Mumbai, Oct 28 Star Health and Allied Insurance Company on Tuesday reported a sharp over 50 per cent decline in its net profit to Rs 54.9 crore for the second quarter of the current financial year (Q2 FY26), compared to Rs 110 crore in the same period last year.
The health insurer, however, registered healthy revenue growth (premium earned net), which rose 10.27 per cent year-on-year to Rs 4,080 crore from Rs 3,700 crore in the corresponding quarter of the previous fiscal.
The fall in profitability comes despite improved topline performance, suggesting pressure on margins likely due to higher claim ratios and increased operating expenses.
The total expenses for the quarter stood at Rs 4,284.9 crore, up over 9 per cent YoY from Rs 3,898.5 crore, and over 10 per cent QoQ from Rs 3,866.54 crore.
According to its exchange filing, the company's net profit plunged over 79 per cent quarter-on-quarter from Rs 262.5 crore in the April-June quarter (Q1 FY26).
"Customer experience continues to be a cornerstone of Star Health’s strategy. Our claims NPS improved from 52 to 61, and the overall company NPS has improved from 59 to 61. These outcomes reflect the consistency of our execution and the strength of our retail-focused model," MD and CEO Anand Roy said.
"We are noticing strong tailwinds following the GST exemption on retail health insurance. Early trends indicate a clear uptick in demand—reflected in stronger lead generation, new policy issuances, and GWP growth in October—underscoring the rising affordability," he added.
In Q2FY26, the expense ratio of the company improved to 29.3 per cent from 31.1 per cent in Q2FY25.
"The loss ratio improved to 71.8 per cent in Q2FY26 from 73.7 per cent in Q2FY25. The combined ratio (IFRS basis) improved to 101 per cent from 104.8 per cent in the same period last year," the company said.
The company continued to advance its technology-driven customer experience, implementing an AI-enabled claims platform for faster and seamless settlements. The Star Health app has now crossed 12 million downloads, it said in an exchange filing.
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