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    Religare Enterp.

    RELIGARE
    Financial Services·13 May 2026
    Management Summary

    Religare Enterprises reported a year of strategic rebuilding in FY26, marked by a 14.7% increase in consolidated total income and the approval of a demerger scheme to create two focused entities. Care Health Insurance delivered strong growth and improved profitability, while Religare Finvest achieved positive PAT. However, Religare Broking saw a decline in full-year performance, and Religare Housing Finance remained loss-making, though with improving trends.

    Highlights

    5
    • Consolidated total income grew to INR 8,493 crores in FY26 from INR 7,405 crores in FY25, reflecting a 14.7% YoY growth.

    • Care Health Insurance reported strong GWP growth of 24% to INR 11,417 crores and PBT growth of 38% to INR 539 crores (on 'n' basis) for FY26.

    • Religare Finvest (RFL) achieved a PAT of INR 139 crores for FY26, driven by improved collections and recoveries, with a current cash balance of over INR 591 crores.

    • Promoter group increased its stake to 30.3% through open market purchases, demonstrating strong commitment.

    • Demerger scheme approved to streamline group structure, separating lending/broking/ancillary financial services into RFL and making REL a pure-play health insurance holding company.

    Concerns

    3
    • Religare Broking (RBL) saw a marginal decline in overall top line by 2% to INR 373 crores for FY26, and PBT came down by 31% to INR 29.6 crores.

    • Religare Housing Finance (RHDFCL) reported a loss of INR 18.6 crores for FY26, though Q4 loss improved to INR 3.6 crores from INR 5.9 crores QoQ.

    • The combined ratio for Care Health Insurance under Ind AS was 101.4% for FY26, with a target to bring it closer to 100% in 2 years, indicating current operational efficiency could be better.

    Key financials

    Single quarter

    03 metrics
    1. 01Consolidated Total Income₹8,493 Cr+14.7%YoY
    2. 02Consolidated PAT₹73.16 Cr
    3. 03Consolidated PBT₹87 Cr-64.2%YoY

    Segment breakdown

    Care Health Insurance
    ₹11,417 Cr GWP (FY26, 'n' basis)₹539 Cr PBT (FY26, 'n' basis)₹10,944 Cr AUM6.7% Market Share (Industry)22% Market Share (SAHI segment)1.68x Solvency Ratio97% Claim Settlement Ratio101.4% Combined Ratio (Ind AS)19.9% ROE (PBT basis)₹3,511 Cr GWP (Q4 FY26, 'n' basis)₹274 Cr PBT (Q4 FY26, 'n' basis)37% Retail Business Growth (Q4 FY26)29.0% Total GWP Growth (Q4 FY26)
    Religare Broking (RBL)
    ₹373 Cr Income (FY26)₹22 Cr PAT (FY26)₹29.6 Cr PBT (FY26)₹376 Cr Net Worth (FY26)₹99 Cr Income (Q4 FY26)₹12.9 Cr PBT (Q4 FY26)₹11 Cr PAT (Q4 FY26)75% Client Debit Book Growth (Q4 FY26)
    Religare Finvest (RFL)
    ₹139 Cr PAT (FY26)₹121.9 Cr Total Income (FY26)₹900 Cr Net Worth (FY26)80% NNPA (FY26)261% CRAR (FY26)₹821 Cr NOF (FY26)₹89 Cr PAT (Q4 FY26)₹42.6 Cr Total Income (Q4 FY26)₹17.6 Cr Pre-provision Operating Profit (Q4 FY26)
    Religare Housing Finance (RHDFCL)
    ₹30 Cr Total Income (FY26)₹18.6 Cr Loss (FY26)₹243 Cr AUM (FY26)130% Capital Adequacy Ratio (FY26)₹7.9 Cr Revenue (Q4 FY26)₹3.6 Cr Loss (Q4 FY26)3.5% GNPA (Q4 FY26)2.5% NNPA (Q4 FY26)
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    M&A

    Religare Enterprises Limited (REL) and Religare Finvest Limited (RFL)

    Other · Other

    Liquidity

    Cash ₹591 crores

    Religare Finvest (RFL) has a cash balance including liquid investments of over INR 591 crores, with a net worth of INR 900 crores and NOF of INR 821 crores, providing ample headroom for future growth.

    Guidance & targets

    5
    CategoryTargetPriority
    Profitability
    Care Health Insurance Combined Ratio
    Closer to 100%
    High
    Profitability
    Religare Housing Finance Profitability
    Profitable
    Medium
    Growth
    Care Health Insurance GWP Growth
    18-24%
    Medium
    Market Share
    Care Health Insurance Growth vs Industry
    Growing better than industry
    High
    Promoter Stake
    Promoter Stake in Religare
    Close to 34%
    High

    Demerger Progress & Timeline

    next quarter
    CurrentScheme approved, awaiting regulatory approvals.
    TargetUpdate on regulatory approvals and revised timeline.

    Why it matters

    Crucial for the new group structure and potential value unlocking for shareholders.

    these restructurings are complicated, as you know, and they are time consuming as well. There are a lot of regulations and regulatory bodies that have to approve the same. So we'll get back to you📌 on this.

    How to verify

    detailed_narrative[title='Demerger and Group Restructuring']

    Risks & concerns

    4
    RiskSeverity

    Holding Company Discount post-demerger

    Analysts expressed concern about the potential for a holding company discount for REL post-demerger, as Care Health Insurance will be the primary asset. Management acknowledged this and stated they would address it at an appropriate stage.Analyst acknowledged

    medium

    Regulatory compliance for promoter stake in Care Health Insurance

    IRDA requires promoters to hold 25-26% in Care Health Insurance. While promoters have increased their stake in REL, the direct holding in Care needs to be addressed. Management stated they are aware and will act at the appropriate time.Analyst acknowledged

    medium

    Delays in Demerger Process

    The demerger process involves multiple regulations and regulatory bodies, which could lead to delays. Management indicated it is a time-consuming and complicated process.Analyst acknowledged

    medium

    LVB Bank Deposit Case

    Funds fraudulently taken from RFL are sub-judice. Management is pursuing legal proceedings in the Delhi High Court to recover the money.Analyst acknowledged

    low

    Q&A highlights

    8

    “we will keep this at the back of our minds, and we will see what we have to do at an appropriate stage.”

    Analysts are concerned about potential holding company discount post-demerger; management acknowledges but defers specific action plans.

    asked by Sarvesh Gupta

    3 min read7 chapters

    Detailed Narrative

    01

    Overall FY26 Performance and Strategic Rebuilding

    Religare Enterprises reported a total income of INR 8,493 crores for FY26, a 14.7% increase from INR 7,405 crores in the previous year, with a PAT of INR 73.16 crores. The year marked a significant shift from recovery to rebuilding, focusing on leadership, governance, capital availability, and regulatory response. The company reconstituted its Board and onboarded new directors, including Mr. Arjun Lamba as Executive Director from April 1, 2026.

    02

    Demerger and Group Restructuring

    The company approved a demerger scheme to create two separately listed entities. REL will become a pure-play health insurance holding company through its stake in Care Health Insurance, while RFL will house the lending, broking, and ancillary financial services businesses. Post-demerger, REL shareholders will receive one RFL share for every REL share held, aiming for greater efficiency and focused operations.

    03

    Care Health Insurance: Strong Growth and Efficiency Focus

    Care Health Insurance delivered a GWP of INR 11,417 crores for FY26, a 24% growth YoY, and a PBT of INR 539 crores (on 'n' basis), up 38% YoY. The company's AUM crossed INR 10,000 crores, reaching INR 10,944 crores, and it holds a 6.7% market share in the industry. The combined ratio improved by 120 basis points to 101.4% (Ind AS), with a target to bring it closer to 100% within two years.

    04

    Religare Finvest (NBFC) Revival and Growth Strategy

    Religare Finvest (RFL) reported a PAT of INR 139 crores for FY26, with a total income of INR 121.9 crores, a 61.6% increase YoY. The company maintains a strong liquidity position with a surplus fund balance of over INR 591 crores and a net worth of INR 900 crores. With a new CEO, Mr. Srinivasan Karthik, the focus is on building a multi-product NBFC platform, leveraging its capital and digital transformation efforts.

    05

    Religare Broking (RBL) Performance and Strategic Initiatives

    Religare Broking reported an income of INR 373 crores for FY26, a marginal decline of 2% YoY, and a PBT of INR 29.6 crores, down 31% YoY. However, Q4 FY26 saw a strong rebound with income growing 19.2% YoY to INR 99 crores and PBT increasing 79.1% YoY to INR 12.9 crores. The company is focusing on increasing traded clients, improving technology, and expanding non-broking revenue streams through third-party distribution products.

    06

    Religare Housing Finance: Foundation Building and Future Outlook

    Religare Housing Finance reported a total income of INR 30 crores and a loss of INR 18.6 crores for FY26. The company's AUM stood at INR 243 crores, with a healthy capital adequacy ratio of 130%. With a new CFO, Mr. Pankaj Rathi, the focus is on strengthening the foundation, building a scalable platform, and targeting profitability within 12-18 months, primarily in affordable housing finance with an average ticket size of INR 10-11 lakhs.

    07

    Promoter Commitment and Capital Infusion

    The Burman Group, as promoters, demonstrated strong commitment by increasing their stake in Religare to 30.3% through open market purchases. They also subscribed to 50% of the preferential rights issue, committing INR 750 crores, with INR 256 crores already infused. This capital infusion is intended to fund the growth of the various businesses, including INR 600 crores for Care, INR 250 crores for housing finance, and INR 200 crores for broking.

    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.