Star Health shares rally 13% after Q4 net profit soars to Rs 111 crore, beats estimate
However, the PAT declined around 13% sequentially from the Rs 128.22 crore reported in the third quarter of the same financial year 2026.
The insurer released its quarterly results in the post-market hours of Tuesday.
Net earned premium grew 14% YoY to Rs 4,317.15 crore in the January-March quarter of FY26, from Rs 3,798 crore in the corresponding quarter of FY25. The insurer’s underwriting losses also narrowed nearly 44% YoY to Rs 154 crore during the quarter under review.
The company posted an operating profit of Rs 63.98 crore for Q4 FY26, as against an operating loss of Rs 86.89 crore in Q4 FY25.
Overall, in the financial year 2026, Star Health reported a 14% drop in net profit to Rs 556.98 crore and 12% surge in net earned premium to Rs 16,596.69 crore. “The company maintained a strong trajectory through the year, with FY26 Combined Ratio improving to 98.8% from 101.1% in FY25; combined Ratio for Q4 improved from 98.4% in Q4 FY25 to 95.7% in Q4 FY26, reflecting moderation in loss ratio and improved operating efficiency,” it said in its press release.
Star Health said that its distribution network and service infrastructure further continued to support its growth ambitions during FY26. At the end of the financial year 2026, it had a multi-channel distribution network of 900+ offices, over 8.3 lakh agents, 15,000+ network hospitals, and 18,500+ employees.“FY26 has been a year of disciplined execution for Star Health. Our focus on prudent underwriting, operating efficiency, and retail health leadership has translated into stronger profitability and improved operating metrics. We have also continued to deepen digital adoption across the value chain to enhance customer experience and build long-term operating leverage. As we move ahead, we remain committed to sustainable growth, innovation-led service delivery, and making quality health insurance more accessible across India,” said Star Health CEO and Managing Director Anand Roy.
Motilal Oswal on Star Health
Motilal Oswal Financial Services has a ‘Buy’ rating on the shares of Star Health. The domestic brokerage said that the company’s gross written premium grew 16% YoY while net earned premium rose 14% YoY in the fourth quarter, in line with its estimates.
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Underwriting loss was lower than Motilal’s estimates, while investment income was largely in line, leading to the company’s net profit beating the estimate by 9%. “Premium growth in Q4 FY26 has been strong in mid-to-high teens, with a slight slowdown in March 2026, driven by GST exemption. We remain optimistic about the overall prospects for Star Health, backed by: a) consistent growth in retail health, given its under-penetration and GST exemption; b) a strong push from the banca channel; and c) steady growth in specialised products and deepening presence. We believe that Star Health can deliver long-term growth with the investments made in profitable channels and products,” it said.
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