growth is driven by increased institutional deliveries, rising health expenditure on childbirth,
Indias expanding middle-class population, and comprehensive health insurance coverage.
Government initiatives like Janani Suraksha Yojana have broadened market access across socioeconomic segments.
Maternity care market registered 8% CAGR between FY20toFY25
CRISIL Intelligence estimates Indias maternity healthcare market at 542 billion in FY2025, having grown at 8% CAGR from FY2020-25. The market is projected to reach 810-860 billion by FY2030, expanding at 9-10% CAGR.
Growth is driven by increased institutional deliveries, rising health expenditure on childbirth, Indias expanding middle-class population, and comprehensive health insurance coverage. Government initiatives like Janani Suraksha Yojana have broadened market access across socioeconomic segments.
Families are increasingly investing in comprehensive maternity packages beyond basic delivery, including advanced diagnostics, specialized consultations, and structured postnatal programs. Future growth will be propelled by expansion of super-specialty hospitals with dedicated maternal-fetal medicine departments, rising high-risk pregnancies due to increasing maternal age and lifestyle conditions, and technological advancements such as 3D/4D ultrasound and non-invasive prenatal testing. The continuum of care model integrating fertility services, antenatal monitoring, delivery, postnatal care, and pediatric follow-ups is also gaining traction.
Maternity healthcare delivery services in India
Growth drivers for maternity hospitals in India
RISE IN WORKING WOMEN POPULATION
Urban female labor force participation has increased gradually from ~24.7% in 2022 to ~27.7% in 2025, while rural participation remains higher, rising from ~37.5% to ~45.9% over the same period. As more women, become financially independent, awareness and preference for quality maternal care are improving, driving demand for institutional deliveries and private maternity hospitals.
INCREASING PREFERENCE FOR PRIVATE MATERNITY HOSPITALS
The share of maternity healthcare delivery in India has increased from 45% in FY20 to 53% in FY2025, this expanding share of private sector, underscores growing consumer preference for private specialty maternity hospitals, particularly among urban populations seeking enhanced amenities, personalized care, and advanced medical services.
CHANGING CONSUMER BEHAVIOR
Institutional deliveries in India have risen sharply from 88.6% (NFHS-5) to ~90.6% (NFHS-6), indicating near-universal access to facility-based childbirth and shift in consumer behavior towards health oriented practices.
Furthermore, couples are also preferring experiential value-added services, which will positively impact the overall maternity market.
RISE IN
PREGNANCYAGE
The average age of women delivering a baby is increasing. 25-29 age group women contributed to 32% of the births in 2010-2015 period up from 28% in 2000-2005 period.
This increase in pregnancy age is expected to increase the demand for maternity healthcare service and number of complications arising from pregnancies may witness a rise.
Source: Crisil Intelligence
Overview of Assisted Reproductive Technology (ART)
India leads in having the largest population of married/in-union women in reproductive age with high infertility prevalence and lowest ART treatment penetration
Among the key countries, India had the highest population of married or in-union women in reproductive age (20-49) in CY2024 and is projected to maintain this position, through CY2030. In terms of total births, India had the highest total births in CY2024 at 23,187 thousand, among the selected countries. China is positioned 2nd in the same list of selected countries with total births at 8,822 thousand in CY2024, registering a wide difference compared to India. This same trend is expected to continue up to CY2030. The large married population combined with the infertility prevalence in India indicates a huge potential for growth and expansion of the ART industry.
Note: E - Estimated; P - Projected
The markets defined in the above chart considers the expenditure incurred by patients as part of IVF/ART treatment cycles Source: Crisil Intelligence
The ART healthcare delivery was estimated to be 83 billion as of FY2025, registering a CAGR of 13% over FY2020-25. The industry is expected to reach a size of 160-174 billion by FY30P, implying a CAGR of nearly 14-16%.
Overview of key growth drivers of Indian ART healthcare delivery industry
Rise in gynecology issues such as PCOS / PCOD, endometriosis
India is witnessing increase in gynecological issues like Polycystic Ovary Syndrome (PCOS), Polycystic Ovary Disorder (PCOD), endometriosis, etc., which are associated with hormonal imbalance and can lead to decrease in fertility. As per World Health Organization (WHO), PCOS is one of the most common hormonal disturbances affecting women of reproductive age. It affects an estimated 8-13% of reproductive-aged women and up to 70% of affected women remain undiagnosed worldwide. Moreover, PCOS is the commonest cause of anovulation and a leading cause of infertility.
Increased social awareness and acceptance of fertility treatments
The growing social awareness and acceptance of fertility treatments as a viable option is driving the growth of fertility treatments and challenging the historical taboos associated with fertility treatments. This increased acceptance can be attributed to easier availability of fertility treatments, improving education levels, increasing public discussions and government support through policies and schemes like Assisted Reproductive Technology (Regulation) Act 2021, Surrogacy Regulation Act 2021, etc.
Advancements in ART technologies leading to high success rates
Availability of advanced technologies in the field of reproductive technologies is contributing to the overall growth of the sector as it positively impacts the success
rate of the cycles/treatments. For example, Preimplantation Genetic Testing (PGT) helps in evaluating embryos for chromosomal abnormalities before transferring them to the uterus, thereby avoiding embryos that can cause genetic disorders.
Affordability of treatment and rise in income levels
As per People Research on Indias Consumer Economy (ICE) 360? survey, the proportion of those in the middle- and high-income groups increased from 85% to ~86% between FY16 and FY21 respectively. Moving forward, this share is expected to reach ~95% and ~98% by FY31 and FY47 respectively, supported by growth in per capita income. This increasing income levels along with growing awareness of ART facilities is expected to positively influence the overall demand of ART services in India.
Low penetration of ART technologies coupled with increasing medical tourism
Indias prominence as a medical tourism hub is supported by its cost advantage and improving healthcare infrastructure, particularly in specialized treatments such as IVF.
Additionally, according to the Ministry of Tourism, Government of India, initiatives such as the e-Medical Visa, expansion of accredited hospitals (NABH/JCI), and promotion under the Heal in India program are further strengthening Indias medical tourism ecosystem. The relatively lower cost of procedures combined with skilled medical professionals continues to attract international patients. This policy support is expected to boost demand for fertility services, thereby supporting the growth of the overall ART market in India.
Healthcare costs are higher in developed countries relative to India. Some of the factors that make India an attractive destination for medical tourism is the presence of technologically advanced hospitals with specialized doctors, low treatment costs, and facilities such as e-medical visa. Delhi, Mumbai, Chennai, Hyderabad, Kolkata, Bengaluru, Kochi, Pune and Ahmedabad are some of the key medical tourism cities in India. These cities attract medical tourists from across the country and abroad for quality and affordable medical treatment.
As per the Medical Tourism Index (MTI) 2020-21, India ranked 10th globally in terms of medical tourism out of the 46 countries assessed. The MTI provides a performance-based measure to evaluate the attractiveness of a country as a medical tourism destination. The total number of medical tourists visiting India stood at 0.5 million in CY2025. Majority of the medical tourists in 2025, are mainly from Africa, the Middle East, and South Asia. Numbers from the US and UK are rising due to expensive treatments and lengthy wait times in those countries.
Key growth drivers for medical tourism in India include stringent quality standards - increasing NABH and JCI accreditations across cardiac sciences, oncology, robotic surgery, and transplantation, has improved patient outcomes and built trust among international patients. As per the JCI website accessed in June 2026, India has 67 JCI-accredited hospitals, operated by 42 healthcare entities.
The South holds a dominant 43% share of JCI-accredited hospitals in India, anchored by key hubs such as Hyderabad, Bengaluru, and Chennai, with Kerala further strengthening the regions footprint through cities like Kochi, Thiruvananthapuram, and Coimbatore.
The West follows with 25%, driven primarily by Mumbai, Pune, and Ahmedabad.
The North accounts for 24%, led by New Delhi, Gurugram, Jaipur, and Chandigarh.
The East trails at ~8%, with limited presence confined largely to Kolkata and Howrah.
Government initiatives such as e-Medical Visa and the "Heal in India" program have simplified access, while hospitals and facilitators now provide end-to-end services including logistics, translation, and accommodation support, making the entire process smoother for patients. Furthermore, infrastructure investments in advanced technology like robotics and sophisticated imaging systems have enabled hospitals to deliver better care, whereas Indias large pool of trained doctors and healthcare professionals adds credibility. The most compelling factor remains cost, with procedures priced 40-70% lower than in the US or Europe without compromising quality.
Market size of medical tourism industry in India
The Indian medical tourism market is estimated at 150-160 billion in FY25 and is projected to expand to 250-300 billion by FY30, reflecting a CAGR of 11-13% over FY2025-30. Within this market, the mother and child segment is estimated to account for a share of 3-5%, which is expected to be sustained through FY30. This growth is underpinned by rising demand across therapeutic areas such as congenital disorders in children, neurodevelopmental conditions (including ADHD, Autism Spectrum Disorder, and other mental, behavioral, and developmental disorders), and fertility treatments.
According to the Ministry of Tourism, demand for medical tourism in India is primarily driven by patients from countries such as Bangladesh, Iraq, Uzbekistan, Somalia, Turkmenistan, Oman, and Kenya. As highlighted in a PIB release dated May 2026, these international patients predominantly seek specialized medical treatments across a range of disciplines, including cardiac surgery, orthopedic procedures, oncology care, organ transplants, neurological interventions, cosmetic surgery, dental care, and fertility treatments.
In addition to foreign nationals, NRIs also travel to India to avail medical services, owing to the countrys cost-competitive healthcare offerings and shorter waiting times. However, revenues generated from this cohort are typically captured within domestic healthcare revenues rather than being classified separately under medical tourism.
Consequently, the trajectory of the Indian medical tourism sector over FY2025-30 will remain closely linked to the economic stability and growth of key source markets, as well as their geopolitical relationships with India and the broader momentum of international tourism mobility. Several risk factors could influence international patient inflows, including geopolitical tensions, trade disruptions, currency volatility, visa-related restrictions, political instability, and fluctuations in global fuel prices.
Overall, a sustained recovery in global economic conditions, complemented by improving fundamentals in key source countries, will be essential to restore confidence in international travel and, by extension, the medical tourism segment.
CO MPANY OVERVIEW
Rainbow Childrens Medicare Limited (hereafter referred to as ‘Rainbow or ‘the Company) stands as a leading provider of specialized pediatric and perinatal care in India, focused on delivering comprehensive healthcare for children and mothers. Founded in 1998 and headquartered in Hyderabad, the Company began operations with its first pediatric specialty hospital in Banjara Hills, Hyderabad, on November 14, 1999, under the vision of Dr. Ramesh Kancharla, its founding Promoter. Over the years, it has grown into a network of 24 hospitals and 5 clinics across 9 cities, offering over 2,435 beds dedicated to high-quality, child-centric services.
The Company operates two flagship brands: Rainbow Childrens Hospital for pediatric care and Birthright by Rainbow for womens healthcare, including IVF obstetrics and gynecology. Pediatric services form the backbone, covering newborn and pediatric intensive care (PICU/NICU), multi-specialty treatments, and advanced quaternary care like multi-organ transplants. Key areas include neurology, nephrology, oncology, gastroenterology, cardiology, and emergency interventions, where about 50% of cases arrive as emergencies requiring swift action.
Birthright handles routine and complex obstetric care, multi-disciplinary fetal medicine, perinatal genetics, fertility support, including In Vitro Fertilisation (IVF), and gynecology treatments. This integrated mother-and-child ecosystem creates seamless care from pregnancy through neonatal stages to advanced pediatric needs, boosting patient loyalty and positioning Rainbow as a top referral center for critical cases.
Rainbow employs an asset-light hub-and-spoke model to expand reach efficiently while optimizing costs and resources. Large hub hospitals (around 200 plus beds) in major cities like Banjara Hills (Hyderabad), Marathahalli (Bengaluru), Guindy (Chennai), and Malviya Nagar (Delhi) serve as centers for tertiary and quaternary care, equipped with specialized PICU/NICU units. Spoke hospitals (mostly 70 + beds), provide secondary and tertiary services, ensuring quality care without full duplication of high-end facilities.
This setup improves bed utilization, balances service mixes, and cuts operational costs. Recent expansions include new units in Anna Nagar (Chennai), Rajahmundry, Electronic city, HRBR, Mahadevapura IVF, Warangal and Guwahati. The model supports scalability, with ongoing projects in Gurugram, Electronic City, Pune, Segualli and others.
Rainbow employs over 910 full-time doctors on retainer for 24/7 consultant-led care, many trained in the UK, USA, Canada, or Australia. It runs Indias largest private pediatric Diplomate of National Board (DNB) training program, offering postgraduate fellowships to build future experts. A multi-disciplinary team, specialists, nurses, therapists, and support staff, collaborates on personalized plans, backed by child-friendly environments that ease hospital stress for kids and families.
International appeal grows, serving patients from Bangladesh, Bhutan, Bahrain, Africa (Kenya, Tanzania, etc.), and the Maldives, leveraging medical tourism hubs, competitive pricing, and expertise in high-risk pregnancies/IVF.
Rainbow invests in state-of-the-art infrastructure, tech like IoT for energy monitoring, solar initiatives, and ESG practices, including waste/water management and community pediatric awareness. Risks like regulations, capex intensity, talent shortages, and competition from public/non-profits are managed via a COSO-aligned framework, Risk Management Committee oversight, and compliance training.
Future plans emphasize optimizing existing units, targeted Tier II expansions via clinical models, IVF/maternity growth, international push, and M&A. This positions Rainbow to capture Indias rising demand for specialized child/ maternity care amid urbanization, delayed childbirths, and healthcare advances, delivering sustained value to patients and stakeholders.
I Rainbow invests in state-of-the- art infrastructure, tech like IoT for energy monitoring, solar initiatives, and ESG practices, including waste/ water management and community pediatric awareness. Risks like regulations, capex intensity, talent shortages, and competition from public/non-profits are managed via a COSO-aligned framework, Risk Management Committee oversight, and compliance training.
STRENGTHS
Innovative Hub-and-Spoke Model
Rainbow uses a smart hub-and-spoke model to deliver full-range healthcare services. Large central hubs, each with at least 150 beds, act as main centers for advanced care like secondary, tertiary, and top-level specialty services. Spoke hospitals, with a minimum of 50 beds, provide secondary and tertiary care in nearby regions.
Rainbow runs four key hubs today: Banjara Hills in Hyderabad, Marathahalli in Bengaluru, Guindy in Chennai, and Malviya Nagar in Delhi. This model places spokes at strategic location of city / state and connected with Hub Hospital, making quality care reachable for far-off areas. It also makes better use of special units like PICU and NICU beds, mixes care types well, and keeps costs in check.
Strong Brand Identity
Rainbow has built a powerful, well-known brand in pediatric healthcare. Its fame for cutting-edge treatments and fresh care methods draws patients and doctor recommendations from across regions. By forming close bonds with patients and families, Rainbow creates deep trust and loyalty, so families return for all their healthcare needs.
Excellence in Pediatric and Perinatal Care
Rainbow leads in pediatric and perinatal care with expert services in fields like neurology, nephrology, oncology, and cardiology. Its skill in blending childrens and newborn care sets it apart from others in healthcare. This focus gives the Company a clear edge in the market.
Child-Centric Healthcare Framework
Rainbow puts children first in every part of its healthcare setup. The Company designs a friendly hospital space that cuts down stress and worry during visits. Staff receive special training to comfort and reassure kids, which leads to better treatment results and happier patients.
This child-first method improves how care happens and builds stronger ties between the hospital, children, and families.
Collaborative Multi-Disciplinary Approach
Rainbow brings together experts from many fields - like pediatrics, neurology, nephrology, oncology, and cardiology - for patient care. This team effort creates full, personal treatment plans that improve results. Nurses, therapists, and admin staff join in to deliver smooth, well-coordinated care.
Strategic Doctor Engagement
Rainbows doctor model ensures top care around the clock. The Company has over 1,050+ full-time doctors on retainer, leading care in emergencies, neonatal and pediatric intensive units, and patient transfers. With about half of pediatric cases as emergencies, this setup allows fast, effective help.
Many doctors hold advanced training from places like the UK, USA, Canada, and Australia, raising care quality. Rainbow also runs Indias biggest private pediatric DNB training program, with postgraduate and fellowship spots to train the next-generation of healthcare workers.
^WEAKNESS
Evolving Regulatory Requirements
Rainbow must follow a broad set of law, rules and regulations set by central, state, and local authorities. These law, regulations and rules cover patient care, privacy, safety, and record-keeping. The fast-changing nature of healthcare regulations demands that the Company dedicate major resources to stay compliant and adjust to new requirements.
Handling these law, regulations and rules takes time and effort, pulling focus away from main patient care tasks. This can slow down key services and lower day-to-day efficiency. Some law, regulations and rules may also block the Company from rolling out new treatments or services, which could limit how well it meets patient needs. Failure to comply might bring fines, legal issues, or harm to reputation, all of which hit operations and growth.
High Capital Investment Needs
Rainbow works in a field that requires heavy spending to stay ahead. The Company regularly updates equipment to offer the newest treatments and keep an edge over rivals. Yet medical technology advances so quickly that replacement of existing equipments becomes necessary with the latest advanced equipments in the interest of patient care outcome.
These large outlays put pressure on financial resources and can raise treatment prices. Higher costs might then make it harder to draw patients who cannot pay for advanced care.
OPPORTUNITIES
Appeal to International Patients
Rainbow holds strong potential to attract patients from abroad who seek top healthcare. Its fame for quality care, modern setup, and skilled doctors makes it a top pick for overseas visitors. The Companys spots in medical tourism hotspots, plus fair pricing with no drop in standards, boost this draw further.
Rainbow hospitals already treat patients from nations like Bangladesh, Bhutan, Bahrain, Kenya, Tanzania, Rwanda, Somalia, Sudan, and the Maldives.
Underpenetrated Pediatric Market
Indias fast-growing cities with 2 million plus people see strong progress in many areas. Yet these places lack enough pediatric hospitals, leaving critically sick children without proper care options. This market gap gives Rainbow a big chance to grow its reach and fill the rising need for quality childrens healthcare.
By stepping in, the Company can solidify its lead in pediatric services while improving health results in these regions.
Growing Demand for Maternity Care
Later childbirth trends, fueled by better healthcare and changing / shifting social views, have raised the need for specialized maternity and IVF services. Rainbow with its team of expert across fields and top facilities, is well equipped to handle all such complex cases. The Company can grow its maternity and IVF offerings, build its strong name further, and greatly support the health of mothers and babies across India.
— THREATS
Heightened Industry Competition
Rainbow faces tough rivalry from government hospitals and private non-profits, which often get tax breaks and funding from donations or endowments. The sectors expansion has also drawn new players, sharpening the fight for patients. To hold its ground, Rainbow hires top doctors and gives better services at fair prices. Still, these steps could impact profit margins.
Reliance on Skilled Professionals
Rainbows success depends on pulling in, hiring, and holding onto top medical experts, especially in pediatrics and obstetrics. These specialists drive quality care, boost the Companys image, and bring more referrals and revenue. India, however, has a major shortage of seasoned doctors, making talent hard to find and keep.
Heavy competition for doctors, nurses, and technicians adds to the challenge, as others chase the same skilled workers.
FINANCIAL OVERVIEW
Financial Highlights
| Particulars | FY2025-26 | FY2024-25 | YoY (%) |
Income |
|||
| Revenue from operations | 17,030.77 | 15,158.66 | 12.35% |
| Other income | 437.88 | 510.08 | (14.15%) |
Total Income |
17,468.65 | 15,668.74 | 11.49% |
Expenses |
|||
| Cost of materials consumed | 2,270.29 | 1,949.20 | 16.47% |
| Employee benefits expenses | 2,335.30 | 2,063.67 | 13.16% |
| Finance cost | 776.17 | 724.55 | 7.12% |
| Depreciation and amortization expense | 1,505.70 | 1,384.40 | 8.76% |
| Professional fee to doctors | 4,188.10 | 3,690.21 | 13.49% |
| Other expenses | 2,795.41 | 2,556.70 | 9.34% |
Total expenses |
13,870.97 | 12,368.73 | 12.15% |
Profit before exceptional items and tax |
3,597.68 | 3,300.01 | 9.02% |
| Exceptional items | 15.39 | 0.00 | 100.00% |
Profit Before Tax (PBT) |
3,582.29 | 3,300.01 | 8.55% |
Tax expense |
|||
| (a) Current tax | 964.79 | 873.08 | 10.50% |
| (b) Adjustment of tax related to earlier periods | (3.46) | 19.85 | 452.66% |
| (c) Deferred tax expense/(credit) | (194.48) | (35.19) | (117.43%) |
Total tax expense |
766.85 | 857.74 | (10.60%) |
Profit for the period/year |
2,815.44 | 2,442.27 | 15.28% |
| Particulars ( in million) | FY2025-26 | FY2024-25 | YoY Growth | % age of revenue | |
| FY2025-26 | FY2024-25 | ||||
| Revenue | 17,030.77 | 15,158.66 | 12.00% | ||
| EBITDA | 5,441.67 | 4,898.88 | 11.00% | 31.95% | 32.32% |
| Profit Before Tax (PBT) | 3,582.29 | 3,300.01 | 9.00% | 21.03% | 21.77% |
| Tax (Including Deferred Tax) | 766.85 | 857.74 | (11.00%) | ||
| Profit after Tax | 2,815.44 | 2,442.27 | 15.00% | 16.53% | 16.11% |
| EPS - Basic (?) | 27.41 | 23.97 | 14.00% | ||
| EPS - Diluted (?) | 27.41 | 23.84 | 15.00% | ||
| EBITDA (Pre-IND AS) | 4,485.51 | 4,025.78 | 11.00% | 26.34% | 26.56% |
Significant factors contributing to the growth in revenues are stated in table below:
Particulars |
Units | FY2025-26 | FY2024-25 | YoY Change |
| In-patient (IP) volume | # | 1,04,514 | 98,395 | 6.22% |
| Out-patient (OP) volume | # | 15,98,970 | 14,26,733 | 12.07% |
| Delivery volume | # | 19,228 | 17,349 | 10.83% |
| ARPOB | per day | 60,141 | 53,962 | 11.45% |
| ALOS | # days | 2.71 | 2.85 | (4.91)% |
| Occupancy | O/ % | 46.30% | 50.53% | (8.37)% |
Revenue
The revenue for FY2025-26 amounted to 17,030.77 million, reflecting a 12.35% increase compared to 15,158.66 million in FY2024-25. The growth was driven by a 6.22% rise in inpatient volumes, a 12.07% increase in outpatient volumes and an 11.45% increase in ARPOB (Average Revenue per Occupied Bed). The growth during FY2025-26 was primarily fueled by the Companys specialty services, including pediatric super-specialty, obstetrics, tertiary care and quaternary care services. These services, characterized by high ARPOB and relatively lower ALOS (Average Length of Stay), contributed significantly to revenue growth. Additionally, the company has made two acquisitions, which have also contributed to an increase in revenue (Pratiksha Women & Child Care Hospital Private Limited 648.70 million and Prashanthi Medicare Private Limited 191.52 million).
EBITDA
In FY2025-26, the EBITDA stood at 5,441.67 million, marking a strong 11.08% growth compared to 4,898.88 million in FY2024-25. It was driven by strong revenue growth combined with the effective management cost structure.
Other Income
Other income mainly comes from interest on fixed deposits, gains from mutual funds, reversals of expected credit losses, and various small sources. In FY2025-26, this income saw a 14.15% decrease, moving from 510.08 million to 437.88 million. The main reason was a 55.29 million decrease in mutual fund earnings, As the funds utilized for acquisitions and ongoing project.
Total Expenses
Total expenses grew by 12.15% in FY2025-26, adding 1,502.24 million to reach 13,870.97 million from 12,368.73 million in FY2024-25. This increase tied closely to key areas like a 16.47% rise in Cost of materials consumed, a 13.49% jump in professional fees to doctors, and a 13.16% increase in Employee benefits expense.
Other Expenses Breakdown
Other expenses cover items such as contract wages, canteen services, Allowance for expected credit loss, lab investigations, power and fuel costs, repairs and maintenance, business promotion and advertisement efforts, Corporate Social Responsibility (CSR) initiatives, and legal and professional fees.
Medical Consumables and Pharmacy Items
The Company spent 2,270.29 million in FY2025-26 on medical consumables and pharmacy items, including related GST and freight charges. This compared to 1,949.20 million in FY2024-25 and equaled 13.33% of revenues, up slightly from 12.86% the year before. The small rise as a share of revenue came from changes in clinical case mix, plus more use of centralized lab services and vaccinations.
I The revenue for FY2025-26 amounted to 17,030.77 million, reflecting a 12.35% increase compared to 15,158.66 million in FY2024-25. The growth was driven by a 6.22% rise in inpatient volumes, a 12.07% increase in outpatient volumes and a 11.45% increase in ARPOB (Average Revenue per Occupied Bed).
^ OPERATIONAL EXPENSES
Employee Benefits Expense
In FY2025-26, employee benefits expenses, which cover salaries and other perks, reached 2,335.30 million. This marked a 13.16% rise from 2,063.67 million in FY2024-25. The increase stemmed from regular salary hikes, building up leadership and sales-marketing teams, and adding more staff due to new hospitals and acquisitions. As a result, these costs took up 13.71% of total hospital revenue, up slightly from 13.61% the year before.
Finance Costs
Finance costs mostly include interest on lease liabilities under Ind AS 116. These costs climbed to 776.17 million in FY2025-26 from 724.55 million in FY2024-25. The main reason was interest on fresh lease for the new hospitals added and acquisitions made this year.
Depreciation and Amortization
Depreciation and amortization expenses cover were on Property, Plant and Equipment (PPE), write-offs on intangible assets, and right-of-use assets. They grew to 1,505.70 million in FY2025-26 from 1,384.40 million the prior year. This uptick mainly came from higher charges on new units opened and acquisitions in FY2025-26 and added right-of-use assets.
Professional Fees to Doctors
Professional fees paid to doctors hit 4,188.10 million in FY2025-26, up from 3,690.21 million in FY2024-25. This reflected higher business volumes and the start of new hospitals. As a share of operating revenue, these fees rose from 24.34% to 24.59%.
Other Expenses
Other expenses jumped 9.34% to 2,795.41 million in FY2025-26 from 2,556.70 million in FY2024-25. Key drivers included higher spending on contract labor, allowance for expected credit loss, communication, canteen services, lab tests, power and fuel, repairs and upkeep, marketing and ads, Corporate Social Responsibility (CSR) work, plus legal and professional fees.
Income Tax Expense
Income tax expense decreased to 766.85 million in FY2025-26 from 857.74 million the year before. This worked out to an effective tax rate of 21.50% for FY2025-26.
Capital Expenditure
The net block of assets grew by 791.51 million to reach 8,924.33 million as of March 31, 2026. This growth is mainly tied to New acquisitions and new units in places like Rajahmundry (Andhra Pradesh) and Electronic City (Bengaluru), plus buys of other medical equipments. Capital work in progress stood at 757.51 million, linked to upcoming sites in Gurugram, Pune and Hennur.
Key Financial Ratio
| Ratios | Unit | FY2025-26 | FY2024-25 | Change % |
Liquidity ratios |
||||
| Current Ratio | # | 3.55 | 5.46 | (35%) |
| Inventory Turnover Ratio | Days | 6.56 | 7.56 | (13%) |
| Trade Receivables/Debtors Turnover Ratio | Days | 18.87 | 20.52 | (8%) |
Leverage ratios |
||||
| Debt Equity Ratio | # | 0 | 0% | |
| Debt Service Coverage Ratio | Times | 6.21 | 5.21 | 19% |
| Interest Coverage Ratio | Times | 0 | 0% | |
Profitability ratios |
||||
| Operating Profit Margin | O/ % | 31.95% | 32.32% | (1%) |
| Net Profit Margin | O/ % | 16.53% | 16.11% | 3% |
| Return on Equity Ratio/Net Worth (ROE) | o/ | 18.07% | 17.85% | 1% |
| Return on Capital Employed (ROCE) | o/ % | 26.07% | 26.95% | (3%) |
STRATEGIC OUTLOOK
Rainbow stays fully committed to delivering top-quality multi-disciplinary care for children and newborns. This focus comes from steady investments in modern facilities, wider service ranges, hiring of leading medical experts, and rollout of cutting-edge technologies.
Looking ahead, the Company will work to improve results at its current hospitals by making operations smoother and more efficient. Adding new hospitals has helped reach deeper into local markets and boost total bed numbers. These steps will open up major growth chances in the coming years.
The Company plans to open facilities in carefully chosen areas, with extra attention on areas that still lack high-quality childrens healthcare but show rising demand. It will follow a targeted plan in Tier II cities and check out fresh markets using a clinical model. This model acts as a clear guide for patient care, diagnosis, treatment choices, and medical decisions overall. It lets the Company run full checks on whether these markets make sense and hold real promise.
In Vitro Fertilisation (IVF) services stand out as a strong area for future gains, and the Companys focused push to improve these offerings will create more expansion paths. High-level pediatric care, newborn services, and business outside India also hold big potential. The Company keeps an open eye on mergers and acquisitions (M&A) deals to stregthen its position as leader in pediatrics and perinatal services.
Rainbow feels sure it can bring outstanding value to patients and keep growing steadily. This confidence rests on using its main strengths well and carrying out a mix of smart business moves.
HUMAN RESOURCE
The healthcare sector works under strict regulatory rules. HR teams ensure the Company complies with labor laws, patient privacy standards, and ethical guidelines. Regular audits, training programs, and a solid grievance system keep the organization honest and build trust with employees and patients.
During the year, the Company hired skilled clinical staff across new and existing locations to launch new specialities and strengthen current ones. It also built a strong leadership team to guide overall business goals. Rainbow remains fully committed to top-quality training and career growth programs.
This dedication earned recognition from the National Board of Examinations, which named Rainbow an MRCPCH Examination Center and training hub in India. The Company has created a complete clinical setup across its network
that supports ongoing learning and staff development. It also backs full-time doctors with clear career paths and growth options.
As of March 31, 2026, the Company employed 6,397 permanent staff members. This reflects its focus on creating and maintaining a committed, skilled workforce.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Rainbow has prioritized establishing an efficient internal control system to uphold governance standards and ensure operational excellence. The Company has implemented a well-defined internal control framework tailored to the size and complexity of its operations. In addition, Rainbow has enforced stringent measures to ensure effective oversight and risk management.
The Internal Audit function operates under a comprehensive charter approved by the Audit Committee, which outlines its scope, authority and responsibilities. The Audit Committee, comprising four independent directors, provides oversight and ensures that the Internal Audit team reports directly to it. Each year, the Internal Audit team develops a risk-based internal audit plan to evaluate the design and operational effectiveness of controls, subject to the Audit Committees approval.
The Companys functional heads review internal audit reports, prepare detailed action plans with defined timelines and establish a responsibility matrix for each observation. Once these reviews are completed, the reports are presented to the Audit Committee for quarterly reviews and approvals.
Rainbow has also assigned a separate team of auditors to conduct concurrent reviews of daily transactions across all group hospitals. The outcomes of these reviews are evaluated monthly at the unit level, and regular updates are shared with management. Such an approach has enabled real-time monitoring and facilitated the prompt resolution of emerging issues.
I Rainbow stays fully committed to delivering top-quality multidisciplinary care for children and newborns. This focus comes from steady investments in modern facilities, wider service ranges, hiring of leading medical experts, and rollout of cutting-edge technologies.
Moreover, the Internal Audit team conducts annual testing of Entity Level Controls (ELCs) and Internal Controls over Financial Reporting (ICoFR) established by management. The quarterly updates on the status of internal controls, along with a comprehensive Action Taken Report (ATR) to track pending observations, are submitted to the Audit Committee. The systematic and diligent approach reflects the Companys commitment to continuously monitoring and improving its internal control processes.
RISK MANAGEMENT
Rainbow has set up a detailed Risk Management Framework to handle the challenges of its business environment. This approach follows the globally accepted Committee of Sponsoring Organizations (COSO) framework and covers all key areas of business operations. The Company uses tools like risk perception surveys, business environment reviews, and input from internal and external stakeholders to assess risks.
The framework helps identify, evaluate, and reduce potential risks. This setup ensures the Company stays strong and grows steadily in a changing environment. Functional heads prepare detailed Risk Registers, which form the base of this risk management system. They rate risks based on three main points: how likely the risk is to happen, how much damage it could cause, and how easily it can be spotted.
The Company follows a Risk Management Charter, reviewed and approved by the Boards Risk Management Committee (RMC). The RMC oversees all risk activities to make sure they work well. Rainbow uses checks like process walkthroughs, ongoing audits, and risk-focused internal reviews to watch over operations and fix possible issues. This method spots and closes gaps in internal processes to improve reliability.
Management quickly finds new risks and adds them to the Risk Register right away. Each risk gets a full root cause analysis, with clear signs set up for constant tracking. The Company creates a Management Information System (MIS) for every risk to track it properly. Detailed action plans follow, with regular updates sent to the RMC.
Rainbow prepares a monthly MIS report that lists all risks and shares it with management for review. In RMC meetings, members check risk status closely and give practical steps, which the team puts into action fast. The RMC also gets updates on risk efforts every six months to keep focus on lowering risks.
ENVIRONMENT, SOCIAL AND GOVERNANCE
Rainbow has taken major steps forward in building its ESG vision while ensuring long-term business sustainability. The Company now uses energy-saving measures like solar rooftops and solar water heaters. It also applies Internet of Things (IoT) technology to maintain equipment and track energy use more effectively.
A standout success over a year came from signing a Memorandum of Understanding (MoU) to obtain solar and wind power through the open access system. Rainbow keeps up strong waste and water management plans to lower its environmental effects. On the social side, the Company teams up with non-profits and schools to spread knowledge about childrens healthcare.
f \
CAUTIONARY STATEMENT
Certain statements made or discussed in this release may include forward-looking statements based on managements current expectations and beliefs about future developments and their possible effects on Rainbow Childrens Medicare Limited. These forward-looking statements do not guarantee future performance and involve risks and uncertainties. Important factors could cause actual results to differ, sometimes greatly, from what these statements suggest. Rainbow Childrens Medicare Limited has no plan or duty to update any forward-looking statement made in this release.
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