- Rays of Belief turned profitable in Q1 FY, reporting Rs 3 crore net profit vs Rs 1 crore loss last year
- Q1 revenue rose 2.2 times to Rs 25 crore, with EBITDA increasing tenfold to Rs 5 crore and margins at 19.7%
- US operations contributed 51% of Q1 revenue, driven by clinical talent arbitrage and Medicaid reimbursements
Newly listed pediatric therapy provider Rays of Belief turned profitable in the first quarter of the fiscal year, reversing a year-ago net loss of Rs 1 crore to report a net profit of Rs 3 crore. The turnaround was propelled by a strong boost from international expansion and tighter operating efficiencies.
In an interaction with NDTV Profit on Sept. 30, Nitin Bindlish, Founder and Managing Director of Rays of Belief, detailed the operational and financial levers that drove quarterly performance, noting that the company's recent momentum is anchored in sustainable structural gains rather than one-off windfalls.
The company's Q1 revenue surged 2.2 times year-on-year to Rs 25 crore from Rs 11 crore in the corresponding quarter last year. Operating performance saw a sharp ramp-up, with EBITDA leaping tenfold from Rs 0.5 crore to Rs 5 crore, expanding operating margins from 4% to 19.7%.
Dual-Engine Engine: US Arbitrage & India Expansion
A primary growth catalyst was the company's push into the United States. Following an initial acquisition completed in June last year, the US operation contributed roughly 51% of total revenue during the quarter. Bindlish highlighted that the US strategy capitalizes on cross-border clinical talent arbitrage.
With acute healthcare manpower shortages across North America, the company deploys its clinical backend in India to manage services reimbursed through US Medicaid and commercial insurance programs, significantly curbing service delivery costs. In addition, Rays of Belief closed another strategic acquisition-US-based Citi Pro Group-on Sept. 18.
Because the transaction closed after the June 30 reporting period, Citi Pro Group's financials were not reflected in the Q1 results and will be baked in starting from the next quarter. With over 30 years of operating history and domain expertise, Citi Pro is expected to push the US share of overall revenue even higher over the coming two to three quarters.
"For the next one or two quarters, the US will be predominant and act as the frontrunner," Bindlish said. "However, as our newly opened domestic centres mature, India will become the dominating factor."
Domestic Scale and Operational Optimization
Alongside overseas expansion, Rays of Belief's domestic business registered 37% revenue growth. The company operates as a for-profit social enterprise dedicated to underserved pediatric populations facing neurodevelopmental disorders, such as autism, ADHD, Down syndrome, developmental delays, and emerging issues like digital screen addiction.
Currently present in 57 cities, the company has structured its domestic operations around a regional cluster mechanism to manage geographic spread and regional pricing dynamics. Centre operations typically observe a gestation period of six to nine months to turn profitable. Bindlish explained that this learning curve has helped the company calibrate pricing, capacity planning, and regional cultural adoption across Tier II and Tier III markets.
Capitalizing on post-IPO proceeds, the company aims to aggressively scale its physical footprint toward rolling out up to 100 centres monthly. Margin expansion in Q1 was further aided by internal scheduling and tech interventions. Because unutilized therapy slots incur direct practitioner costs without generating income, the firm deployed planning software to optimize session calendars and eliminate idle therapist hours, lifting clinic-level margins.
As mature domestic clinics normalize and overseas revenue streams consolidate, Rays of Belief aims to balance cross-border clinical support with a wider grassroots footprint across Indian cities.
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