Star Health Insurance delivered impressive financial results for Q2FY27, with insurance revenue growing 15% year-on-year to ₹50.7 billion. According to Motilal Oswal's research report dated October 28, 2026, the company's gross premium also expanded 19% YoY, demonstrating robust business growth. The insurance service result stood at ₹3.8 billion, growing 95% YoY, while the combined insurance service ratio improved to 98%, up 290 basis points year-on-year.
A key highlight of the quarter was the investment income performance, which came in at ₹2.7 billion and was 19% above estimates. As reported by Motilal Oswal, this investment income grew 62% YoY, significantly contributing to the overall profitability. The beat on investment income drove a profit after tax (PAT) beat, which stood at ₹2.6 billion, representing a 233% YoY growth. For the first half of FY27, PAT grew 57% YoY with a return on equity (RoE) of 16.3%.
Motilal Oswal expects PAT to post a 46% CAGR over FY26-28, reflecting strong growth prospects. The brokerage has reiterated its BUY rating with a target price of ₹690, based on 22x FY28E IFRS PAT. On a normalized basis, assuming an investment yield of 8%, PAT grew 56% YoY with an RoE of 15.1% for the first half of FY27.
