Medi Assist Healthcare Services Limited, a leading health benefits administrator in India, has announced a significant move to support its international operations. The company's Board of Directors has approved the issuance of a Stand-By Letter of Credit (SBLC) not exceeding Rs 5 crores for its UK subsidiary, Mayfair WeCare Limited.

Strategic Business Arrangement

This financial arrangement is part of a broader business strategy where MediAssist, along with an insurer and an overseas service provider, will offer services to policyholders of overseas medical claim policies and travel/health insurance policies for Indians traveling abroad. As part of this agreement, Mayfair WeCare Limited is required to furnish a Performance Guarantee in the form of a Bank Guarantee to insurers.

Financial Implications

The approval of this SBLC creates a contingent liability for MediAssist, limited to Rs 5 crores. This means the company may be required to honor the Bank Guarantee if Mayfair WeCare Limited defaults on its obligations. It's important to note that this transaction is conducted at arm's length basis, and the promoter/promoter group has no interest in this arrangement.

Q2 and H1 FY2026 Financial Highlights

Coinciding with this announcement, MediAssist also released its financial results for Q2 and H1 FY2026:

The company's operating revenue showed strong growth, but profitability was impacted by integration costs related to the recent acquisition of Paramount Health Services and Insurance TPA Private Limited.

Operational Highlights

• Total Premium under Management (PUM) reached Rs 12,719 crore as of September 30, 2025, growing 20.2% year-on-year.
• Market share in health insurance premium administration increased to 21.3%, up from 19.2% in the previous year.
• The company achieved a retention rate of approximately 93.4% for Group accounts across corporates.

Strategic Developments

MediAssist has been expanding its capabilities and market presence:

1. Completed the acquisition of Paramount Health Services and Insurance TPA Private Limited on July 1, 2025.
2. Executed a strategic partnership with Star Health & Allied Insurance Co. for deploying MediAssist's proprietary MAtrix claims platform.
3. Enhanced focus on technology-driven Fraud, Waste, and Abuse (FWA) prevention, delivering savings of approximately Rs 230 crore.

Management Commentary

Satish Gidugu, CEO of MediAssist, commented on the company's performance: "We are encouraged by the ongoing transformation in the health insurance segment, driven by technology and strategic partnerships that enhance efficiency, access, and trust. This half year's milestones demonstrate strong confidence in MediAssist's vision and capabilities."

The approval of the Stand-By Letter of Credit for Mayfair WeCare Limited aligns with MediAssist's strategy to strengthen its global presence and expand its service offerings in the international health insurance market. As the company continues to grow its domestic and international operations, investors and stakeholders will be watching closely to see how these strategic moves translate into long-term value creation.

Medi Assist Healthcare Services Limited , a leading health benefits administrator in India, has reported mixed financial results for the quarter ended September 30, 2025, marked by revenue growth but a decline in profitability.

Financial Performance

For the quarter, Medi Assist reported:

• Consolidated revenue from operations of ₹2,825.85 million
• Profit after tax of ₹206.70 million

For the six-month period, the company achieved:

• Revenue of ₹5,055.51 million
• Profit of ₹439.80 million

Strategic Developments

The company reported several key strategic initiatives:

1. Completed the acquisition of 100% equity stake in Paramount Health Services and Insurance TPA Private Limited on July 1, 2025, for ₹4,124.40 million after closing adjustments
2. Allotted 37,01,000 equity shares at ₹535 per share on October 10, 2025, raising ₹1,980.04 million through private placement

Regulatory Scrutiny

Medi Assist disclosed that the Directorate of Enforcement conducted a search and seizure operation at offices of its wholly-owned subsidiary, MediAssist Insurance TPA Private Limited, in Ranchi, Jharkhand on April 4, 2025. The operation was related to the administration of the Ayushman Bharat health scheme. Management has assessed that there is no adverse impact from this operation based on current information.

Future Outlook

Despite the mixed financial results, Medi Assist's strategic acquisitions and capital raising efforts suggest a continued push for growth. The company's performance, coupled with its strategic initiatives and regulatory challenges, paints a picture of a company navigating a dynamic healthcare services landscape while balancing growth ambitions with profitability.