Medi Assist Healthcare Services Q1 FY27 earnings call

Medi Assist reported a total income of ₹247 crores in Q1 FY27, marking a 24.9% year-on-year growth. Operating revenue from contracts with customers stood at ₹236.5 crores, up 24.1% YoY. Operating EBITDA (excluding other income) was ₹48 crores, a 14.3% YoY increase, resulting in an operating EBITDA margin of 20.3% for the quarter. Reported PAT was ₹27.6 crores, with a normative PAT of ₹24.5 crores after adjusting for a one-time^📎 derivative gain of ₹3.1 crores from the Mayfair acquisition.

The company's growth is driven by three engines: core India TPA, technology, and international business. The group segment contributed ₹166 crores (70.2% of revenue) with 25.5% YoY growth, while the retail segment grew 13.1% YoY to ₹23.4 crores (9.9% of revenue). Government business saw robust growth of 35.3% YoY, reaching ₹28.5 crores (12% of revenue). The Technology SaaS business was a standout, growing 55.5% YoY to ₹7.8 crores and now representing 3.3% of consolidated revenues. The international business, however, experienced a 5.2% YoY decline to ₹10.1 crores due to temporary market softness^🌐.

Medi Assist has made significant progress on the Paramount integration, with over 95% of group claims and 80% of retail claims migrated to its MAtrix platform by the end of Q1 FY27. The company targets full integration of the remaining claims and operations within Q2 FY27. This integration is expected to normalize^📎 the 'near-term PHS retention drag' on EBITDA margins through FY27. Operational metrics include processing over 186,000 pre-authorizations within 5 minutes and achieving 0-wait discharge for over 87,000 members across 6,000 hospitals.

Medi Assist has invested ₹24.5 crores in its AI stack over the last six quarters, developing solutions for all stakeholders (patients, corporates, payers, providers). Key innovations include intelligent document processing and the MAven Guard fraud engine, which delivered over ₹183 crores in fraud savings in Q1. These technology stacks are now available for deployment outside Medi Assist, with 7 insurers already contracted for various combinations. The company has also signed its first outcome-based contracts, where compensation is tied to fraud, waste, and abuse outcomes.

The company increased its ownership in Mayfair We Care to 91.75% post Q1, solidifying it as a dedicated international vehicle. Nikhil Chopra has been appointed to lead this segment. The first technology deployment contract went live in Thailand in July 2026, with multiple corporates onboarded. Despite a Q1 revenue decline of 5.2% due to softness in student, leisure, and marine volumes, management anticipates growth as new projects kick in, noting that international business offers significantly higher yields than the Indian market.

Medi Assist is playing a key role in the NPS Swasthya scheme, which allows subscribers to allocate a portion of their corpus for health expenses. The company acts as a health benefits administrator and technology platform, connecting members, recordkeeping agencies, pension funds, insurers, and network providers. This initiative reflects Medi Assist's evolution from a TPA administrator to a platform partner, leveraging its capabilities to manage emergency funds for health catastrophes and integrate top-up covers.

Dr. Vikram Chhatwal will transition from Executive Chairman to Non-Executive, Non-Independent Director and Chairman, effective September 8, 2026, following shareholder approval. This move aims to separate Board leadership from executive management, aligning with best practices for institutional ownership. Satish Gidugu, CEO since 2018, will continue to lead the executive team, ensuring continuity in strategy and operations.