Star Health Shares Rally Up To 13% After Q4 Net Profit Soars To ₹111 Crore

Star Health and Allied Insurance Company reported a near-complete turnaround in quarterly profit on Wednesday, sending its shares surging as much as 13% in intraday trade.

Star Health shares hit an intraday high of ₹586.25 before settling at ₹537.40 by 3 PM today, up 3.89%.

Net profit for Q4 FY26 came in at ₹111.34 crore, compared to just ₹51 lakh in Q4 FY25. Sequentially, profit dipped from ₹128.2 crore in Q3 FY26, but that was secondary to the broader story of how far the business has come in twelve months.

Important Q4 Numbers At A Glance

• Net profit: ₹111.34 crore vs ₹51 lakh in Q4 FY25.

• Net earned premium: ₹4,317 crore, up 14% year-on-year (YoY).

• Combined ratio: 95.7%, improved 266 basis points from 98.4% in Q4 FY25.

• Retail loss ratio: 64.8%, improved 294 basis points YoY.

FY26 Full Year Performance

• Profit after tax: ₹911 crore, up 16% YoY.

• Net earned premium: ₹16,597 crore, up 12% YoY.

• Retail health premium: ₹19,341 crore, up 20% YoY.

• Combined ratio: 98.8%, improved from 101.1% in FY25.

The combined ratio falling below 100% for the full year is the most important number in the FY26 results. It means the business is now collecting more in premiums than it pays out in claims and expenses on an operating basis.

Wide Distribution Reach Backs FY26 Growth

Star Health said its distribution network and service setup continued to support its growth plans in FY26.

By the end of the year, the company had a strong on-ground presence. It operated over 900 offices and had more than 8.3 lakh agents.

Its hospital network also stayed large, with 15,000+ tie-ups. The employee base stood at over 18,500.

Also Read - Ceat Q4 Results: Growth Picks Up Across Revenue and Profit, Shares Surge ~12%

Management Commentary

Anand Roy, Chief Executive Officer and Managing Director, said the year was built on disciplined underwriting and operating efficiency rather than chasing volume. He pointed to deeper digital adoption as a long-term investment in the company's cost structure rather than just a sales tool.

Star Health holds a significant share of India's retail health insurance market, a position it has maintained through a period of elevated claims and margin pressure.

Sources:

Business Standard

The Economic Times