Star Health Shares Surge 13% Following Strong Q4 Profit Report
Star Health shares rally 13% after Q4 net profit soars to Rs 111 crore, beats estimate
The Economic Times
Image: The Economic Times
Star Health and Allied Insurance Company saw its shares rise by over 13% after reporting a Q4 FY26 net profit of ₹111.34 crore (approximately $13.4 million USD), a significant increase from ₹51 lakh (about $61,000 USD) a year ago. Despite a sequential decline from the previous quarter, the results surpassed brokerage estimates, showcasing strong growth in net earned premiums.
- 01Star Health's Q4 FY26 net profit reached ₹111.34 crore, up from ₹51 lakh a year ago.
- 02Net earned premium grew by 14% YoY to ₹4,317.15 crore.
- 03Underwriting losses narrowed by nearly 44% YoY to ₹154 crore.
- 04The company reported a 14% drop in net profit for FY26, totaling ₹556.98 crore.
- 05Star Health's distribution network includes over 900 offices and 8.3 lakh agents.
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Star Health and Allied Insurance Company reported a remarkable Q4 FY26 net profit of ₹111.34 crore (approximately $13.4 million USD), a significant increase from ₹51 lakh (about $61,000 USD) a year prior. This surge in profit, however, represented a 13% decline from the previous quarter's profit of ₹128.22 crore. The company's net earned premium for the quarter increased by 14% YoY to ₹4,317.15 crore, up from ₹3,798 crore in Q4 FY25. Additionally, underwriting losses decreased by nearly 44% YoY to ₹154 crore. For the entire financial year 2026, Star Health's net profit fell by 14%, amounting to ₹556.98 crore, while net earned premium rose by 12% to ₹16,596.69 crore. The company attributed its performance to improved operational efficiency, with a combined ratio improving to 98.8% from 101.1% in FY25. Star Health's CEO, Anand Roy, emphasized the company's commitment to sustainable growth and enhancing customer experience through digital adoption. Analysts at Motilal Oswal Financial Services maintained a 'Buy' rating on Star Health shares, noting consistent growth in retail health and a strong push from the banca channel.
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The strong performance of Star Health may lead to increased investor confidence and potential growth in the insurance sector, benefiting employees and agents associated with the company.
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