Star Health Q1: PAT ₹550 Cr, +25% YoY as underwriting profit jumps 7x to ₹111 Cr

Star Health reported standalone Q1 FY27 (quarter ended June 30, 2026) PAT of ₹549.73 Cr, up 25% YoY over the restated Ind AS year-ago base of ₹438.18 Cr — its first quarter reported under Ind AS 117, which management adopted via the Premium Allocation Approach from FY27 with a transition date of April 1, 2025. This restatement is the single most important read of the print: our stored year-ago figure (₹262.52 Cr) is on the old GAAP basis and is no longer comparable, so a naive DB comparison would overstate growth to ~+109%. On a like-for-like Ind AS basis the profit grew 25%; on management's normalised basis (stripping out investment-yield swings) PAT was ₹386 Cr, up 44% YoY.

The quality of the quarter sits in underwriting, not investment income. Underwriting profit rose to ₹111 Cr from just ₹16 Cr a year ago, and the combined ratio improved to 90.93% from 92.00%, with the net insurance margin expanding to 20.95% from 19.18%. Insurance revenue was ₹4,917 Cr and total income ₹5,568 Cr (+13% YoY), while Gross Written Premium reached ₹4,287 Cr, up 19% YoY — squarely in the high-teens GWP growth management guided to on the Q4 concall. Fresh Retail Health GWP of ₹730 Cr (+37% YoY) confirms the guided strategy of quality retail-health growth through proprietary distribution. Investment income of ₹644 Cr remains a large swing factor: the sequential comparison is not meaningful because the prior quarter (Q4 FY26) was a restated Ind AS loss of ₹55.4 Cr, and management explicitly flags in Note 8 that Q1 is seasonally not indicative of full-year performance (monsoon-linked claims). QoQ strength should therefore not be headlined.

The stock went into the print at ₹575.7, down 0.2% over the past month of trading.

For context: this is the highest quarterly PAT in the last 5 quarters on our records; revenue is at a 5-quarter high.

Against prior guidance the print is on-track to a beat: high-teen GWP growth (19%), an improving combined ratio, and RoE of 5.57% (not annualised) versus 4.93% a year ago all validate management's confident Q4 tone. No pre-result street consensus surfaced in searches, so vs-street is left unknown; the reported ₹550 Cr / normalised ₹386 Cr framing is management's own. Alongside the result, the board approved reclassifying late Rakesh Jhunjhunwala's promoter-group entities to public category (transmission of his 8.28 Cr shares completed June 25, 2026) and an early redemption of listed NCDs — governance/capital housekeeping with no bearing on the operating numbers.