Star Health Q4 FY26: Stock jumps 13% on results

What moved the stock

Star Health and Allied Insurance Company shares gained sharply on Wednesday after the company reported results for the quarter and year ended March 31, 2026. On the NSE, the stock rose as much as 13.32% to an intra-day high of ₹586.25. The move came soon after the financial update was disclosed to exchanges. The stock later pared gains but stayed positive through the session.

At 12:53 PM, Star Health shares traded at ₹537.40, up 3.89% versus the previous close of ₹517.30. Broader markets were also firm, with the Nifty50 quoted at 24,327, up 331 points or 1.38%. The price action suggested investors were reacting to underwriting improvements and premium growth metrics highlighted in the filing.

Key FY26 headline numbers cited in filings

In its exchange filing, Star Health reported profit after tax (PAT) of ₹911 crore, up 16% year-on-year. The company attributed the performance to premium growth, improved renewal persistency, moderation in loss ratio, and better operating efficiency. For the year ended March 31, 2026, gross written premium (GWP) was reported at ₹20,369 crore, a 16% year-on-year growth on an N basis.

Retail health premium was reported at ₹19,341 crore on an N basis, up 20% year-on-year. Star Health also said it maintained leadership in India’s retail health insurance segment with a market share of 31% in FY26. Underwriting metrics showed improvement as the combined ratio declined to 98.8% in FY26 from 101.1% in FY25.

Q4 FY26 operational performance highlights

For Q4 FY26, the company reported GWP (N basis) of ₹6,529 crore, up 17% year-on-year. The combined ratio for the quarter improved to 95.7% from 98.4% in Q4 FY25, which the company linked to loss ratio moderation and operating efficiency gains. The loss ratio improved for the third consecutive quarter by 399 basis points to 65.2%.

The retail loss ratio improved by 294 basis points to 64.8%. Separately, commentary in the provided text also mentioned underwriting profit of ₹186 crore in Q4 FY26, compared with ₹62 crore in Q4 FY25, alongside the same combined ratio improvement to 95.7%.

Additional quarterly profit and premium details reported

Another set of numbers in the provided material stated Star Health reported Q4 FY26 standalone net profit of ₹111.34 crore versus ₹0.51 crore in the year-ago period. It also noted profit was lower sequentially than ₹128.2 crore in Q3 FY26. Net earned premium for the quarter was reported at ₹4,327.2 crore, up 13.9% year-on-year from ₹3,798.3 crore.

The same data set said underwriting losses narrowed to ₹154.28 crore from ₹275.17 crore a year ago. It also reported operating profit of ₹64 crore versus an operating loss of ₹87 crore in the corresponding quarter last year. These datapoints were presented alongside the broader underwriting improvement narrative.

Earnings presentation metrics: underwriting, ROE, and digital traction

The FY26 earnings call presentation referenced in the text reported underwriting profit of ₹206 crore for FY26 compared with an underwriting loss of ₹165 crore in FY25. It also cited “Normalised Profit After Tax” of ₹1,222 crore, up 45% year-on-year from ₹840 crore, and ROE expanding to 13.1% from 10.1%.

On distribution and customer metrics, the presentation cited over 14 million app downloads, up 51% year-on-year, and 1.5 million monthly active users, up 50% year-on-year. It also reported digital channels contributed ₹928 crore in retail fresh GWP, up 35% from ₹687 crore. Persistency was cited at 99%, and the Net Promoter Score was reported at 62 versus 54.

Summary table: market move and reported metrics

Market impact: why the underwriting metrics mattered

The combined ratio improvement was a central focus of the reported update, with FY26 at 98.8% compared with 101.1% in FY25, and Q4 FY26 at 95.7% compared with 98.4% in Q4 FY25. Investors typically track these indicators closely for health insurers because they reflect the relationship between claims, expenses, and premium income. The loss ratio improvement to 65.2% in Q4 FY26, described as the third consecutive quarterly improvement, added to the perception of better underwriting discipline.

Premium growth remained a second driver of the market reaction. FY26 GWP was reported at ₹20,369 crore, with retail health premium at ₹19,341 crore and market share at 31% in retail health. The text also referenced Motilal Oswal Financial Services (MOFSL) maintaining a ‘Buy’ rating on the stock.

Analysis: what the filings collectively signal

Across the provided filings and presentation excerpts, the common thread was stronger operating performance supported by premium growth and improved underwriting metrics. The material included multiple profit measures for FY26, including PAT of ₹911 crore (exchange filing) and “normalised” PAT of ₹1,222 crore (presentation), alongside another report stating FY26 standalone net profit of ₹556.98 crore. The documents also highlighted an underwriting turnaround, including underwriting profit of ₹206 crore for FY26 versus a loss of ₹165 crore in FY25.

The quarterly numbers added context to the shift in operating performance, including Q4 FY26 combined ratio of 95.7% and improved loss ratios, as well as reported narrowing of underwriting losses in one set of Q4 disclosures. Separately, the digital metrics in the presentation pointed to increased app usage and digital sourcing, with digital channels contributing ₹928 crore in retail fresh GWP.

Conclusion

Star Health’s stock rallied after Q4 FY26 disclosures highlighted improving underwriting ratios, continued premium growth, and stronger operating indicators versus the prior year. The company reported FY26 GWP of ₹20,369 crore, a combined ratio improvement to 98.8%, and Q4 combined ratio of 95.7%. Investors will now track subsequent disclosures for consistency across reported and normalised measures, and for further detail on underwriting and premium trends.