1. At a Glance – Blink and You’ll Miss the Promoters
Medi Assist Healthcare Services Ltd is a ₹3,005 crore health-tech + insurance-tech creature that sits quietly behind India’s health insurance ecosystem, processing claims while investors process emotions. At ₹404 per share (down ~28% YoY), this stock has gone from IPO darling to “sir, thoda explain kariye” territory.
Market cap sits at ₹3,005 Cr, trailing P/E at ~48.8x, ROE ~17.4%, ROCE ~18.7%, and debt-to-equity of 0.53 — though management now claims debt-free from Jan’26, which is the financial equivalent of “I’ve started gym, trust me”.
Q3 FY26 numbers?
Revenue up 28.9% YoY to ₹239.7 Cr.
PAT down 67% YoY to ₹4.14 Cr.
Yes, revenue is sprinting. Profit tripped on a banana peel.
Promoter holding? A majestic 4.62%. That’s not skin in the game; that’s skin in the WhatsApp group.
So the big question:
Is Medi Assist a high-quality compounder having a bad quarter, or a PE-backed exit story with Excel sheets and vibes?
Let’s find out.
2. Introduction – The Invisible Middleman With Very Visible Numbers
Medi Assist was incorporated in June 2000, back when health insurance claims meant faxes, stamps, and blood pressure. Today, it’s a full-stack health benefits administrator sitting between:
- Insurance companies 🧾
- Hospitals 🏥
- Employers 👔
- Retail policyholders 🧍
- Government schemes 🏛️
Basically, if money is moving and someone is sick, Medi Assist is somewhere in the Excel file.
The company operates through multiple TPAs:
- Medi Assist TPA
- Medvantage TPA
- Raksha TPA
Together, they processed 3.05 million claims in H1 FY24 alone. That’s not healthcare; that’s traffic control.
The IPO in Jan 2024 raised ₹1,172 Cr — 100% Offer For Sale. No fresh capital. Existing investors cashed out, waved politely, and left retail holding the thermometer.
Fast forward to FY26, and the company is growing revenue at 20%+ CAGR, acquiring aggressively, restructuring subsidiaries, raising preferential capital, and simultaneously explaining why profits disappeared this quarter.
Classic.
3. Business Model – WTF Do They Even Do?
Let’s simplify this without putting you to sleep.
Medi Assist is a Third-Party Administrator (TPA)
.
They don’t sell insurance.
They don’t underwrite risk.
They don’t pay claims from their pocket.
They manage health insurance operations for insurers.
Think of them as:
“Outsourced back-office + tech + hospital network + grievance handler + call center + claims processor.”
Revenue Sources:
- Fees from insurance companies
- Per-policy / per-claim charges
- Value-added services (analytics, wellness, admin tools)
Portfolio Mix (as of Sep 2023):
- Group insurance: ~72.2% of revenue
- Retail insurance: ~11%
- Balance from public health schemes & ancillary services
Group accounts are the golden goose — 9,500+ corporate clients, covering millions of employees.
They manage:
- ₹14,574.6 Cr of group premiums
- ₹1,757 Cr of retail premiums
That’s scale. Serious scale.
But scale with thin margins means one bad quarter and profits faint.
So… are margins stable?
Let’s check the numbers.
4. Financials Overview – Growth With a Side of Heartburn
Quarterly Comparison Table (₹ Crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 239.68 | 185.97 | 232.55 | 28.9% | 3.1% |
| EBITDA | 44.63 | 39.69 | 39.71 | 12.5% | 12.4% |
| PAT | 4.14 | 29.97 | 8.07 | -67.0% | -48.7% |
| EPS (₹) | 0.56 | 4.19 | 1.13 | -86.6% | -50.4% |
Yes, you read that right.
Revenue up nicely.
EBITDA okay.
PAT fell down the stairs.
Annualised EPS Logic:
Q3 EPS = average of Q1, Q2, Q3 × 4
But since Q3 is weak and volatile, do NOT annualise aggressively. TTM EPS already stands at ~₹7.92, which the market is using.
Which brings us to valuation madness.
5. Valuation Discussion – Expensive,
