Medi Assist Healthcare Services Limited delivered a strong Q3 and 9-month FY26, marked by robust revenue growth and significant margin expansion, particularly from the Paramount acquisition. The company achieved a debt-free balance sheet in January 2026 and saw substantial growth in its technology-led solutions, including fraud prevention. However, reported PAT was affected by one-time exceptional items, and the retail segment experienced a marginal market share dip.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| EBITDA (Q3, ex Paramount) | ₹44.9 Cr | — |
| EBITDA (Q3, consolidated) | ₹44.6 Cr | — |
| EBITDA (9 months, consolidated) | ₹128.9 Cr | +13.8% YoY |
| EBITDA (9 months, with Paramount drag) | ₹126.3 Cr | — |
| EBITDA Margin (ex Paramount) | 21.7% | — |
| Premiums Under Management (9 months) | ₹19K Cr | +21.9% YoY |
Segment Breakdown
| Metric | Latest | Trend |
|---|---|---|
| Total Income(crores) | 198 | |
| Operating Revenue(crores) | 190.6 | |
| PAT(crores) | 22.6 | |
| Contract Liability(crores) | 280.2 | |
| Operating EBITDA(crores) | 174.6 | |
| Operating EBITDA Margin | 19.3% |
| Category | Headline | |
|---|---|---|
Debt | Debt disclosed | |
M&A | Paramount TPA acquisition · integrated | |
Liquidity | Cash ₹200 crores Free cash position as of December 31, 2025. |
| Category | Target | Priority |
|---|---|---|
| Integration | Paramount TPA Business Integration→Complete structural aspects, disciplined execution | High |
| Technology Adoption | MAtrix Platform Volume→100% run rate | Medium |
| Technology Revenue | AI-led Products Revenue Model→Outcome-based pricing | Low |
| Technology Revenue | Tech Revenues as % of Total Revenues→Margin accretive at a faster clip | High |
| Retail Business | Retail Growth→Hybrid growth | Medium |
| # | Metric | |
|---|---|---|
| 01 | Paramount Integration Completion & Margin Impact | |
| 02 | MAtrix Platform Full Volume Run Rate | |
| 03 | AI-led Products Revenue Model Clarity | |
| 04 | Retail Premium Growth Recovery | |
| 05 | Resolution of Disallowed Claims Provision |
| Severity | Risk |
|---|---|
medium | Cybersecurity Incident Paramount TPA experienced a cybersecurity incident, incurring INR3.7 crores in costs, though contained and an insurance claim has been filed. Management |
low | Impact of New Labor Codes New labor codes resulted in an incremental provision of INR3.3 crores for past service benefits. Management |
medium | Disallowed Claims Provision A provision of INR7.1 crores was made for disallowed claims from an insurer, with the company confident of recovery and pursuing an insurance claim. Management |
low | Negative Customer Feedback (Google Ratings) Analyst noted negative Google ratings regarding slow claim processing, which management acknowledged and committed to improving. Analyst |
Medi Assist reported a strong Q3 and 9-month FY26, with consolidated total income growing 29.9% YoY in Q3 and 23.5% for the 9-month period. Consolidated EBITDA for Q3 stood at INR44.6 crores, and ex-Paramount margins improved by 51 bps YoY to 21.7%. The company achieved a debt-free status in January 2026, having paid back INR39.4 crores of debt reported as of December 31, 2025, and maintained a free cash position of INR200 crores.
The integration of Paramount TPA is on track, with the slump transfer of its business to Medi Assist TPA effective February 1, 2026, accelerating structural integration. This has already shown positive financial impact, with Paramount stand-alone margins improving by 557 basis points QoQ, moving from minus 6.4% to minus 0.9% in EBITDA. Management expects disciplined execution over the next 2-3 quarters to fully restore core EBITDA margins.
The company's tech revenues grew significantly by 81.5% YoY for the 9-month period, now contributing 2.3% to total revenues. The MAtrix platform processed over 77 lakh claims, and the MAven Guard AI solution prevented INR400 crores in fraud, marking a 66% YoY increase, with 82% of this fraud detected by system/AI. The Raksha Prime initiative, which improves cashless experience, has expanded to over 35,000 patients per month across 6,000 hospitals.
The group business saw premiums managed (including Paramount) grow by 24.4%, with group market share reaching 32.2%. The retail segment, however, experienced a 4.3% contraction ex-Paramount, though it grew 4.6% including Paramount. Government business revenue grew 46.7% for the 9-month period, and international benefits administration revenue increased by 16.3% YoY.
The reported PAT for Q3 FY26 was INR34.8 crores, which was impacted by INR14.2 crores in exceptional item📎s. These included INR3.7 crores for cybersecurity incident costs at Paramount, INR3.3 crores due to new labor codes, and a INR7.1 crores provision for disallowed claims from an insurer. Management clarified that the underlying PAT, adjusted for these one-time📎 aberrations, would be INR76.7 crores.
Management emphasized a balanced strategy focusing on expanding insurer partnerships, improving service delivery, and protecting profits, driven by technology and AI. They aim to achieve a 100% run rate for volumes on the MAtrix platform within 2-3 quarters and anticipate that AI-led products will eventually transition to an outcome-based revenue model. The strengthened balance sheet provides an opportunity to accelerate tech initiatives and explore new customer acquisitions in the tech business both in India and internationally.