Analysts Are Updating Their Star Health and Allied Insurance Company Limited (NSE:STARHEALTH) Estimates After Its Second-Quarter Results

Last week saw the newest second-quarter earnings release from Star Health and Allied Insurance Company Limited (NSE:STARHEALTH), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of ₹44b and statutory earnings per share of ₹0.92 both in line with analyst estimates, showing that Star Health and Allied Insurance is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Star Health and Allied Insurance from 21 analysts is for revenues of ₹181.7b in 2026. If met, it would imply an okay 7.9% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 44% to ₹13.06. In the lead-up to this report, the analysts had been modelling revenues of ₹185.1b and earnings per share (EPS) of ₹13.77 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

See our latest analysis for Star Health and Allied Insurance

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹496, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Star Health and Allied Insurance, with the most bullish analyst valuing it at ₹650 and the most bearish at ₹415 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Star Health and Allied Insurance's revenue growth is expected to slow, with the forecast 16% annualised growth rate until the end of 2026 being well below the historical 21% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.9% annually. Even after the forecast slowdown in growth, it seems obvious that Star Health and Allied Insurance is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹496, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Star Health and Allied Insurance going out to 2028, and you can see them free on our platform here..

Even so, be aware that Star Health and Allied Insurance is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.