Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Cyril Paul from EY Investor Relations Practice. Thank you, and over to you, sir.
Thank you. Good morning, everyone, and welcome to the Q3 earnings call of Medi Assist Healthcare Services Limited. The company published its results on February 6, and has uploaded the investor presentation on the exchanges over the weekend. I trust all of you would have had the chance to go through them. Before we start, a disclaimer: Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which would cause actual results to differ from those anticipated. Audiences are cautioned not to place undue reliance on these forward-looking statements while making their investment decisions. On that note, let me introduce you to the management participating with us in today's earnings call. We have with us Mr. Satish Gidugu, CEO and Whole Time Director, Mr. Sandeep Daga, CFO, and other members of the team.
Without further ado, I'd like to hand over the call to Satish. Thank you, and over to you, Satish.
Thank you, Cyril. Good morning. Very good morning to everyone who's joined us this morning for the Q3 and nine-month FY 2026 earnings call of Medi Assist. We have an investor presentation that's uploaded as of last night. Before I begin, I think this presentation will look a little different from the rest of the presentations in the past, because we took some time to detail out business in a manner that we believe, you know, explain our business the best based on the feedback and all the inputs that many of you have directly or indirectly provided. So we will take some time and walk you through some of the highlights of Q3 and nine months FY 2026.
I will handle the business side, and then Sandeep will take over for the financials update. I hope all of you have access. I'm just going to, you know, just do a quick page turn to sort of use, you know, the press release and the earnings PPT that was already uploaded. So quickly, from an overall perspective, if you look at our nine-month period, we delivered a fairly strong quarter. Overall, 24% revenue growth. In fact, a quarter-on-quarter margin expansion of 154 basis points, and we got to a debt-free balance sheet. And while continuing to improve on our AI-powered technology-led, you know, solutions, AI-powered technology-led, you know, solutions. Quickly to start with our financial highlights.
We in Q3 FY 2026, so we presented both ex-Paramount and consolidated numbers for, you know, most of the metrics in the presentation. So I'm on the slide, which is financial highlights Q3 and nine months of FY 2026. The total income grew 9.2% year-on-year, you know, ex Paramount, and with Paramount, 29.9%. And similarly, when the revenue from contracts grew, almost, you know, in line with the overall income. With the consolidated revenues from contracts growing almost 29%. Our EBITDA for, you know, Q3 went up to INR 44.9 crore, ex-Paramount, and the Paramount drag has now come down to, you know, fairly negligible amount, with consolidated EBITDA still clocking close to INR 44.6 crore.
For the nine months, FY 2026, our consolidated, you know, total income grew 23.5%. Again, revenue from contracts grew in a similar manner, with 24%. On EBITDA, on a consolidated basis, we delivered INR 128.9 crore, with a 13.8% year-on-year growth. And the Paramount drag, like I stated earlier, is becoming more and more negligible, with the overall EBITDA standing at INR 126.3 crore. And the margins, of course, ex-Paramount, at 41.7%, is still an improvement year-on-year by, you know, 51 basis points. And of course, if compared to last year, we're down to about 215 basis points drag, due to Paramount integration that's ongoing right now.
The next page is some of the operational highlights, for the nine-month period. Our total premiums under management, and again, just so that, we have the same understanding, when we report premiums, these are only group and retail, premiums. We do not report premiums in the government business today. INR 19,289 crore total premium under management, which is a 21.9% year-on-year growth. Our market share has, you know, improved to 21.1%. The work that we do for private insurers, both in group and retail, has also seen an expansion, from an overall value perspective. We continue to operate at scale, with over 39 crore lives served annually across all lines of business, including public health. Our provider network continues to get stronger.
We've added more insurers, so now we serve 31 domestic insurers, including life insurers and five international insurers. And just Medi Assist TPA has processed, you know, 72.9 lakhs of claims just within the nine months. So this, this itself is a 22.4% year-on-year growth, fairly significant compared to the premiums growth, as India becomes more and more, you know, amenable to launching very high frequency, but low value benefits like outpatient and flexible benefits, that needs significant technology and scale to deliver the increasing insurance. Moving on, so some of the business highlights for Q3 and, you know, nine months, FY 2026. Our revenues grew at 11% ex-Paramount and 24% nine months year-on-year.
I'll skip some of the items that we've already discussed, but I think what is the couple of key points, and we will dive into this later part of the call. The Paramount standalone margins improved almost 557, you know, basis points quarter-on-quarter. The adjusted PAT, that is excluding only exceptional items, net of tax effect, is about INR 46.3 crore, for consolidated and ex-Paramount, about INR 50.3 crore. And we will spend some time on explaining both of these in later part of this call. Our group and retail market share, like I mentioned earlier, is 21.1%, and our group market share has seen a significant increase, both organically and also due to Paramount acquisition.
We went up to 32.2% in group market share, which is a fairly significant 307 basis points year-on-year improvement. As mentioned, our claims volume that we process continues to be fairly substantial. We're also proud to sort of, you know, report that our cashless, you know, percentage, both in inpatient and in outpatient, continues to significantly go up quarter-on-quarter. This is a relentless focus for Medi Assist to move all claims to cashless and then significantly reimagine, you know, cashless experience. Again, we'll talk about some of these initiatives in the latter part of the call. On the balance sheet front, we had a free cash position of INR 200 crore as of 31st December.
In fact, the debt that we reported in September 2025, you know, was INR 243 crore, came down to INR 39.4 crore as of, you know, December 2025, and we sort of became debt-free in January 2026. So fairly strong, you know, improvement on the balance sheet front. And on the tech revenues front, our tech revenues have grown 81.5%, year-on-year. Multiple pilots are underway with multiple insurers in India and overseas for the tech platform of tech space. MAven Guard, our flagship product for finding, you know, and preventing fraud, waste, and abuse. Just on the fraud alone, MAven Guard prevented about INR 400 crore of fraud in this period, which is over a 66% growth compared to the last year.
On Raksha Prime, again, one of our very unique initiatives to improve cashless experience, where patients are able to get up and walk out of the hospital even before the bill is generated, because our AI engines predict what their out-of-pocket would be, if just on the day of admission itself. We've been able to expand that to over 35,000 patients a month. They don't need to wait for a bill to be generated. This is now being accepted by over 6,000 hospitals across the country, demonstrating exceptional amount of trust by the hospitals and the membership in utilizing this service and making a cashless, wonderful experience and not a stressful experience. Lastly, on Paramount integration, we are on track. The technology platform migration is underway.
We've been able to enable the AI platforms for the clients of Paramount that are migrating to the new stack. And we've all the boards of, you know, Paramount, Medi Assist TPA, and Medi Assist Healthcare Services approved some transfers of Paramount TPA business to Medi Assist TPA, effective 1st of February 2026, thereby accelerating the structural integration of these businesses and giving us the ability to run the entire TPA business as one logical entity. So we have a few updates by the segment, while we don't really do a segmental reporting, but, you know, we thought it would be good to sort of deep dive into each of the revenue contributing segments. So I'll quickly go to the next slide, which is group updates on Q3 and nine months, FY 2026.
Premiums managed have grown 18.6% from INR 13,779 crore - INR 16,377 crore, excluding Paramount. Including Paramount, they've grown 24.4%. Like I said earlier, the market share went up to 32.2%. Our total client base on Medi Assist TPA is over 11,000 corporates. We will have the revised metrics getting reported from the next quarter onwards as we integrate, you know, Paramount fully. We continue to hold on to a retention rate of over 94%. We've organically added new logos and new corporates, and that itself has grown over 94% year-on-year.
Also, at the same time, with as more and more private and SAHI insurers start to pick up a lot more of the group business, we continue to track and improve our work that we do, the work that we do for private and SAHI, you know, in the group business. So that had about, you know, 24.2% growth compared to a, you know, 11 odd percent growth that, you know, segment itself actually reported. And please note that wherever we are speaking about Paramount in terms of market share or revenues, these are only Paramount's Q2 and Q3 numbers. Q1 numbers of Paramount prior to consolidation are not part of these numbers.
Within the group, when we break down the efficiency that we're delivering on FWA, nearly INR 234 crore of the fraud-related savings were delivered in the group business itself. Which as a segment, historically, has reported or seen very little, you know, fraud reporting. We continue to improve the outcomes on the group business and yet sustain the growth, same store, growth and the higher retention. As we continue to improve on our differentiators in the group business, whether it is integration with the corporate systems, the scale, or the enhanced experience and innovation, or the outcomes that we deliver, or the self-service. Our digital platform, Maven, sees over 1 million daily users today, and significantly improving, you know, self-serve and experience that our members actually achieve. Moving to the next slide on retail.
Retail market share is at 5.6%, marginal dip from last year. But from a growth perspective, ex Paramount, there's a contraction of 4.3%, but including Paramount on the whole, we've grown 4.6% over last year. Again, the work that we are doing with the private and SAHI insurers as they continue to grow faster than the market. That work has grown at 26.5% year-on-year, whereas they themselves were at a much slower than this from a growth perspective. And within our retail business today, despite the acquisition of Paramount, private and SAHI mix within the retail portfolio in a traditional TPA model is 41.9%. And these market shares numbers do not include premiums managed through pure technology offerings.
This reflects only where we are hired as a TPA way to manage the end-to-end servicing. The claims platform, of course, is continuing to gain scale. We are live with three leading private insurers covering over INR 20,000 crore of the GWP as of, I mean, reported as of FY 2025. And of course, all of them have a significant retail with over 75% of that business being retail. And within the retail segment, as you can see, on a relatively flat, you know, retail growth, we were able to deliver INR 168 crore of savings on FWA, compared to the INR 85 crore that we delivered in the previous years. Significantly demonstrating the capabilities that Maven Guard is accruing, you know, every single year. I'm moving on to the government segment.
Government's contribution to revenue went up marginally to 12.1%, and also, considering that both Medi Assist and, you know, Paramount have been leaders in the government business. The overall revenue for nine months grew 46.7%. And we serve almost 33 crores of members today in the government business. And we presented both the active headcount for the entire group and also the government headcount. Almost a third of our headcount is part of the government business, because these are contractual obligations in the way the business is actually set up. And from a revenue growth perspective on quarter-on-quarter, and the nine months FY 2026.
Nine months FY 2026, Medi Assist, you know, consolidated growth from INR 54.8 crore - INR 80.4 crore, and Medi Assist ex-PHS has grown from INR 54.8 crore -INR 60.5 crore over the nine-month period. Moving on to the next segment, which is the international benefits administration. We have the revenue has grown 16.3%, nine months year on year. And international benefits business, the administration business contributes 4.5% to the consolidated revenues today. And a couple of interesting updates in this segment. We have three new insurer relationships for travelers traveling to and from India. Which from a funnel perspective, gives the ability to access about 19% of the overseas medical market in India now. And of course, now the next steps are to integrate and convert some of these relationships.
From the international clients' perspective, we've migrated 98% of the customers to our new Matrix-based HealthEx platform, and we've also been able to integrate MAven Guard capabilities into this platform. In the international business, network efficiency matters significantly. There are significant costs to network access. We established new partnerships, especially in North America, leading to improved unit economics around our network access and pricing, which eventually will translate to improvement in the bottom line. The marine yacht business, where we are one of the leaders worldwide, maintains a very strong segment growth, and we've added 27 new customers in this business. Moving on to a technology update. Our revenues on tech, both from a quarter-on-quarter perspective, from Q3 of FY 2025 to Q3 of FY 2026, grew 109.8%.
The nine-month period revenue of technology revenues grew 81.5%. Tech, we started publishing tech revenues as a percentage of revenues in Q1 before we consolidated Paramount. We still continue to track about 2.3% of our, you know, total revenues, you know, for the period. The platform, like we said earlier, is live with three leading private insurers and with volume steadily migrating to the platform. We have multiple pilots of our Maven Guard solution underway from insurers. The platform has processed over 77 lakh claims during this period and showing the robustness and the kind of investments that we have made into improving both availability and security during this period. The platform continues to win, you know, multiple awards in the relevant forums.
Quickly moving back to some of our AI-led offerings. Our Maven Guard delivered over INR 400 crore of real PNL savings for the insurer partners that we work with. What is interesting in this INR 400 crore is that over 82% is purely identified by system and AI, not depending on any humans or individuals to sample and detect fraud. 66% increase in value of fraud detected year-on-year. Over 1,800 hospitals were cautioned by us in this period for fraud, waste, and abuse, based on the findings that the system has actually generated. What is most heartening for us is reduction in the unnecessary investigations that historically the industry had to perform because our sampling and the conversion rates were not very effective.
So we've delivered over 630 basis points reduction in the percentage of claims that are sampled and investigated, thereby improving the policyholder experience significantly, because these are genuine policyholders and they didn't need to answer a call or answer a question. We will continue to improve on this metric, and with the sole objective being that we are able to detect as much fraud and substantially improve the hit rates, so that genuine policyholders rebuild and build trust in the way the health insurance process actually works. This is also cutting down the end-to-end turnaround times, especially in the reimbursement claims, in line with the IRDAI's mandate to bring down the overall end-to-end, you know, turnaround times for claims processing. Moving on, we launched a provider-facing digital platform. We announced this at our Raksha Summit last year in November.
The platform is called MAgnum. The idea was to bring some of our AI-led capabilities that historically we were executing as Medi Assist, in terms of reaching out to members, reaching out to hospitals, facilitating, you know, admission, time counseling or, or facilitating express discharge to Prime, were historically done, you know, executed by Medi Assist. This platform now reimagines that process and brings these AI capabilities to a self-help mode. The idea is to put the hospital or the provider in the driver's seat, because until the point the patient is treated, the hospital is in full control of the experience. Then today, the control gets transferred to the insurers or the TPAs, because that's where the decision about the cashless sort of gets made.
So the platform, by bringing Raksha Prime and the Navigator capabilities, allows hospitals to take over the experience part on cashless and let patients leave, while the billing and the negotiation and the processing becomes a B2B transaction between the hospitals and the payers. So we had a very interesting, you know, early beta with over 20 hospitals, and we've improved bed churn by removing, you know, discharge bottlenecks. We've seen fewer escalations and faster settlements. The hospitals have reported a jump in NPS. And in these hospitals, over 70% of the discharges of our portfolio happened through Raksha Prime, where nobody had to actually wait for a bill to be generated. The next page gives a little bit of a deep dive into what Navigator and Prime actually do for us.
Navigator is for people to our patients to get an estimate of out-of-pocket expenses even before hospitalization and get a fairly accurate sense, thereby making proven financial choices, of choice of hospital, choice of room type. In fact, 40% of the members who use this capability have optimized their room choices when they actually got hospitalized. And this is what drives transparency and personalized, you know, cost forecasting for every hospitalization. And that's where plan comes in, when the patients actually have to leave the hospital. And the out-of-pocket amount is that, you know, predicted on the day of admission itself. And the moment the doctor says, you know, the patient is good to go home, they can pay the predicted out-of-pocket and then walk out of the hospital.
Today, over 15% of all Medi Assist's cashless discharges are executed through the plan route across 6,000 hospitals and with an average experience rating of 4.75 on five. These are the capabilities that are coming back to hospitals on a self-help mode through MAgnum. Moving on, Paramount updates. The integration of Paramount TPA is progressing along expected lines, so we're happy to report some milestones in technology consolidation. The platform, tech platform consolidation is underway. Significant number of the corporate policies renewing January 26th and beyond are successfully migrated to the Medi Assist's stack and running there. There are some AI capabilities of Medi Assist's are now being made available to the clients migrating to the new stack. Employee benefit expenditure was about 43.1% of, you know, the revenue earlier.
As of Q3 FY 2026, this is the 45.4% in, you know, Q3 of FY 2026. The corporate restructuring, as we mentioned, the board of directors of the company and Medi Assist, our TPA and Paramount TPA, have approved a slump transfer of the Paramount TPA business to Medi Assist TPA, effective first of February. This sort of concludes the, the equivalent of a formal merger process through a business transfer arrangement, and then gives us one logical TPA entity to sort of operate with. And as mentioned earlier, we have a quarter-on-quarter improvement of over 557 basis points, improvement in, EBITDA. The Paramount margin percentage is moving from - 6.4% to a - 0.9%.
The revenue updates quickly for the quarter ended 31 December and also for the nine months ended 31 December. We have provided a stack-up of revenues, including and excluding, you know, Paramount. As mentioned in quarter-on-quarter, we've grown 10.7%, excluding Paramount, and 28.9%, including Paramount. And similarly, in the nine months period, we've grown 11.1%, excluding Paramount, and 24%, including Paramount. And barring retail that we reported from a revenue contraction perspective, marginally, all other lines of business, especially our stronghold group and the high-margin tech business, both have shown a fair bit of improvements year-on-year and also quarter-on-quarter.
I will now hand over to Sandeep to quickly walk us through the EBITDA and the PAT and a few couple of other financial metrics, and then we'll open up for questions. Thank you again for your attention. Sandeep, please introduce.
Thank you, Satish, and a very warm welcome to all the participants. The EBITDA margin during the quarter has been reported at 18.6%, which is approximately 154 basis points improvement versus the previous quarter, Q2 of FY 2026. Excluding Paramount, the company continues to deliver a strong margin of 21.8%, which is approximately 50 basis points improvement versus the corresponding period last year. In the current quarter, we have delivered a PAT of 34.8%, which was after a few of the exceptional items. I'll just quickly walk you through as to what the impact of these three exceptional items, which has been reported. The first one happens to be the cyber.
During the quarter and the nine-month period ended 31st December, Paramount, which is a material step-down subsidiary of the company, experienced a cybersecurity incident that impacted certain systems and services. The incident was fully contained at the Paramount TPA level, and it didn't affect the company or any of its other subsidiaries. The company had also reported to and intimated the relevant authorities, including the stock exchanges, of this particular event. Pursuant to the above, Paramount TPA undertook certain security and business continuity measures, including engaging with external experts to support system restoration, cyber forensic activity. Towards these measures, the Paramount TPA incurred costs amounting to INR 3.7 crore up to December 2025. These have been presented as an exceptional item in the consolidated financial results.
Paramount TPA also has a cyber policy and has lodged an insurance claim under its policy for recovery of these eligible costs. The management, after considering all available information, believes that no additional adjustments are considered necessary in the consolidated financial results for this quarter and for the nine months. The second exceptional impact is arising on account of the labor code. As most of you are already aware, effective 21st of November, the government of India consolidated 29 labor regulations into four labor codes. These new labor codes has resulted into increasing the provision for the past service benefits of the employees on account of past gratuity and the service costs.
Based on the requirements of these labor codes and internal management assessment, the actual report which got published and accounting standards guidelines as per ICAI, the company has assessed and accounted the estimated incremental impact of roughly INR 3.3 crore as exceptional item under the consolidated financial returns. The third one happens to be, which happens to a claim received by Medi Assist TPA, a wholly-owned subsidiary of the company, from one of its insurance customer towards claims disallowed. In line with the past practice, Medi Assist TPA made an on-account payment to the insurance company, pending review and reconciliation of these claims aggregating to INR 7.1 crore.
However, Medi Assist TPA has performed an internal evaluation and assessment, basis which the management is of the view that there will be no further adjustments towards recoveries of the aforesaid advances, and is eligible for the full recovery of the advance paid to the customer. Since the discussions with the customers are ongoing and the company is yet to complete the reconciliation, on a prudent basis, the company has made a full provision of INR 7.1 crore towards the same. Though Medi Assist TPA continues to pursue recovery from the customer, basis advice from our legal counsel, we have made an intimation of the insurance claim under the relevant applicable policies to safeguard recoveries in the eventuality that there is short or no recovery from the customer concerned.
So these three impacts had resulted into approximately INR 14.2 crore on the overall results. Going to the next slide. The company has given a estimate of how the nine-month PAT of reported at INR 34.8 crore. If all the other deviations, all the other one-time aberrations, which the company has reported during the nine-month period, if we were to tease them out, what is the steady state PAT looking like? So that's a bridge which has been given, taking the number from the reported INR 34.8 crore to a underlying INR 76.7 crore.
Many of these items are pertaining to, on account of, other income, foregone, incidence of finance charges, which was a one-time impact during the current financial year, and now that the company has become debt-free, there will be no, requirement of the finance charges in times to come. We have seen that during Q2, the Paramount EBITDA was -6%, and there has been a recovery of 557 basis points quarter-over-quarter. In case if the Paramount scales up, to the steady run rate of 20+ EBITDA profile of Medi Assist, what sort of impact it is likely to have on the company's financials? And the intangible depreciation and the, and amortization arising on account of the customer relationships. Because of these impact, the reported profit at INR 34.8 crore moves to INR 76.7 crore.
We believe that most of these adjustments are arising because of the timing differences and will not have an impact going forward, as and when the recoveries be made, but for the intangible depreciation and amortization, which will be there for some more years to come. Going to the next slide. Giving the strong balance sheet delivery, which talks about INR 200 crore of free cash flow position, and as on date, the company has become debt-free. The INR 39 crores of debt, which was there on 31st of December, has been paid back during January. The net worth for the group continues to be, happens to be INR 795.7 crore.
The revenue per average headcount on an annualized basis, barring the government business, continues to be a healthy INR 14.9 lakh, which is roughly around 5% improvement versus the corresponding period last year. The contract liability, it has increased to INR 280.8 crore, from INR 227 crore for the corresponding period last year. It also signals improvement in the new businesses which we have acquired, which Satish was mentioning some time back, which had a 94% increase year-on-year. And as I mentioned, the company as on date has become debt-free, and INR 39.4 crore has been squared off and paid back to the lenders. With this, I hand over the call back to Cyril. Thank you for your attention.
Thank you, Sandeep and Satish, for taking us through the performance of the company. We can now open the floor to questions.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Sucrit Patil from Eyesight Fintrade. Please go ahead.
Good morning to the team. I have two questions. My first question is, you know, looking beyond the commentary given, how do you see Medi Assist balancing between expanding partnerships with insurers, improving service delivery for customers, and protecting the profits? As healthcare demand and digital adoption evolves, what will guide your decision-making process on which of these areas should get the strongest focus in the coming quarters? Thank you. That's my first question. I'll ask my second question after this.
So thank you, Sukrit. If I understand your question, you're asking, are you asking the differences, say, between the traditional TPA model and the technology-led growth? Is that, is that the question?
Yes, and I want to understand how do you decide when growth through new partnerships should be the priority, or service quality or profit becomes more important? So how do you differentiate between that? And along with that, the point you mentioned also, same thing.
Yeah, I think, you know, one can't take a unilateral view that it's only a quality or a profitability or retention piece. We are a very significant player in the market. We work with almost all of the insurers that offer health insurance today in some form or fashion, right? So I think first things first for us is to be able to work with the entire universe of insurers, or players who are participating in improving health insurance and access, because this country will see a substantial growth in health insurance penetration. It is important for us to be indexed and be the best service provider across all formats of service delivery, right?
So we obviously continue to evaluate how the market is evolving, what we need to do in each of these segments, from a innovation perspective, service quality perspective, and of course, in terms of driving efficiency and unit economics at the same time, because they all have to be done, you know, together, not one after the other. And you've seen us—I think the most amount of pride we take is in publishing our retention rates. In an annual renewal business, where every one of those 11,000+ corporates has the ability to choose a new TPA every single year, that we're able to report a steady state 94%-95% retention rate is a testament to how the indexing on the market is extremely important to us.
Having said that, we understand that as the market is evolving, as the products are changing, India is moving from a plain, vanilla, catastrophic cover, only inpatient cover kind of cover, to very high frequency, low ticket, outpatient claims, significant amount of personalization, individual flexibility of plans. Suddenly, the entire landscape of the frequency and the sizes and the network that is required for these benefits is undergoing a dramatic shift, especially in the last few years. You must have seen that the number of outpatient claims we process now is more than number of inpatient claims. And those kind of shifts require a significant recalibration of tech, service models, and network. And that's an area where, you know, we've been largely ahead of the curve.
Today, given the nature of how insurance companies have evolved in terms of building things on their own versus, you know, using partnerships, different companies are at different, you know, stages of evolution. I think the way you should look at us is, we don't have a situation where we don't have a solution, right? We are happy to sort of deliver end-to-end services as a third-party administrator for any insurance plan. But at the same time, if somebody has investments in technology, we know how to deploy AI on top of their legacy systems. Or if somebody has an in-house team, would like to have more control on, say, a particular retail product, we know how to deliver a network as a service to that cohort, right?
I think our strategy is fairly expansive in terms of how we penetrate the insurance market. I think the biggest metric would be how we continue to improve the access in the market share on the whole.
Thank you. My second question to Mr. Daga is, as Medi Assist plans for the next few quarters, which financial signals or metrics will be most important in guiding your decision on cost control, working capital, and investment across the digital infra? How do you see these levers shaping the company's ability to protect the margins and deliver deliver sustainable value as the healthcare services business grows? Thank you.
Thank you for your question. We continue to believe in our ability to execute perfectly on all the parameters of backend management of the claims processing on behalf of our customers. With the focus which we are having on the tech, SaaS as a revenue model for us, it is imperative for us to make sure that we are able to deliver those promises to the customers, because some of these are high margin-led-
revenue drivers, which is going to expand and have a favorable impact on the EBITDA. Considering that, we have become debt-free, the capital available for the company to judiciously deploy in services to make a meaningful impact on the customer experiences, happens to be the key objective for the execution team over here, to drive down a sustainable business model for all stakeholders, be it insurance companies, hospitals, or the customers as such.
Thank you, and best wishes.
Thank you.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Ashok, an individual investor. Please go ahead.
Hi. First of all, congratulations on a great turnaround quarter, especially on the Paramount integration progress and all. A big congratulations to the team. So my question is majorly from the technology update side. So we know that we have a, you know, good amount of AI stack announced in the previous summit. So which majorly revolves around three categories, if I understand correctly. So my first question is on the Matrix platform, which is a client structuring platform, right? So, as far as we know, from the previous quarter updates, we have a strategic partnership with the Star Health, and then the implementation is almost over.
From the update from the management in the previous call, volumes are already ramped up to the 40% level, and we are expecting full volumes from the Q4. So given that understanding, we come to know that in this presentation, we have added two more insurers. So would like to know some color on that. I mean, the names are confidential, but we would like to know how big they are, and then some commentary around that. That's my first question. The second one is on when it comes to the revenue model of the rest of the AI stack, which is basically Maven Guard, which revolves around the FWA, like fraud, waste, and abuse. So this one, what is the revenue model, you know, look like?
Like, you know, Matrix platform, we know that it is a transaction-based fee, which you are going to charge to the insurers. But when it comes to the FWA, what is the traction we are seeing from the insurers, and what's the revenue model? And also some commentary around the revenue model, is there any revenue generating opportunity for MAgnum, which is basically the Raksha by MAgnum Navigating? Yeah, these are, these are my broad questions.
Thank you. Sure, Satish here. I'll attempt to answer your questions. So on the platform, interestingly, one of the three is a fairly old customer. In fact, into our fourth year now on the platform, with a renewal. And then, of course, we announced Star as a separate one. So in all of these, as you rightly pointed out, for a base claims platform, it's a pure hosted SaaS product on a per claim or a per transaction kind of pricing. And of course, we have a fixed volume and a fixed price contract about, you know, transaction level. And in fact, we've published the volumes as well on the overall platform, and also what is actually, you know, managed by ourselves.
So that should give you a sense of how the volumes are growing. Yes, some of the transformational aspects, like Star Health, sort of, moving, it's, it's, you know, going well as, as planned. And it is a, it is a technology transformation and not just a migration to a system. So we expect in the next couple of quarters to reach, a full volume, on that front. While on a run rate basis, we are reasonably high. I think from an overall volume perspective, probably in a couple of quarters, and we should have the, the full volume sort of kicking in.
So the other add-on, you know, products for the AI-led products, it's, you know, it's potentially likely to be an outcome-based, but I think it's too early for us to sort of comment on that, and once we have something concrete, we will report. I think this is one of its kind of an offering. And ability to start delivering results, even without tuning the models and training the models. But I think we keep you posted, as, you know, some of these become very concrete, the revenue opportunities. Lastly, on MAgnum and how the hospital, you know, side actually works. And I think it's too early at this point.
You know, our core job as a benefits administrator in this country, whether we manage for our membership or we help this, help other insurers manage their membership for cashless, is to substantially improve cashless access. And be the best answers in aligning to the regulatory intent of eliminating friction at discharge. In fact, if I, to sort of take you back to what the IRDAI said about a year and a half ago, saying it is no longer okay for us to think about when I got all the documents, and from there, my turnaround time, you know, clock actually starts. But when the patient is ready to leave, how quickly is the patient actually home, right? So that's the real mindset that the IRDAI actually challenged all of us, you know, to think about. In some ways, some of what we're doing is a response to that, right?
How do we sort of reimagine the entire cashless experience?... without actually having to have the typical B2B billing process between the payer and the provider, requiring the patient to just sit there and watch and wait. But to answer your question, we do believe that there are efficiencies now that we are generating, you know, for the providers. And there could at some point be a possibility for us to do something about the efficiencies that we are generating. But right now, the real focus is on completely reimagining the cashless experience, first for Medi Assist membership, and then enable this for the entire industry, and then see how the providers are also benefiting and how we are able to work with them.
Okay. Thanks, Satish. That's that helps. So, so just on—I, I will try to summarize my understanding. So it's basically, as of now, out of the AA stack, the immediate product which are, which are going to generate the revenue is basically Matrix platform, which is maybe claims processing, and then which is going to generate transaction-based revenues. And when it comes to the technology transformation point, which you have explained on the Star Health, so the same will apply to the remaining two insurers, and then there will be a implementation time, then the volume ramp-up, then the revenue generation process will kick in. So that is one understanding I've got based on your explanation on the Matrix platform.
FWA is basically outcome-based revenue, so that is going to take some time based on an outcome. I mean, how much amount we are going to save for the insurers and how you are going to charge out of it, we have to recalibrate and then decide going forward. That is that understood. When it comes to the remaining MAgnum suite of products, so we will be the first ones to bring the superb cashless experience in the entire network. And then once we reach to a certain point of efficiency, at that point of time, we will again recalibrate and then see how we are going to generate some portion of the revenue out of that. Is my understanding correct, Satish?
I think reasonably there. I think on the Matrix, at least one insurer is fully on board. What you said is true for two other insurers, not for all three. And of course, there are pilots that are happening, and then we typically are very conservative in providing forecasts and estimates. So when we have concrete contracts that are executed, is when we will update on the next steps on the others.
Yeah. Great, Satish. Great. So really good going on the technology side, and we are really excited to see this kind of a transformation from TPA model to HBA, and all the very best for the future in India. Thank you very much.
Thank you also.
Thank you. The next question comes from the line of Ashutosh Parashar from Mirabilis Investment Trust. Please go ahead.
Yeah, hi. Thanks for the opportunity. So just a couple of questions. First, on the sluggishness in retail premiums. So you have alluded it to some reallocation on the PSU part, but just wanted a deeper answer on that and to understand when is this likely to get over and when we are going to see the growth in the retail premiums come back. And second, on the incremental tech and investment for Star Health integration that you're doing, that had an impact on margin over the last couple of quarters. So wanted an update on that and outlook on the margins if we are over that in the full page. Yeah, those two only for me.
All right. Thank you, Ashutosh, for that, and thank you for your time. So it's typically a periodic reallocation that happens in some of these portfolios that we run. Typically takes two to three quarters for us to sort of claw back or improve on those numbers, and that's a typical cycle. But at the same time, I think there are two things that I would like you to sort of note from a retail perspective. One is the proportion of the work that we do for, say, no allocation-based kind of portfolio has moved up to 45% now, which is a fairly significant proportion from an industry perspective. We continue to improve on that.
Second, of course, is the world is becoming hybrid from a technology and a network and FWA deployment perspective, for what has historically, traditionally been, you know, in-house only product for especially plain vanilla inpatient, you know, retail portfolios that have historically been in, in-house, right? I suspect, Ashutosh, that over a period of time, the way we look at retail will undergo a change. It will eventually become a combination of how much of the market you are enabling and not just policies where we are appointed as TPAs and front-ending. However, the measuring the market share as a TPA on a standalone basis is important, so we continue to provide a very transparent, honest view on where we are running as an end-to-end TPA.
But if you look at from a premiums perspective, against the INR 2,000 crore of premiums today we touch as a TPA, we have access to over INR 15,000 crore-INR 16,000 crore of premiums, as in, you know, what we called ourselves as an HBA, right? So I think, eventually, I think retail growth will be a bit of a hybrid growth and not just in, in any one specific dimension. And that sort of segues into Star Health and update. I think it's, without sort of going into specifically any one insurer, today, the insurers that are on the platform today have an annual run rate of claims touching closer to, you know, 20 lakh claims across.
I think it's just, you know, we probably are, yeah, two to three quarters away from getting to a 100% run rate of that volume across all of the clients, and hopefully add more. So that's, that's where on, specifically on insurers on the Matrix platform. And we do believe that, you know, given that it is a SaaS product and given that it is running as a hosted instance, these are high-margin products. We expect the tech revenues to be, margin accretive, at a faster clip compared to the core business. Right now, of course, tech is about 2.5% of, our consolidated revenues. So the immediate real focus is on capitalizing on the ongoing projects, both in India and outside.
In fact, we have a version of Matrix, which we internally call as Healthtech, for the international private medical insurance, you know, industry. Very significant interest levels, from some of the markets outside India, in just leveraging the tech capabilities and the AI capabilities. So we'll continue to double down on, you know, improving our product penetration from a tech solutions perspective. And like we said in the previous, answer to the previous question, hopefully, some of these, you know, will also be an outcome-based pricing and not just transaction-based pricing. But, we'll absolutely keep all of you posted as we make progress on this.
Yeah, thanks, Satish. Just one follow-up. Basically, on the retail side, insurers that you are saying that you are not booking in your premiums, but, you are handling a lot of work for them and as well as Star Health. So is the revenue that you're currently booking for them in line with the volumes that, you are, undertaking for them? Or is that something that will, kick in more from next year's perspective? Is that something that we are booking since last quarter, this quarter, and next quarter, or likely to scale up, a lot from next year?
No, I think we have a fair bit of a runway in migrating the volumes to the platform that is still left. We are not close to completion yet. I think what I will sort of point you to is the numbers that we published on the total volumes on the platform and the volumes that are processed, you know, for our own TPA business. We expect that the delta to keep growing until we capture 100% of the volume of all the insurers, who are on the platform.
Thanks, Satish. Bye.
Thank you.
Thank you. The next question comes from the line of Neil Govarikar from L.F.C. Securities. Please go ahead.
Good morning to all of you. Congratulations on a great set of numbers. I had two questions. First was regarding nature of the exception item of INR 7 crore. I would appreciate it if you could give me a clarification on it, and the nature of how those claims are processed and what's the timeline for it. And second, I was recently made aware of ratings regarding Medi Assist on Google, which are fairly negative. It's pretty low on under two. The problems noted there were claim processing times to be too slow, multiple queries are generated, there's been a big delay. So if you could provide some clarification on these two, I would appreciate that. Thank you.
Thank you, Neil. Maybe I'll take the operational question, and I will hand over the other item to Sandeep. Right. So we processed over 27 lakhs-28 lakhs of inpatient claims and many more lakhs than that on the outpatient claims. We, of course, take a lot of pride in both leveraging technology and then, you know, being right the first time. In fact, if you go to our website, when you have a moment, we actually publish in real time the current averages that we see for admissions, discharges, our processing times, the call centers, the CSAT, and the metrics. So one, obviously, we are aware of both the emotional and transactional intensity of the business that we run. And we take utmost care and utmost pride in delivering that, both using technology and human touch.
We continue to have among the lowest cost per claim, you know, ratios and highest amount of self-help. We also believe that when you actually normalize the grievances, like the rest of the industry does, to 1,000 claims or 10,000 claims, we would have a fairly negligible number of grievances that actually come our way. I take your feedback that what is there are unhappy customers in any, you know, industry, and I think we need to do a better job of engaging with them on various platforms, which we attempt to do. But we take that as a feedback from your question. And then, of course, we'll continue to improve, you know, on that aspect as well.
I think I would only urge you to sort of look at the 94% kind of retention in an extremely demanding corporate book, where they have an opportunity to change the TPA every year because these are annual agreements. I know it's not a direct answer to your question, but thank you for highlighting this, and we value your feedback. Sandeep, would you like to pick up the other items on the exceptional items, please?
Sure. On the exceptional item of INR 7.1 crore, so during the quarter ended 30th of September, pursuant to a claim which we received from one of our insurance customer towards claims disallowed for the claims which were alleged to be processed by Medi Assist TPA. We all are aware that we happen to be the bottom-most as far as the food chain of this ecosystem is. And in line with the past practices, Medi Assist TPA made an on-account payment to the insurance company pending review, pending reconciliation of this amount of INR 7.1 crore. And since then, we performed an internal evaluation and assessment basis which we are of the view that those claims were not processed from our system.
We are confident and in discussion with the insurance customer for this advance, which was paid to the customer to conclude the settlement. However, considering that Q3 was supposed to have been closed, so on a prudent basis, we made a full provision amounting to INR 7.1 crore towards the net advance paid and disclosed this as an exceptional item. However, we also continues to pursue recovery from the customer, and we have also made an intimation of this insurance claim under the relevant insurance policies to safeguard the recoveries in the eventuality if there are some negative surprises. So one way or the other, this is likely to get settled. However, it might take a bit of time, but we have a strong case on this side.
Okay, thank you very much for this. I just would like to know, what steps are we taking to ensure that something like this doesn't happen? Because seven crore is may not seem like a big amount, currently, but should the claim be even a lot higher, it will impact margin significantly. So are we taking any steps to safeguard this from happening?
Yes. So, frankly, the internal controls and the audit mechanisms are already there and have been put in place, and we continue to leverage technology to make sure that those type of aberrations or exceptions, if any, are getting caught on the fly, rather than someone pointing it out as an afterthought. And we'll double down our efforts to make sure that these internal controls and audit mechanisms are strengthened with every passing day.
Thank you, Sandeep.
Thank you very much.
I just wanted to just jump in.
Yeah.
Sorry, I just want to jump in for a second, Satish, here. I mean, I think it's very important to clarify. The reason why it's an exceptional item and not part of the standard P&L claims disallowed is, it is we don't believe that's part of our standard, you know, errors and omissions, for which we fully provide for, you know, prudently in our P&L. These are things that have happened outside our system and processes. We absolutely value your feedback, and then we'll also have to expand our procedures to include what happens outside the system. But, just want to assure, you know, everybody here that this is not something that's related to our systems. But, thank you for your question, Satish.
Yeah, thank you very much. No further comments here. Thank you.
Thank you.
And now-
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing remarks.
Well, thank you so much. Thank you everyone for joining the call this morning. I hope that the new format of the deck and the disclosures will give you, you know, a little more insight into how we are thinking about the business and what's important from both from a management and the business perspective. As we sort of move forward, our real focus, you know, continues to be on in improving further on Paramount integration, accelerating it. We believe majority of the structural aspects of the integration are sort of complete. It's now about disciplined execution over the next, you know, couple of quarters and really sort of get back to our quarter with the margins.
And we'll continue to double down on our tech deployments and sort of acquiring new customers on the tech business, and both in India and outside. And hopefully add a value line that's meaningful enough and for now, both from a growth perspective and also from a you know margin perspective. And you know, it's been a very exciting quarter for us in terms of you know, how we've also been able to strengthen our balance sheet, and gives us the opportunity to really speed up you know, some of these initiatives on the tech front and be ready for anything that comes our way. Thank you again for your time, and we hope to you know, we'll see you in a quarter. Thanks.
Thank you, sir. Ladies and gentlemen, on behalf of Medi Assist Healthcare Services Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.