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Informist, Wednesday, Jan. 28, 2026

By Shweta

MUMBAI – Star Health and Allied Insurance Co. Ltd.'s net profit for the December quarter fell on year and missed analysts' consensus estimate despite double-digit growth in its net premium income. The net profit fell because of a surge in the company's employee and advertisement expenses.

The health insurer's net profit fell over 40% on year to INR 1.28 billion for the December quarter. In the year-ago quarter, the company had reported a net profit of INR 2.15 billion. Brokerages had estimated the health insurer's net profit for the December quarter at INR 1.36 billion. The company's bottom line for the September quarter was INR 549 million.

Star Health's net premium income for the reporting quarter rose nearly 12% on year to INR 42.50 billion, barely above the INR 42.32 billion consensus estimate from four brokerages. A year ago, the company's net premium income was INR 38 billion. For the trailing quarter, it was INR 40.81 billion.

The insurance company's total expenses rose nearly 14% on year and over 2% on quarter to INR 43.75 billion for the December quarter. It spent INR 5.19 billion on employees' remuneration and welfare during the quarter, up nearly 27% on year and nearly 18% sequentially. It has estimated the incremental impact of the new labour codes at INR 1.17 billion. 

The company spent INR 819.2 million on advertisement and publicity in the reporting quarter, up over 42% on year and nearly 17% sequentially.

Star Health's gross written premium grew over 21% on year to INR 46.24 billion for the December quarter, slightly higher than analysts' estimate of INR 45.28 billion. A year ago, its gross written premium was INR 37.96 billion.

The company reported an underwriting loss of INR 1.25 billion for the December quarter, up from INR 489.8 million a year ago. However, the underwriting loss narrowed from INR 2.04 billion for the September quarter. The health insurer had been expected to report an underwriting loss of INR 1.50 billion for the December quarter, according to an average of three brokerages' estimates.

For the nine months of the financial year 2025-26 (Apr-Mar) ended December, the insurer's net profit was down nearly 31% at INR 4.46 billion, with net premium income over 11% higher at INR 122.70 billion. The underwriting loss for the period was INR 2.57 billion. The company had reported an underwriting loss of INR 1.03 billion for the corresponding period a year ago.

Star Health, headquartered in Chennai, Tamil Nadu, offers services and products in health, personal accident, and overseas and domestic travel insurance. It reported its December quarter earnings after market hours Wednesday. Shares of the company ended nearly 4% higher at INR 440.55 on the National Stock Exchange.  End

Edited by Rajeev Pai

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