Medi Assist restores EBITDA margin to 20.4% after integration

Medi Assist Healthcare Services Limited restored consolidated EBITDA margin to 20.4% in Q2FY27, up 331 basis points year on year, after completing the Paramount integration and migrating 100% of Paramount claims to MAtrix. Medi Assist reported EBITDA of Rs 49.2 crore, up 23.9%, while operating revenue grew 3.9% to Rs 241.5 crore.

How did Medi Assist restore its EBITDA margin?

Medi Assist restored Q2FY27 EBITDA margin to 20.4%, recovering 330 basis points from 17.1% in Q2FY26, when lower-margin Paramount revenue was added. Q2FY27 EBITDA reached Rs 49.2 crore, compared with Rs 42.1 crore in Q1FY26, while revenue increased to Rs 241.5 crore from Rs 190.6 crore over the same period.

The quarterly path shows a staged recovery after the acquisition was consolidated on 1 July 2025. Margin increased from 17.1% in Q2FY26 to 18.6% in Q3FY26, when Medi Assist cited lower people costs and artificial-intelligence tools going live for Paramount clients; it then reached 19.9% in Q4FY26 as the business transfer was completed and claims migration was under way.

Medi Assist’s Q2FY27 margin remained 170 basis points below the 22.1% pre-acquisition level in Q1FY26, but EBITDA was Rs 7.1 crore higher on a revenue base that was Rs 50.9 crore larger. The presentation characterises Q2FY27 as the first like-for-like quarter since Paramount, with one-time integration completed during the quarter.

What changed after the Paramount claims migration?

Medi Assist completed the Paramount integration in Q2FY27, with 100% of Paramount claims operating on MAtrix, its technology platform. In Q1FY27, more than 95% of the acquired group claims were on MAtrix, making the final migration the operational change disclosed between the 20.3% Q1FY27 and 20.4% Q2FY27 margins.

The group portfolio was also fully migrated in H1FY27. Group revenue rose 13.7% year on year to Rs 334.7 crore, group premiums managed increased 21.8% to Rs 13,939 crore, and lives covered reached 4.75 crore in September 2026, compared with 4.54 crore in March 2026.

Management said group retention should normalise within three to four quarters, while the remaining churn tail could continue for about two to three quarters. H1FY27 group retention was 90.5%, and the presentation said the measure was improving quarter on quarter, leaving retention as the principal disclosed post-integration operating item to track.

Which Medi Assist businesses drove H1FY27 revenue growth?

Medi Assist’s India third-party administrator, or TPA, business remained its main revenue line, delivering Rs 437.5 crore in H1FY27, or 91.5% of revenue. India TPA revenue grew 11.9% year on year in H1FY27 and 1.2% in Q2FY27 to Rs 219.6 crore; Medi Assist said this business drove most of the margin expansion after Paramount’s integration.

Platform & HBA, or health benefits administration, was the fastest-growing reported line, with H1FY27 revenue rising 69.8% to Rs 19.8 crore and Q2FY27 revenue rising 94.8% to Rs 11.2 crore. Software-as-a-service and licence revenue increased 83.7% in H1FY27, while premiums on the platform rose 24.8% to Rs 9,648 crore.

International revenue was Rs 20.7 crore in H1FY27, up 1.1% year on year, and Rs 10.7 crore in Q2FY27, up 7.7%. That contrasts with the platform line’s 69.8% half-year revenue growth, while Medi Assist reported that its platform was live in three Southeast Asian markets and that it planned to focus on international margin and portfolio expansion in H2FY27.

What do Medi Assist’s H1FY27 results show about profitability?

Medi Assist reported H1FY27 EBITDA of Rs 97.2 crore, up 19.0% year on year, exceeding the 13.0% rise in operating revenue to Rs 478.0 crore. EBITDA margin consequently increased 103 basis points to 20.3% from 19.3% in H1FY26, while reported profit after tax rose 60.2% to Rs 49.2 crore.

The half-year comparison shows EBITDA increasing from Rs 81.7 crore in H1FY26 to Rs 97.2 crore in H1FY27. In Q2FY27, reported profit after tax was Rs 21.6 crore, up 167.5% year on year, and reported profit-after-tax margin was 8.8%, an increase of 536 basis points.

Underlying H1FY27 profit after tax was Rs 46.1 crore, compared with Rs 30.7 crore in H1FY26, excluding a Rs 3.1 crore derivative gain on the call and put option classified as exceptional. At H1FY27, Medi Assist reported cash and cash equivalents of Rs 268.3 crore, net worth of Rs 886.8 crore and zero debt, compared with Rs 260.5 crore cash, Rs 852.4 crore net worth and zero debt at FY26.

Conclusion

Medi Assist’s reported margin recovery reflects a completed Paramount migration alongside earnings growth ahead of revenue growth. Q2FY27 EBITDA margin reached 20.4%, while H1FY27 EBITDA rose 19.0% to Rs 97.2 crore against 13.0% operating-revenue growth; India TPA supplied 91.5% of H1 revenue and Platform & HBA expanded faster from a smaller base.

The next disclosed measures are group-retention performance over the stated three-to-four-quarter normalisation period and the remaining churn tail expected for two to three quarters. Management has also identified international margin and portfolio expansion in H2FY27, following the platform’s launch in three Southeast Asian markets.