Earnings Call Transcript - XNSE:MEDIASSIST 2026-11-02

Operator

Ladies and gentlemen, Kutthi and welcome to MediAssist Healthcare Services Limited Q2 and H1FI27 earnings conference call. As a reminder, all buy-in lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation conference. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-door phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shashank from ONSTEN Young. Thank you. I'll over to you, Shashank.

Shashank, Head of Investor Relations

Thank you very much. Good morning to all the participants on the call. Before we proceed to the call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors. Therefore, it must be viewed in conjunction with the business risks that will cause further results, performance, or achievements that differ from what is expressed or implied by such states. To take us through the results and answer your questions today, we have the Senior Management of MediAssist Health Services, represented by Mr. Pratish Girugu, Chief Executive Officer, and Mr. Sandeep Dada, Chief Financial Officer. We will start the call with a brief overview of the past quarter by the management, followed by a Q&A session. We would appreciate your cooperation in it, restricting yourselves with two questions to allow participants an opportunity to interact. If you have any further questions, you may join the queue, and you will be happy to respond to them if you have any comments. With that, I would like to hand over the call to the management. Over to you, sir.

Pratish Girugu, CEO

Thank you, Shashank. Good morning, 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 Mediasis' performance for Q2 and QNF 5.7. Mediasis enters the second half of the year with a stronger and more profitable platform. Q2 is our first light-to-light quarter since the Paramount acquisition, with integration now complete and all Paramount claims running on Matrix. Our India TPA franchisee continues to generate robust cash flows, while our tech platform is scaling rapidly, and Mayfair is expanding its international footprint. We're funding these growth initiatives intimately, while maintaining a strong, debt-free balance sheet. Starting at 527, our capital allocation framework in the Sarge is returning about 50% of cumulative. I just said free cash flow to shareholders who are rolling five-year periods through dividends and buybacks. Sorry.

Dheeraj Kaswan, Analyst — Ingress

Yes, sir.

Pratish Girugu, CEO

I'm just going to repeat two sentences because I wasn't sure where we got disconnected. Sorry for that. As I stated, we entered the second half of the year with a stronger and more profitable platform, and for the first time, we're presenting a like-to-like quarter since the Paramount acquisition. As noted earlier, the Paramount acquisition is now complete, and all Paramount claims are running on Matrix. We continue to generate robust cash flows. Tech platform is expanding rapidly, and Mayfair is expanding its international footprint. And we're funding these growth initiatives intimately while maintaining a strong debt-free balance sheet. Starting at 527, our capital allocation framework and usage is returning about 50% of cumulative adjusted free cash flow to shareholders over rolling five-year periods through dividends and buybacks. In line with this framework, the board has approved a buyback of 49.3 crore rupees at 425 rupees per share, funded from internal accruals. We are joined by our CFO, Mr. Sandeep Darga, but before I hand over the call to him for the financial results, I will quickly walk you through some of the operational highlights for Q2 and H1FI27. We spoke about how the India business is a stable platform and how two growth engines, which is the tech business and the international business, are helping us accelerate both growth and margin of creation. And we introduced this over the last few quarters. We started disclosing some of these numbers very specifically since the last quarter. So, continuing on that trend today, most of the presentation that we've uploaded tries to... Present our business along the three dimensions, which is our India TPA and platform and health benefit administrative and the international business. The consolidated income grew 13.8% in H1 to 492 crores. Our EBITDA grew 19% to 97.2 crores. And our reported back at a 60% growth and went up to 49.2 crores. Our EBITDA margin for H1 is 20.3%, and the reported HAT margin has reached back to the double digits at 10%, so the 289 basis points here on your growth. And all three dimensions of our business, the India TK, and if you noted in the presentation, this is where we run it in India, the platform and HBA. The players and the customers run it on their own, but on our technology platform. And the international business, again, we run it, but worldwide. Along the three dimensions today, the India TPA clocked 437.5 crores of revenues in H1, 11.9% year-on-year growth, and contributed about 91.5% of revenues in H1. And the premiums that we managed as a TPA were about 15,104 crores rupees, with an 18.8% growth year-on-year. Our platform and HPA business clocked 19.8 crores rupees in revenues, with a growth of nearly 70% year-on-year, and contributed over 4.2% of the consolidated revenues. On the platform model, we've managed premiums worth about 9,648 crores, which is a growth of 24.8% year-on-year. Lastly, on the international side, we clocked the revenue of 20.7 crores, a modest 1.1% year-on-year growth, but with all of the initiatives that we put in place and where the membership is already added and the revenue is catching up to it. It's already a 4.3% of our revenues. And to give you a sense of the size, beyond the premiums, we actually processed claims from 141 countries across 21,000 providers just within this half year. Collectively, the consolidated operating revenue was 478 crores in H1, with a growth of 13%. And if you combine the premiums that we had access to, both between the TPA market and the HPA market and the platform on the HPA market, Nearly a third of India's health insurance premiums today are being served by the platform. On the margin front, we've continued to improve our margins as Paramount integration has reached an end. All of the group customers have been fully migrated to the MediSS platform, and all of the claims are running on our metrics platform today. The Q2 FI27 clocked at 20.4% consolidated EBITDA margin. And if you went back to Q1 FI26, that was just before the paramount acquisition, we were 190 crores revenue per quarter business. Today, we are at 241.5 crores of revenue and gone back to a 20.4% EBITDA margin. And with this, we conclude that the Paramount acquisition integration is fully complete, and we continue to generate robust cash flows that we are deploying back in growing our growth businesses. In the interest of time, I'm not going to go into each of the business segments, and we can answer that in the Q&A section, but I would like to take a couple of minutes to talk about three key things. One is our group business. The group business revenues were, in H1, were 334.7 crores, which is a 13.7% growth year-on-year. The premiums that we managed for the industry grew by 21.8% year-on-year. Marginal increase in the lives from 4.54 crores to 4.75 crores. And we continue to deliver outcomes to insured, partners, and corporates through our short savings, which again moved up by almost 53%. Group is still our mainstay at about 70% revenue share, and our market share continued to improve to 34.1%. And of course, one of the questions that we answered last time and we continue to look at is our retention rates in group. And the same store growth and the organic growth in the group business. Our retention held strong in H1, about 90.5%, marginally improving quarter on quarter. And as discussed in the previous quarter earnings call, the retention drop down was partly due to the churn in the portfolio that we have integrated some time off.

Operator

Thank you.

Pratish Girugu, CEO

The same-store growth, which used to be about 8% or 9% earlier, we're still seeing about a 7-8% same-store growth on the retained business. Given the way we account for premiums, especially the installment premiums across multiple quarters, the depressed retention rate is likely to show up in the numbers for the next two to three quarters. In three to four quarters from now, we expect our retention rates to go back to, you know, what they were historically, to 93 to 94 percent. Today, we serve about 11,000-plus, you know, corporates and across 25 sectors, and fairly particular presence across multiple sectors today, also allowing us to capture, you know, India's growth in sectors where the headcounts are improving. And in retail, we continue to see the shift to a hybrid model, where part of the work is done in the TPM model, and part of the work is done in the platform model. The premiums managed through the TPM model were about 1,164 crores, while the platform premiums were almost 9,648 crores. And we also have contracted, from an H-1 basis of the insurers that we contracted, about 758 crores of incremental premiums. With four of those insurers going live in this quarter. Today, if you looked at both the TPA and the platform models, our retail market share is about 34.1% from a premium access perspective. Of course, the fundamental difference here is that in a TPA model, the fee is already fixed at a certain percentage. Whereas in the platform model, it is about deploying more and more services and delivering more and more value to the insurers and continuously improving our revenue outcomes within the premiums that we serve. On the whole, and that leads us to the technology business, the tech business revenue share has substantially improved. And as a platform, we today process over 7 million claims in the first half of this year. And for those of you who are keen on understanding what kind of issues insurers today are looking at us to solve and how we are solving them like at scale, the page number 15 on the investor presentation talks about some of the core issues that the industry has today and how our AI power platforms today are managing or helping insurers address some of these issues at scale. This is no longer a platform that's in a pilot phase or an experimental phase. It's a platform that's touching over a million claims a month and delivering outcomes with a fairly fair sense of explainability, supervision, and grounded and fair in all these AI outcomes. Lastly, it brings us to the international business. We've been adding more books. We've been adding more membership. We've grown our group membership. We've added more travel premiums in India. The Indian insurer contribution in international business is substantially high, with more and more of the insurers working with us, both on the IPMI products, the group business outside India, and also retail, especially around the travel business outside India. And we've tried to give you a sense of the kind of opportunities that are emerging in the international business. While Group and Medin were the largest contributors, you can now see that the retail and travel are taking a substantial portion. And the technology leading outside India is beginning to show up in the revenue numbers today. And the platform is today live in Southeast Asia. Lastly, before I hand over the call to Sandeep for a quick review of the financials, we have a capital allocation policy in place. Starting the current financial year, the company, Mediasis, plans to return about 50% of its cumulative adjusted fee cash flows to shareholders, overrolling five-year periods using dividends and share buybacks. And the 50% ensures, and the way we look at the adjusted cash flows ensures that we first invest in where we need to invest. We grow where we can compound the platform and ensure that our balance sheet remains strong and then return the surplus cash. So the first step today, we've announced a share high back of up to 49.3 crores at 425 rupees per share. With that, I'll hand over the call to Sandeep for a quick review of the financials.

Sandeep Dada, CFO

Thank you, Satish. Good morning, and a warm welcome to all the participants. I am pleased to take you through the financial highlights for Quarter 2 and H1 of FY27. Starting with the revenue profile, the total income for Q2 was 245.4 crore, with a worldwide growth of 4.5%. Good morning, everyone. The total income for H1 was 492.4 crore, a growth of 13.8%. The operating revenue, which we call it as revenue from contracts with customers and excluding other income, was 241.5 crore during Q2, which was higher by 3.9% year-on-year, and 478 crore in H1, higher by 13.0% year-on-year. Giving you the split of line of business for the operating revenue. Starting with the Indian CPA business, the revenue for this cohort was 219.6 crore in quarter two, a growth of 1.2 percentage year on year, and 437 crore in H1, a growth of 11.9 percentage. This contributed to 91% of our consolidated Q2 operating revenue and 91.5% for H1 operating revenue. Within the TPA revenue, the government business, the H1 revenue was 57.3 crore, which was up 14% year-on-year. As I've mentioned, the good business. Generated H1 revenue of 334.7 crore, which was up 13.7 percentage, while retained revenue was 45.5 crore, down 1.8 percentage from previous year, corresponding period. Coming to platform and HPA revenue was 11.2 crore during Q2, up 94.8 percentage year-on-year, and 19.8 crore in H1, up 79.8 percentage year-on-year. This cohort contributed roughly around 4.6% of the revenue during Q2 and 4.2% of the H1 operating revenue. The international revenue was 10.7 crore during Q2, up 7.7% year only, and 20.7 crore in H1, up 1.1%. This contributed to 4.4% of a quarter-two operating revenue and 4.3% of H1 operating revenue. Moving on to the margin profile, the revenue for quarter-two was 49.2 crore. In absolute value, it was a growth of 23.9% year on year. For H1, the corresponding number for EBITDA was 97.22, which was up 19% year on year. The margin percentage due to Q2 was 24.4%, which expanded by 331 basis points year on year. Whereas the H1 EBITDA margin profile was 20.3% and improvement of 103 BIPs year only. The improvement reflects the completion of the paramount indication, lower people cost, and the rationalization and the deployment of the AI tools for the paramount plan. With the competition of the three aspects, we recovered almost 330 BIPs of the margin during the last four quarters. For context, EBITDA margin moved from 22.1% in quarter one last year before paramount, before acquisition of the paramount. It moved to 17.1% in quarter two immediately after the acquisition and since then recovered to 20.4% in quarter two this year on a much larger revenue base. Reported PAT for quarter 2 was 21.6%, a growth of 167% year-over-year. Reported PAT for H1 this year was 49.2%, which was of 60.2%. The underlying PAT for H1-27, excluding the one-time derivative gain on the call-put options, This was classified as exception last quarter was 46.1 crore, this compared to 30.7 crore during H1 of last year. Moving on to the key balance sheet under operating matrices at the end of H1, the cash in the cash equivalent as on September 26th was 268.3 crore, compared with 260.5 crore at the end of FY26. Thank you. was $886.8 crore compared with $852.4 crore at the end of FY26. The contract liability was $321.7 crore versus $280.2 crore at the end of FY26. The company continues to have a strong and a zero debt balance sheet. The revenue per average headcount, excluding government business headcount, was $13.7 lakhs on an annualized basis. Compared to 3.1% in FI26, up 4.5%. With this, I hand over the call back to Satish. Thank you.

Pratish Girugu, CEO

Thank you, Sandeep. Moderator, we can open up for questions now.

Operator

Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions, may please press star and one on the touchtone form. If you wish to withdraw yourself from the question queue, you may press star and two. Five spins are requested to use only handsets while asking a question. We will wait for a moment while the question queue assembles. You may please press star and one to ask questions on your touchtone form. The first question is from the line of Navid Virani from Bastion Research. Please go ahead.

Navid Virani, Analyst — Bastion Research

Hello, am I audible? Yes, Navid, you are. Hi, team. Good morning, and thank you for the opportunity. My first question is regarding the organic growth or the light-to-light growth. So I think since the last few quarters, we have seen that this is something which has, you know, not been up to the mark or, you know, in line with our expectations. So what I want to understand is, can you give us a sense of how in this particular period the industry has performed in terms of the premium growth and how we as MediAssist have, you know, performed life-to-life? That's one. And an attest question to that is, You know, now given this particular scenario right now, how are we positioning ourselves to grow, you know, at rates which are at least in the low double digits as far as the organic growth is concerned? So these are my two questions. Thank you.

Pratish Girugu, CEO

Thank you, Navid. Just as a refresher, just to get some of the terminology aligned, our growth typically comes from one is the minus return on what is retained, that is the same store growth, and I'm assuming that's what you are referring to. So historically, we were a 93, 94% retention business, and for reasons that I've explained in the previous quarter and now, There's been a marginal drop in the retention percentage, which we expect to get back in the next three to four quarters. As the Paramount integration is complete, there is no standalone Paramount account that is left. All groups are now migrated to Mediasis, so that's the new base on which we are operating. The second is for the retained accounts, typically because these are annual renewals, there is an inflation premium. We've seen over the last three years from a steady state, same-store growth of about 13-14%. We are currently running close to, say, 8-9% as an industry, down the employer-employee segment. And when the industry reports group business, the group includes employer-employee, bank assurance, and multiple other product lines. We are, at this point, very fairly heavily predicated on the employer and employee segment when we report our TPA business. But the split is not available at the industry level. But if you look at the overall GI Council numbers for H1, the group premiums in the industry grew at about 13.8%, and we grew over 21% between the acquisitions and our own growth. So we continue to grow ahead of the industry premium growth rates in the group business. Now, coming back to same-store growth, historically, about half of the same-store growth came from life expansion, which is the underlying employee and dependent headcount moving up, and the other half was sort of equally split between the inflation adjustment for medical inflation and some kind of benefits expansion. Right now, we see a substantial amount of growth coming from benefit expansion and the inflation adjustments. Clearly, the IT-ITS industry is not a net contributor to employee headcount growth in the country today. Having said that, in the last two years, we've substantially expanded our presence into multiple other sectors. We today serve over 11,000 corporates across 25 sectors. So we continue to see addition of employees in manufacturing. We continue to see additional employees. In consumer goods, we continue to see in, say, oil and gas and some of the other sectors. However, the IT-ITS is a very large contribute of employee headcount in the country today. So there is going to be a tiny lag for the other industries to catch up in terms of the contribution from our headcount perspective. So we expect that same-store growth will probably continue in the rate of 9% in our range. With our retention rates going back to 93-94% in the next three to four quarters. Now, the last piece in the group business is where we don't currently do much, which is typically the product platforms like Bank Assurance or any other products that are historically being run in an in-house template. With our tech platform deployments, like we spoke about the hybrid as a model in retailing. And we expect to be able to capture that part of the group market through our platform and the hybrid approach. These are early days, but this should sort of summarize where we are on the group business. And at the same time, we're also growing other lines of business at a fairly rapid pace, both between the technology business and the international business, so that the overall growth rates continue to be healthy.

Operator

Thank you, thank you for that. Sorry, sorry, please go on. No, I think that was it, Navit.

Navid Virani, Analyst — Bastion Research

Okay, okay. So, sir, thank you for that detailed clarity, because from the outside, it looks like that, you know, in the group business, which is the largest part of our business, we have kind of saturated. Retail is something where, you know, there is not enough happening, and technology and the international piece, which are sort of growing really fast, are not, you know, large enough currently to create an impact. So, that is the kind of view that we are getting from the outside. So, can you, you know, help me understand if this view is correct or, you know, is there another way to look at it?

Pratish Girugu, CEO

No, I, group obviously is our mainstay. That's what brought us to where we are today, and clearly improving retention, ensuring that we improve our economics, and we don't have control on employment growth in the country. However, what we have control on are the retention and the value acts that we are able to deliver, and how we... How we capture the non-employer-employee segment within the group business, because we present our market share as a percentage of the overall group business in the country without excluding areas that we don't operate. And as you have noticed, we have always grown faster than the market for many years now in the group business, and we will continue to take substantial market share in the group business. And we also expect that... There could be, you know, further expansion of benefits in the group business on account of the recent GST-related announcements, where the corporates will get the input tax credit benefit, even on the group business, while the GST is not going away, at least they get an ITC on the GST expense. And with substantial amount of increase in benefits, we expect the same stockers will continue to 9% to 10%.

Navid Virani, Analyst — Bastion Research

Thank you for answering all my questions, and I wish you all the best. Thank you.

Operator

Thank you. The next question is from the line of Vikas Sharda from NT Asset Management. Please go ahead.

Vikas Sharda, Analyst — Asset Management

Yeah, thanks for the opportunity. Satish, could you just talk about the Q2 revenue growth, let's say, for India TPA, because that looks like to be in low single digits, 2-3%. So how does the industry growth and your premium growth translates into revenue growth for this particular quarter? Because Q1, including, had the paramount acquisition benefit. So Q2 like-to-like comparison would be more useful.

Pratish Girugu, CEO

Thanks, Rikos, for that question. So, you are aware that we book and report on a 1 by 365 basis. So, all the offices in Q1 and then their corresponding, say, installment premiums, their corresponding revenues in the quarter continue to have an impact in the way we report, like our numbers. But to give you some comfort, we were able to replace about 80% of... The retention losses through new business additions, except that we have a timing challenge in the way we recognize our revenues, so they will catch up, and hence our guidance on the numbers sort of normalizing. Over the next three to four quarters, both from a retention perspective and revenue growth perspective. But if you've seen the premium growth, for example, we still continue to grow faster than the market from our premium growth perspective. For that, the accounting revenue translation will typically lag by two to three quarters, and you should see that in the numbers going forward.

Vikas Sharda, Analyst — Asset Management

Okay. And why have the retention rates gone down? Who have you lost the business to?

Pratish Girugu, CEO

So we spoke about this in detail in Q1. The reasons remain the same. One, an extremely large book of corporates from Paramon, the endeavors return in the tail end, not in the core constituency that MediaSys has always been, you know, strong in. The second, the cyber incident in the Paramount systems last year, you know, in December, also had an impact in some of the renewals in Jan through April in the Israel Paramount book. Of course, we're beginning to see the accounts actually come back, and we're fairly confident that in the new base that we are sitting on. And we will get back to our retention rates, like I said, in the next three to four quarters.

Vikas Sharda, Analyst — Asset Management

Okay. So then what would be your growth expectations of revenues, let's say, for the second half and next year, FI28?

Pratish Girugu, CEO

Because we don't provide specific guidance, and I think on the PPA business, we've always mentioned that We will grow at half or faster than the market from a premium share perspective, depending on the timing, it will accrue into 11 years. So if you look at Q1 of last year to Q2 of this year, our monthly revenues have gone up by nearly 50 crores from a size perspective. And if you look at the contract liability, that I think has gone up, which is the unearned revenue equivalent of 40-50 crocs from just like March till September. So those are contracts that have already won that they're servicing, and the revenue is just not in the P&L yet.

Vikas Sharda, Analyst — Asset Management

All right. Thank you. I'll come back for any follow-up. Thanks, sir.

Operator

Thank you. A reminder to all the participants that you may please press star and want to ask questions. The next question is from the line of Prithvish Uppal from Nuwama. Please go ahead.

Prithvish Uppal, Analyst — Nuwama

Yeah. Hi, sir. Yes, you are. Okay, great. So, just a few questions from my side. So, first is, you know, on paramount integration. So, though you highlighted some parts on the retention dropping, you said that over next few quarters, this will sort of normalize. So, just if you can help us understand how that will sort of play through, you know, what are the steps to help the retentions move back to around, say, the 93, 94% that we were running. So, that was the first question. The second is just a sort of follow up on that is around the PSU allocation. So have we lost some share there as well, which would probably have some explanation in terms of the overall retention dropping? Or is it just a few sort of clients that have sort of, you know, moved out for us? Um, and, uh, third would be on the EOM, uh, of that, uh, you know, I already have come out with the consultation paper for insurers, uh, so, uh, any early discussions or signs where insurers probably face, uh, EOM pressures and, and any signs in terms of, uh, pricing, uh, discussions here. Uh, and, uh, uh, just lastly on the paramount, uh, you know, post integration, The margin is now about 20.4% odd. So any more levers left here or this should be probably the kind of margin expectation that we should sort of expect going forward from here. So these are my questions.

Pratish Girugu, CEO

All right, Patricia. I'll do my best to answer, but may not be necessarily in the same sequence. Sajemi spoke about the reasons for retention drops in the previous question. What are we doing to get it back? It's always a challenge to run two extremely large systems and two extremely large processes in any integration. Like I mentioned, the cyber incident in the Paramount system set us back by the quarter in our integrations, but as of early part of this quarter, 100% of the corporates are served by media system, and 100% of the claims are running a matrix in our claim system. So, the systems, processes, call centers, people, officers, all of them stand fully integrated, and there is just one organization that has... That's delivering in the same model. And clearly, as we acquire some of the companies, they have very different operating models, and that was obvious from, say, the percentage of employees benefits costs and revenues, which were a lot more people-driven. So today, I think, from the numbers that we presented as headcounts from, say, three, just at the time of Paramount acquisition, and Paramount came in as easy. So now, we are probably about 800-plus people lower in headcount today. So clearly, the whole integration and consolidation... And presenting a united front and having a common tech platform, they're in place, and that's what gives us the absolute confidence that we will get back to retention percentages. Secondly, it's not just about consolidation. It's also about the continuous innovation that we're bringing to group customers. Group is under pressure for various reasons, very complex benefits, expansion of benefits, very significant changes in the network, pricing, inflation, fraud. We are... Absolutely improving our right to win in the group business. We have the leaders in the group market with over 34% of India's group premiums, without even excluding bank assurance and other products managed by us today. So clearly the second part of why we are very vulnerable about the group business is how we are continuously investing in improving our right to win, whether it is letting employees and their dependents walk out of the hospitals even without a bill. Or giving them absolute financial, you know, certainty before they walk in. We're doing a whole lot of things just to improve the way the group is actually serviced. And the group business really is not dependent on any reallocation at an insurer level. The group is largely one based on the employer having a view on whether our service levels are okay or not okay. There's a substantial amount of group, the employer's influence in the choice of the PPA as per the regulation. They have a right to do so, and they actually exercise their right exceptionally well. And which leads us to, say, the margin question. So today, I know we're at about 20.4%, you know, at a quarterly level. And, as mentioned, we're also growing two lines of business. We're growing the tech business. We're growing the international business. There are overlapping costs as we have moved our international business leadership and the operating structure and the onboarding customers. We've onboarded new corporates and, sorry, new insurers onto our platform business. Revenues are yet to begin, but the implementations are in progress. So we haven't presented any of those adjustments today. So today, what you're seeing is the margin for Q2. It absorbs all of these initiatives and all of the investments, and then that's where we're at. But we still sort of stand by that our steady state margins are 22-23% in the core business, and that continues to be a focus area to get back there at the earliest. And lastly, on the EOM paper, I think in some ways, The TPA industry has already gone through changes like this over the years. You've seen our yields decline. You've seen insurers and the regulators, especially through the previous master server holders, accountable for service delivery outcomes and reducing customer grievances. And I think we are in a good place from a service perspective. And our view is that irrespective of how the rationalization happens and even if the final results come out, the core issues that the insurers need to solve are going to remain the same. They will need better quality claims. They need better claims control. They need better customer experience. And there is hope, possibly, there is some inefficiency in their existing cost structures that are related to... You know, the servicing side of claims, which we strongly believe we're in a better place to support insurers and probably take on more of the work than we currently do. We are, while the numbers are not in the public domain, we are fairly confident that at our blended 2.7%, you know, PPA fee on group and retail is an exceptional value for money from an insurer perspective. And we intend to be able to engage with each of the insurers, understand how we can help better in their journey to drop the expenses. Thank you very much.

Prithvish Uppal, Analyst — Nuwama

Yeah, so just as I understand, you see that the EOM can also be an opportunity from, let's say, outsourcing from in-house for at least on the retail side. The cost benefit that probably you offer at about 2.7% is better than what insurers are sort of doing in terms of the entire clean processing function in-house. So that can be an opportunity for you or, you know, as another sort of way to look at the EOM.

Pratish Girugu, CEO

I think there are two parts to it, right? Unlike the other costs. So today, the policyholder knows the TPA fee. The TPA fee is transparent with the policyholder. In fact, the premiums are grossed up to collect the TPA fees today. So we are sort of very loosely aware of premiums and not expensive because the policyholder is actually grossing up the premiums. And then paying us the EPA fee, right? So, it's disclosed, it's transparent, there's a choice, and there are expectations and SMAs, right? So, from that perspective, I'm not specifically concerned about, you know, what changes happen. All I'm stating is that there are two users that the insurers have. One is the operating cost. Which potentially, you know, may or may not be as efficient in certain areas, especially just in the pure operations side, where, you know, we can step in either through our platform model or through the TPA model, and hopefully we can deliver more value to our insurer partners in certain areas where we've not been working with them, right? And second, I think the bigger challenge for insurers is... is what you do with the claims control and while balancing the customer experience. And I think that's where a lot of work we've done in the last four to six quarters in building our AI to solve for the right things from a claims control perspective while improving customer satisfaction. We believe, I think, these are the two levers that we've built that potentially are of interest to incurs in the new regime.

Prithvish Uppal, Analyst — Nuwama

Okay, sir, understood. And so you had mentioned on the international side, large partners.

Pratish Girugu, CEO

Sir, Patrice, would it be okay if we took questions from the others and come back shortly? Thank you.

Operator

Thank you. We'll take the next question from the line of Dheeraj Kaswan from Ingress. Please go ahead.

Dheeraj Kaswan, Analyst — Ingress

Hello, am I audible?

Operator

Yes.

Dheeraj Kaswan, Analyst — Ingress

Hello, sir. Congratulations on the Q2 results. Can we start with like the technology segment that, you know, we are giving more and more information every quarter about it. And as a retail TPA business is now, we are losing feathers. I think our main focus is just increasing our technology revenue and gaining share with the retail segment there. So, like, we are increasing our revenues every quarter there, and we have onboarded three clients already, and four are going to be onboarded in the H2. So, can you, like, give the scope, like, how many claims do these seven insurers control, like, administer every year, like, among the entire industry? Are the volumes going to be almost like 30-40% or any kind of thing like that?

Pratish Girugu, CEO

So without going into specific guidance, I'll take a step back and see where is this whole hybrid approach working for us. One, of course, the only model that we could offer to our insurer partners was you hand over the customer to us and we manage everything end-to-end. That was the TPA model. I think from there, today, and for various reasons, right or wrong is debatable, but, you know, there are portfolios, there are cohorts where insurers said, no, we want to be the customer-facing entity, we want to own the customer, we want to own the customer experience, right? I think we didn't have an answer on how to make that happen. So today, I think... We have enough solutions that are available where the insurer can continue to front end and differentiate from a customer experience perspective, and while not having to do everything on their own, and I think that's a solution we've been able to create, and these typically are... Those, you know, four, five segments that they actually detailed out on what are the areas that insurers, you know, what are the typical challenges that exist in the health insurance business and how are we helping solve some of those issues today, right? And it goes on page number 15, whether it is intelligently adjudicating claims, understanding history, understanding context, or... Handling the complexity of policy terms and benefits and maintaining a system of records and audit trail in a manner that it is explainable to the member and it meets all of the regulatory bars that exist today or how claims are adjudicated or fighting fraudulent abuse or simply just delivering fast period experience to members, especially at admissions and discharges. We today have solutions that work independent of our TPA offering, right? I think that was a step one. And most of the revenues we are currently reporting are pure platform SaaS revenues, which is just a claim passing through the platform, which is just enforcing policies and tariffs. Much of the revenues related to our other value-adding bundles, whether it is intelligent claims authentication or network as a service. Or, you know, fraud-based abuse are still not in the revenue numbers right now, like there are contracts that are kicking in and slowly sort of reaching out. And these contracts, potentially, from a, you know, per claim revenue perspective, could be anywhere from, say, five to ten times the current. You know, revenue per claim construct, which is the pure, like, SaaS platform, right? And that's the opportunity we see. Of course, we focused on retail first. And like I mentioned, even within the group business, we see an opportunity to work on the hybrid model for the non-employed and, you know, employee models. And as we, I think, deliver value to more and more of these cohorts, and hopefully that will translate directly into our revenues and, you know, growth in the technology business.

Dheeraj Kaswan, Analyst — Ingress

Okay, just a quick follow-up on that, like, in a technology segment, is, like, 100% of the revenue from our claims, like, from the metrics, software only, or are there other revenues included too?

Pratish Girugu, CEO

Other revenues are contracted, Dheeraj, but bulk of the revenues that we are reporting today are only from the Pure SaaS platform. So, the other revenues are add-ons on top of it, and hopefully in the coming quarters, you will see them accruing.

Dheeraj Kaswan, Analyst — Ingress

My second question would be that regarding the group segment. So, like Q1, we reported a very high market share, like almost 37% of the group segment. But Q2, we saw that there was, like Q2 is, of course, a very weakest quarter when it comes to the, you know, premiums. But since we saw kind of a degrowth that the industry has grown 15-17% and our premiums managed has been increased by around 12%. And we also noticed that revenue has not increased on the same part at 12%, it has just been increased by 4%. So can you give some reason for this, like, has there been take rate completion due to the clients that have left from the Paramount book? Thank you. Like, what is the guidance going forward for the group, uh, the group criminal?

Pratish Girugu, CEO

So, I think I addressed some of these in the previous three questions, but I will quickly summarize it. It was obviously provided revenue guidance at this point in time, but we've always said that we will go at power faster than the market. And I think from an H1 to H1 perspective, leave the Q2 out because we've got our own seasonality, you know, in the business. And second, the industry reports, including bank assurance and other areas. Which is not currently, you know, a cohort that, you know, we process. We are the only employer-employee in our group reporting today. Having said that, we've talked about the reasons for the addition of the losses, the higher churn rates, on migrating some of the tail end from Paramount and then the cyber instinct of Paramount. And many of the large corporates that have an installment premium, we also recognize that installment in Q2 as a loss in Q2. The revenues, of course, of customers that are lost on 1st of April will continue to be in the reported numbers for the next 365 days because we report our revenues on a 1 by 365 basis. And we've replaced between 75% to 80% of the premiums that were lost this year through our new corporate tradition. And again, it has its own timing of how the revenue accrues over 365 days. And hence, our sort of overall guidance on two things that we'll get back to our historical retention rates in the next three to four quarters as reported in the numbers.

Dheeraj Kaswan, Analyst — Ingress

Okay, just a final quick question. Like, in the past five quarters, our expenses have been kind of, you know, at the same place. It has been kind of flat. And going forward, is our current expenses, like the current tabloids, everything we have, is it, like, are they going to stay constant in this case? Like, of course, other expenses will increase a bit. But other than that, can we manage higher revenues from the same days as more and more, you know, now there's going to be growth for both the group segment and the technology segment?

Pratish Girugu, CEO

Sir, it is very hard to follow the question. My apologies, but is it okay if you take this offline and just get the other questions?

Dheeraj Kaswan, Analyst — Ingress

Yes, definitely.

Operator

Thank you.

Dheeraj Kaswan, Analyst — Ingress

Thank you so much.

Operator

You may please press star and want to ask questions. The next question is from the line of Mihi Shah from Meritus Capital. Please go ahead.

Mihi Shah, Analyst — Meritus Capital

Is it Ateesha Naya audible? Yes, Mayor. So, thanks for taking my question. One question that I had is, given all of the investments y'all are making in technology, cashless, fraud-based and abuse, why does that not show up in a group retention rate higher than, say, 93-94%?

Pratish Girugu, CEO

That's a great question, and I think in an ideal world, it should be 100%, right? So today, A couple of disclaimers, right? One is we don't do any adjustments in the way we present our attention. For example, there are small companies that just fall away, right? They don't even exist the second year, or there are companies that shut down their premiums, or because of wage code, maybe some of the factories have moved more and more people to the ESIC covers and not the premium cover, or some companies have merged and then become new, right? So today, we don't... We just look at whether there was an entity in the previous reporting period, and then whether that entity is traceable in this period, and it's a fairly stringent bar that we set for ourselves on how we report our premiums, right? So that's one of the main reasons why, so we could actually go into each account and then, you know, potentially just the explanation alone will move up by 100 to 100 BIPs, right? Bye. That's one part of the retention side. And second is, you know, we also have a responsibility towards picking up, you know, accretive accounts and accounts that make sense. So some of our, you know, churn in April also included, you know, a small portion where we could say, since this is commercially not viable, right? And then sometimes. It is also important to take that stance. And again, we don't split that number. But there is a second big reason is the commercial liability. The third is we are not perfect. There will always be a small percentage of clients where their expectations and our focus may or may not align. Often, we can resolve that. That results in higher retention rates. By the way, 93-94, I think, is. Well, it's relatively low for what we do, but in absolute terms, I think it's fairly high, you know, from an industry perspective, because most EPS that we acquired, the highest was about 82%, 83%, and that's, in fact, how we've improved our market share. But if you go back to my answer three, four questions ago, we are absolutely focused on improving our right to win and improving... The desire for corporates continue to stay, you know, with us from a service perspective, and we have a good sense of what we need to focus on in a group business, especially in the way, in the changing job market, changing priorities, you know, changing globalization from a headcount perspective. I think we have a reasonable game plan, you know, and hence the confidence in, I think, three to four quarters on such a large and consolidated basis that we will get back to our, you know, retention rates. And then we will aim for something higher.

Mihi Shah, Analyst — Meritus Capital

Thanks a lot, Ketish. The other question I had was, obviously, detail is an underpenetrated opportunity. And, you know, depending on how things play out, could be a leg of growth. There, if you look at your share of premium process, it's obviously low. But if you include the platform business, Your share is quite high, you know, or much higher. So how should we think about your journey in the retail business? Do you see it largely as a platform play on the retail side versus, say, the group side? And if so, you know, how should we look at the monetization journey on the platform side, whether it is number of products, penetration, ultimately, then pricing as a percent of You know, the claims volume that you're processing is how we look at it on the group side, but how should we really look at it on the detail side?

Pratish Girugu, CEO

No, very fair question here. So, like I said, we didn't have an answer unless somebody hired us as a PPA, so now we have an answer. And we've layered the answers in a manner that we understand are the key areas of concern for an insurer, which is just while we underestimate the value of it sometimes, just a system of records, your ability to configure a policy and all of the nuances of the terms and conditions and false past history, adjudication, being able to explain why they did what they did to a customer and to the regulator and all the other stakeholders. It's help is a big challenge, right? And that's where our next platform comes in, which, like I said in the previous conversations, think of it as 100, 120 bucks a claim, like a base just for the claim to go through the system of records, right? The bulk of our revenues that we are reporting today point to the platform capabilities alone, right? Now, there are other things that the insurers need, which is the fraud-based interviews or auto-adjudication or intelligent adjudication, managing cashless and network, managing member experiences. We have those bundles. Different bundles are in different levels of activation and contracting. We expect those, and we do have contracts, right? The contracts will actually cover these bundles. Hopefully, as the insurers use more and more of those, those will be. Incremental revenues from each of these existing customers who are on the platform. The third thing we did was that we decoupled the bundles from Matrix. So now we're enabling insurers to use the bundles on their own core systems without having to migrate to Matrix. We have one such sign-up now where they continue to use their core system, but they're saying, okay, I will use your intelligence bundle on top of my core system. Then that sort of becomes like... One more opportunity. And going back to the EOM questions that came up, you know, a few minutes ago, we also think that there will be a little bit of a rethink from the cost that insurers wants to keep or want to optimize or want to change. And I think hopefully that will improve our ability to go engage with them deeper and then find better solutions. In summary, I think the way to look at it is... It's a, you know, within each account, how much more can you do, you know, within retail. It's not about just how many more, how many more pieces of payments you can access.

Operator

Thank you, sir, for answering those questions. Ladies and gentlemen, we'll take that as the last question for today. I would now like to hand the conference over to the management for closing comments. Thank you, and over to you.

Shashank, Head of Investor Relations

With that, we would like to conclude the Q2 earnings call. Thank you to all the participants who are joined. You may disconnect your lines.

Operator

Thank you. Thank you, members of the management. Thank you. Ladies and gentlemen, on behalf of MediAssist Healthcare Services, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.