Medi Assist Q2 FY27 slides: margins expand as integration completes

Medi Assist Healthcare Services Limited released its Q2 and H1 FY27 results on November 2, 2026. The company, India's largest third-party health administration provider, noted a 330 basis point improvement in EBITDA margin to 20.4% in Q2, coupled with a share buyback plan and a new capital allocation framework. Shares of Medi Assist increased 2.88%, reaching $303.70 following the announcement.

However, the stock remains below its 52-week high of $575.55, indicating ongoing market caution despite operational enhancements. The financial overview revealed mixed revenue growth but notable profit expansion in Q2FY27. Total income rose 4.5% year-over-year to ₹245.4 crore, with operating revenue reaching ₹241.5 crore (+3.9% YoY).

EBITDA grew 23.9% to ₹49.2 crore, and profit after tax expanded 167.5% to ₹21.6 crore. For the first half of FY27, total income increased 13.8% to ₹492.4 crore, operating revenue grew 13.0% to ₹478.0 crore, EBITDA expanded 19.0% to ₹97.2 crore, and reported PAT climbed 60.2% to ₹49.2 crore. With Paramount Health Services fully integrated by Q2FY27, the company's core platform now generates significant cash flows, recovering 330 basis points in EBITDA margins from the initial 17.1% dip following the acquisition.

The dramatic growth in Medi Assist's technology segment, driven by high-margin platform and SaaS revenues, contributed to the overall financial improvement. Platform premiums rose 24.8% year-over-year to ₹9,648 crore, with claims volume surging 917.9%. The company now processes 7 million claims daily through the MAtrix platform and has implemented AI-driven fraud detection, saving ₹246 crore during H1FY27.

Medi Assist's group health administration business now holds 34.1% market share in India, covering 4.75 crore lives across 11,000+ corporates in 25 sectors. However, retention rates remain a challenge at 90.5%. The company is focusing on strategic initiatives to drive future growth, including expanding in the government segment and emphasizing platform licensing over traditional TPA services in the retail segment.