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    Religare Enterprises Limited

    RELIGARE
    Financial Services·19 Nov 2025
    Management Summary

    Religare Enterprises Limited reported a mixed Q2 FY26, with consolidated total income growing 5.63% YoY to INR2,082 crores, but PAT declining 33.09% YoY to INR45.9 crores. Care Health Insurance showed strong profitability growth of 113.25% in H1 FY26 and improved combined ratio. Religare Finvest became debt-free with a high CRAR, while Religare Broking and Housing Finance faced revenue declines and losses respectively. The company is focused on leveraging recent capital infusion and strategic initiatives for future growth across its subsidiaries.

    Highlights

    5

    • Consolidated Total Income grew 5.63% YoY to INR2,082 crores in Q2 FY26, demonstrating overall business stability.

    • Care Health Insurance reported a significant 113.25% YoY increase in H1 FY26 profitability (N basis) to INR177 crores, driven by strategic decisions and price corrections.

    • Religare Finvest Limited achieved a robust CRAR of 198% and a Net NPA of 1%, indicating strong financial health and asset quality.

    • Religare Finvest Limited is now debt-free, having repaid its INR75 crores loan, and has a cash balance of INR423 crores, positioning it for growth.

    • Care Health Insurance's Q2 FY26 Combined Ratio improved to 100% from 102% in Q2 FY25, reflecting better operating efficiency.

    Concerns

    3

    • Consolidated Profit After Tax (PAT) declined 33.09% YoY to INR45.9 crores in Q2 FY26, despite revenue growth.

    • Religare Broking Limited's Q2 FY26 Top Line declined 18.91% YoY to INR89.6 crores, indicating a contraction in its broking business revenue.

    • Religare Housing Finance reported a Q2 FY26 PBT loss of INR4.49 crores, worsening from INR3.66 crores loss in Q2 FY25, highlighting ongoing challenges in achieving profitability.

    What Changed1

    vs Q3 FY26

    Risks discussed4 → 3 (-1)

    Key financials

    Single quarter

    06 metrics
    1. 01Consolidated Total Income₹2,082 Cr+5.6%YoY
    2. 02Consolidated PAT₹45.9 Cr-33.1%YoY
    3. 03Care Health H1 Profitability (N basis)₹177 Cr+113.3%YoY
    4. 04Religare Finvest H1 Net Profit₹48.6 Cr+4.1%YoY
    5. 05Religare Finvest CRAR198%+3.9%QoQ

    Segment breakdown

    Care Health Insurance
    ₹5,100 Cr H1 FY26 Top Line (N basis)19% H1 FY26 Top Line Growth100% Q2 FY26 Combined Ratio65% Q2 FY26 Claim Ratio1.89 Solvency Ratio₹9,500 Cr Investment Book (Sep '25)7.2% Yield
    Religare Broking Limited
    ₹3.3 Cr Q2 FY26 PBT₹2.6 Cr Q2 FY26 Profit40% Client Debit Book Growth (H1 basis)
    Religare Finvest Limited
    ₹95 Cr SME Core Book₹423 Cr Cash Balance98% Collection Efficiency₹812 Cr Net Worth (Q2 FY26)
    Religare Housing Finance Corporation
    ₹245 Cr AUM₹7.5 Cr Q2 FY26 Total Income₹4.49 Cr Q2 FY26 PBT Loss₹11.9 Cr Q2 FY26 Expenses
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Debt

    Debt disclosed

    Liquidity

    Cash ₹423 crores

    Religare Finvest Limited holds a cash balance of INR423 crores, indicating strong internal liquidity for future business restart.

    Guidance & targets

    5
    CategoryTargetPriority
    Profitability
    Care Health Group Business Combined Ratio
    less than 100%
    		High
    Volume
    Religare Housing Finance Franchise Size
    four digit
    		Medium
    Volume
    Religare Housing Finance Portfolio Growth
    exponential rise
    		Medium
    Growth
    Religare Broking Business Growth
    industry plus kind of a growth
    		Medium
    Growth
    Overall Business Growth
    sustainable profitable growth
    		High

    Care Health IFRS Transition Progress

    next quarter or next to next quarter
    CurrentMigrating to IFRS, results not yet available
    TargetIFRS-based financial results for Care Health

    Why it matters

    The transition to IFRS will provide a new basis for financial reporting and comparability with peers.

    So Swarnabh, what we can say is we are migrating slowly and gradually to IFRS. And what we are seeing that the results on the IFRS, they are almost what we are seeing on a 50% basis. So we don't have those 1/365 numbers handy as of now with us, but we are migrating to IFRS slowly, and we would be having those results maybe next quarter or maybe next to next quarter.

    How to verify

    key_financials.segment_breakdown[name='Care Health Insurance']

    Risks & concerns

    3
    RiskSeverity

    Claims Ratio Volatility

    Care Health's claims ratio increased in Q1 due to heatwave and vector-borne claims, but is stabilizing in Q2, with price hikes implemented. — Management acknowledged

    medium

    Competitive Group Business Market

    Care Health's group business growth is flat due to letting go of some policies in a highly competitive market, focusing on profitable underwriting. — Management acknowledged

    medium

    Legacy Issues (Religare Finvest)

    Religare Finvest has resolved all legacy issues, including RBI's CAP removal and banks lifting fraud classification, enabling a business restart. — Management acknowledged

    low

    Q&A highlights

    7

    “while the leadership hiring is on and I am happy to report that in the last two weeks, we have informed the markets that we have onboarded Group General Counsel Babu Rao. He has joined us from Bajaj Finance Ltd. And we have also on-boarded Indranil Choudhury as Group CHRO from UTI Mutual Fund. ... Currently we believe that all the businesses are very well capitalized particularly after the recent infusion of capital at REL. We would want to curate these businesses and make them more resilient and robust before taking any capital market action in this regard.”

    Analyst inquired about strategic leadership appointments and the future corporate structure, including potential demergers, which are key for long-term value creation and unlocking.

    asked by Vikas Shrivastav

    3 min read6 chapters

    Detailed Narrative

    01

    Consolidated Financial Performance Overview

    Religare Enterprises Limited reported a consolidated total income of INR2,082 crores for Q2 FY26, marking a 5.63% year-on-year growth from INR1,971 crores in Q2 FY25. However, consolidated profit after tax (PAT) saw a decline of 33.09% year-on-year, settling at INR45.9 crores compared to INR68.6 crores in the previous year. Total expenses for the quarter increased by 6.38% year-on-year to INR2,025 crores. The standalone entity, primarily a holding company, reported a loss of INR4 crores for Q2 FY26, contrasting with a profit of INR9.4 crores in Q2 FY25.

    02

    Care Health Insurance: Strong Growth and Profitability

    Care Health Insurance, the second-largest standalone health insurer, demonstrated robust performance with a 19% growth in its H1 FY26 top line, reaching INR5,100 crores on an N basis. The company's profitability (N basis) surged by 113.25% year-on-year to INR177 crores in H1 FY26. The Q2 FY26 combined ratio improved to 100% from 102% in Q2 FY25, while the claim ratio stood at 65%. Care Health maintains a strong solvency ratio of 1.89 and an investment book of INR9,500 crores as of September 2025, yielding 7.2-7.3%.

    03

    Religare Finvest Limited: Debt-Free and Ready for Restart

    Religare Finvest Limited (RFL) has successfully resolved its legacy issues, with the RBI lifting its Corrective Action Plan (CAP) in July 2025 and banks removing the fraud classification. The entity is now debt-free, having repaid INR75 crores of its loan, and boasts a high CRAR of 198% against a regulatory requirement of 15%. RFL reported a Q2 FY26 PAT of INR30.8 crores, a 71.11% increase from INR18 crores in Q2 FY25, and a net worth of INR812 crores. The company is poised to restart its business with a clean platform and strong financial position.

    04

    Religare Broking Limited: Strategic Investments Amidst Revenue Decline

    Religare Broking Limited experienced a 18.91% year-on-year decline in its Q2 FY26 top line, reaching INR89.6 crores, with a profit of INR2.6 crores. Despite this, the company is making significant investments in technology to accelerate growth and enhance its distribution and e-governance services. The client debit book grew substantially by 40% on a half-yearly basis, contributing to increased interest income. The business aims for an 'industry plus' growth trajectory in the coming quarters⏳ and years.

    05

    Religare Housing Finance Corporation: Focus on Affordable Housing

    Religare Housing Finance Corporation (RHFC) maintains an AUM of INR245 crores, focusing on affordable and mid-income housing with an average ticket size of INR10 lakhs. The company reported a Q2 FY26 PBT loss of INR4.49 crores, worsening from INR3.66 crores in Q2 FY25. RHFC has a collection efficiency of 97.34% and a CRAR of 142.4%, with an NNPA of 3.3%. Management is targeting meteoric growth and an 'exponential rise' in its portfolio over the next two years, focusing on Tier 2, 3, and 4 cities with an asset-light expansion model.

    06

    Capital Infusion and Allocation Strategy

    Religare Enterprises Limited successfully concluded a preferential issue of warrants amounting to INR1,500 crores, with INR375 crores already received as a 25% contribution. The committed allocation includes INR600 crores for Care Health, INR200 crores for Religare Broking, INR250 crores for Religare Housing Finance, and INR75 crores for REL's loan repayment. From the INR375 crores received, INR75 crores was used for REL's loan repayment, INR25 crores for Religare Broking, and INR20 crores for Religare Housing Finance. The remaining INR1,125 crores will be converted over the next 17 months, with INR375 crores earmarked for General Corporate Purpose to support growth across subsidiaries.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.