Medi Assist Navigates Growth and Integration in H1 FY26

Medi Assist Healthcare Services Limited has unveiled its financial and operational performance for Q2 and H1 FY26, showcasing a period of strategic growth, significant technological investments, and ongoing integration efforts. While the company reported robust top-line expansion, its profitability metrics reflected the short-term impacts of these strategic initiatives, particularly the Paramount TPA acquisition.

For the first half of fiscal year 2026, Medi Assist recorded a total income of INR 432.8 crore, marking a commendable 20.2% year-on-year growth. Operating revenue also saw a healthy increase of 21.4% year-on-year, reaching INR 423.1 crore. This growth was primarily driven by the core India TPA business, which includes Group and Retail segments, contributing 81% of the operating revenue. The Government business, International Benefits Administration, and Technology SaaS Services also contributed significantly, with 11.9%, 4.9%, and 2.2% respectively. However, the Profit After Tax (PAT) for H1 FY26 stood at INR 30.7 crore, a 23.3% decline compared to the previous year. This dip was largely attributed to the financing costs associated with the Paramount acquisition, increased depreciation and amortization, and a higher effective tax rate.

Financial Snapshot: H1 FY26

Strategic Thrusts and Operational Excellence

Medi Assist's strategic narrative for H1 FY26 revolves around strengthening its position as a Health Benefits Administrator (HBA) through technology and strategic partnerships. A significant highlight is the industry-first strategic partnership with Star Health & Allied Insurance Company for deploying Medi Assist's proprietary MAtrix claims platform. This full-scale deployment was achieved in less than three months, with 40% of claims volume already migrated, demonstrating the company's capability for rapid, complex enterprise-scale transformations.

The company's focus on technology-driven Fraud, Waste, and Abuse (FWA) prevention has yielded substantial results. Its AI/ML framework, including the newly launched 'MAven Guard' fraud detection engine, delivered savings of approximately INR 230 crore in H1 FY26, representing a 50% year-on-year increase. This capability not only enhances efficiency but also positions Medi Assist as a key partner for insurers in combating fraud. Furthermore, the Raksha Prime AI/ML-based instant checkout offering facilitated 156,000 discharges in H1 FY26, a significant jump from 38,000 in H1 FY25, indicating growing adoption and improved patient satisfaction.

Medi Assist continues to expand its global administration services. Its international benefits business, Mayfair We Care (MWC), UK, onboarded new Indian and UK insurers for IPMI and Group segments. A strategic partnership with Bhutan's Royal Insurance Corporation is also live, enabling policyholders to access Medi Assist's cashless provider network across India. The integration of Paramount TPA operations is ongoing, with management expecting it to take 4-5 quarters to fully convert and align with Medi Assist's operating model.

Navigating Profitability and Future Outlook

While the top-line growth is robust, the company's EBITDA and PAT margins have experienced short-term dilution. Operating EBITDA for H1 FY26 grew by 10.9% to INR 81.7 crore, with a margin of 19.3% on operating revenue. Management clarified that the EBITDA margin was impacted by 150 basis points due to Paramount-related consolidation and integration costs, and an additional 100 basis points from incremental technology investments. The net cash position stood at minus INR 20.9 crore, reflecting the debt incurred for the Paramount acquisition. However, management has a clear roadmap to address this, aiming to become debt-free by March-April 2026 by clearing approximately INR 150 crore of the current debt in the next 1-2 months.

Looking ahead, Medi Assist is confident in its strategic direction. It expects its core business EBITDA margins to return to the 22-23% level within 4-5 quarters, as the integration of Paramount completes and technology investments start yielding full returns. The company's ability to control claim size growth, which was significantly lower at 4.4% compared to the industry's 10-12% medical inflation, underscores its operational efficiency and disciplined approach to cost management. Medi Assist remains focused on leveraging its deep industry experience, technology, and strategic acquisitions to capitalize on growing insurance penetration and dynamic regulatory frameworks.