Medi Assist H1 FY27 EBITDA rises 19% as margin reaches 20.3%

Medi Assist Healthcare Services Limited reported operating earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 97.2 crore in H1 FY27, up 19% year on year, while operating revenue increased 13% to Rs 478 crore. Medi Assist said falling Paramount integration costs and operating leverage lifted its operating EBITDA margin by 103 basis points to 20.3%.

How did Medi Assist perform in H1 FY27?

Medi Assist grew operating EBITDA faster than operating revenue in H1 FY27. Operating revenue rose 13% year on year to Rs 478 crore, while operating EBITDA increased 19% to Rs 97.2 crore, resulting in a 20.3% operating EBITDA margin for the six-month period.

Profit growth was faster than both revenue and EBITDA growth. Medi Assist reported a 47% year-on-year increase in profit before tax and a 59.5% increase in profit after tax in H1 FY27, although the announcement did not provide absolute figures for either profit measure.

The comparison shows that profitability increased ahead of revenue in H1 FY27. Medi Assist attributed the difference between 19% EBITDA growth and 13% revenue growth to operating leverage and integration costs falling away, rather than disclosing a separate cost-saving figure for Paramount.

Why did Medi Assist's operating EBITDA margin increase?

Medi Assist said its operating EBITDA margin increased because Paramount integration costs were falling and the business was gaining operating leverage. The H1 FY27 margin reached 20.3%, up 103 basis points year on year, while the company said its core platform was generating cash flows to fund growth.

The second-quarter margin was slightly above the half-year result. Medi Assist reported a 20.4% operating EBITDA margin in Q2 FY27, up 331 basis points year on year, compared with 20.3% for H1 FY27, indicating that the reported margin expansion was more pronounced in the June quarter.

Medi Assist also reported 13.7% group revenue growth in H1 FY27, compared with 13% growth in company-wide operating revenue. The release does not quantify how much of the margin change came from lower integration costs and how much came from operating leverage, so the individual contribution of each factor cannot be calculated.

How is Medi Assist monetising technology services?

Medi Assist is growing software as a service (SaaS) and licensing revenue faster than total operating revenue. SaaS and licensing revenue rose 83.8% year on year to Rs 18.1 crore in H1 FY27, while the same category increased 112.6% in Q2 FY27.

Three of seven contracted insurers were fully live on Medi Assist's technology stack at the H1 FY27 update. The company said the remaining four insurers were scheduled to go live in H2 FY27, making those implementations a disclosed operational milestone for its technology business.

Platform premiums under management reached Rs 9,648 crore in H1 FY27, supporting claim-based fees that Medi Assist said were scaling with volume. Total premiums under management across platform and third-party administrator (TPA) operations were Rs 24,752 crore, with group premiums under management of Rs 13,939 crore the larger disclosed component.

Medi Assist said its MAven Guard product identified and stopped Rs 304 crore of fraud, waste and abuse in H1 FY27. The company said this protects insurer loss ratios and ecosystem value, but it did not disclose separate revenue or EBITDA generated by MAven Guard.

What do Medi Assist's group health metrics show?

Medi Assist reported a 34.1% group health benefits market share in H1 FY27, up 182 basis points year on year. Group premiums under management rose 21.8% to Rs 13,939 crore, which the company said outpaced industry growth by 650 basis points.

Client retention in the group health business was 90.5% during H1 FY27. Medi Assist linked these operating metrics with 13.7% group revenue growth, but the announcement did not disclose the number of clients retained, added or lost during the period.

Medi Assist said its retail operation is moving to a hybrid model covering TPA and platform services. The company stated that accessible retail premiums across the two models reached 34.1% of the market, but did not provide a retail premium amount, retail revenue figure or retail growth rate.

The disclosed measures show different rates for administered premiums and reported income. Group premiums under management increased 21.8%, group revenue increased 13.7%, and total operating revenue increased 13% in H1 FY27; premiums under management are administered premium volumes, not Medi Assist's operating revenue.

What is Medi Assist planning for H2 FY27?

Medi Assist plans to bring the four remaining contracted insurers live on its technology stack in H2 FY27. Management also cited platform go-lives in Thailand, Laos and Cambodia, plus multi-insurer travel partnerships covering about 50% of Indian travel premiums, as a foundation for international portfolio scaling.

Mayfair We Care, Medi Assist's international health benefits administration business, reported H1 FY27 revenue of Rs 20.7 crore, up 1.1% year on year. Its Q2 FY27 revenue was Rs 10.7 crore, up 7.7%, and Medi Assist said the planned international go-lives could support margin expansion and scaling in H2 FY27.

The board approved a share buyback of up to about Rs 49.3 crore, funded entirely from internal operating cash flows. Medi Assist said the buyback would use less than one-fifth of accumulated cash reserves and was intended to enhance return on equity while retaining liquidity for product development and international growth.

Medi Assist entered H2 FY27 debt-free with Rs 268.3 crore in cash and cash equivalents. The company did not disclose an H2 FY27 revenue, margin, profit or premiums-under-management target, and cautioned that forward-looking statements are subject to risks and uncertainties.

Conclusion

Medi Assist's H1 FY27 figures show operating EBITDA rising faster than operating revenue, with the margin reaching 20.3% as reported integration costs fell away and operating leverage increased. The result also included 83.8% growth in SaaS and licensing revenue, 21.8% growth in group premiums under management and a 47% increase in profit before tax.

The next disclosed milestones are the H2 FY27 go-lives for four contracted insurers and platform implementations in Thailand, Laos and Cambodia. Medi Assist also plans to execute the buyback of up to about Rs 49.3 crore from internal operating cash flows while maintaining liquidity for technology development and international growth.