Medi Assist profits dip on acquisition costs

MUMBAI: Medi Assist Healthcare Services reported a sharp drop in profit for the quarter ended September 30, 2025, even as revenue rose strongly, as acquisition and investment costs weighed on earnings.

Profit for the period fell 61.6% to Rs. 8.1 crore from Rs. 21 crore a year earlier. Profit before tax from continuing operations declined 54.3%.The company attributed the fall in profitability to transitional costs linked to its acquisition of Paramount TPA and higher spending on technology. According to the management, profit after tax was impacted by Paramount acquisition financing, increased depreciation and amortisation, and a higher effective tax rate. Total expenses surged 40.4% to Rs. 221.4 crore, outpacing revenue growth. Finance costs rose over fourfold to Rs. 7.6 crore from Rs. 1.8 crore, reflecting borrowing for the Paramount deal. Employee benefits expense increased 37.1% to Rs. 105.5 crore, while depreciation and amortisation rose 54.6% to Rs. 20.9 crore.Revenue from operations grew 28.7% to Rs. 232.6 crore, while total income was up 25.5%. The company’s operating margins, however, were pressured by integration and technology costs that together compressed EBITDA by around 250 basis points.

CEO Satish Gidugu said the transformation underway in the health insurance sector is being driven by technology and partnerships that improve efficiency and trust. “The completion of the Paramount acquisition, our tie-up with Star Health, expansion in international benefits administration, and the investment from MIT demonstrate strong confidence in Medi Assist’s vision,” he said.The company’s premium under management rose 20.2% year-on-year to Rs.

12,719 crore as of Sept 30, 2025, with group business up 22.5% to Rs. 11,447 crore. Its market share in health insurance premiums administered increased to 21.3% from 19.2% a year ago. Technology-led fraud and waste prevention initiatives generated savings of around Rs. 230 crore in the first half of FY26, up about 50% year-on-year.Earnings per share reflected the weaker performance, with basic EPS from continuing operations falling to Rs. 1.13 from Rs. 2.98. The company’s total comprehensive income dropped 55.7% to Rs. 9.6 crore. While Medi Assist continues to strengthen its position in health insurance administration, the near-term cost of expansion has eroded profitability.