Summary
Medi Assist Healthcare Services Limited - Q3 FY 2026 Earnings Call Summary Monday, February 09, 2026 08:30 AM
Event Participants
Executives 2 Sandeep Daga (CFO), Satish Gidugu (CEO and Whole-Time Director)
Analysts 4 Ashok (Individual Investor), Ashutosh Parashar (Mirabilis Investment Trust), Neel Gowariker (L.F.C. Securities), Sucrit Patil (Eyesight Fintrade)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹311.3 crores (Consolidated) | +29.9% YoY; +9.2% YoY excluding Paramount integration impact. |
| Premium under Management | ₹19,289 crores | +21.9% YoY; reflects group and retail premiums only (excludes government). |
| Market Share (Group) | 32.2% | +307 bps YoY; driven by organic growth and Paramount acquisition. |
| Market Share (Retail) | 5.6% | Marginal dip YoY; +4.6% YoY growth including Paramount, but -4.3% excluding it. |
| EBITDA | ₹44.6 crores | +13.8% YoY (Consolidated); Paramount drag reduced significantly to -0.9% margin. |
| EBITDA Margin | 18.6% | +154 bps QoQ; margins excluding Paramount stood at 21.8%. |
| Adjusted PAT | ₹46.3 crores | Normalized for exceptional items; reported PAT was ₹34.8 crores. |
| Technology Revenue | ₹7.2 crores (est) | +81.5% YoY (9M) and +109.8% YoY (Q3); now 2.3% of total revenue. |
| Cash Position | ₹200 crores | Free cash as of Dec 31; company became debt-free in January 2026. |
Geographic & Segment Commentary
- Group Business: Managed premiums grew 24.4% YoY (including Paramount) to ₹16,377 crores, serving over 11,000 corporates. The segment maintains a 94%+ retention rate and delivered ₹234 crores in FWA (Fraud, Waste, and Abuse) savings.
- Government Business: Revenue grew 46.7% YoY for the 9-month period, contributing 12.1% to total consolidated revenue. The segment serves 33 crore members and utilizes approximately one-third of the group’s total headcount.
- International Benefits: Revenue increased 16.3% YoY, contributing 4.5% to consolidated revenue. 98% of customers have migrated to the HealthX platform, and 27 new customers were added in the marine yacht segment.
- Retail Business: Work with private and SAHI (Standalone Health Insurers) grew 26.5% YoY, though pure TPA retail premiums saw a slight organic contraction. Strategic focus is shifting toward “Network as a Service” and technology-led offerings for this segment.
Company-Specific & Strategic Commentary
- Paramount Integration: Achieved a 557 bps QoQ margin improvement in Paramount; slump transfer of the TPA business to Medi Assist TPA was approved effective February 1, 2026.
- AI-Powered Savings (MAven Guard): Prevented ₹400 crores in fraud during the period (66% YoY increase), with 82% identified purely by AI without human intervention.
- Cashless Innovation (Raksha Prime): Over 15% of all cashless discharges now occur via Raksha Prime across 6,000 hospitals, allowing patients to bypass billing wait times.
- Provider Platform (MAgnum): Launched a new self-service digital platform for hospitals to manage “Navigator” (cost estimation) and “Prime” (express discharge) capabilities directly.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| EBITDA Margins | Return to 20%+ levels | Management expects margins to recover as Paramount integration completes over the next 2-3 quarters. |
| Tech Revenue | Margin Accretive Growth | SaaS-based tech revenues are expected to grow at a faster clip than core TPA services with higher margins. |
| Volume Run-rate | 100% migration in 2-3 quarters | Target to reach full volume processing for all insurers currently signed onto the MAtrix platform. |
Risks & Constraints
| Risk | Context |
|---|---|
| Integration Execution | While structural integration of Paramount is complete, the company faces 2-3 quarters of disciplined execution to reach target EBITDA. |
| Operational Errors | A ₹7.1 crore provision was made for “claims disallowed” by a customer; management claims this happened outside their systems but provided for it on a prudent basis. |
| Cybersecurity | Paramount experienced a localized cyber incident costing ₹3.7 crores in forensics and restoration; further impacts are not expected. |
| Retail Sluggishness | Organic retail TPA premiums showed contraction due to periodic portfolio reallocations by PSU insurers. |
Q&A Highlights
Technology Revenue Model
- Question: What is the revenue model for the AI stack and MAtrix platform? (Ashok)
- Answer: MAtrix is a hosted SaaS product with per-claim/transaction pricing; FWA (MAven Guard) is likely to move toward outcome-based pricing, though current focus is on deployment (Satish Gidugu).
Star Health Integration
- Question: What is the status of the Star Health technology transformation? (Ashok/Ashutosh Parashar)
- Answer: Implementation is progressing; the platform run-rate for all insurers is near 20 lakh claims annually, with full volume migration expected in 2-3 quarters (Satish Gidugu).
Exceptional Claim Provision
- Question: Why was a ₹7.1 crore provision made for disallowed claims? (Neel Gowariker)
- Answer: It was an on-account payment for disputed claims alleged to be processed by Medi Assist; internal audits suggest the claims were not from our systems, but we provided for it prudently while pursuing recovery (Sandeep Daga/Satish Gidugu).
Market Share Dynamics
- Question: How does the company view the sluggishness in retail premiums? (Ashutosh Parashar)
- Answer: Retail is becoming hybrid; while traditional TPA premiums may fluctuate due to PSU reallocations, the “Health Benefits Administrator” (HBA) model gives us access to over ₹15,000 crores of premium via tech/network services (Satish Gidugu).
Key Takeaway
Medi Assist delivered a robust Q3 FY26 with a consolidated revenue growth of 29.9% YoY, significantly aided by the Paramount integration which is now showing rapid margin recovery (improving 557 bps QoQ). The company successfully transitioned to a debt-free balance sheet with ₹200 crores in free cash, providing a strong foundation for its “Technology-First” strategy. Strategic highlights include the scaling of the MAtrix SaaS platform and MAven Guard AI, which prevented ₹400 crores in fraud savings for partners. While retail TPA premiums faced some organic pressure, the shift toward a “Network and Tech-as-a-Service” model (HBA) is expanding the addressable premium pool beyond traditional TPA limits. Management remains focused on concluding the Paramount integration and scaling high-margin tech revenues to drive steady-state EBITDA margins back toward the 20% range.
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