Star Health Insu Q2 FY27 Results (NSE: STARHEALTH)
Signal: Earnings declined
The read
The trajectory is operating improvement but earnings normalisation: revenue rose 11.2% YoY to ₹534749 lakh and the combined ratio improved to 92.33%, yet PAT fell 67.5% to ₹26441 lakh from the ₹81454 lakh year-ago base; sequentially, PAT recovered from ₹7104 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,347.49 Cr | +11.2% | -2.9% |
| Net profit | ₹264.41 Cr | -67.5% | |
| EPS | ₹4.5 | -67.5% | |
| EBIT margin | 0% |
P&L walk
Insurance revenue grew 11.2% YoY to ₹5347.49 crore, but PAT declined 67.5% to ₹264.41 crore from the unusually high ₹814.54 crore year-ago base; the quarter still remained profitable and the combined operating ratio improved to 92.33%.
Segments
Health drove the group with ₹502667 lakh of revenue and ₹24817 lakh of segment result; Personal Accident contributed ₹31884 lakh of revenue and ₹7958 lakh of result, while Travel remained immaterial at ₹198 lakh of revenue.
Key positives
- Insurance revenue grew 11.2% YoY to ₹534749 lakh despite declining 2.9% QoQ.
- Combined operating ratio improved to 92.33% from 94.52% a year earlier, keeping underwriting profitable.
- Claims ratio improved 2.56 percentage points YoY to 68.95%, while expense ratio declined to 23.01%.
- Operating cash flow turned positive at ₹61119 lakh in H1FY27 versus negative ₹32815 lakh in H1FY26.
Key concerns
- PAT fell 67.5% YoY to ₹26441 lakh and EPS fell to ₹4.50 from ₹13.84, showing substantial earnings normalisation against the prior-year base.
- Revenue declined 2.9% sequentially from ₹550780 lakh to ₹534749 lakh.
- Claims ratio increased sequentially from 68.33% to 68.95%, reversing part of the previous quarter's improvement.
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