Medi Assist Healthcare Services Ltd (NSE: MEDIASSIST) Q1 2026 Earnings Call dated Aug. 07, 2025
Corporate Participants:
Unidentified Speaker
Neeraj Dhwania — Senior Vice President Strategy
Satish V N Gidugu — Chief Executive Officer
Sandeep Daga — Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 earnings conference call of Medi Assets Healthcare Services Limited as a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on attached on phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Neeraj from Medi Assets Healthcare Service Limited Vice President. Thank you. And over to you sir.
Neeraj Dhwania — Senior Vice President Strategy
Thank you. Good evening and a very warm welcome to each of you to Medi Assist Healthcare Services Ltd. Q1FY26 earnings conference call. The results of the company, the press release and the investor presentations have been uploaded to the stock exchanges on our website and also distributed through our mailing list. Please note any forward looking statements are to be relied upon based on your own judgment and all financials and operating numbers discussed on the call are unaudited and management estimates and hence investors should refer to only the uploaded financial statements of the company. Without further ado, I would now like to hand over the call to Satish Vidhugu, CEO and whole time director of MEDI S Healthcare Services Ltd.
Satish V N Gidugu — Chief Executive Officer
Thank you Neeraj. Good evening SKM investors, analysts and all participants joining us from India and around the world. Thank you for taking the time to. Join us today as we review Medius performance and strategic direction amid the dynamic. Evolution of India’s health insurance landscape. I’m pleased to be joined by our. CFO Mr. Sandeep Dagga and Mrs. Nivania. Who’S senior Vice President Strategy who also leads our investor relations function. I would quickly share some key operational. Highlights for our company performance for the quarter one and then take you back to the investor presentation we had uploaded some time ago.
The total premium under management was 7776. Crores as of 30th of June 2025. Which is a growth of 18.5% year. On year and this growth came in. Both group and retail. Group clocked a growth of 20.4% year on year. Growth and retail, while there’s been a. Significant mix change in the way we. Operate, retail clocked a growth of 0.2%. All in all between group and retail in terms of health insurance premium administered, our total market share went up to 23.1% as of June 2025 as against. 21.3% as on 30th of June 2024 the group segment market share moved up. To 33.2% from 30.2% the same period. Last year and retail Segment market share. Is 5% against the 5.5% last year.
Thank you for your continued support and confidence in Mediasys. I will now switch to the presentation that we have uploaded and I will. Read out the slide numbers as we. Flip through the decks to recap some. Of the important points. I’m on page three. I think we briefly spoke about some of these aspects in our previous call from one of our focus areas for. Medi Assist where they continue to be. Strengthening our proposition as a holistic health. Benefits administrator continuing to grow across all. Key segments which is Group Retail, Government and International Private Medical Insurance which is. The IPMI market and continuing investments in technology to drive scale and leadership innovative offerings delivering incremental stakeholder value and consistently improving financial performance along these focus areas. As I switch to page four, we’ve. Started talking about what we do as a TPA within the Mediasys Group and also how we are expanding the scope. Of our services to be a well rounded health benefits administrator, predominantly working towards offerings beyond the traditional TPA offerings including.
But not limited to technology platforms, fraud.Detections, network personalization and also supporting insurers. With in house operations with our technology offerings. And we’ve started reporting some of the. Key metrics around our HBA proposition. So today there are three insurers operating. On Medi Assist Technology platform on a standalone basis. The number of insurers using our network exclusively has moved up to 19 from 17 the last time we reported. There are three now full scale AIML. Products that are available generally available for. Our partners to use. These include adjudication capabilities for prevention and. The entire prediction of out of pocket. Expense leading to a very quick or. Almost no weight discharge. And our self help tools that we are developing continue to improve. Over 41% of all inbound queries of customers today are getting answered by our self help tools. Page five has a quick snapshot of growth across our key segments Group Retail.
Government and IPMI Group we continue to. Maintain our market leadership with a 33.2% market share in Q1. We’ve clocked on a much larger base. A 93.4% retention including some of the. Calls that we’ve taken for quality of. Revenues and all in all over 10,000 corporate accounts are managed by us and. Within the group business. The premiums that we service for private and FAHI insurers, that portion has actually. Grown by over 20% and all of. These numbers that we are seeing today in terms of premiums and market shares or Medeas is standalone without any of the Paramount numbers included for the first quarter. We’ve signed Paramount on 1st of July. So all of the Paramount consolidation will start from Q2. And similarly in retail, our tech led customer first approach and focus on technology. Allowed us to significantly change the mix. Of how we operate in retail. While the overall premium base growth is at 0.2% on a quarter on quarter basis, the premiums that we service for private and SAHI insurers grew by nearly 89% from the same period last year.
And if you were to include the technology offerings, the portion of retail that. We touch for the whole industry is. Much larger and does not necessarily reflect. In the premium based reporting that we. Currently share with you. In the global business, Mayfair arm of ours has had phenomenal growth. The revenues grew 35.6% from the same. Period last year and with our continued. Access to over half a million providers. Across 185 plus countries and increasingly working with Indian insurers who are providing global. Add ons and beginning to integrate with many of the Indian retail insurers. Lastly, on the government side, government saw. Healthy growth especially as the government schemes. Are becoming much larger in scale and. With renewed emphasis on how the administrator’s. Choice is actually made in some of these government schemes. MediaSyst has been able to differentiate itself as a provider of choice in many. Of these government schemes and we’ve seen.
A pretty healthy growth even on the government segment. And I will skip on page six just a couple of points that I want to bring to your attention. We processed over 22 lakh claims just within the group and the retail business in Q1. That’s the scale that our technology platform. Today is sort of able to give us. And one of the questions that we get frequently asked is what are you spending on technology? Our quarterly spend towards technology as a percentage of revenue are between 5 and 7% now as we continue to double down on our investments. Moving on to page seven, we have. Improved on some of our innovative offerings to the overall market. The Navigator which allows people to estimate. Out of pocket even before going into. A hospital and then make prudent financial decisions. We have seen behavioral changes where members using this facility are actually changing their. Room type choices at the time of. Claiming and thereby reducing their out of pocket incidents. And. Next to it is how we. Use similar technology for enabling quick discharges or express records. The program that we call as Raksha prime.
We allow over 67,000 patients to walk. Out of the hospitals even before the. Bills got generated in the quarter that just ended. Of course, our global platform, our analytics and insights continue to improve on a. Regular basis and we briefly spoke about. Some of the aspects of a consent. Feature the last time we now send. The consent some kind of a provisional approval for the members to sort of. Give us feedback, ask questions, get clarifications before our claim outcome is finalized and. Shared with the member. We’ve seen nearly 60% of our members acting on the consent or the provisional. Approval request that we sent, with less. Than 5% of that number asking for a clarification or a change. As we move to the next page, page 8 we continue to improve our AIML frameworks to eliminate fraud, waste and abuse. This is our flagship product in RAML Stack. We’ve the total fraud basin abuse savings for the quarter are 160 crores in Q1. This was close to 50 crores in Q1 last year. So it’s been like a 3x improvement in the savings that we are able. To deliver to our insurance partners and system. And AI led fraud detection has now cost 80% of all frauds that we. Detect and this number continues to improve. And as we move forward through page nine.
As we’ve completed the integration of. Most of the acquisitions that we’ve concluded. Earlier with medvantage and specifically our EBITDA. Margins which at the lowest point in H1FY24 were at a 20.7% on consolidated. Basis, have been steadily improving quarter on quarter. We’ve reported a 22% margin in Q1 FY26. Happy to note that the performance is. Continuously improving quarter and quarter and also. Some of our other metrics that we’ve historically tracked like the annualized revenue per. Attitude headcount has now moved up to 14.9 lakhs and the pack margin. As. Reported, despite the impact of the acquisitions. Which is of course of non cash. Nature, is still at 11.4% at a very healthy rate. As we move to page 11 to. Quickly spend some time on the operational. Highlights and we spoke about the growth. In the overall premiums and the group and the retail premiums. We continue to improve our market share on the whole and expand our leadership. In the group segment.
And when I. Go to page 12 probably we will skip some of these details and take this as part of the Q and A. And the only thing of importance here. For me to share with you is MEDI Assist Insurance TP Ltd. A wholly. Owned subsidiary of your company has successfully. Closed the acquisition of Paramount Health Services. In Insurance TP on 1st July for. A final purchase consideration of 412.4 crores. Being the equity value of repurchase and. We’Ve continued to win some awards for the work that we do using AML in this space. We have won Best AI Apps Implementation Teams, Data Driven Insights and in one. Of what is probably one of the. Most defining quarters for our growth, not just the growth in the TPA business with the acquisition of Paramount, we’ve also entered a strategic partnership with Star Health. And Allied Insurance Company, India’s largest retail. Health insurer, to deploy Matrix, our proprietary. AI civil automation in a first place platform. These are some of the quick highlights from our performance. I will now hand over to Sandeep. Our CFO to give you a quick set of financial highlights for the quarter before we open the floor for questions.
Sandeep Daga — Chief Financial Officer
Thank you Satish and a warm welcome. To all the participants. The financial highlights for Q1FY26 are as follows. Total income was 198 crores which was equivalent to a growth of 14.5% over the corresponding period of the previous year. Revenue from contracts with customers, excluding other income we call it as operating revenue was 190.6 cf which was a growth of 13.6% over the corresponding period last year. Revenue from contracts included 11.1 percentage from the government business, 5.6 percentage from the international benefits business and 2.5 percentage from the technology services which Satish spoke about. Moving on to the margin profile, EBITDA excluding other income which we call it as operating EBITDA was 42 crore which was a growth of 19.3 percentage year on year over the corresponding period last year.
This is equivalent to a 22.0 percentage of operating revenue. The profit for the year was 22.6 Cr which is equivalent to a growth of 8.7 percentage on the reported tax year on year and equivalent to a margin of 11.4 percentage on the total income. Few of the key numbers from the. Balance sheet are as follows. The net cash balance in the books was 312.6 cr. The net worth was 577.4 cr. The return on the net worth was. A healthy 15.7 percentage annualized which is equivalent to 3.9% for the first quarter. Return on capital employed was 21% annualized equivalent to 5.3 percentage for the first quarter revenue per average headcount, which again Swetish spoke about under non government contracts was INR 14.9 lakhs annualized equivalent to 3.7 lakhs for the quarter. I now hand over the call back to Neeraj.
Questions and Answers:
Neeraj Dhwania
Thank you Satish. Thank you Sandeep. We can now open the call for questions from the participants. If you have any questions please direct them to Satish who will in turn ask ask the conference team member to respond.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star N1 on the touchdown telephone. If you wish to remove yourself from question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Chintan Seg from Greek Capital. Please go ahead.
Unidentified Participant
Yeah. Hi Tinder. Congratulations on the set members and onboarding staff. That’s a great validation of your platform. And offering you.
Satish V N Gidugu
Tint. We are not able to hear you very clearly. Just if you can speak little louder and slower. We are not able to hear clearly.
Unidentified Participant
Is it audible now?
Unidentified Participant
Much better.
Unidentified Participant
Yeah, thanks. I was just congratulating team on onboarding Star as a, you know, as one of your SaaS model and gives us a great validation on the, on the platform and you know, product you have created. A couple of questions. One was on the premium growth despite you know we have overall growth has been 19% yy largely driven by group retail still, you know, flagging, chugging along sub 1% growth. If you can elaborate on what’s happening there on the retail side, that would be one. And if I look at your revenue growth, acts of revenue, government and IBPI and technology services business, the core TPA revenue has grown slower than materially slower than the premium growth.
Typically it lags, you know, premium growth but this time around the growth has been slightly higher. Slower than materially slower than the premium. Good. If you can elaborate on that. And lastly on the Star health engagement, if you can provide some color, how should one look at. Because it’s not linked to premium I believe. How should one look at, you know, a business coming in going forward? How should one look at the 2 and a half percent technology revenue as a percentage of revenue scaling up with the Star engagement.
Satish V N Gidugu
Thank you Chintan. Satish here. Maybe we just go in the reverse order. I think right now like we said, we’ve historically not reported to the client or a customer level from a revenue perspective. But if you noticed we have added our technology LED services as a percentage of revenue. This Time which is the 2.45%. And I think, and of course deals or transformations of this magnitude will take a few months of lead time for 100% of the volumes to sort of, sort of kick in. But I would only sort of request that you watch the percentage of the technology services revenue and we will obviously continue to report the growth on it separately.
So from the tech perspective and on. The group side and of course I think you got that exceptionally well, we’ve had a phenomenal quarter while our retention was at 93.4% on the same store site. We’ve also added thousand crores of new. Corporate premiums in quarter one, which has. Been one of our largest and biggest quarters ever from a new corporate win. And all of the new corporate wins as a premium is being reported. But as you are aware, much of the revenue sort of gets pushed back into the subsequent quarters given the 12 month difference. So that’s pretty much the reason for the incremental lag between premium to accounting revenue. Translation.
Unidentified Participant
Okay, got it.
Satish V N Gidugu
And on retail of course. So retail historically we’ve done it in multiple ways. One with private Sahi, different constructs and the PSU insurers which are also largely allocation based and anytime the allocations change, typically there is a dip and then there is a time to bring it back up. So part of the slow growth is. Partly the seasonality and the reallocation of the underlying portfolios. But if you notice today the private and SAHI premiums in our retail premiums are already at 42% and that’s an area where we have made significant gains since the same period last year been almost 99% growth. But one of the things that I will also sort of directionally share with. You is that it is likely that. Not all the retail work that we do will be reflected in a premium based model going forward. It is also likely that some of the solutions that we are deploying on the technology side will sort of also address the in house and the retail opportunity. So I think going forward it will be a good way to look at both retail and the technology services.
Unidentified Participant
Right, Put it again. Okay, got it. And on the fundraise the cash is still on books. I think the deployment happened post a quarter once the deal concluded with Paramount. Right. That will be the right way to look at. Right. The presentation still says net net cash. We, we still hold. So I was just confirming that. Okay, okay. That’s what it. I’ll join back in queue. I’ll join back. Thank you.
operator
Thank you. The next Question is from the line of Niharika Karani from Cap Grow Capital. Please go ahead. Hello.
Unidentified Participant
Hi, good evening. So my question was on. If we. See the top line has largely grown by acquiring Raksha and now Paramount. So is there any other acquisition in plan right now and if not, what would be the top line drivers?
Satish V N Gidugu
I think the Q1 numbers are standalone of the growth that we reported does not have any of the Paramount numbers. The Paramount closing is with effect from 1st of July, so we will be. Able to talk about it in Q2. Even historically if you factor growth from say 22 March to March 25, we’ve. Doubled our premiums and of which only. About 20% of those premiums came in. From the acquisitions, little over 20% but. Much of that has been same store growth, retention, benefits, expansion and organic sort of new corporate fields. That absolutely continues to be a focus. Area and you’ve seen that in the. Group market share increase this year. And from a top line, I’ve just answered the previous question to Chintan saying retail will potentially address retail in two models which is the standard TPA services for many of the insurers offering retail and plus also the technology and other. Services for what traditionally has run as. In house in retail. You’ve also seen us grow fairly well on the government business side. Government business contribution to the business in. Fact has gone up and you also. Noticed that at the same time our margins have also improved. So the quality of the government business, the scale of the government business and the opportunities is something that is very exciting and we’ll continue to stay invested and stay focused on the government. And lastly the other last growth driver we spoke about is our international business. Mayfair, which has also clocked over 30%. Growth in revenue for the same period as more and more Indians are traveling abroad, be it for travel, be it for elective surgeries or for short term medium term reputations from their employers. Today as Mayfair we have fairly integrated. Solutions that allow our Indian corporate clients and the insurer partners to seamlessly access global networks for hospitalization. That sort of that thesis is beginning to play off. So I would say we continue to be equally focused on all the four. As growth levers and acquisitions of course. Are strategic in nature, not just only for the top line. And as and then such a right opportunity comes up we will certainly evaluate.
Unidentified Participant
Understood, understood. Thanks for the detailed explanation. And one more question is on the HPA part. So right now we know that it’s a minimal percentage of revenue, but how do we foresee it in Future like right now, TPA is 90% of revenue. So do we see kind of 50, 50, 60, 40 or how do we plan to grow this HPA service?
Satish V N Gidugu
Maybe it’s a little early for us. Because you know, if you look at our transition, of course we became the. Partner of Choice for over 23% of. The industry today by premiums. I think the phase where we are is all of the technology that we build is at an industry scale. We are able to componentize our offerings now and whether it is for detection, AI capability or navigation or discharges or the entire network as a service. And I think we have reasonable number. Of conversations in place. But I would at this point not go into guiding anything else. But from a non PPA perspective, we should look at both the international plus. The tech as a diversification and that’s. Fairly recent over the last two, three. Years and that will continue to expand.
Unidentified Participant
Understood. So do we see any margin expansions from here onwards? From 22%, you know, we have grown from 21% similar period last year to 22% or do we kind of be in the same range?
Satish V N Gidugu
Right. So I think we’ve always said this consistently in our conversation. Since the pre IPO road shows, we believe our steady state margin in the TPA business should be at 23, 24%. That’s what, that’s where we were prior to the whole scheme of acquisitions. And we’ve consolidated where it is 22%. And of course we’ll continue to improve our efficiencies using technology. But of course with sort of paramount. Consolidation coming in for what, five to. Six quarters, we’ll probably see about 250 basis points kind of an impact on the consolidated margins. Of course part of that will be offset by our productivity and efficiency improvements, but that’s something that we should keep in mind. And then the consolidated base getting it Back to the 23% will be our focus.
Unidentified Participant
Understood. Thank you so much and all the best.
Satish V N Gidugu
Thank you.
operator
Thank you. A reminder to all the participants. You may press Star in one to ask question. The next question is from the line of Madhukar Lada from Nuama Wealth Management. Please go ahead.
Unidentified Participant
Hi everyone. Congratulations on a good set of numbers. So a few questions from me first. See, the retail premium under management has not grown as much as I think. In the opening remarks you did mention some change in the industry. Can you elaborate on that? Second, can you give me what the contract liability number for at the end of Q1 is? And third on the tech, you know, SaaS business how are we billing customers? What is the thought process? Will it be as a percentage of premium that they manage? Will it be sort of a lump sum number? And I wanted to also understand what sort of costs can be associated to that cost of servicing that SaaS, you know, part of the revenue.
So theoretically, you know, two, three years down the line, what sort of margins should we be thinking about in that business? And lastly on Paramount, you know, I know that typically when you announce an acquisition after that a lot of the customers they directly renew with Medi Assist. So given that now, I think we announced the acquisition last year in August and we’ll be integrating only from July this year onwards. Can you give us a sense of how much of that 150 odd crores has already been renewed at Medi Assist and how much will sort of has been and how much of that is still lying with Paramount? Yeah, so those would be my sort of four questions.
Thanks.
Satish V N Gidugu
Thanks Madhuja. I will do my best to answer them in the right sequence. So our contact liability number is 288crores as of 1. 288 is the number. This was 238 as of March. So that’s the increment in the number. Right. Now on the tech and on retail. It’s not necessarily a change in industry. It is basically two things, right? One, we work with multiple insurers in multiple templates. We work as a TPA with the insurance companies. In the retail portfolio we work for. Private SAE and public sector insurers. Some of the portfolios, especially the public. Sector insurance are more an allocation based portfolio. So there are occasionally changes in the allocation and then one has to sort of work back through realizing all of the portfolio that’s been sort of allocated. So there’s a bit of that change that is currently, you know, in the current year numbers. Whereas in private, in Sahi and I think we did report in Q3, Q4 last year that we’ve added some more insurers on the private savvy segments for.
Retail and now sort of we are. Operational in those relationships. And that’s where you see that on a standalone basis the component of private and SAHI retail has grown by 89% while the overall growth because of the mix impact or the reallocation is looking like 0.2%. So this is an area that we’ve. Spent a lot of time on and. We continue to work very closely to bring all of the innovation, the tech. To the retail side of the business. Like I also answered in one of. The earlier questions, it is also possible that some of the retail or retail. Like products that are typically in house and we believe we now have solutions. That can offer that we can offer to those portfolios be it whether claims. Technology or analytics or fraud based and abuse prevention or even entire cashless network. As a service or the whole raksha. Crime as a service. So these are some of the offerings that we are now in a position. To make available to standalone portfolios even where we don’t have a TPA relationship.
And hence it is likely that some of the work that we do in. Retail in future could potentially also show. Up as a technology revenue, not only as a premium based revenue. That brings us to the tech and the SaaS questions that you had. And of course. I think the good. Thing about the platform is that we’ve. Always built platforms of industry skin including. The platforms that we previously carved out which are now the largest in their respective industries today. Matrix for Medius is standalone itself allows us to process over 22 lakhs a. Quarter and with some of the other insurers potentially even if on a pro. Forma basis over 30 lakhs of claims a quarter. That’s the scale at which we operate. So we believe that we’ve created a. Platform that some insurers are beginning to like evaluating as an option especially as they rethink the scale and the product innovation and the speed that is required to automate. And Matrix as a platform sort of also has de facto integrations with much of the industry fraud detection engine already is. I would like to believe that multiple times more efficient even compared to our own numbers of last year Q1 where we saved 50 crores in terms of frauds we saved 160 crores in this Q1. So these are capabilities that are continuously improving and hence I think the pricing models Malikar will evolve.
But the base pricing model for the claims technologies on a per claim basis is a SaaS fee. We typically have multi year contracts with a fixed fee for the entire duration of the contract. Fixed incent the fee is fixed at a per claim level sometimes even with. Some amount of inflation in the base technology platforms. We expect that in some of the other AI led models the industry will sort of move towards outcome based pricing because this is pure value and pure outcome. But these are slightly early days Matakar and I think we will have a lot more color on this in the next few quarters as they figure these models out. Lastly on paramount of course until 30th. Of June all wins were Pure competition. Because we were competitors competing in the open marketplace until we signed on 1st of July we expect. So right now, irrespective of whether the customer already signs with Medeasys or not, Paramount is 100% only owned subsidy of Mediasys insurance, TPA. So from a customer and reason experience perspective it is absolutely one. And of course there’s a bit of an operational alignment and system alignment that will happen over the next four five quarters. And from a revenue perspective, while Paramount was an IGAP and then after India’s recast and after adjusting the revenue recognition models to be aligned to our models, we expect little over 140 crores a year in the India’s format to sort of accrue from, you know, what we have as numbers.
So that’s the kind of ranking. There’s a little bit of that that we had already won in the open marketplace earlier. But that’s sort of the size at which Paramount will come at.
Unidentified Participant
So. Okay, just, you know I’ll just first on the last bit. So of the 140 odd there is some bit that you have already won in the open market, what would that number be? And then.
Satish V N Gidugu
I’m sorry for interrupting. The 140 is the Pro forma India converted number. As of closing, this does not include any.
Unidentified Participant
Understood, understood. So. So the 140 will get added. 140 run rates will get added from basically July onwards. Effectively. Got that. And then on the, on the SAS platform you mentioned it’s on a number of claim basis. Yeah. So is that the, is that the right way to build something like this? I mean, or shouldn’t, shouldn’t you try and price it on the premium? Because I’m wondering if we miss out on claims inflation then.
Satish V N Gidugu
No, I think. Thanks for looking out for us. This is our transaction processing system. You know, I think after multiple rounds of understanding we found this to be the most transparent way to work with our customers. And I think it’s about arriving at. The right kind of a transaction pricing. To be fair and in line with.
Unidentified Participant
And I think you missed on, you know, margin. What, what’s, what can be like, what’s the cost of, for doing, for providing this as service? What sort of, you know, do we have dedicated people? Obviously we’ll probably incur some costs on this site, so how should we think about that?
Satish V N Gidugu
So historically we’ve not broken down our business lines by margin. I think what I can tell you. Is that there’s obviously a significant amount of reuse that’s available from our engineering and infrastructure possibility. Of course, we expect these margins to. Be better than the core margins. Absolutely. Right now I think the scale is. Too small for us to give you. Any kind of numbers, but at the right time we will.
Unidentified Participant
Yeah. I’m guessing that at slightly better scale, the margins would be much better than the 22, 23% EBITDA margin that we’re talking about. If this piece comes up.
Satish V N Gidugu
Yeah, it’s a very logical assumption. It’s a very pain and logical assumption. Yes.
Unidentified Participant
Yeah, yeah, understood. I’ll probably, you know, speak to you offline more on this. Thanks a lot.
Satish V N Gidugu
Thank you.
operator
Thank you. The next question is from the line of Rishi Junjunwala from IASL Institution Securities. Please go ahead.
Unidentified Participant
Yes, thanks for the opportunity. Satish. One thing just wanted to understand. While our overall revenue growth has been fairly healthy in this, you know, otherwise relatively muted environment, if you just look at our core business, right. Exof Government International Technology Services, our revenue growth has decelerated even in this quarter and has been on a decelerating trend itself. I think 7% year on year premiums are still growing at 19% under management. So just wanted to understand the dynamics in terms of why the revenue growth gap is so, so much more than what the premium growth is indicating in this business and what will drive this back to say, low to mid teens kind of a growth over the next 12 to 18 months.
Satish V N Gidugu
Thank you, Rishi. I partly sort of addressed this in one of the earlier questions. So this quarter has been the other. Way to look at the revenue decelerating. Is that we’ve done a great job in adding lots of new premiums in this quarter. We’ve added over thousand crores of new Corporate wins in Q1 alone. And given our revenue recognition, we sort of spread it over 12 months. And when we report the full premium, there is artificially a higher lag between. Premium and the revenue growth. But structurally nothing else has changed. From a market perspective, our yields are stable both on the new wins and on the retention business. Of course, there is underlying softness in the group business that you are fully aware of in terms of the same store growth. Historically, about 50% of our same store growth of McTeams used to come from lives growth, employment growth or the membership growth. Right now I think that’s a softer side, but we’re seeing a lot of the growth from benefits expansion and a lot of sort of employees opting in for higher kinds of benefits.
So there is a little bit obviously. A softness in the same store growth. And Given the absolute size of the retaining portfolio that we have, it might look a little subdued, but we are very comfortable with both our retention and the way the same store growth is. Running and our ability to continue to. Add new accounts organically.
Sandeep Daga
And just to.
Satish V N Gidugu
Go ahead me just.
Sandeep Daga
To add on the premiums versus the revenue, any one or two quarters will not be the optimal time to look at it. Over a full year of operations you’ll see the lag being very low, which is what we’ve always guided that there will still be a lag because of the mix of premium and what revenue we recognize. But if any one or two quarters are picked up, sometimes the gap would be substantial. So it’s not a true representation.
Unidentified Participant
That’s not, I want to say, fair enough. And just a clarification, none of this is getting impacted by the one by n accounting that has happened on the health side for us at least, right?
Satish V N Gidugu
That’s right, Rishi. We’ve never been impacted by that. We’ve always recognized as like one by. Whatever is the number of one by. Okay, okay.
Unidentified Participant
And the second question is on technology services, right? So. So firstly this two and a half percent, is it all fresh revenues in this quarter that has come up because I remember in the past also there used to be some revenues on data services and all that used to provide. So is this completely fresh? And secondly, in terms of, you know, the profitability, right. I’m assuming a lot of these, basically these technology services revenues are coming out of all the tech investments you have done over the years. And so incremental cost there would be minimal and as a result this will be a very, very high gross margin business.
Satish V N Gidugu
So the 2.5%, you’re right, we historically had, but we never reported that and called out separately. So it’s a combination of mostly existing. Revenues and some new revenues as the. New ones are sort of taking off. Over a period of time. Right. So it should only hopefully look different as the scale of some of the new deployments increases from a cost perspective. Of course, like I said earlier, this is, this has all the characteristics to be a much higher gross margin business. Given that typically in our other contracts. Where we have people deployments, the cost of people tends to be a pass through cost which also dilutes margins. So this one is a pure technology cost. So the gross margins are certainly better in the tech services business. The only thing that I would nuance, Rishi, is it’s not that we have. A product that we created a couple of years ago and that we will continue to sell. This is an evolving and growing industry. So there will be continuous improvements like some of the online or data center products that you’ve seen before. But yet on the whole the gross. Margin should be better.
Unidentified Participant
Okay, thank you.
operator
Thank you. A reminder to all the participants, you may press Star in one to ask question. The next question is from the line of Prithviwesh Uppal from Alara Securities. Please go ahead.
Unidentified Participant
Yeah, hi, thanks for taking my question. And most of the questions have been answered. Just wanted to get some sense in within your group premium under management if you could possibly give a allocation of how much is coming maybe say from you know, IT and IT services and you know, with recent news around slowdown in or you know, in job hiring and in the likes, you know, just wanted to get your sense in terms of how you could possibly see that impact on the group side for the of the business at both the industry level and for you.
Yeah, that’s the only question.
Satish V N Gidugu
Thanks Prasvesh. This is Satish here. So you’re absolutely right. But I think that’s where our real how we looked at group and business acquisition has changed over the years. Maybe four, five years ago we had almost 65, 70% of our premiums coming. From ITS and BFSI which were the. Largest obviously and the most benevolent employees from benefits perspective. But today if I’m not wrong, it should be, you know, sub 30, 35% of you know, within the top 50 in fact, which are the largest. It’s not something that we review every day, but we have significant diversification that we brought in in the Arkon Sephi service. So we have fair bit of presence in the top 50 in most industries today, be it manufacturing, be it automotive. Be it pharmaceuticals and so on. So there is a fair bit of. Diversification and cushioning and of course in. Some of the specific industries that are. Possibly more impacted by reduction in discretionary spending globally and also by AI where. We are seeing a bit of compensating. Factor is retaining the remaining talent has. Become far more important than ever before. So we’re seeing significant benefits expansion in. Many of these corporates and both voluntary. And also sort of opt in kind. Of benefits where we’ve seen the average. Ticket size at an employee level and a family level substantially go up. That’s not fully compensating for the lives. Slowdown but significantly compensating for it. In fact, I would say much of the same store growth that you see. Today is coming from this phenomenon and. We expect this to sort of stabilize over a period of time.
Unidentified Participant
Okay, yeah, that’s it, that’s it. From my side. Thank you.
Satish V N Gidugu
Thank you.
operator
Thank you. A reminder to all the participants, you may press star and one to ask question. The next question is from the line of Trenton State from Greek Capital. Please go ahead.
Unidentified Participant
Thank you for the follow up. Just one clarification on the premiums now with the industry reporting one by N. Doesn’t it get reflected in our premium report or it’s still just trying to understand, you know that piece.
Satish V N Gidugu
No, Chintan, it doesn’t because we’ve always. Taken premiums and spread it over multiple years. Even, even in the retail portfolios that. We’Ve managed we’ve always recognized premium on. An annual basis and within that year on a one by 365 basis.
Unidentified Participant
Yeah, revenue I understand but the earlier industry was not reporting premiums in one by N. Right. They were reporting as it as and when it was getting collected.
Satish V N Gidugu
But we’ve always reported, we’ve always reported the premium that we used for booking revenues.
Unidentified Participant
Got it. And the fundraise, if you can just highlight more on, you know the use of that fund would be helpful and timelines of it.
Satish V N Gidugu
You know I will start and then I’ll hand over to Neeraj and of course I think we’ve so we have. I think multiple things in place as an organization today. While of course we continue to be sort of very aggressive on growth, growth opportunities across multiple dimensions be it within. The TPA business or IPMI business or. Even the investments that are needed to really grow the technology services as a viable line of business. And secondly I think as a significantly publicly held company sometimes you’re also looking. For investors with long term perspective who. Can add heft to the cap table. And patient and with meaningful ownerships. And then of course there is an opportunistic piece about retiring the debt. While of course over a period of time given the very strong cash generation that happens at our company, we can retire the debt on our own. But there is an opportunity sort of to free up that capital for growth rather than only for debt servicing. So when we look at all of. These two or three factors and a well respected name with a meaningful ownership. So we have a term sheet for a preferential allocation that the board considered today and accepted the offer and approved differential allotment predominantly. I think we’ll talk about the objects etc when we send out the notice, you know, to the shareholders in the next couple of days. But I think that’s sort of giving you an indication of what are our areas that continue to occupy our mindset today?
Neeraj Dhwania
Yeah. Just to add, we. If you remember, in February this year we took a in principle from the board. Yeah. And that was to the tune of 350 crores. And we always maintained with the investors that while there is an intent to look at our capital structure, the exact amount and users and objects we will come back to at the right time. And this was a very marquee. So like Satish said, this was solving for the cap structure where we do want to maintain healthy cash reserves given our scale, given the speed at which we are able to move, has also sometimes helped in maintaining the leadership position.
And also from a cap table point of view, we do look at welcoming long term, decent sized shareholders. And this was something that fitted both those things. That’s how we went ahead.
Unidentified Participant
All the very best. Thank you for the answering question.
Satish V N Gidugu
Thank you.
operator
Thank you. The next question is from the line of Varun Kajaria from Omkara Capital. Please go ahead.
Unidentified Participant
Congratulations on a good set. Just wanted to, in case I missed. It earlier, just wanted to check what is our, what is our 25? What is our 2015?
Satish V N Gidugu
Sorry, Varun, it was not very clear. Can you say it littlely and slowly? We were not able to get the full question.
Unidentified Participant
Yeah. Am I audible?
Satish V N Gidugu
Yes.
Satish V N Gidugu
Yeah. I’m sorry if I missed it earlier. I just wanted to check how does our 20 upside 26 look like and probably the consequent year will.
Neeraj Dhwania
Are you, are you asking about how the FY26 is expected to look at in the following year in terms of financial.
Unidentified Participant
Yes.
Neeraj Dhwania
See, we don’t give any forward guidance but as you can see, and it’s from a track record, we’ve generally always said that we will grow at the industry rate or faster and we have sort of published our last couple of quarters in terms of improving margin profile. Of course, Paramount is something that has just closed in the current quarter. So with Paramount, how the consolidated numbers will pan out? Of course it will. It will add very meaningful growth because it’s a sizable scale of book portfolio. They were number two in group. But in terms of the financials, you will have to wait till how the Q2 pans out when we report console numbers with Paramount.
Unidentified Participant
Thank you.
operator
Thank you. A reminder to all the participants. You may press Star in one to ask question. The next question is from the line of Anand, an individual investor. Please go ahead.
Unidentified Participant
Thank you for taking my question. I wanted to ask one, one question about our AIML framework. If you have to compare this with what all solutions are available across the world. How do you compare these solutions?
Satish V N Gidugu
Thanks. That’s a great question. We are very different as a market and from a reality perspective, compared to the rest of the world, there are markets that spend over a quarter of the premiums in administrative costs. While you can see that our efficiency today is at a 3% blended. But having said that, our industry suffers. From a couple of issues. Some of them are like the hospitals do not have any electronic standards either for membership records or for even the billing or the discharge summary. And insurers don’t have standard formats for how they issue policies or underwrite or capture identity and other information. So we have some very unique challenges as a country today. I think this is where we’ve spent a lot of time over the last five years or so and carefully digitizing practically everything that came our way. We digitized today over 80% of all the bills at a line item level.
And we spend a lot of our energy curating data and creating extremely large. Volume of records that are curated and. Ready for use and for us to build good quality AI models. And that’s where we spend the first four years creating this infrastructure. It’s the last 18 months or so where you’ve seen a lot of our work sort of come out of this. And to give you some examples today, you know, when we used to, for example, when we had to sample for. Fraud, we would rely on our individual. You know, medical officers to sample a file and potentially flag off saying, hey, this looks like fraud. Could you send somebody over to sort of physically verify? And we used to have our hit rates as low as, you know, two out of 100 or four out of. 100 times we would find because that was a sampling inefficiency today, especially in. Fraud triggered cases, our sampling efficiencies are over 60 to 70%. So that’s how we sort of building these models. I personally believe that we have lots. Of uniqueness in this market and where. We can add significant value to the entire ecosystem. And I would also like to sort of believe that we probably are ahead. In terms of the kind of data creation that we’ve been able to achieve and the kind of training that we’ve been able to achieve with, you know, millions of data points and our general. Ability to build things at scale and. Integrate and make it more viable for the ecosystem. So I cannot speak for the others, but I think this is where we are today.
operator
Thank you. As that was the last question for the day, I hand the conference over to Mr. Neera Neeraj for closing comments. Over to you, sir.
Neeraj Dhwania
Thank you, everybody, for very active participation. And we are available offline for any further queries.
operator
Thank you. On behalf of Medisit’s Healthcare Services Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.