Religare Enterp.

Religare Enterprises reported a consolidated total income of ₹2,067.9 crores for Q3 FY26, marking a 23.8% year-on-year growth from ₹1,670.2 crores. For the nine months ended December 31, 2025, the total income was ₹6,033.1 crores, up 12.6% from ₹5,355.6 crores in the prior year. Despite revenue growth, the group recorded a negative PBT of ₹103.1 crores for 9M FY26, an increase from the negative PBT of ₹78.9 crores in the same period last year, influenced by one-time^📎 employee benefit provisions.

The company announced a strategic demerger of its financial services business from its insurance business, aiming to create two focused and independent listed entities. This initiative is driven by the Burman Group's takeover, recent capital raise, and the need for specialized focus as businesses scale. The demerger involves transferring the lending, broking, and ancillary support services under Religare Enterprises Limited (REL) to Religare Finvest Limited (RFL), which will then be listed. REL will retain its stake in Care Health Insurance, and RFL will issue fully paid-up equity shares to REL shareholders in a 1:1 ratio. The entire process is expected to take 15-18 months, culminating in Q1 FY28.

Care Health Insurance demonstrated robust performance, with its retail business growing 41% year-on-year on a full premium basis in Q3 FY26. The company's AUM crossed the ₹10,000 crore milestone, and its investment book reached ₹10,246 crores, yielding 7.2%-7.3%. On a full premium basis, 9M FY26 PBT was ₹265 crores, significantly up from ₹92 crores last year, with underwriting results improving by 23%. However, the new 1/n accounting methodology, which defers premium and profit recognition, resulted in a lower reported top line by ₹734 crores and profitability by ₹354 crores for 9M FY26 compared to the full premium basis, though this is a timing difference, not an economic loss.

Religare Broking reported a strong Q3 FY26, with revenue increasing 11.6% year-on-year to ₹91 crores. Its Profit Before Tax (PBT) saw a remarkable 842% surge to ₹6.6 crores, up from ₹0.7 crores in the previous year. The client debit book (MTF) grew 93% year-on-year to ₹317 crores, and the e-governance business expanded by 21% year-on-year. Assets under custody reached ₹42,642 crores, reflecting healthy growth. The company is focusing on increasing its active client ratio (currently 14% vs industry 21%) and enhancing its digital platform for future growth.

Religare Finvest Limited (RFL) maintains a strong financial position with a core SME book of ₹70 crores and a cash balance of ₹480 crores. Its collection efficiency stands at 99%, and Net NPA is stable at 1%, with a robust CRAR of 228%. The company's net worth exceeds ₹800 crores. Religare Housing Finance, focusing on affordable housing, reported an AUM of ₹241 crores with an average ticket size of ₹10 lakhs. It achieved a collection efficiency of 97.36% and a CRAR of 132%, supported by a capital base of ₹184 crores. Both entities are poised for growth post-demerger, with RFL planning to leverage its unlevered position to industry standards.

The company has received ₹410 crores from its ₹1,500 crore warrant issue, comprising ₹375 crores in upfront premium and ₹35 crores from warrant conversion. Of this, ₹256 crores has been infused into Care Health Insurance via a rights issue. The remaining funds have been provided as loans to broking and housing subsidiaries. Management confirmed that ₹600 crores is earmarked for Care Health and ₹900 crores for the financial services businesses, aligning with the original capital allocation plans to support growth and strategic initiatives across the group.

Religare has significantly strengthened its leadership and governance. The Board has been reconstituted with three promoter nominees added in July 2025, and the induction of three promoter family members (Dr. Anand Burman, Mr. Mohit Burman, Mr. Aditya Chand Burman) and Mr. Jimeet Modi from SAMCO Group as additional directors is proposed, subject to regulatory approvals. Key leadership appointments include Mr. Vijay Goel as MD of Religare Broking, Mr. Babu Rao as Group General Counsel and Chief Compliance Officer, and Mr. Indranil Choudhury as Group CHRO, reinforcing the group's focus on robust operating foundations and value-accretive investments.