Star Health Q2 Profit Declines 50.7%, But H1 Performance Shows 21% Growth

Star Health and Allied Insurance Company announced its financial results for the quarter ending September 30, 2025 (Q2 FY26), revealing a significant 50.7% decrease in profit after tax (PAT), falling to Rs 54.9 crore from Rs 111.3 crore in the same period last year. The company’s gross written premium (GWP) experienced a slight rise of 1.2%, amounting to Rs 4,423.8 crore, up from Rs 4,371.3 crore in the prior year’s quarter. However, Star Health highlighted a stronger performance for the first half of the fiscal year 2026 (H1 FY26). Under International Financial Reporting Standards (IFRS), the company reported a PAT of Rs 518 crore, marking a 21% year-on-year increase. MD & CEO Anand Roy expressed satisfaction, stating that the first half demonstrated steady and meaningful progress. He attributed the positive H1 performance to a healthier loss ratio and improved operating efficiency.

Impact This news could lead to investor caution in the short term due to the substantial drop in quarterly profit. However, the robust H1 performance and the company's positive outlook on operational improvements may provide support for the stock. Investors will likely focus on the company's ability to sustain profitability and manage its loss ratio in upcoming quarters. Rating: 7/10

Explanation of Terms: Profit After Tax (PAT): This is the net profit of a company after all expenses, interest, and taxes have been deducted from its total revenue. Gross Written Premium (GWP): This represents the total amount of premiums an insurance company has received from policyholders before deducting any reinsurance costs or commissions. IFRS (International Financial Reporting Standards): A set of global accounting standards that aim to ensure financial statements are consistent and comparable across different countries. Loss Ratio: Calculated by dividing the total amount paid out in claims by the total premiums earned. A lower loss ratio indicates better profitability for the insurer. Operating Efficiency: This refers to how effectively a company manages its operations and resources to minimize costs and maximize revenue generation.