Star Health Q1 FY27: PAT up 25%, GWP up 19%

Key takeaway from the June-quarter print

Star Health and Allied Insurance Company Limited reported a sharper improvement in profitability for the quarter ended June 30, 2026 (Q1 FY27), supported by higher premiums, improved underwriting performance, and better operating ratios. The insurer reported Profit After Tax (PAT) of ₹550 crore under Ind AS, up 25% year-on-year (YoY). It also disclosed a normalised PAT of ₹386 crore, up 44% YoY, calculated under a framework that assumes an 8% annual investment yield. Underwriting profit rose to ₹111 crore from ₹16 crore in the year-ago quarter. The release was dated July 30, 2026.

Profitability improves as underwriting turns stronger

The quarter showed a visible shift in the underwriting outcome, with underwriting profit at ₹111 crore versus ₹16 crore in Q1 FY26. Star Health attributed the normalised PAT growth to healthy premium growth, disciplined underwriting and operating efficiencies. The Combined Insurance Service Ratio (CISR) improved to 97.0% from 98.7% in Q1 FY26, an improvement of 1.7 percentage points. Separately, one report cited a combined operating ratio of 90.93% for the quarter, indicating improved operating performance under that definition as well. Normalised annualised ROE increased to 15.6% from 12.2% in Q1 FY26. Another set of figures cited annualised ROE expanding to 22.3% from 19.7%.

Premium growth stays healthy, with a boost from fresh retail

Gross Written Premium (GWP) grew 19% YoY to ₹4,287 crore on a 1/N basis for Q1 FY27. On an N basis, GWP was reported at ₹4,672 crore, also up 19% YoY. Fresh Retail Health GWP rose 37% YoY to ₹730 crore on a 1/N basis. On an N basis, Fresh Retail Health GWP increased 35% YoY to ₹1,039 crore. The company also reported insurance revenue of ₹4,917 crore for Q1 FY27.

Claims, service and customer metrics highlighted by the insurer

Star Health said it settled over 9.5 lakh claims during Q1 FY27, with one disclosure putting the figure at 9.6 lakh. The retail claims settlement ratio improved by 1 percentage point to 91% for the quarter. The renewal ratio increased by 3% YoY to 102%, indicating higher persistency in the retail book. Net Promoter Score (NPS) improved by 12 points to 65 as of June 2026, as per the company’s disclosure. These metrics were presented as part of the company’s broader narrative on customer experience and service performance.

Investment income and balance sheet datapoints

Investment income increased 10% YoY to ₹644 crore in Q1 FY27, according to the reported highlights. One report also noted that investment income swung to a positive ₹644 crore in Q1 FY27 from a loss in Q4 FY26, underscoring quarter-on-quarter volatility. Shareholder net worth as of June 30, 2026 was disclosed at ₹10,144 crore. The insurer’s profitability commentary referenced a combination of insurance revenue growth and improved operating ratios during the quarter.

Market position, distribution and productivity

Star Health’s retail market share was disclosed at 29% in Q1 FY27, compared with 31% in Q1 FY26. The company added around 20,000 new agents, taking the total agent count to 8.5 lakh. Agent productivity improved 19% YoY, as reported in the metrics. Another summary stated the company served over 28 million lives during the quarter while maintaining leadership in retail health insurance. The disclosures also referred to growing contributions from proprietary channels and digital D2C in fresh retail premium.

Governance updates: shareholder reclassification and debentures

The board approved the reclassification of certain promoter group entities to the public shareholder category, subject to regulatory approvals. Separately, the company scheduled debenture redemptions, according to the provided update. These items were disclosed alongside the quarterly results and were not positioned as changes to operating strategy, but as corporate actions and balance sheet related steps.

What management said about targets and priorities

The company’s Q1 FY27 earnings call highlighted a focus on sustainable profitability and a target of achieving 15-16% ROE by FY28, according to the market snapshot. Another reported target was a GWP ambition of ₹24,000 crore in FY27. A “raw alert” mentioned a 15-16% insurance revenue growth projection for FY27, but that line was flagged in the provided text as not independently verified. The verified emphasis in the provided material was on ROE and expansion in non-metro penetration via more affordable plans.

Stock reaction mentioned in reports

One report stated the stock rose 1.85% to 609.9, near a 52-week high of 623.9, following the operating updates. Another data point cited the stock trading at 605.1, up 1.04%, also near the same 52-week high reference. These figures were presented as evidence of a positive market response to the quarter’s underwriting and profitability trends. The company did not provide comparable EPS or revenue actuals against forecasts in the cited snippet.

Q1 FY27 snapshot table (all amounts in ₹ crore)

Why this quarter matters for investors tracking insurers

The quarter’s data points show Star Health sustaining premium growth while also expanding underwriting profitability, which is closely tracked in health insurance due to claim volatility. The improvement in CISR to 97.0% and the move in underwriting profit to ₹111 crore were central operational indicators in the disclosures. The normalised PAT framework, which assumes an 8% investment yield, was used to show underlying profitability momentum at ₹386 crore. Customer and service metrics such as claims settled, retail settlement ratio, persistency (renewal ratio), and NPS were presented to support the company’s positioning in retail health. Meanwhile, distribution expansion through agent additions and productivity gains suggests the company is still investing in scale while focusing on profitability outcomes.

Conclusion

Star Health’s Q1 FY27 results combined 19% GWP growth with a stronger underwriting outcome and higher profitability, led by PAT of ₹550 crore and underwriting profit of ₹111 crore. The company also disclosed improved CISR, higher retail claim settlement ratio, and an NPS of 65 as of June 2026. Corporate actions announced alongside the results included promoter group reclassification to public category (subject to approvals) and scheduled debenture redemptions. The next milestones for investors are subsequent quarterly updates on underwriting trajectory, persistency, and progress against the stated ROE target for FY28.