STARHEALTH's Q2 FY27 numbers came in strong, with revenue of Rs. 5,073.77 Cr (+15.42% YoY) and PAT growth of +232.77% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 27, 2026 |
|---|
| Quarter | Q2 FY 2026-2027 |
|---|
| Revenue (Q2) | Rs. 5,073.77 Cr (+15.42% YoY) |
|---|
| PAT (Q2) | Rs. 264.81 Cr (+232.77% YoY) |
|---|
| EPS (Q2) | Rs. 4.50 (+233.33% YoY) |
|---|
| Market cap | Rs. 32,180.01 Cr |
|---|
| CMP | Rs. 546.75 |
|---|
Quarter Snapshot
Star Health delivered 15.42% insurance revenue growth with the Insurance Service Result nearly doubling YoY and the combined ratio improving 255 bps to 91.97%, confirming the underwriting turnaround. PAT grew 232.77% YoY to Rs.264.81 Cr, though the QoQ halving reflects an FVTPL mark-to-market swing rather than underwriting deterioration. The company deleveraged by redeeming Rs.400 Cr of NCDs and landed on its guided 15-16% revenue growth path, with solvency at a comfortable 2.05x.
Key Investment Insights
Key Positives
- Insurance revenue grew 15.42% YoY to Rs.5,073.77 Cr; GWP grew 19.24% YoY to Rs.5,274.96 Cr
- Insurance Service Result grew 95.41% YoY to Rs.383.09 Cr; combined operating ratio improved 255 bps YoY to 91.97%
- Claims ratio improved 256 bps YoY to 68.95% despite Q2 being the seasonally heaviest claims quarter
- PAT grew 232.77% YoY to Rs.264.81 Cr; normalized proxy PAT grew ~97.96% YoY after stripping the FVTPL loss
- Health segment profit nearly quadrupled to Rs.195.35 Cr from Rs.51.69 Cr; Personal Accident swung from a Rs.5.51 Cr loss to Rs.8.33 Cr profit
- Rs.400 Cr NCDs redeemed in full; borrowings cut to Rs.75.61 Cr from Rs.489.92 Cr; debt-equity ~0.01x
- H1 operating cash flow of Rs.611.19 Cr vs a Rs.328.15 Cr outflow in H1 FY26 — a Rs.939 Cr swing
- Net worth grew 8.95% from March 2026 to Rs.10,435.73 Cr
Risk Factors
- FVTPL 'Other Investment revenue' swung to a Rs.58.55 Cr loss vs a Rs.337.58 Cr gain in Q1, driving PAT down 51.83% QoQ
- Solvency ratio declined to 2.05x from 2.09x in Q1 FY27 and 2.15x a year ago
- Employee benefit expenses grew 17.57% YoY, faster than revenue growth of 15.42%
- Acquisition-cash-flow amortisation swung adversely by Rs.97.17 Cr YoY (Rs.137.60 Cr benefit to Rs.40.43 Cr)
- Personal Accident revenue declined 14.37% YoY and Travel revenue declined 31.72% YoY