Star Health and Allied Insurance Company Limited Just Missed EPS By 15%: Here's What Analysts Think Will Happen Next

As you might know, Star Health and Allied Insurance Company Limited (NSE:STARHEALTH) last week released its latest yearly, and things did not turn out so great for shareholders. Star Health and Allied Insurance missed earnings this time around, with ₹161b revenue coming in 4.4% below what the analysts had modelled. Statutory earnings per share (EPS) of ₹10.86 also fell short of expectations by 15%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 1 warning sign about Star Health and Allied Insurance. View them for free.

After the latest results, the 21 analysts covering Star Health and Allied Insurance are now predicting revenues of ₹186.3b in 2026. If met, this would reflect a meaningful 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 43% to ₹15.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹194.8b and earnings per share (EPS) of ₹16.33 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Check out our latest analysis for Star Health and Allied Insurance

The analysts made no major changes to their price target of ₹486, suggesting the downgrades are not expected to have a long-term impact on Star Health and Allied Insurance's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Star Health and Allied Insurance analyst has a price target of ₹640 per share, while the most pessimistic values it at ₹380. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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 23% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.8% per year. 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Star Health and Allied Insurance. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Star Health and Allied Insurance. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Star Health and Allied Insurance analysts - going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Star Health and Allied Insurance that we have uncovered.

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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.