1. Opening Hook
When India’s hospitals were busy hiking room rents, Medi Assist quietly built a tech stack that could outsmart them. The Bengaluru-based TPA giant just wrapped up a quarter where it managed to grow faster than the insurance industry — even while integrating Paramount, crunching claim frauds, and debugging Star Health’s SaaS dreams. CEO Satish Gidugu sounded like a man running both a hospital and a software company — calm, clinical, and cautiously optimistic. The only patient here? Their EBITDA margin, still recovering from acquisition anesthesia. Read on — because what looks like margin pain might just be the birth of India’s first healthcare backend powerhouse.
2. At a Glance
- Total Income ₹234.8 cr, up 25.5% YoY:Healthy pulse, stable vitals.
- Operating Revenue ₹232.5 cr, up 28.6% YoY:Diagnosis – growth infection.
- EBITDA ₹39.7 cr, up 3.3% YoY:Integration fever at 150 bps, tech bug 100 bps.
- EBITDA Margin 17.1% (vs 22% pre-acquisition):Still limping, not flatlining.
- PAT ₹8.1 cr, down 61.5% YoY:Paramount + Depreciation = Code Red.
- H1FY26 Revenue ₹432.8 cr, up 20.2% YoY:Two quarters of clean growth, one messy merger.
- Market Share:Group 32.2%, Retail 5.3%, Overall 21.3% — industry envy.
- Debt ₹242 cr → Target Debt-Free by Mar’26:Recovery plan already prescribed.
3. Management’s Key Commentary
“Premiums administered ₹12,719 cr, up 20.2% YoY.”(They basically manage India’s health premiums like a mutual fund.)
“Paramount contributed ₹592 cr; integration ongoing.”(Translation: The new roommate still figuring out Wi-Fi and SOPs 😏.)
“EBITDA 17.1% impacted by 150 bps integration and 100 bps tech investments.”(When your balance sheet needs both an accountant and a coder.)
“Tech saved ₹230 cr via fraud prevention — up 50% YoY.”(Their AI has better instincts than most auditors.)
“93.4% retention in group accounts.”(Insurers don’t leave unless you stop answering their emails.)
“Raksha Prime enabled 1.56 lakh instant discharges in H1.”(The only discharges hospitals actually enjoy.)
“Star Health MAtrix deployment live — 40% claims migrated in 6 months.”(In insurance tech years, that’s practically light speed.)
“EBITDA margin to normalize to 22–23% within 4–5 quarters.”(Translation: Integration hangover wears off by FY27.)
“Debt-free by March–April 2026.”(That’s fiscal discipline with a treadmill
setting.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | YoY Change | Comment |
|---|---|---|---|---|
| Total Income (₹ cr) | 234.8 | 187.2 | +25.5% | Paramount + tech boost combo. |
| Operating Revenue (₹ cr) | 232.5 | 181.0 | +28.6% | Broad-based insurer growth. |
| EBITDA (₹ cr) | 39.7 | 38.4 | +3.3% | Integration costs bite. |
| EBITDA Margin (%) | 17.1 | 22.0 | -490 bps | Temporary but visible pain. |
| PAT (₹ cr) | 8.1 | 21.0 | -61.5% | Paramount amortization drama. |
| H1 Revenue (₹ cr) | 432.8 | 360.1 | +20.2% | Consistent growth story. |
| H1 EBITDA (₹ cr) | 81.7 | 73.7 | +10.9% | Margin 19.3%. |
| Net Worth (₹ cr) | 591.2 | 552.0 | +7.1% | Capital strength intact. |
| Net Debt (₹ cr) | 20.9 (net) | Debt-free FY25 | — | Temporary leverage for Paramount. |
| Return on Capital (%) | 14.2 | 16.5 | ↓ | Integration dip visible. |
Short take: High growth, mild fever. CFO assures no ICU needed.
5. Analyst Questions
Navid (Bastion):“What exactly drives revenue — per policy or % of premium?”Satish:“Percentage of premium for group/retail, fixed rupees for govt schemes.” (Translation: no random billing, only algorithmic billing.)
Madhukar (Nuvama):“Depreciation, receivables, and those rising tech costs?”Satish:“All Paramount’s fault — intangibles ₹3.5 cr/quarter amortized, receivables timing, tech ramp-up one-off.”
Gaurav (Harshad Securities):“Low promoter holding — who’s driving the ship?”Satish:“Board-led, ESOP-fed, not family-bred.”
Jayesh (Harshad Securities):“Paramount EBITDA negative?”Niraj:“Barely profitable — give us 4–5 quarters to cure it.”
Nidhesh (Investec):“Integration & tech cost timeline?”Satish:“4–5
