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Informist, Friday, Jul. 24, 2026

 

By Nandini Sinha

 

MUMBAI – Star Health and Allied Insurance Co. Ltd. is expected to post a sharp on-year growth in its net profit for the June quarter on the back of robust growth in the net premium income, according to brokerages tracking the insurer.

 

The company's net profit for the June quarter is estimated at INR 4.13 billion, up 57% on year and 271% on quarter, according to the average of estimates from six brokerages. The net profit for the March quarter was INR 1.11 billion, with the company reporting an on-year rise in its bottom line after six quarters. The sequential surge in net profit for the June quarter will be on the back of a low base in the trailing quarter.

 

The highest estimate for net profit is INR 5.18 billion from Motilal Oswal Financial Services Ltd., and the lowest is INR 2.69 billion from YES Securities (India) Ltd.

 

Star Health's net premium income is expected to rise 19% on year to INR 46.97 billion, according to estimates. Sequentially, the net premium income is expected to rise nearly 9% from INR 43.27 billion in the trailing quarter. The highest estimate for the general insurer's net premium income is INR 51.17 billion from Motilal Oswal and JM Financial Institutional Securities Pvt. Ltd. The lowest estimate is INR 42.54 billion from YES Securities.

 

Out of the six brokerages, YES Securities and 360 ONE Capital Market Pvt. Ltd. expect a sequential decline in the insurer's net premium income, due to seasonality--a softer June quarter following the strong premium collection cycle in the March quarter. "Loss Ratio would be higher sequentially due to seasonality," YES Securities said.

 

The gross written premium of the insurer is expected to rise 19% in the June quarter, driven by increased affordability in health insurance premiums following its exemption from the goods and services tax, Emkay Global Financial Services Ltd. said.

 

Star Health's combined ratio--a metric of an insurer's underwriting profitability--is expected to improve as a result of lower loss and expense ratios, Motilal Oswal said. Star Health's combined ratio is expected to rise to 101% during the June quarter, Emkay Global said. The company had reported a combined ratio of 95.7% for the March quarter. Its loss ratio for the March quarter was 65.2%, while expense ratio was 30.5%.

 

Star Health's claims ratio is expected to improve on year due to a higher share of fresh premium growth, according to Motilal Oswal and Emkay Global. A favourable claims experience is also expected to support the improvement in the insurer's claims ratio, Motilal Oswal said.

 

"However, given higher claims frequency and severity, the company's claims ratio is expected to remain elevated," Emkay Global said. Claims ratio refers to the percentage of claims settled by an insurer out of the total claims received.

 

Star Health will announce its earnings for the June quarter Wednesday. Market participants will track management commentary on premium growth in the health segment and the claims trajectory, Motilal Oswal said.

 

Shares of the company have risen nearly 9% since its March quarter earnings were announced on Apr. 28 after market hours. Friday, its shares ended marginally up at INR 580.80 apiece on the National Stock Exchange. 

 

All seven brokerage reports on the company available with Informist have a "buy" recommendation on the stock with an average target price of INR 627 per share. This is nearly 8% higher than the current market price. 

 

Following are the June quarter earnings estimates of Star Health from six brokerages, in descending order of the estimate of net profit, in INR billion:

 

Brokerage	Net Premium Income	Net profit
Motilal Oswal Financial Services Ltd.	51.17	5.18
360 ONE Capital Market Pvt. Ltd.	42.81	5.01
JM Financial Institutional Securities Pvt. Ltd.	51.17	4.60
PhillipCapital (India) Pvt. Ltd.	49.23	4.41
Emkay Global Financial Services Ltd.	44.95	2.91
YES Securities (India) Ltd.	42.54	2.69
Average	46.97	4.13

 

End

 

Edited by Shubhayan Bhattacharya

 

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