Please enter your entry number key, and welcome to the Q1 FY 2026 Earnings Conference Call of Medi Assist Healthcare Services Limited. As a reminder, all participants are in the session 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 your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Niraj from Medi Assist Healthcare Services Limited, Vice President. Thank you, and over to you, sir.
Thank you. Good evening and a very warm welcome to each of you to Medi Assist Healthcare Services Limited Q1 FY 2026 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 to 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 described on the call are unaudited and management except, and hence investors should prefer to only be updated financial statements of the company. Without further ado, I would now like to hand over the call to Satish Gidugu , CEO and Whole-Time Director of Medi Assist Healthcare Services Limited.
Thank you, Niraj. Good evening, esteemed 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 Medi Assist Healthcare Services Limited's 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 Daga, and Mr. Niraj Didwania, who is Senior Vice President of Strategy, who also leads our investor relations function. I will quickly share some key operational highlights for our company's performance for Q1 and then take you back to the investor presentation we had uploaded some time ago. The total premium under management was INR 7,076 crore as of June 30, 2025, which is a growth of 18.5% YoY. This growth came in both group and retail.
Group clocked a growth of 20.4% YoY, and retail, while there's 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 30, 2025, as against 21.3% as of June 30, 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 Medi Assist Healthcare Services Limited. I will now switch to the presentation that we have uploaded, and I will read off the slide numbers as we switch to the next to recap some of the important points. I'm on page three.
As we briefly spoke about some of these aspects in our previous call, some broader focus areas for Medi Assist where they continue to be centering 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 sales and leadership, innovative offerings, delivering incremental stakeholder values, and consistently improving financial performance. Along these focus areas, I will switch to page zero.
We started talking about what we do as a TPA within the Medi Assist Healthcare Services Limited 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 offering, including but not limited to technology platforms, transportation, network, personalization, and also supporting insurers with in-house operations with our technology offerings. We have started reporting some of the key metrics around our HVF proposition. Today, we are seeing insurers operating on Medi Assist Healthcare Services Limited technology platform on a standalone basis. The number of insurers using our healthcare exclusively has moved up to 19 from 17 the last time we reported. There are three now full-scale AI/ML products that are available, generally available for our partners to use.
These include our education capabilities for prevention and the entire prediction of out-of-pocket expense, leading to a very quick or almost no-wait discharge. 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 home health tools. Page five has a quick snapshot of growth across our key segments: group, retail, government, and IPMI. Growth, we continue to maintain our market leadership with a 33.2% market share in Q1. We have clocked on a much larger base, a 93.4% retention, including some of the calls that we have taken for quality of revenue. All in all, over 10,000 corporate accounts are managed by us. Within the group business, the premium copy service for private and family insurers, that portion has actually grown by over 20%.
All of these numbers that we have seen today in terms of premiums and market share are on Medi Assist standalone without any of the Paramount numbers included in the first quarter. We have signed Paramount Health Services on July 1, 2025. All of the Paramount consolidation will start from Q2. Similarly, in retail, our headless customer-first approach and focus on technology allowed us to significantly change the mix of how we operate in retail. While the overall premium-based growth is at 0.2% on a quarter-on-quarter basis, the premium that we serviced for private and family insurers grew by nearly 89% quarter from the same period last year.
If you were to include the technology offerings, the portion of retail that we touch for the whole industry is much larger, and that does not necessarily reflect in the premium-based reporting that we currently share with you. In the global business, the main sales arm of ours has had phenomenal growth. The revenues grew 35.6% from the same period last year. With our continued access to over half a million providers across 185+ countries, and increasingly working with Indian insurers who are providing global add-ons and beginning to integrate with any of the Indian retail insurers, last year, on the government side, governments saw a healthy growth.
SCCS, the government schemes, are becoming much larger in scale and with renewed emphasis on how the administrators' choice is actually made in some of these government schemes. Medi Assist has been able to differentiate itself as a provider of choice in many of these government schemes. We've seen a pretty healthy growth even on the government segment. I will skip on page six, just a couple of points that I want to bring to your attention. We processed over INR 22 lakh claims just within the group and the retail business in Q1. That's the scale that our technology platform today is able to give us. One of the questions that we frequently get asked is, "What are you spending on technology?" Our corporation spends huge technology-specialization revenue of between 5% and 7% now, as you can hear, we 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 proven financial decisions, we have seen behavioral changes where members using these facilities are actually changing their room type choices at the time of claim and thereby reducing their out-of-pocket incidents. To let go of it is how we use similar technology for enabling quick discounting for excess accounts. The program that we call as Raksha Prime , we've allowed over 67,000 patients to walk out of a hospital even before the bills got generated in the quarter that was ended. Of course, our global platform, our analytics, and insights continue to improve on a regular basis. We briefly spoke about some of the aspects of the consent feature the last time.
We now send the consents, some kind of a provisional approval. You know, for the members who thought of to 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 send, with less than 5% of that number asking for a clarification or a change. As we move to the next page, page eight, we continue to improve our AI/ML framework to eliminate fraud-based interviews. This is our flagship product in our AI/ML track. The total fraud-based interview savings for the quarter are at INR 160 crore in Q1. This was close to INR 50 crore in Q1 last year. This has been a serious improvement in the savings that we are able to deliver to our insurance partners.
The system on AIMS fraud detection is now called 80% performs fraud testing GTS. This number continues to improve. As we move forward to page nine, as we've completed the integration of most of the acquisitions that we've considered earlier, just make one case and in reference specifically, our EBITDA margins, which at the lowest point in H1 FY 2026 we saw, whatever it was, only 7% on a consolidated basis, have been steadily improving quarter- on- quarter. We've supported a 22% margin in Q1 FY 2026 district, which is happy to sort of note that the performance is continuously improving quarter on quarter. Also, some of our other metrics that we've historically tracked, like the annualized revenue per average headcount, has now moved up to a steady INR 0.9 lakh.
The PAT margin, as reported, despite the impact of the acquisition, which is out of non-franchise, is still at 11.4% and at a very healthy rate. As we move to page 11, we'll quickly spend some time on the operational highlights. As we spoke about the growth in the overall premiums and the group and the regional teams, we continue to improve our market shares on the whole and expand our leadership in the group segment. When I go to page 12, probably we will skip some of these details and take this up as part of the Q&A.
The only thing of importance here, we need to share this with Medi Assist Insurance TPA Limited, our wholly owned subsidiary of your company, has successfully closed the acquisition of Paramount Health Services and Insurance CP on such new lines for a final purchase confirmation of INR 412.4 crore being the equity value of Liberty Health. We've continued to win some awards for the work that we do using AI/ML in this space. We are one that they have given to H&C in data-driven insights. In what is probably one of the most defining quarters from our growth, not just the growth in the TPA business with the acquisition of Paramount Health Services, we've also entered a strategic partnership with Star Health and Allied Insurance Company, India's largest retail health insurer, to deploy Matrix our propriety AI-driven automation in first claims platform.
These are some of the quick highlights from our performance. I will now hand over to Sandeep Daga, our CFO, to give you a quick sort of financial highlights for the quarter before we open the floor for questions.
Thank you, Satish. A warm welcome to all the participants. The financial highlights for Q1 FY 2026 are as follows. Total income was INR 198 crores, which was equivalent to a growth of 13.5% over the corresponding period of the previous year. Revenues from contracts with customers, excluding other income, we call it as operating revenue, was INR 190.6 crores, which was a growth of 13.6% over the corresponding period last year. Revenue from contracts included 11.1% from the government business, 5.6% from the international benefits business, and 2.5% from the technology services, which Sandeep briefly spoke about. Moving on to the market supply, EBITDA, excluding other income, which we call it as operating EBITDA, was INR 42 crores, which was a growth of 90.3% year on year- over- the corresponding period last year. This is equivalent to 22.0% of operating revenue.
The profit for the year was INR 22.6 crores, which is equivalent to a growth of 18.7% on the reported tax year- on- year and equivalent to a margin of 11.4% on the total income. A few of the key numbers from the balance sheet are as follows. The net cash balance in the books was INR 312.6 crores. The net worth was INR 577.4 crores. The return on the net worth was a healthy 15.7% annualized, which is equivalent to 3.9% for the first quarter. Return on capital employed was 21% annualized, equivalent to 5.3% for the first quarter. Revenue for average headcount, which, again, Sandeep spoke about, under non-government contracts was INR 14.9 lakhs annualized, equivalent to INR 3.7 lakhs for the quarter. I now hand over the call back to Niraj.
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 then ask the conference team member to respond.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone 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 questions are assembled. The first question is from the line of Chintan Sheth from Girik Capital. Please go ahead.
[Audio distortion]. That's the designation of the platform and the offering we want. A couple of questions.
Chintan, we are not able to hear you very clearly. If you can speak a little louder and slower, we are not able to hear clearly.
Is it audible now?
Much better.
Yeah. Thanks. I was just congratulating team on onboarding Star as a, you know, as one of our SaaS models and gives us a great validation on the platform and the product we have created. A couple of questions. One was on the premium growth. Despite, you know, we have overall growth has been 19% YoY, largely driven by groups. Retail is still, you know, flagging along a sub-1% growth. If you can elaborate on what's happening there on the retail side, that would be one. If I look at your revenue growth as of revenue government and IPMI and technology services business, the core PPA revenue has grown slower than, measurably slower than the premium growth. Typically, it lags, you know, premium growth, but this time around, the growth has been, slightly, higher, slower than, measurably slower than the premium growth. If you can elaborate on that.
Lastly, on the Star Health engagement, if you can provide some color, how could 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 2.5% technology revenue as a percentage of revenue scaling up with the Star engagement?
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 at a client or a customer level from a revenue perspective. If you notice, we have added large technology-led services as a percentage of revenue this time, which is the 2.45%. I think, and of course, the deals or combinations of this magnitude will take a few months of lead time for 100% of the volume to sort of kick in.
I would only sort of request that you watch the increasing pace of the technology services revenue. We'll obviously continue to report the growth on it from the tech perspective. I think 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, we've also added INR 1,000 crore of new corporate premiums in quarter one, which has been one of our largest and biggest quarters ever from a new corporate win. All of that new corporate wins as a premium is being reported. As you're aware, much of the revenue sort of gets pushed back into the subsequent quarters and even the 12 months itself. That's pretty much the reason for the incremental lag between premium to a corporate revenue calculation.
Okay. Got it.
On the retail, of course, retail historically, we've done it in multiple ways. One with private parties, different contracts, and the PSU insurers were also largely allocation-based. Anytime the allocation changes, typically there is a dip, and then there is a time to bring it back up. Part of the slow growth is our previous technology and the reallocation of the underlying portfolio. If you notice, today, the private and private premium in our retail premiums are already at 42%. That's an area where we've made significant gains since the same period last year, with almost 89% growth. 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're deploying on the technology side will sort of also underpin house and the retail opportunity. I think going forward, it will be a good way to look at both retail and the technology services.
Right, good, put together. Okay, got it.
On the fundraise, the cash is still on the book. I think the deployment happened post the quarter. Once the deal concluded with Paramount Health Services, that will be the right way to look at it, right? The presentation still stays net as we still hold. I was just confirming that.
Okay. Okay.
I'll join back in queue. Thank you.
Thank you.
Thank you. The next question is from the line of Niharika Karnani from CapGrow Capital . Please go ahead.
Hello. Hi. Good evening. My question was on the acquisition. If we see, the top line has largely grown by acquiring Rukshra and now Paramount. Is there any other acquisition in plan right now? If not, what would be the top line drivers?
Yeah. Satish, sure. I think the Q1 numbers are Medi Assist standalone. All the growth that we've reported does not have any of the Paramount numbers. The Paramount closing is with the effects from the 1st of July. We would be able to talk about it in Q2. Even historically, if you track our growth from, say, 2022 March to March 2025, we've doubled our premiums, and of which, we have about 20% of those premiums came in from the acquisitions, a little over 20%. Much of that has been same-store growth, retention, bonus expansion, and our organic for the new corporate win. That absolutely continues to be a focus area. We've seen that in the group market shares increase this year.
From a top line, I've just answered the previous question, which is in terms of saying retail, we'll potentially address retail in two models, which is the standard TPA services, so a minimum insurer customer 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 business, in fact, has gone up. You also noticed that at the same time, our margins have also improved. The quality of the government business, the state of the government business, and the opportunity is something that is very exciting and will continue to stay invested and stay focused on the government. Lastly, the other platforms we spoke about, then start international business, Mayfair, which has also clocked over a 30% growth in government 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 or medium-term reputations from their employers, today at Mayfair, we have fully integrated solutions that allow our Indian corporate clients and the insurer partners to seamlessly access global networks for hospitalization. That sort of ethics is beginning to pay off. I would say we continue to be equally focused on all the four as growth levels. Acquisitions, of course, have a significant nature not just only for the top line. As and when such a right type of opportunity comes up, we will certainly evaluate.
Understood. Thanks for the detailed explanation. One more question is on the SEO cost. Right now, we know that there's a minimal percentage of revenue, but how do we foresee it in the future? Right now, PPA is 90% of revenue. Do we keep on the 50/50, 50/40, or how do we plan to grow the HBA service?
It's a little early for us because if you look at our competition, of course, we became the partner of choice for over 23% of the industry today by premium. I think the phase where we are is all of the technology that we built here at an investment scale, we are able to complementize our offerings now, whether it is for detection or AI capability or navigation or dispatchers or the entire network as a service. I think we have a reasonable number of conversations in place. I would at this point not go into guiding anything else. 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 or three years. That will continue to expand.
We've seen volume expansion from here onwards from 22%. I know we had grown from 21% similar period last year to 22% or will kind of be in the same range.
Right. I think we've always said this consistently in our conversations since the pre-IPO roadmap. We believe our steady state margin in the PPA business should be around 24%. That's where we were prior to the whole acquisitions, and we've consolidated where it is at 22%. Of course, we'll continue to improve our own efficiencies using technology. With Paramount consolidation coming in, for about five to six quarters, we'll probably see about a 200 to 250 basis point kind of an impact on the consolidated margins. Part of that will be offset by our short-term decisions improvement. That's something that we should keep in mind. The consolidated base, getting it back to that 22% is our focus.
Understood. Thank you so much and all the best.
Thank you.
Thank you. A reminder to all the participants, you may raise your hand to ask questions. The next question is from the line of Madhukar Ladha from Nuvama Wealth Management. Please go ahead.
Hi, everyone. Congratulations on a good set of numbers. A few questions from me. First, you see the retail premium under management has not grown as much. 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 numbers for at the end of Q1 is? Third, on the tech 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? I wanted to also understand what sort of cost can be associated to that cost of servicing that SaaS part of the revenue. Theoretically, you know, two, three years down the line, what sort of margins should we be thinking about in that business?
Lastly, on Paramount, I know that typically when you announce an acquisition, after that, a lot of the customers, they directly renew with Medi Assist. Given that now, I think we announced the acquisition last year in August, and we'll be integrating only from July of this year onwards, can you give us a sense of how much of that INR 150 crore has already been renewed at Medi Assist and how much has been and how much of that is still lying with Paramount? Yeah. Those would be my four questions. Thanks.
Thanks, Madhukar. I will do my best to answer them in the right sequence. To know one, contract liability number is INR 288 crore as of Q1. INR 288 is the number. It was INR 238 as of March. That's the increment in the number, right?
Yes.
Now, on the tech and on retail, it's not actually a change in industry. It is basically two things, right? One, we work with multiple insurers in multiple countries. We work as a TPA with the insurance companies in the retail portfolio. We work for private party and public sector insurers. Some of the portfolios that we see in the public sector insurers are more an allocation-based portfolio. There are occasionally changes in the allocation, and then one has to go to work back to realizing all of the portfolio that's being allocated. There's a bit of that change that is currently in the current year number. Whereas in private and privy, and I think we did report in Q3, Q4 last year that we've added some more insurers on the private private segments for retail. Now we are operational in those relationships.
That's where you see that on a standalone basis, the component of private and private retail has grown by 89% while the overall growth, because of the mixed impact, you know, or the reallocation is looking like 0.2%. This is an area that we spend a lot of time on, and we continue to work very closely to bring all of the innovation and the tech to the retail side of the business. Like I have 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 it's claims technology or analytics or fraud risk reduction or even entire cashless network as a service or the whole backup plan as a service.
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. Hence, it is likely that some of the work that we do in retail in the future will 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 we've had. Of course, I think the good thing about the platforms is that we've always built platforms of industry scale, including the platforms that we've previously covered, which are now the largest in their respective industries. Today, Matrix, you know, from Medi Assist standalone itself allows us to process over INR 22 lakhs a quarters. With some of the other insurers, you know, potentially even if on a pro forma basis, over 3 million claims a quarter.
That's the scale at which we operate. We believe that we've created a platform that some insurers are beginning to like evaluating as an option, especially as they rethink the chain on the product innovation and the speed that is required to automate. This is a platform with deep platform integrations with much of the industry. Our fraud detection engine already is, I would like to believe, multiple times more efficient, even compared to our own numbers of last year Q1, where we saved INR 50 crore in terms of cost. We've saved about INR 160 crore in this Q1. These are capabilities that are continuously improving. I think the pricing models, Madhukar, will evolve. The base pricing models for the claim technology are on a per-claim basis. It's a SaaS fee.
We typically have multi-year contracts with a fixed fee for the entire duration of the contract, fixed in the sense the fee is fixed at the per-claim level, sometimes even with some amount of integration in the base technology platform. We expect that in some of the other AIMS models, the industry will move towards outcome-based in our practice because this is pure value and pure outcome. These are slightly early days, Madhukar, and I think we will have a lot more color on this in the next few quarters as we figure these models out. Lastly, on Paramount, until June 30, all entertainings were pure competition because we were competitors competing in the open marketplace until we signed on July 1. Right now, irrespective of whether the customer already owns it, Medi Assist or not, Paramount is a 100% wholly owned subsidiary of Medi Assist Insurance, PPA.
From a customer and the service and experience perspective, it is absolutely one. There is a bit of an operational alignment and system alignment that will happen over the next four to five quarters. From a revenue perspective, while Paramount was an TPA and then after India's recourse and after adjusting the revenue recognition models to be aligned to our models, we expect a little over INR 140 crore a year in the Ind AS fombat for the work group from what we have as a number. That's the kind of run test. We're a little bit of that that we are already one in the open marketplace only. That's the size and stage in the Paramount system.
Okay. Of the 140 odd, there is some bid that you have already won in the open market. What would that number be?
What is interesting, the 140 is the pro forma in their converted numbers as of situation, which does not include any gains.
Understood. Understood. The 140 will get added. 140 run rates will get added from basically July onwards, effectively. Got that. On the SaaS platform, you mentioned it's on a number of claim bases.
Yeah.
Is that the right way to build something like this? I mean, shouldn't you try and price it on the premium because I'm wondering if we miss out on claims inflation thing.
Yeah, I think, you know, thanks for looking out for us, Madhukar. It is our transaction processing system. I think after multiple rounds of understanding, we found this to be the most transparent way to work with our customers. I think it's about arriving at the right kind of transaction pricing.
I think you missed on, you know, margin. What can be, like, what's the cost for doing, for providing this SaaS service? What sort of, you know, do we have dedicated people? Obviously, we probably incur some costs on this side. How should we think about that?
Madhukar, historically, we've not broken down our business lines by margins. I think what I can tell you is that there's obviously a significant amount of deals that's available from an engineering and infrastructure possibility. Of course, we expect these margins to be better than the core margins. Right now, I think the scale is too small for us to give you any kind of numbers. At the right time, this is, yeah.
I'm guessing that at, you know, slightly better scale, the margins would be much better than the 20% of the margins that you're talking about if the two scales up.
Yeah, it's a very fair and rational approach.
Yeah. Understood. Got it. I'll probably speak to you offline more on this. Thanks a lot.
Thanks you.
Thank you. The next question is from the line of Rishi Jhunjhunwala from IIFL Institutional Securities. Please go ahead.
Yes. Thanks for the opportunity. Satish, one thing I just wanted to understand, why our overall revenue growth has been fairly healthy in this, you know, otherwise relatively lucrative environment. If you just look at our core business, right, excess government, international technology services, our revenue growth has decelerated even in this quarter and has been on a decelerating trend. It's up, I think, 7% year- on- year. Premiums are still growing at 19% under management. I just wanted to understand the dynamics in terms of why the revenue growth gap is 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.
Thank you.
If you had thoughtfully sort of addressed this in one of the earlier questions, this quarter has been, in the other way to look at the revenue deceleration, we've done a great job in adding lots of premiums in this quarter. We've added over INR 1,000 crore of new corporate wins in Q1 alone. Given our revenue recognition, which says we've got a credit over 12 months, and then we report the full premium, there is artificially a higher lag between premium and the revenue growth. Subsequently, nothing else has changed from a market perspective. Our yields are stable, both on the new wins and on the retentions. Of course, there is underlying softness in the group business that you know you are fully aware of in terms of the same-store growth.
Historically, about 50% of our same-store growth of machines used to come from lives growth, employment growth, or the membership growth. Right now, I think that's a softer side, but we've seen a lot of the growth from benefits expansion and a lot of employees opting in for higher kinds of benefits. There is a little bit, obviously, a softness in the same-store growth. 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 or clients.
Just to hit this, yeah, go ahead.
If you just try to add on the premium 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 lags 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. If any one or two quarters are picked up, sometimes the gap could be substantial. It's not a true representation. That's what I want to say.
Fair enough. Just a clarification, none of this is getting impacted by the one-by-one accounting that has happened on the home side for us, at least, right?
That's right, Rishi. We've never been impacted by that. We've always recognized as take one by whatever is the number of one-by-one on it.
Okay. Okay. The second question is on technology services, right? This 2.5%, is it all fresh revenues in this quarter that has come up? I remember in the past, also, there used to be some revenues on data services and all that used to go away. Is this completely fresh? In terms of 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. Incremental costs there would be minimal, and as a result, this would be a very, very high gross margin business.
The 2.5%—you're right—we historically had, but we never reported that to the point of operating such a combination of mostly existing revenues and some new revenues that the new ones are sort of taking off over a period of time, right? It should only hopefully look different as the scale of some of the new deployments increases. From a cost perspective, like I said earlier, 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, right? It's also that gross margin. This one is a pure technology cost, so the gross margin ties per se better in the technology services business.
The only thing that I would want, 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. There will be continuous improvement, like some of the online or data center products that you've seen before. On the whole, the gross margin should be better.
Okay, thank you.
Thank you. A reminder to all the participants, you may raise your hands to ask questions. The next question is from the line of Prithvish Uppal from Elara Securities. Please go ahead.
Yeah. Hi. Thanks for taking that question. I think most of the questions have been answered. I just wanted to get some sense in, given your group premium under management, if you could possibly give an allocation of how much is coming in, say, from, you know, IT and IT services. With the recent news around the slowdown in, or, you know, in job hiring and in the like, you know, just wanted to get your sense in terms of how you could possibly see that impact on the group side of the business at both the industry level and for you. Yeah, that's the only question.
Thanks, Rishi. This is Satish here. That's really nice, but I think that's where a little how we looked at group and business acquisition has changed over the years. Maybe four or 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 employers from a benefits perspective. Today, if I'm not wrong, IT should be sub-30%- 35% of, you know, within the top 15 plus, which was the last. It's not something that we review every day. We have significant diversification that we've gotten in the accounts that we service. We have a fair bit of presence in the top 50 in most industries today, with manufacturing, with automotive, with pharmaceuticals, and so on. There's a fair bit of diversification and pushing.
Of course, in some of the specific industries that are possibly more impacted by the Russian 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. We're seeing significant benefits expansion in many of these corporates, and both warranty and also sort of opt-in kind of benefits. Whereas we're seeing the average picket price at an employee level and a family level substantially go up. That's not fully compensating for the lags so long, 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. We expect this to sort of steadily grow as we expect.
Okay. Yeah, that's it from my side. Thank you.
Thank you, please.
Thank you. A reminder to all the participants, you may raise your hands to ask questions. The next question is from the line of Chintan Sheth from Girik Capital. Please go ahead.
Thank you for the follow-up. Just one clarification on the premiums. Now, with industry reporting one by one, doesn't it get reflected in our premium reports, or it's still just trying to understand, you know, tax fees?
No, Chintan, it doesn't because we've always taken premiums and spread it over the multiple years. Even the retail portfolios that we've managed, we've always seen them on an annual basis. Within that year, on a one-by-one basis?
Yeah, I understand. Earlier, industry was not reporting premiums one by one, right? They were reporting as is, as and when it was getting collected.
We have always reported the premium that we use for booking them.
Got it. For fundraising, if you can just highlight more on, you know, the use of that fund, it would be helpful and timeline process.
I'll run that and then I'll hand over to Niraj. I think we've, because we have, I think, multiple things in place as an organization today. One, of course, we continue to be sort of very aggressive on growth, growth opportunities across multiple dimensions, be it within the PPA business or in our international private medical insurance business or even the investments that are needed to really grow the technology services as a viable line of business. 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 patience and with meaningful ownership. There is an opportunistic piece about retiring the debt. Of course, over a period of time, given the very strong net cash innovation that happened at our company, we can retire the debt on our own.
There is an opportunity for the true free-up of capital for growth rather than only for debt servicing. When we look at all of these, two or three factors and, name, with a meaningful ownership. We have a ground sheet for our potential allocations that the board considered today and accepted the offer and approved the potential allotment. I think we'll talk about the objectives when we send out the notice to the shareholders in the next couple of days. I think that's sort of giving you an indication of what are our areas that continue to occupy our minds today.
Just to add, if you remember, in February this year, we took an insurance approval from the board.
That was to the tune of INR 350 crore. We always maintained with the investors that while there is an intent to look at our capital structure, the exact amount and the usage and objects, we will come back to at the right time. This was a very marquee too, right? Sandeep said this was for the capital structure where we do want to maintain healthy cash reserves given our scale, given the speed at which we are able to move, but also sometimes health in maintaining the leadership position. Also, from a cap table point of view, we do look at welcoming long-term decent-sized shareholders. This was something that fitted both those things. That's how we went ahead.
All the variables were fitted for the answer to the question.
Thank you.
Thank you. The next question is from the line of Vernon Desoria of Omkara Capital. Please go ahead.
Hi, Sandeep. Congratulations on a good start. I just wanted to, in case I missed it earlier, just wanted to check what is our FY 2025 and what is our FY 2026?
Sorry, Vernon, it was not very clear. Can you say it a little quickly and slowly? We were not able to get the conversation.
Yeah, I'm audible?
Yes.
I'm sorry if you missed it earlier. I just wanted to check how does our claims affect 2026 and probably the consequent year 2027?
Are you asking about how the FY 2026 is expected to look at in the following year in terms of financials?
Yes, yes.
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. 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. With Paramount, how the consolidated numbers will pan out, of course, it will add very meaningful growth because it's a sizable scale of book portfolio giver number two in the group. In terms of the financials, you will have to wait and how the Q2 pans out when we report and tell numbers with Paramount.
Got it. Okay, thanks.
Thank you. A reminder to all the participants, you may press star and then two to ask questions. The next question is from the line of Anand, an Individual Investor. Please go ahead.
Thank you for taking my question. I wanted to ask one thing, one question about our AI/ML framework. If you have to compare this with the other solutions available across the world, how do you compare these solutions?
No, thank you. I think that's a great question. We are very different as a market. 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 3% blended. That 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 declared summary. Insurers don't have standard formats for how they issue policies or underwrite or capture identity and other information. 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, carefully digitizing practically everything that came our way.
We digitize today over 80% of all the bills at a line item level that we've outsourced to. We spent a lot of our energy curating data and creating an extremely large volume of records that are curated and ready for use and for us to build good quality AI models. That's where we spent the first four years creating this infrastructure. It's the last 18 months or so where we've seen a lot of our work sort of come out of this. To give you some examples today, when in the news, for example, when we had to sample for fraud, we would rely on our individual medical officers to sample a file and potentially flag off saying, "Hey, this looks like fraud.
Could you send somebody over to physically verify?" We've kept our risk rate as low as, you know, 2 out of 100 or 4 out of 100 times we would find if that was a sampling inefficiency. Today, especially in fraud-rigged cases, our sampling efficiencies are over 60%- 70%. Right? That's how we've sort of built 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. 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.
I cannot speak for the others, but I think this is where we are today.
Thank you. As that was the last question for today. I now hand the conference over to Mr. Niraj for closing comments. Over to you, sir.
Thank you, everybody, for a very active participation. We are available offline for any further queries.
Thank you. On behalf of Medi Assist Healthcare Services Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.