Star Health Q4 results: Cons PAT surges 3,284% YoY to ₹68 crore, beats estimates by miles

The result caps a remarkable FY26 for India’s largest standalone health insurer. For the nine months ended December 2025, PAT had already surged 87% YoY to ₹966 crore, driven by a consistent improvement in loss ratios and a structural turnaround in underwriting profitability from a loss to a profit position over just four quarters.

A combined ratio below 100% means the insurer earns an underwriting profit — something Star Health achieved in Q3 FY26 at 98.9%, reversing years of claims-led pressure.

What drove the turnaround

The profitability recovery is rooted in three compounding factors. First, Star Health’s loss ratio improved by 301 basis points YoY in Q3 FY26 to 68.8%, reflecting better claims management and a more disciplined customer selection approach. Second, the GST exemption on retail health insurance policies introduced earlier in FY26 created a significant demand boost the company reported 50% growth in fresh business in October 2025 alone. Third, GWP grew 23% YoY in Q3, reaching ₹5,047 crore, with digital channel GWP surging 35% and long-term fresh business rising to 51% of total GWP from 34% a year ago.

Market leadership intact

Star Health maintained a 31.3% retail health market share in Q3 FY26, continuing to lead the segment by a wide margin. The company settled over 2 million claims worth ₹8,900 crore in 9M FY26 and expanded its home healthcare services to over 300 locations a differentiator in a market where customer experience is becoming a key retention driver. Agent strength crossed 7.75 lakh, with 913 branches nationwide.

Market reaction

The stock closed at ₹504.55, up 1.63% on the day a measured reaction suggesting the market had partially anticipated a strong result given the Q3 trajectory. The muted move also reflects the stock’s challenging year — down significantly from its 52-week high of ₹775 meaning investors may be waiting for full-year numbers and FY27 guidance before re-rating the stock more aggressively.

Source: Consolidated Q4 FY2025-26 results, Q3 FY26 earnings call data. All figures in ₹ crore unless stated. GWP and ratio data from Q3 FY26 disclosures used for cont