Medi Assist Healthcare Services Ltd

Financial Performance

• Total income for Q1 FY27: INR 247 crores; up 24.9% YoY.
• Operating revenue: INR 236.5 crores.
• Group revenue: INR 166 crores; 70.2% of total; +25.5% YoY.
• Retail revenue: INR 23.4 crores; +13.1% YoY.
• Government revenue: INR 28.5 crores; +35.3% YoY.
• International revenue: INR 10.1 crores; -5.2% YoY.
• Technology SaaS revenue: INR 7.8 crores; +55.5% YoY.
• EBITDA (operating): INR 48 crores; margin 20.3% on operating revenue.
• PAT (reported): INR 27.6 crores; includes onetime derivative gain of INR 3.1 crores.
• Adjusted PAT: INR 24.5 crores.
• Free cash: INR 245.5 crores; Net worth: INR 884.1 crores.
• Contract liabilities: INR 337.4 crores; Debt-free status maintained.
• Revenue per average headcount (non-government): INR 13.2 lakhs annualized.
• Technology contribution to revenue: 3.3% of consolidated revenue.
• MAtrix/MAv en/MAgnum: 7 insurers contracted across stacks.
• MAtrix claims migration: >95% group claims; >80% retail claims migrated by end-Q1.

Operating Update

• India TPA: group revenues +25.5% YoY; premiums +29.5% YoY; market share 37.6%.
• Retail TPA: retail revenue +13.1% YoY.
• Government service to over 31 crores members across 12 states and 4 UTs.
• International business: first Thailand deployment live 1 July 2026; Mayfair ownership at 91.75%.
• Technology stacks deployed outside Medi Assist; seven insurers contracted across MAven, Matrix, Magnum.
• TPA platform metrics: 186,000 pre-authorizations within 5 minutes in Q1; Raksha Prime 0-wait discharge for 87,000 members.

Projects and Capex

• AI stack investments: INR 24.5 crores over last 6 quarters.
• In-house AI solutions: IDP, MAtrix, Magnum; MAven Guard fraud engine delivering savings.
• Matrix implementation: >90% completed; >95% group and >80% retail claims migrated by end-Q1.
• Mayfair stake increased to 91.75%; Nikhil Chopra to lead international business.
• Thailand deployment milestone; first live contract; ongoing global pipeline.

Guidance and Outlook

• Return to 23% EBITDA margin by end-FY27; after Paramount integration completes in next quarter.
• Technology investments to translate into operating leverage over time; pipeline remains robust.
• Q1 softness in student, leisure and marine volumes expected to rebound as projects kick in.

Q&A Highlights

• Execution priorities: transform India TPA to leaner, expand technology platform, grow international business.
• Paramount integration: 330 bps margin uplift in last 4 quarters; remaining deployment completes in about one quarter.
• Government segment: margin accretive; collections deemed safe; DSOs improving across consolidated base.
• Same-store growth: ~7–8%; retention ~90%; new business adds; seasonality affects pace.
• NPS Swasthya: potential platform revenues; plan to extend to substantial NPS membership.
• Insurer pushback: varies; conversations/POCs with about half the insurers; core integration takes time.
• PSU health market: industry growth ~14%; Medi Assist share of wallet improved.

AGM & Dividend Update

• 26th AGM scheduled Sept 24, 2026 via VC/OAVM; notice to be circulated.
• Record Date fixed at Sept 11, 2026 for entitlement to the final dividend.
• Final dividend of Rs 2 per equity share (face value Rs 5) for FY2025-26, subject to approval.
• Dividend payment will be made within 30 days after AGM via electronic transfer.
• Shareholders must update PAN, Aadhaar-linked details, bank accounts, and KYC to receive payout.
• SEBI circular requires electronic payments for demat, physical holdings to update KYC by Sept 11, 2026.
• TDS on dividends: 10% for resident with PAN; 20% if PAN/Aadhaar not linked.
• Non-residents: 20% withholding, unless DTAA benefits or Section 395 certificate provided.
• Cut-off date Sept 11, 2026 to submit DTAA, TRC, Form 41, and related declarations.
• Documents to be uploaded to MUFG Intime RTA; Form ISR-1 for physical holders.

Meeting Details

• Date of earnings call: August 10, 2026.
• Type and mode: group virtual earnings call (audio recording).
• Event/organiser: Medi Assist Healthcare Services Limited.
• Purpose: discuss unaudited standalone and consolidated results for quarter ended June 30, 2026.
• Availability: audio recording available on company website.

Financial Highlights

• Operating revenue ₹236.5 Cr, +24.1% YoY.
• EBITDA ₹48.0 Cr, 20.3% margin; down 175 bps YoY.
• Reported PAT ₹27.6 Cr, 11.2% margin; +21.9% YoY.
• Adjusted PAT ₹24.5 Cr; +8.2%.
• India Health PUM ₹8,975 Cr, +26.8% YoY.
• Group market share 37.6%; +440 bps YoY.
• Technology revenue ₹7.8 Cr, +55.5% YoY.
• Free Cash ₹245.5 Cr (C&CE).
• Debt-free balance sheet.

Strategic & Operational Developments

• Paramount integration at logical close; 95%+ group claims migrated.
• AI platform contracts signed with seven insurers.
• Mayfair ownership 91.75%; international platform established.
• Thailand first tech deployment live from 1 July 2026.
• Nikhil Chopra appointed to lead international business full-time.
• Q1 international revenue ₹10.1 Cr; -5.2% YoY.

Governance Changes

• Dr. Vikram Jit Singh Chhatwal becomes Non-Executive, Non-Independent Director and Chairman.
• Gaurav Bhatnagar appointed Chief TPA Officer; designated SMP.

Outlook & Financial Position

• Q2 FY27 to run three active tracks.
• Tech licensing and international platforms to improve EBITDA margins.
• Growth funded entirely from operating cash flows; no external capital.
• Contract liabilities ₹337.4 Cr at 30 Jun 2026.
• Balance sheet snapshot: Debt-free; Net worth ₹884.1 Cr as of 30 Jun 2026.

Business Overview

• India-based TPA for health benefits with AI-enabled platform stack (MAtrix, MAven Guard, MAven IDP).
• Paramount integration nearing completion; growth funded from internal cash flows.

Operational Highlights

• Q1FY27 operating revenue ₹236.5 Cr, up 24.1% YoY; total income ₹247.0 Cr, up 24.9%.
• EBITDA ₹48.0 Cr; margin 20.3%, down 175 bps YoY.
• PAT ₹27.6 Cr; margin 11.2%.
• Debt-free with free cash ₹245.5 Cr.
• Group + Retail premiums ₹8,975 Cr, +26.8% YoY.
• Group market share 37.6% (+440 bps YoY); Group + Retail 24.3% (+120 bps).
• Migration to MAtrix: 95%+ Group and 80%+ Retail PHS migrated; 100% by Q2FY27.
• Mayfair stake 91.75% post Q1; Thailand deployment live.
• MAven platform live in Thailand from 1 July 2026; MAtrix claims platform in progress.
• Fraud prevention: ₹183 Cr savings via MAven Guard.
• End-to-end pre-authorisations ~186k in <5 mins; 260k discharges in <30 mins.
• Aadhaar Offline Verification integrated; 51% reimbursements electronically.
• Cashless IP 813k; Reimbursement IP 352k.
• Cashless OP 582k; Reimbursement OP 945k.
• End-to-end payments TAT 6.76 days; 88.3% reimbursements within 1 day.
• Government revenue ₹28.5 Cr; Members served ~31 Cr across 12 states and 4 UTs.
• International Benefits Administration revenue 4.3% of total; +131 bps YoY.
• Retail lives 106.7k; +79.1% YoY.

Capital & Liquidity

• Debt-free balance sheet; free cash ₹245.5 Cr.
• No new borrowings; funding from operating cash flows.

Strategic Priorities & Outlook

• AI stack monetisation; seven contracts in place; international Mayfair platform with live Thailand deployment.
• Expansion: live in Thailand; pipeline with insurers/brokers/TPAs; >50% travel premiums via India integrations.
• Funding growth from cash flows; 100% MAtrix migration by Q2FY27.

Risks & Mitigation

• Q1 softness in International Benefits Administration due to external factors.
• Mitigation: US repricing, marine wins, domestic growth, ongoing integrations.

Governance & Leadership

• Mayfair stake rose to 91.75% post-Q1; governance implications under consideration.

Management appointment

• Gaurav Bhatnagar appointed Chief TPA Officer, leading Medi Assist's TPA business.
• Based in Bengaluru, reporting to the CEO.
• Over 18 years of experience across software, consumer and services sectors.
• Role aims to accelerate growth, enhance technology use, and deepen insurer/hospital partnerships.
• Previous roles include Coupang Advertising revenue operations; earlier at Permira and Amazon Europe.

Aadhaar Offline Verification integration

• Medi Assist integrates UIDAI Aadhaar Offline Verification Framework.
• Company has become a registered Offline Verification Seeking Entity (OVSE).
• The framework enables consent-based identity verification across hospital admissions and reimbursements.
• Aims to reduce paperwork, fraud, and identity impersonation while protecting member privacy.
• Capability extended to TPAs, insurers, and pension funds leveraging Medi Assist platforms.
• CEO Satish Gidugu emphasized stronger trust and faster, consent-based verification.

Certificate details

• Certificate under Regulation 74(5) for quarter ended 30 June 2026 enclosed from MUFG Intime (RTA).