Ladies and gentlemen, good day and welcome to the Rainbow Children's Medicare Q1 FY 2026 earnings conference call hosted by IIFL Capital Services Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul Jeewani from IIFL Capital Services Limited. Thank you, and over to you, sir. Hi, good morning, everyone. This is Rahul from IIFL Institutional Equities. I welcome you all to the first quarter earnings conference call of Rainbow Hospitals being hosted by IIFL. From Rainbow, we have with us today Dr. Ramesh Kancharla, Chairman and Managing Director, Mr. Vikas Maheshwari, Group CFO, and Mr. Saurabh Bhandari, Head of Investor Relations. Over to you, sir, for your opening comments. Thank you, Rahul. Good morning, everyone. Thank you for joining us today. We have entered a new financial year with a continued commitment to our long-term vision to deliver high-quality pediatric and perinatal care across the geographies through a scalable, effective, and deeply specialized network. Let me start with a few key strategic and operational updates for the quarter. Despite Q1 being seasonally softer, especially in the general pediatric outpatient and as well as inpatient volumes, we have delivered a steady financial performance. This growth was supported by strong momentum in the new hospitals and consistent demand for advanced services like pediatric specialties, multi-specialties, and neonatal care. The revenue registered a growth of 7%, amounting to INR 353 crores. EBITDA increased by 11% to INR 103.6 crores, while cash registered a growth of 35% to INR 53.8 crores. The overall occupancy rate for the quarter was 40.2%. The newer hospitals added in the last two years are contributing in line with our expectations. During this quarter, we have achieved a significant milestone by entering Warangal, a tri-city with a population of 1.1 million, with a catchment area of 3 million through the acquisition of a 76% majority stake in Prashanthi Hospitals, Warangal. This is a strategic move as we expand into type two cities where the access to high-quality pediatric care is limited. Warangal now functions as a spoke to our Hyderabad hub, further strengthening our urban spoke model in Telangana. We are excited about this opportunity and value it can create. It It can add to our long-term growth. Let's talk about projects. Our project pipeline is pretty well intact, where we continue to maintain our disciplined execution. Our regional hub hospital in Rajahmundry, 100 beds, is completed and awaiting for the final permissions to commence operations from the government. In Bangalore, the construction continues at a brisk pace at Electronic City of 90 beds, and in Hennur, 60 beds. Both projects are on track to become operational by the end of Q2 FY 2026. At Coimbatore, the project work for 130-bed hospital is in progress. In the National Capital Region, the excavation work is progressing quite well at both sectors: Sector 44, which is for 325 beds, and Sector 56 for 125-bed capacity in Gurugram. We are in advanced discussions to finalize and asset-light a build-to-suit greenfield hospital in Pune with 150-bed capacity. This calibrated approach reflects our ambition to scale bed capacity responsibly in existing cities as well as new geographies. The challenges continue to persist in international business due to tighter regulations in markets like Bangladesh, Oman, and Sudan. We are actively monitoring the situation, adapting to our strategies to focus on other countries. Clinically, we are very encouraged to see continued growth in the pediatric specialties, neonatal care, including organ transplantation. These services continue to be strong drivers of case mix enhancement and the revenue contribution. We are also pleased to see the steady ramp-up in our newer hospitals, confirming both the scalability of our model and the operational capability of our teams on the ground. I would like to take a moment to highlight two remarkable achievements that underscore the strength and expertise within the Rainbow Group. An inspiring patient outcome from our Bangalore bone marrow transplant unit, a 15-year-old girl from Iraq with a sickle beta thalassemia, a complex and debilitating condition since infancy, was going through miserable complications like a sickle cell crisis, avascular necrosis of the hip joint, and multiple transfusions. She underwent a life-saving bone marrow transplantation with the donor being a sibling. Despite facing rare serious post-transplant complications because of the blood group incompatibility, our team managed these complications with exceptional skill and care, resulting in a successful outcome that truly reflects our multidisciplinary approach. In another breakthrough milestone, Dr. Nageswara Rao Koneti, Director of our Pediatric Heart Institute, was granted a U.S. FDA patent for discovering the innovative multifunctional cardiac device named KONAR- MF Occluder. This device is used to close the ventricular septal defects in the bottom of the chambers of heart and several other cardiac conditions like aortopulmonary windows and patent ductus arteriosus and other fistulas within the heart. So far, it's been used successfully in about 18,000 patients across 90 countries. These achievements clearly demonstrate that our clinical capabilities and the dedication of our teams reinforcing our position at the forefront of pediatric and perinatal healthcare in India. Looking ahead, our priorities are very clear: ensuring the timely commissioning of the projects of Rajahmundry and also two spoke hospitals in Bangalore in this year, deepening clinical capabilities by strengthening our center of excellence, strengthening our sales and marketing function by bringing in experienced leaders, and expanding the teams across key markets to deliver sustainable and scalable growth, and also to support the future growth through inorganic mode as well as greenfield and brownfield opportunities. I want to take this opportunity to thank our medical teams and leadership teams for their dedication and the hard work. We are grateful to our stakeholders for their continued trust in building this much-needed healthcare for women and children, and I'm confident of creating a significant value to our shareholders. With that, I now hand over to Group CFO, Mr. Vikas Maheshwari, to take you through the financial details for the quarter. Thank you, sir. A very good morning to all of you, and thank you for attending this investors' conference call. I'm pleased to brief you on financial performance and key developments of Rainbow Hospitals for the first quarter, FY 2025-2026. Our operating revenue for the quarter is stood at INR 353 crores, reflecting a growth of 7% when compared to a corresponding quarter of the previous financial year. Our EBITDA for the quarter is stood at INR 103.6 crores, marking an 11% growth compared to the same period last year. The EBITDA margin for the current quarter is 29.4%, which is an improvement of close to 1% from Q1 FY 2025 due to effective cost discipline. The profit after tax for the quarter is INR 53.8 crores, marking a growth of 35% in comparison to the corresponding quarter of the last financial year. I'm happy to share that Prashanthi Hospitals, Warangal has been seamlessly integrated with Rainbow Hospitals. All systems, including our IT, which is HIS, SAP, and HRMS, have been integrated to the Rainbow network. In terms of operational performance, outpatient volumes for the quarter witnessed a growth of 6%, while inpatient and the deliveries do grow by 1% and 2% respectively when compared to the corresponding period of last year. For the quarter, our payer mix continued to remain steady and balanced, with close to 52% of the revenue coming from the insurance and the balance 48% coming from the cash patients. I'm pleased to inform that our company balance sheets remain robust, with a net cash position of INR 735 crores as of 30 June 2025, and will support our ongoing capital expenditure plan. Given our current cash and anticipated internal accruals in the coming years, we remain confident in our ability to complete all planned capital expenditure through internal accruals without any debt financing. During the quarter, the company has invested approximately INR 41.5 crores in the capital expenditure. I'm happy to share that we successfully concluded the AGM on 5 July 2025, and the dividend to all the eligible shareholders has been credited on the same day. With these insights, I conclude my financial update. I now invite questions and suggestions from the participants. Thank you very much. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Damayanti Kerai from HSBC. Please go ahead. Hi, good morning, and thank you for the opportunity. Sir, can you talk a bit more about the newer market where you're planning to enter? So Pune and Warangal, which you mentioned. So just in terms of the market opportunities, whether we should look at these newer markets more similar to what you see in the Hyderabad market, or these will be more like the Chennai or Bangalore market? So a bit more color on that will be helpful. Yeah, see, we have a very clear approach that now, while we continue to add beds in Hyderabad, Bangalore, and Chennai and Andhra Pradesh, we look for the newer geographies. Newer geographies, one which is we are already kind of commenced our work in the National Capital Region. Though we have a hospital in South Delhi, the managed beds, the NCR is the new geography for us. Another new geography which we are kind of exploring is one is the northeast. Another one is now recently we're exploring the opportunity in Pune. So when you look at the overall of the pediatrics as a children's hospital and the cities which where I think we can really do well is that wherever there is IT and also jobs for young people, that's where the market is the large opportunity for us to do it, which is obviously in NCR. Also, the Pune being another city apart from Hyderabad and Bangalore, we see it as a significant opportunity for us to build a larger healthcare model for children and also integrating perinatal services within the hospital. Okay, so Pune, you said you are in advanced discussion. When will this discussion likely result in concluding the project? Yeah, we agreed commercials and all those things before signing. I think almost legal is concluded, and I think we're just going to go ahead in a couple of weeks' time to do the signing. Okay, so this year itself, most likely you will see the Pune project to go ahead? Yeah, it would take about two and a half years' time to commence the operations. Okay. My next question is on the newer hospital where you mentioned pickup is broadly in line with expectation, so just specifically on Sarjapur and Anna Nagar, if you can share whether these are nearing cost breakeven or it will take some more time? Sarjapur is breakeven, and Anna Nagar is close to it. It will probably take another six months' time. During this current season, we should do it. Okay, and my last question is, in the previous call, I guess you mentioned ARPP will be the better metric to look at the operational performance, but you haven't shared it. Maybe if you can share that on a regular basis in your presentation, that will be helpful. Well, you mentioned ARPO might not be the right metric to really look at your business, but for this quarter, if you can just see if you can just share how things have moved in terms of ARPP metrics. Yeah, Damayanti, Vikas Maheshwari this side. Actually, it is a derivative. So ARPO multiplied by LOS, if you do, probably you will get it. But this is a good suggestion. We will publish the ARPP now going forward. We'll do this. So ARPP on a year-on-year basis has increased by roughly 3%. So the trajectory which we have told is the ARPP, which is on the increasing trend, and then we have seen 6%-7% growth over a period of time. I think we are on the same trajectory. One or two quarters here and there, but the trajectory should be the same. So broadly, 6%-7% growth is a normal range. Maybe this 3% number which you mentioned for Q1 is because this is a seasonally low quarter? Yeah, yeah, yeah. We can attribute this to that. Okay, okay. Thank you. Thank you, Damayanti. Thank you. Thank you. The next question is from the line of Amit Aghicha from HDFC Life. Please go ahead. Yeah, good morning. Can I hear audible? Yes, sir. Yes. Audible. Yeah, yeah, thank you for the opportunity. Good morning. And see, my question is only connected to doctor engagement. Could you elaborate on the retention strategy for full-time doctors, especially in tier two cities, and what percentage of your doctors are on retainer model versus revenue share? The basic criteria with such a high training output, are you able to absorb trained doctors into your system effectively? Yes, so we've been actually one of the main things for us is our doctor engagement model. So we look at two different kinds of doctors. In the pediatric scenario, you don't see many of the star doctors which we normally go after and those things. We look at the qualified and skilled doctors with a skilled side. So you invest on them. The first two, three years' time, there will be retainers. Once kind of they start doing very well, they will get a variable fee. That's how we have been operating across all the geographies. So it's been pretty stable and successful. So the retention is, I think once the doctors are settled down, start doing very well and making their variable fee, they will continue to kind of be there. Because one of the reasons is that why it's applicable to the doctors' model is that now, so it's a medical hospital. It's more of service delivery. Your doctor requires much more of support from the hospitals and other colleague systems. So therefore, it's not individual driving it. It's combined kind of a team is driving it, which is why the stickiness of doctors to Rainbow model is very good. It's a more institutional model. Any percentage-wise, can you give retainer model versus revenue share? Sorry? Oh, I think majority of people, this is why I'm saying they're all in the kind of various stages. As the hospital is maturing, then we'll put them onto the kind of a revenue share model. So that makes them happy in growing both clinically as well as financially. So for example, most of the Hyderabad doctors are revenue share model now. And Bangalore also significantly on the revenue share model. And Chennai is still on the retainer model because it's still an early phase for them. So this is how it works. Thank you, sir, and all the best for the future. Thank you. Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. Participants are requested to use the handset while answering questions. Once they mature, they'll return the business. Once they mature, then they'll do revenue share. The next question is from the line of Anshul Agrawal from Emkay. Please go ahead. The next question is from the line of Anshul Agrawal. Please go ahead, sir. Hi, good morning. Thanks for the opportunity. Hope I'm audible. Yes, Anshul. Yes, sir, you're audible. Great. So my first question is on the mature hospitals. Any comment on why volume growth has been muted for this portfolio? Yeah, so Anshul, so we have seen this in the last quarter also, Q4 and Q1. Definitely, the kind of a OP is seasonally quite kind of a muted this current year. I mean, I don't think we've explored it in detail and depth. I don't see any specific reasons for this. I think it's just generally a kind of a it's a very healthy period, what we have witnessed. And what are the patients are coming? They're only coming for kind of vaccinations or some specialty care. It's more of nutrition advisors. So there's no kind of a disease or something significant in the last four, five, six months' time. That's what we have witnessed. The volumes-wise, when you look at it, the pediatric volumes are significant for the occupancies, which is why you see the kind of occupancies are plateaued or some kind of degrowth compared to the year-on-year side. So I'm sure once these are all things which are kind of beyond our control. And I don't see any reasons particularly for the degrowth for any other reasons like cannibalism or competition or all those things. So we're pretty confident that we come back once kind of things start settling down. And operating side, absolutely, we are on top of the things. Sure. A follow-up on this, sir, so our surgical mix would have actually deteriorated in the current quarter, and so what would explain the jump in ARPO or ARPP, given that surgical mix would have actually reduced? So Anshul, let me add here till doctor comes here. See, in the case of mature hospital, overall, the revenue grew by 2%. Okay, what has come down is the seasonal low value, which is high number of the footfall, etc. Those have been not there. So our critical care that continues to remain robust. That is why you are seeing once the low ticket pediatrics are not there, so high-quality business remain intact. That had grew. That is why you are seeing the ARPO growth, basically. Or if you look at ARPP also has grow, right? So that remains constant. So overall revenue grew by 2%. The only thing which was that seasonally, which was icing on the cake, it should have been. That is what is missing. No, the surgical mix actually, I think, is not lower. I think the surgical mix was pretty good, actually. Last four, five months' time, so kind of our surgical numbers are pretty good. So that's one of the reasons to kind of have a lower ALOS because most of the surgeries are done for children are minimal access surgery. So you see, there's two, three important things. Pediatric specialties and quaternary care and pediatric surgical, that's OBGYN. These are the ones which reduces the ALOS and gives you a better ARPO. So in the absence of a seasonal business, obviously, that's what you see of 13% growth in the ARPO. Okay. Got it. So there have been no price hikes in the insurance component or cash tariff at all. This is purely. For this year, not yet. We are expecting these things to close probably at least for the Hyderabad and Bangalore and Chennai. We're expecting this to happen sometime this year, probably in the next couple of months' time. Got it, sir. And any update on the IVF business vertical? How is it faring? Have you added the IVF vertical in any newer hospital? No, I think the same. We have got 12 centers. Most of them are within the main hospitals. The growth is pretty impressive. And we are probably kind of heading towards kind of doing 2,000 cycles by the end of the year. And our revenue grew year-on-year by 50%. So that's pretty impressive. Got it. So just one last question. We'll be maintaining our mid-teens revenue guidance for the next couple of years, or will see any upward, what do you call, plans for this, given the fact that we are adding hospital beds aggressively? I think we are adding beds now because we just done acquisition. And also, we are kind of almost 250 beds in pipeline to come into operations in the next two to three months' time. So these almost 250 plus 100, 350 beds are going to be added. And also kind of a possibility of some acquisitions and all around. So there are enough number of beds that are going to be added this year. And we would expect our kind of that's for the guidance which we have done about. I I mean, late teens to 20% is the growth which we are anticipating. So still three more quarters are there. I think now we are pretty positive about it. Great. That's it from my side. Thank you so much. Thank you. Thank you. The next question is from the line of Rahul Jeewani from IIFL Capital Services Limited. Please go ahead, sir. Yes, sir. Sir, on this Pune Greenfield Hospital, which we have, let's say, focused on now, what led to you deciding Pune as a market within the West India market? So can you talk about in terms of the market potential within Pune and, yeah, you choosing Pune for your West India foray? So, Pune, for the, it's geographically. Pune adds to kind of extension of Hyderabad, number one, towards the west. And also, it has got a good drainage and catchment areas, Pune. And we do get patients right from Solapur and also the Parbhani districts and those things. So this will become a kind of a natural extension of Deccan Plateau. So that's and also, it is a. Pune is a young people's city. So there's a lot of IT, ITES is there significantly. The significant insurance penetration is there. And also other things, though there is a competition there in the maternity side. But when there is a kind of a lot of young population, maternity care is there. And definitely, you require the advanced pediatric capabilities also. I see Pune as a kind of a long-term good addition to our Rainbow 40. Now, Pune gives you an opportunity to do a small hub and spoke as well because it is a fairly large city and also expanding pretty well. Sure, sir. Sir, what kind of CapEx would we be incurring for this 150-bed Greenfield Hospital? It's going to be a greenfield hospital, and the base building will be given to us. I think based on what we have agreed with them is probably about, I mean, somewhere it'll be well under one crore, but still we need to kind of clearly see what the cost per bed is going to be. I would expect it to be somewhere around INR 80 lakhs per bed. Okay. So largely in line with what we have done for our asset-light hospitals previously. Absolutely. Yeah. Sure, sir. And sir, second question on while the IP volumes were impacted because of seasonality, what we see is that the delivery volumes were also muted this quarter. So a 2% YoY decline. So what led to, let's say, this muted or sluggishness in terms of the delivery volumes? We're not really sure about it. We've been actually looking at all the data and various things. I mean, sometimes what happens is your previous year wedding times corresponds to the kind of deliveries also. That's one of the things. Also, what we have seen is that when we look at the other peer groups, for example, in Hyderabad, so there's a large competitor. There are two groups which have maximum deliveries. One is Rainbow and another one is Fernandez. So when you look at them, they are also kind of a slightly muted, about 2%-3% muted overall in the last quarter. So there was some slump in the deliveries, even we do kind of see in Bangalore also the similar phenomena and Chennai as well. I think that there are no strong reasons. It may be a kind of whatever it is of wedding seasons and correspondingly those things just being a kind of one of the situations. But I don't see any particular reasons that the drop in deliveries is because of any significant factors. Sure, sir. Sure, Sure, sir. And this, let's say, what this muted growth in delivery, was it across clusters or was specific to certain clusters? No, we have seen this clearly in the larger hub hospitals, which obviously be there more competition around. And the micro-market hospitals which have been done in the last two, three years' time, they are fairly good because the new hospitals, their growth opportunity is pretty good. So it is nearly seen mostly in areas where there is a your hospitals are there in the competitive zones and those things. But everybody takes a bit of share. And also, that deliveries is kind of no one is doing big numbers. But having said that, we were there in this busy season, I mean, these parts of the cities across in three cities. But we have not witnessed this particular phenomenon in the past. We are exploring more deep into that and see that how do you build our deliveries and volumes. Maybe I think we need to kind of get on a lot more marketing and other initiatives to kind of include younger population and also drive conceptually about our focus on natural birthing and those things. We need to reinvent ourselves to get back into the double-digit growth. Sure, sir. And sir, on the inorganic opportunity, Northeast is what you are evaluating. And let's say with an entry into the Pune market, would you be evaluating inorganic opportunities in other, let's say, tier two, tier three markets in Maharashtra as well? I think if there are any suitable which actually for us to do such things, now I'm sure we would look at it. I mean, suitable in the sense for us where these hospitals are built with quality and also have got accreditations and also have got a long-term vision where we can build a scale and philosophy in those hospitals totally. Sure, sir and sir, can you update us on the opportunity which you were evaluating in Northeast? Yeah. We will probably come back to you very soon on that. I will give you more details on that. It's premature. Sure, sir. Okay. Sure, sir. And sir, just one request from me. Given that our business is slightly seasonal in nature and you talked about the fact that the general pediatrics business is what was impacted and tertiary and quaternary care, you continue to see healthy growth. So if you can, going forward, split the business in terms of these different segmentals. So that will help us to better track the operating metrics in terms of how some of these dynamics are playing out. So yeah, I would request you if you can share that data going forward. See, now one of the problems with this is that the children's healthcare is a very medical business. And also, we work in teams, right? And also, we work the child gets admitted in one department, gets across to two other departments. It's very difficult to kind of segmentalize the departmental wise and those things. Most of them, child comes to us where it is a sick child. We only discover that what the child has got a problem and also dispose them under a particular specialty or whatever intensive care with a specialty problem and those things. It is actually pretty complex, actually, dividing to show that the segmental businesses of pediatric business. So I mean, let's see. We'll try. And I'm not very sure how we can present it meaningfully. Sure, sir. If not that way, maybe the split of the business between seasonal and non-seasonal, obviously, there also you would have to take your judgment. But yeah, even that will be helpful. So yeah, thank you, sir. I will join back with you. Sure. Thank you. Thanks. Thank you. The next question is from the line of Naveen Baid from Nuvama Asset Management. Please go ahead. Thank you for the opportunity, sir. I'm not sure if this has been answered before, but if I look at your matured hospitals, despite poor inpatient volume, what kind of explains the sharp rise in ARPO, especially in the matured hospitals? What happens is that. Is it just a mix as Rahul was referring to? Yeah. What happens in the Q4 and especially in Q1? So generally, it's a holiday season, right? Most of the people go on holidays out of the countries. Some other cities like Bangalore and Hyderabad, IT zones get vacated by 40%-50%. But what remains intact is that the pediatric surgeries or specialty pediatric surgeries like urologies or neurosurgeries or whether it is ENT surgeries, they all get done in the summer season because that is the preferred time for the parents to come and get these surgeries done. So we do put large volumes of surgical work in these periods because people have the tendency to get them done in the holiday season and also summer season. So these are two things which actually spikes your surgical numbers. And along with the surgical numbers, at the same time, all the other surgical things also, cardiac also goes up that time. Even people prefer to do more transplants and other work also, their elective ones during this season because it's kind of a quieter season, less infectious environment. So people want to do those things. So generally, in the Q1, you do high-quality business, the lower volumes, but case mix is much more superior, which is why you see ARPOs are definitely higher. Just one more question. So you have an 800-bed addition kind of a pipeline over the next three years. How much of that is going to be on the asset-light model? Asset-light model. Asset-light. Yeah. All right. Other than 450 beds which are going to be in Gurugram. In Gurugram. The rest of them are all asset-light. At least 50% are asset-light. Okay. Got it. Thank you. Thank you. Thank you. The next question is from the line of Sumit Gupta from Centrum. Please go ahead. Hi. Good morning. Thank you for the opportunity. Sir, I was wanting to know, is there any evidence due to the new facilities this quarter? Sorry, your voice was not very clear. Evidence? Hello. Am I audible now? Yes. Yeah. So was there any evidence due to the new facilities in this quarter? No. So Sumit, we have not opened any facility in the last 12 months, right? What were the three facilities we have opened? It was in the first quarter, FY 2025, prior to that. So that drag has come down for sure. So that is what is positively impacting also. Right. And with respect to the IVF, it contributes around 3%? It has gone to, yeah, 3.2% type. Yeah. Okay. And just one clarity on ARPP, average revenue per patient. So you were referring 3% on a QOQ basis? Year-on-year basis. Okay. So just want to get clarification. So with respect to my calculation, it is coming as around nine, basically. So just want to understand. Rounding off error because there's a loss number and. Okay. Understood. ALOS, maybe slightly rounded off there, so IP ARPP is 3% increase year-on-year basis, and OP ARPP is roughly 8%, so the 3%-3.5%, it should be what is on the full basis. Okay, so for, let's say, FY26 year-end, FY27, how much ALOS should we expect? Around 2.65, so nearly this level or what? Yeah. We are very stable ARPO of 2.6-2.75 or so. I think in this range, it should be. The ALOS prediction is a very difficult job, Sumit. Right. Yeah. I understand. Is that what can be the minimum ALOS which you are building? 2.6 to 2.8. That should be the tight range you can take, Sumit. Perfect, sir. Thank you. Thank you. Thank you. The next question is from the line of Alankar Garude from Kotak Institutional Equities. Before that, a reminder to all participants, anyone who wishes to ask a question may press star and one on their touch-tone telephone. Alankar sir, please go ahead. Hi. Good morning, everyone. Sir, can you help us understand the seasonality pattern seen by Rainbow over a slightly longer time frame, say, over the past 10, 15 years, and particularly in Hyderabad? The reason for this question is we've seen a fair amount of ups and downs over the past few years. For instance, FY23 was a strong season, then 24 was a bit slow. First half, CY 2025 again has been a bit weak on the pediatric side. So the question is, prior to FY 2023, were we seeing similar kind of fluctuations across alternate years? Oh, we do see this kind of near year-end of this kind of seasons. I mean, basically, healthy spells. I mean, if I go back and see the last 20 years' time of experience, we have seen that at least twice in the past, at least once in five, six years' time. We do see that kind of there is quite a bit of slump in overall. Then it kicks in and come back again. But we have to see also one thing as things are actually moving towards different trends at the pediatrics. Unlike in the past, you don't see any more diarrheas coming in the summer. You don't see any of the respiratory infections because of flu vaccines being done. Overall, hygiene and nutrition is better and those things. Demographically, pediatric healthcare is changing. So that is one of the reasons. What we are trying to do is, it's not. We are not a mom-and-pop stores of the pediatrics. We want to build up more strength in the pediatrics to see that we address the critical needs of the children and the more specialty-based, drive more specialty-based and more of a kind of be on the side of deliver significant capability for disease pattern rather than just depending on the seasonal factors. But what happens in season so far, it has been kind of even if you have a three to four to five months of season when the patients need admissions, so when you don't have a bed capacity, then it's not going to be a very happy scenario. So this is a very emotional healthcare model. So therefore, you need to have a capacity which can accommodate, address children to treat when they require it. So rest of the times, what do you do with that? So that's another question about it. So therefore, moving forward to see is that to do more of a significant build a significant capability to do the specialty work. That's what I think what Rainbow would be aiming and looking at in future. So therefore, there's a small seasonal ups and downs are not going to be a big matter to you. Okay. So it's an evolving story of children's healthcare in this country. It's not what it was 20 years ago. It was definitely not these 10 years ago. But still, I mean, we still see a significant seasonal impact. It's too early to conclude because of six months of off-season. But it's a long way for us to go to look at our medical businesses, not only children's hospital, even adult hospital, to see how the seasonal play has been. Even if you cover all the large healthcare, you know how much seasonal impact has been there in even multi-specialties for the last four, five years' time. There's been a significant seasonal impact for them also, positively impacting revenues and profitability and growth. But we'll have to see how things are going to shape next three, four years' time. It is something for us to reflect on and understand, reposition our business model for future. Got it, sir. So maybe a couple of follow-ups here. The first one is pharma companies have been commenting about seeing some pickup in the season over the past few weeks. Have we also seen some increase in the disease burden over the past few weeks? Yeah. There's definitely some increase in there, and the shift of the seasons, that's also another thing which we do see. Unlike in the past, just because of a few rains, it's not going to pick up the season, so there needs to be a change in the environment which makes people sick because of other factors of the viral breeding or other infections and those things, so of course, when there's some monsoon time, you will definitely see some pickup of the illnesses, and also, we have become more resilient also. Unlike before, just because of a runny nose or because of a fever of one day, people are not running to hospitals, so they know how to take care of themselves by using simple medicines. Understood. And secondly, sir, broadly, from one-third currently coming from of our revenues coming from critical care or of our beds being allocated for critical care, very broadly say, eight, 10 years back, what would that number have been? I think the ratios and proportions, again, it varies quarter from season to season, and largely, it's been rather the same. Maybe I think that's probably, I can't put a real number, a percentage, how much it used to be difference between them. We had seasons like huge swine flu seasons, where a lot of intensive care full across the board, and we had seasons of dengue for nearly 7, 8 years' time. That's again the season which persisted for long, long periods in the past, those are the things, excepting those situations. Otherwise, it's been a kind of intensive care season is going to be four, five, six months' time. The rest of the times, intensive care got filled because of the rare disorders, because of specialty problems like liver failures and renal failures or multi-organ dysfunctions or various other formats. but obviously, we are seeing fairly healthy periods of time for the last probably about a year time. Even the last year of seasons, it was not so heavy. It was not that busy as a kind of compared to what it used to be two years of post-COVID. Two years of post-COVID was exceptional, which is everyone felt sick and disproportionately and also needing medications or needing admissions or needing intensive care services. That's not there anymore. I think, yeah, I think we deserve a better period, better spell of a healthy life, so I think that's what we're seeing in the last one year's time. Got it, sir. And one final question on Tamil Nadu. Can the margins of the mature hospitals in Tamil Nadu reach, say, the margin levels of the mature hospitals in Bangalore over the next two to three years? I'm sure it will reach to Bangalore probably in about three to four years, horizon. It will pick up that level. Yeah. Got it, sir. That's it from my side. Thank you and all the best. Thanks. Thank you. Thank you. Our next follow-up question is from the line of Damayanti Kerai from HSBC. Please go ahead. Hi. Thank you for the opportunity again. Just wanted some clarity on Warangal unit. So it's not part of one Q numbers, right? It will be reflecting from two Q onwards. Yes, that's correct, Damayanti. So we approve the transition on second of July. So it will reflect from this quarter, September quarter. Okay. And can you also tell what is the maturity profile, whether it will be part of the mature hospital cluster or new hospitals? And of the 100 beds, how many are operational currently? So, Damayanti, it is new hospital. It will be a part of new hospital only because we have to put up a lot of other work, which they are not doing right now. So it will be a new hospital profile only. And right now, they are occupied something like that, between 30-35 beds. And obviously, as we are adding the doctors and going forward, as we add the few clinical specialties, the occupancies will grow over a period of time. Yeah. Okay. So say over the next few years, it has potential to move up to the corporate level occupancy, like 50% or so. Or it could be better? I think we should keep the average where we should be. Okay. Thank you, sir. Thank you, Damayanti. Thank you. The next question is from the line of Nitesh Dutt from Burman Capital. Please go ahead. Hi, sir. Thanks for the opportunity. I had a question on other income. This quarter, it has increased by 33% quarter on quarter. Is there a one-off component because basis the INR 735 crore cash, if I calculate basis the cash yield, it should have been slightly lower? No. So the treasury income was slightly better because of this debt funds where we have taken the positioning of interest rate coming down. Probably that got captured. And you are seeing this MTM gain on that. But yes, going forward, I think that type of performance may not be there. Understood. And so second question on the mature hospitals occupancy. There's been quite a fall, 11% YoY. How do you see it? Given that in the past, we have cited weather patterns, rainfall, etc., as reasons for the fluctuation. So was it one of the reasons, or does higher competitive intensity or some degree of cannibalization were also the factors for the reduced occupancy YoY? So occupancy for the mature hospital we have discussed, right? I think more or less the reason is of this pediatric season, which is lagging behind. So that was the one reason. Otherwise, our tertiary, quaternary care business remains fairly strong. That is why you are seeing though the occupancy dropped, but overall matured units revenue grew by 2%. That shows the resilience of our business model of quaternary and tertiary care. Understood. Thank you. Thank you. Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. Our next question is from the line of Virti Shah from Systematix. Please go ahead. Virti ma'am, please go ahead. My question is, was the ARPO improvement this quarter a one-off thing, or can we expect this to sustain for four years? As we in the previous questions we have answered, what we should be just based on our ARPP because this ALOS is one factor which a little bit impacts on the ARPOB plus the case mix. In this case, the low ticket pediatrics business was slightly muted. That is why we are seeing overall IP numbers or the occupancy is lower. But the tertiary and the quaternary business remained strong. And that is why you are seeing this ARPOB is strong. But if you look at the complete ARPP, it grew by around 4.5%, including both IP, OP income. It's roughly grew by 4.5%. That should be the right metrics to judge. Okay. Thank you, sir. Thank you. Thank you. Thank you. Thank you. Our next follow-up question is from the line of Rahul Jeewani from IIFL Capital Services Limited. Please go ahead. Yeah. Thanks, sir. Sir, can you also talk about the competitive intensity across your four markets of Hyderabad, Bangalore, and Chennai? You pointed that the delivery volumes were muted in some of the larger hospitals because of some higher competitive intensity. So just in terms of how you are looking at the competitive scenario across your key markets. Yeah. I mean, see, every city is always a competitive market. Across Bangalore, the intensity is very high. And also, Hyderabad has also been actually pretty competitive in the last five, six years' time. So we've been sailing pretty well in the competitive landscape. But the deliveries kind of staying plateau is, I don't think, because of any competition, I would say. But we need to definitely have a kind of support for some of the VC deliveries. So we are a full-time doctor engagement model, and we focus on clinical excellence. We focus on natural birth. We focus on certain things. The VC deliveries, whatever has been coming kind of up, they are the ones who can get fluctuated to other hospitals because of competition. See, anyway, we are not an organization dependent on the VC deliveries. We are dependent on the deliveries which come to us this month. Therefore, that's why I say that we need to kind of have a little more focus on, I think, a greater degree of inclusivity and also our strategies in the marketing and those things. I'm sure we'll pull it back. I see it as a big pro. In Hyderabad, what we have seen in the last almost 15, 18 years' time, there are two organizations which are kind of that's the large numbers. And both of us, we never feel each other competitive. And they have their strength. We have our strength. And that's why we've been kind of playing the game with a greater respect to each other. Of course, there are a lot of boutique centers have come. I think none of them have done really significantly also in Hyderabad. And of course, they have kind of a short-term, there may be some VC deliveries may get shifted. But our core, whatever the reputation which these two organizations enjoy is very different. We need to reposition ourselves. When I looked at other large organizations which compete with us, they've also degrown a little bit. I think there are some factors. Maybe whatever it is, that's why I was asking our business analysts to see that now. What were the number of weddings for the previous year? Are there any other reasons? Are these uncertain socioeconomics, uncertain job opportunities, and various other things are creating some degree of unrest, and people are not planning for pregnancy? We just need to see what are the other reasons for that. I don't think anyone championed it to do big numbers also when we looked at that data also. So therefore, kind of we are not too concerned or worried about it. So we'll come back probably end of the year, we will know where we are, what is the growth we expected. This probably was one of the quarters we've seen the degrowth. Sure, sir. So whatever competition is there is on the birthing market. On your core, let's say, tertiary and quaternary care business, you don't see much of a competitive trend there. No. No, sir. Sure, sir. Sir, just a clarification. What is a VC delivery? Oh, visiting consultants. Oh, okay, okay, okay. Sure, sir. Okay. Thank you, sir. Yeah. Thank you. Thank you. Our next question is from the line of Adya Singh from Fendoc. Please go ahead. Hello, sir. My question to you is about the upcoming hospitals in Gurugram. When do you expect them to turn operational? What's the status there? We are expecting about September 27, calendar year. That's where the time which we set our calendars. I think our project works on various kind of. I get the inputs from my project team. They say that they would complete by June, July, and maybe set for September operations. That is the kind of guidance to me from the project team. Okay. Thank you. Thank you. Ladies and gentlemen, this was the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir. Yeah. Thank you all the people who have joined the call and for insightful questions. Thank you very much for that. Look forward to all of you attending next our second quarter's results. Thank you very much. Thank you. On behalf of IIFL Capital Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you. Thank you.