Medi Assist lifts profit 167.5%, approves share buyback at 425 rupees
Key Facts
Medi Assist reported consolidated profit after tax of 21.6 crore rupees in the second quarter of fiscal 2027, up 167.5% year on year, according to its financial results for the period ended September 30, 2026. At the same meeting, the board approved a buyback of up to 1,159,199 shares at 425 rupees per share, for a total amount not exceeding 49,26,59,575 rupees. The results show profit growth far outpacing operating revenue, which rose 3.9% to 241.5 crore rupees. EBITDA was 49.2 crore rupees, up 23.9% year on year. The company said the results were unaudited and subject to a limited review.
Consolidated profit in the year-earlier quarter of fiscal 2026 was about 80.67 million rupees, compared with 21.6 crore rupees in the current quarter, according to Medi Assist's results. The comparison underscores the sharp year-on-year increase in profit, while operating revenue grew at a slower pace, reaching 241.5 crore rupees in the current quarter, up 3.9%. EBITDA, meanwhile, rose to 49.2 crore rupees, up 23.9%, widening the gap between revenue growth and growth in operating profit before depreciation and amortization. The financial results did not attribute the profit increase to a specific operational factor. Instead, the company presented revenue and profit figures alongside their year-on-year comparisons.
The second-quarter results differ in pace from the first quarter of fiscal 2027, when the company reported consolidated operating revenue of 236.5 crore rupees, up 24.1% year on year, and reported profit after tax of 27.6 crore rupees, an increase of 21.9%. In the second quarter, revenue growth was 3.9%, while profit after tax grew 167.5% year on year. The comparison between the two quarters presents a different picture of growth rates in the first half, but does not by itself identify the reasons for the divergence. In its first-quarter statement, the company said the integration of Paramount was nearing logical closure and its artificial intelligence platform had moved from investment to generating early revenue. Chief Executive Satish Gidugu said at the time that the platform had 7 contracts.
On the Paramount integration, the company's first-quarter fiscal 2027 presentation showed that more than 95% of the group's claims volume and more than 80% of Paramount's retail claims had been moved to the MAtrix platform. The presentation targeted completion of the full claims transfer in the second quarter of fiscal 2027. The company also said the Paramount integration was fully complete, but the reported results did not attribute the improvement in the EBITDA margin to operational efficiency or the integration alone. The information places progress on the claims transfer in the context of the second-quarter results, without providing a breakdown linking it to profit or operating profit growth. The transfer rate reported for the first quarter was more than 95% for group claims and 80% for retail claims.
The buyback will be conducted through a tender offer, for up to 1,159,199 shares at 425 rupees per share, with the total amount capped at 49,26,59,575 rupees, according to the board's decision. The board set November 20, 2026, as the record date for determining shareholders eligible to participate. The date gives investors a specific point at which to determine who is on the eligible shareholder register for the offer, while the announced figures remain caps on the number of shares and the total value of the transaction. The decision came alongside the second-quarter results, which showed higher profit and slower growth in operating revenue. The announced details did not provide further information on the acceptance ratio or the offer's execution timeline.