Synopsis: Shares of this insurance company jumped over 13 percent after strong Q4 results, with premium growth up 29.1 percent QoQ despite weaker profit, supported by retail expansion and margin improvement.
The shares of this company, which specializes in health, personal accident, and travel insurance for individuals, families, and corporates, boast over 14,000 network hospitals and 850+ branches, and came into focus after strong Q4 results.
With a market capitalization of Rs 32,041 crore, Star Health & Allied Insurance Company Ltd’s share on Wednesday made a day high of Rs 586.75 per share, up by 13.4 percent from its previous day’s close of Rs 517.05 per share. The company’s share gave a return of 35 percent over the last year, and it has a notable promoter, Rekha Jhunjhunwala, who holds about a 17.12 percent stake in the company.
Results Highlights
QoQ View: gross written premium in Q4 FY26 stood at Rs 5,968.40 crore compared to Rs 4,624.22 crore in Q3 FY26, up around 29.1 percent, indicating strong growth in underwriting activity.
Operating profit in Q4 FY26 was Rs 63.98 crore versus Rs 69.20 crore in Q3 FY26, a decline of about 7.5 percent. Profit after tax in Q4 FY26 came in at Rs 111.34 crore compared to Rs 128.22 crore in Q3 FY26, down nearly 13.2 percent, reflecting some pressure on profitability despite higher premium growth.
YoY View: Gross written premium in Q4 FY26 stood at Rs 5,967.40 crore compared to Rs 5,138.01 crore in Q4 FY25, up about 16.1 percent year on year, showing steady growth in business scale.
Operating profit improved sharply, turning from a loss of Rs 86.89 crore in Q4 FY25 to a profit of Rs 63.98 crore in Q4 FY26, indicating a clear operational turnaround. Profit after tax surged by 21,731.4 percent YoY to Rs 111.34 crore in Q4 FY26 from Rs 0.51 crore in Q4 FY25, reflecting a strong year-on-year jump driven by better margins and improved underwriting performance.
Fiscal Year comparison: gross written premium in FY26 rose to Rs 18,621.92 crore from Rs 16,781.36 crore in FY25, up about 11.0 percent year on year, reflecting steady expansion in core insurance operations.
Operating profit declined to Rs 362.61 crore in FY26 from Rs 393.32 crore in FY25, down nearly 7.8 percent, indicating some margin pressure. Profit after tax also fell to Rs 556.98 crore in FY26 compared to Rs 645.86 crore in FY25, a decline of around 13.8 percent, showing lower bottom-line growth despite higher premium income.
FY26 Performance Highlights
Underwriting turns profitable: The company reported an underwriting profit of Rs 206 crore in FY26 compared to a loss of Rs 165 crore in FY25. This improvement reflects better risk pricing, stronger portfolio quality, and improved cost discipline across operations.
Operating efficiency drives margin expansion: Combined ratio improved to 98.8 percent in FY26 from 101.1 percent in FY25, supported by lower loss ratio and better expense control. These efficiency gains indicate tighter claims management and improved operating leverage.
Digital strength and customer metrics improve: Digital channels contributed around 20 percent of fresh retail sales, supporting scalable growth. The company maintained strong customer metrics with 99 percent persistency, NPS rising to 62, and around 30 lakh claims settled worth over Rs 11900 crore in FY26.
About the Company
Star Health and Allied Insurance Co. Ltd., founded in 2006 and headquartered in Chennai, is India’s first and largest standalone private health insurer. Star Health Insurance provides Health, Personal Accident and Travel Insurance to its customers. The company has a strong multi-channel distribution network of 900+ offices, over 8 lakh agents and robust bancassurance and financial institution partners. The Company has 15,000+ network hospitals and 18,500+ employees.
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