Rays of Belief shares surged 13.05% to ₹252.10 following the company's announcement of a sharp improvement in profitability for Q1 FY27. The stock movement reflects investor confidence in the company's operational turnaround, with the market responding positively to the strong financial performance that demonstrates the company's successful strategic pivot towards higher-margin international markets.
Rays of Belief achieved a remarkable consolidated financial turnaround in Q1 FY27, reporting a net profit of ₹3 crore compared to a net loss of ₹1 crore in the corresponding quarter of the previous year. According to the latest financial reports, this represents a complete reversal of the company's consolidated profitability position, marking a strong operational recovery driven primarily by its high-yielding pediatric developmental care operations in the United States. The company also demonstrated sequential growth with PAT increasing 16.74% QoQ from ₹2.39 crore in Q4 FY26.
The company demonstrated exceptional revenue growth with consolidated operating revenue surging approximately 2.2 times YoY to ₹25 crore in Q1 FY27, compared to ₹11 crore recorded in the same quarter of the previous financial year. As reported in the latest financial data, consolidated EBITDA leaped tenfold from ₹0.5 crore to ₹5 crore, with EBITDA margins expanding significantly to 19.7% from 4% in the previous year. Revenue from India increased 37% YoY while revenue from the USA contributed roughly 51% of total revenue during the quarter, with the USA segment now contributing 50.65% of total revenue and overtaking the domestic India segment. The company also showed sequential revenue growth with net sales increasing 1.20% QoQ.
A primary growth catalyst was the company's push into the United States, with the US operation contributing roughly 51% of total revenue during the quarter following an initial acquisition completed in June last year. As reported by Nitin Bindlish, Founder and Managing Director, the US strategy capitalizes on cross-border clinical talent arbitrage, deploying the company's clinical backend in India to manage services reimbursed through US Medicaid and commercial insurance programs. The company recently closed another strategic acquisition of US-based Citi Pro Group on September 18, 2026, which will be reflected in future quarters as the transaction closed after the June 30 reporting period. 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.
The company's operating profit margin (OPM) improved significantly in the June 2026 quarter, with the major financial turnaround being primarily driven by successful operational leverage and strategic cost management. According to the latest financial data, total expenditure increased 95.16% YoY but declined 0.37% QoQ to ₹21.37 crore, demonstrating effective cost management despite revenue growth. Employee expenses increased 64.74% YoY but declined 5.82% QoQ to ₹10.84 crore, while interest expense increased 33.33% YoY but declined 11.11% QoQ to ₹0.24 crore. The company operates 136 centres across 57 cities and plans to aggressively scale its physical footprint toward rolling out up to 100 centres monthly, capitalizing on post-IPO proceeds and internal scheduling optimizations that eliminated idle therapist hours and lifted clinic-level margins.
