Star Health and Allied Insurance Company LimitedQ2 FY27 Results & Financial Update
Star Health and Allied Insurance Company Limited: Q2 FY27 standalone results and company financials – PAT ₹264.81 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Star Health and Allied Insurance Company Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
The company registered basic earnings per share of Rs. 4.50 for the quarter under review according to its structured exchange filing.
The accompanying investor presentation notes that the insurer achieved an insurance revenue of Rs. 5,074 crore for Q2 FY27, representing a 15% increase compared to Rs. 4,396 crore in Q2 FY26.
Underwriting profitability improved during the quarter, supported by a lower loss ratio of 69.0% in Q2 FY27 compared to 71.5% in Q2 FY26, bringing the Combined Insurance Service Ratio down to 98.0% from 100.9% in the corresponding period of the previous year.
Investment income grew by 62% to Rs. 268 crore in Q2 FY27 from Rs. 165 crore in Q2 FY26, driven by higher asset bases and mark-to-market portfolio gains.
Other expenses increased by 22% to Rs. 290 crore during the quarter compared to Rs. 237 crore in Q2 FY26, while finance costs stood at Rs. 15.16 crore.
The company's shareholder net worth expanded to Rs. 10,436 crore as of September 30, 2026, up from Rs. 9,191 crore a year earlier, reflecting retained earnings and capital accumulation.
01 · Business model
What does Star Health and Allied Insurance Company do?
Star Health and Allied Insurance Company Limited operates as a specialized standalone health insurance provider in India, focusing on retail health, group health, and personal accident lines.
The company generates its primary revenue through insurance premiums written across a granular distribution network comprising tied agency channels, direct-to-consumer digital platforms, and banking or corporate partnerships.
Its economic model relies heavily on disciplined underwriting, loss ratio management, expansive hospital network tie-ups, and investment income earned on accumulated policyholder and shareholder funds.
The insurer serves retail customers across metro, tier-2, and tier-3 cities, leveraging proprietary technology applications for policy issuance, customer engagement, and claims adjudication.
02 · Historical context
What shaped the business before this quarter
The company has spent two decades building its proprietary agency force, expanding to 8.7 lakh active agents by September 30, 2026.
The company closed sub-debt worth Rs. 400 crore previously, with a balance of Rs. 70 crore scheduled for completion by November 2026.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q2 FY27 |
|---|---|
| Profit before tax | ₹351.64 Cr |
| Profit after tax | ₹264.81 Cr |
| EPS | ₹4.50 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Insurance revenue reached Rs. 5,074 crore in Q2 FY27, marking a 15% increase over Q2 FY26, supported by robust retail fresh premium inflows.
Proprietary distribution channels—specifically agency and direct-to-consumer digital platforms—continued to drive over 90% of overall gross written premium.
What drove margins
The loss ratio improved by 250 basis points to 69.0% in Q2 FY27 from 71.5% in Q2 FY26, reflecting disciplined risk selection and claims management.
The expense ratio remained stable at 29.1% in Q2 FY27 compared to 29.4% in Q2 FY26, keeping the combined insurance service ratio at 98.0%.
Annualised investment yield rose to 4.9% for the quarter (and 8.5% for H1 FY27), bolstered by mark-to-market gains of Rs. 229 crore for the half-year.
05 · Demand, customers & order book
Where demand is coming from
New-to-insurance customers accounted for 93% of fresh business in H1 FY27, up from 90% in H1 FY26.
The scaled customer app reached 17.0 million downloads and 1.5 million monthly active users by the end of H1 FY27.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Retail health fresh gross written premium grew by 36% year-on-year in H1 FY27, maintaining retail dominance within the product mix.
Group business contributed 2.4% of overall gross written premium in H1 FY27, with continued strategic focus on small and medium enterprises.
Geography and market mix
Non-metro geographies contributed over 65% of fresh business in H1 FY27, exhibiting higher growth momentum than urban centers.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
The agreed network of hospitals exceeded 17,000 partner facilities, with agreed network hospital share standing at 79%.
08 · Strategy & new businesses
How the company is trying to change its growth mix
The direct-to-consumer digital channel delivered a 137% year-on-year growth in retail fresh gross written premium during H1 FY27.
Over 50% of active agents adopted the ATOM Pro distribution app following its scale-up, supporting digital policy sourcing.
09 · Reported developments
What changed operationally
The underwriting result swung to a positive Rs. 99 crore in Q2 FY27 from a loss of Rs. 40 crore in Q2 FY26.
The retail claims settlement ratio reached 92.4% in H1 FY27, representing a 1.4 percentage point increase year-on-year.
10 · Pressure points & risks
What is not going smoothly
Other expenses increased by 22% year-on-year to Rs. 290 crore in Q2 FY27, reflecting ongoing investments in technology and distribution.
11 · Items worth noticing
The line items that can distort a quick read
Investment income for H1 FY27 included mark-to-market gains of Rs. 229 crore compared to Rs. 170 crore in H1 FY26.
The company recorded provisions of Rs. 23.79 crore in Q2 FY27.
12 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Capital allocation & funding
The company noted a closed sub-debt of Rs. 400 crore, with the remaining balance of Rs. 70 crore scheduled for closure by November 2026.
13 · Beyond the numbers
What changed beyond the numbers
Reported update
ESG and CSR Outreach
The company operated 32 Arogya Seva Kendra clinics across 9 states during H1 FY27, conducting over 1.38 lakh visits and 1.28 lakh medical tests.
14 · Key Q&A
The quarter, answered directly
What does Star Health and Allied Insurance Company do?
Star Health and Allied Insurance Company Limited operates as a specialized standalone health insurance provider in India, focusing on retail health, group health, and personal accident lines.
What is the clearest takeaway from Q2 FY27?
The company registered basic earnings per share of Rs. 4.50 for the quarter under review according to its structured exchange filing.
What drove revenue or demand?
Insurance revenue reached Rs. 5,074 crore in Q2 FY27, marking a 15% increase over Q2 FY26, supported by robust retail fresh premium inflows.
What mattered most for margins or profitability?
The loss ratio improved by 250 basis points to 69.0% in Q2 FY27 from 71.5% in Q2 FY26, reflecting disciplined risk selection and claims management.
What changed operationally beyond the headline numbers?
The agreed network of hospitals exceeded 17,000 partner facilities, with agreed network hospital share standing at 79%.
What are the main pressure points disclosed for the quarter?
Other expenses increased by 22% year-on-year to Rs. 290 crore in Q2 FY27, reflecting ongoing investments in technology and distribution.
15 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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16 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Sub-debt Repayment: Completion of the remaining Rs. 70 crore sub-debt settlement by November 2026.
- 02
Combined Ratio Trajectory: Sustained maintenance of the combined insurance service ratio below the 98% threshold achieved in Q2 FY27.
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