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Religare Enterprises Limited
NSE: RELIGARE BSE: 532915 INE621H01010 Financial Services NBFC 🔎 Screen
Microcap 250
₹7,786 Cr
Market Cap
3.02
P/B
3.1%
ROCE
3.2%
ROE
0.17
D/E
1.3%
Fin. Margin
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
Shareholding
About

Religare Enterprise Ltd, incorporated in 1984, is a diversified financial services company with presence all over India, operating through its subsidiaries. The Co. provides loans to SMEs, Affordable Housing Finance, Health Insurance and Retail Broking. REL’s subsidiaries service over 11 lakh clients from over 1,275 locations having presence in more than 400 cities.

✓ Strengths

No strengths data yet.

! Concerns 4
  • Stock is trading at 2.64 times its book value
  • Though the company is reporting repeated profits, it is not paying out dividend
  • Promoter holding is low: 30.3%
  • Company has a low return on equity of 4.47% over last 3 years.
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Mixed quarter: consolidated revenue grew 21% YoY to ₹2,473 Cr, but PAT plunged 36% to ₹96 Cr, dragged by a 45% drop in insurance segment PBT and a ₹71 Cr fair-value loss. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹2,473 Cr
+21% YoY
PAT
₹96 Cr
-36% YoY
Care Health GWP (1/n)
₹3,245 Cr
+37% YoY; combined ratio 99.9% vs 96.7% YoY
What Went Right
  • Consolidated revenue rose 21% YoY to ₹2,473 Cr, led by insurance premium growth of 19% YoY.
  • NBFC subsidiary RFL reported PAT of ₹89 Cr (vs ₹7 Cr in Q4FY25), driven by a ₹71 Cr provision write-back and CRAR improving to 261.9%.
  • Broking arm RBL saw total income grow 18% YoY to ₹99 Cr and PAT jump to ₹11 Cr (+148% YoY).
  • Care Health GWP (1/n basis) grew 37% YoY to ₹3,245 Cr, with retail growth at 34% and 96% policies issued digitally.
  • Consolidated net worth rose to ₹14,506 Cr, and RFL’s NNPA remained low at 0.8%.
What to Watch
  • Consolidated PAT fell 36% YoY to ₹96 Cr, as insurance PBT (1/n basis) declined 45% to ₹107 Cr.
  • Care’s combined ratio worsened to 99.9% (Q4FY25: 96.7%) due to a higher claims ratio of 59.4% vs 59.0% YoY and a 270 bps rise in opex ratio.
  • The consolidated income statement booked a net fair-value loss of ₹72 Cr (vs nil last year), hitting profitability.
  • Total expenses grew 28% YoY, outpacing revenue growth of 21%, with employee costs up 34% and other expenses up 24%.
  • RHDFCL reported a pre-tax loss of ₹3.6 Cr, its eighth consecutive quarterly loss, with AUM declining 0.8% QoQ.
Management Guidance
  • REL announced a ₹1,500 Cr preferential issue of convertible warrants to promoters and other investors.
  • Care Health plans an infusion of ₹600 Cr to strengthen its solvency and support retail health expansion.
  • The demerger of financial services business from REL to Religare Finvest has been approved by boards and is pending regulatory approval.
Investor Lens
The quarter shows a tale of two halves: the financial services subsidiaries (NBFC, broking, housing) strengthened their balance sheets and improved profitability, while the core insurance engine—Care Health—lost steam, with a combined ratio deterioration that signals underwriting strain. Care remains the largest contributor to group revenue (86% of consolidated revenue in FY26), so its profitability trajectory is critical. The ₹1,500 Cr capital raise and planned ₹600 Cr infusion into Care should support solvency and growth, but the market will focus on whether the combined ratio can return to sub-100% levels. The demerger could unlock value by allowing each business to raise capital independently. Next quarter, watch for: (1) Care’s claims ratio and expense ratio on both 1/n and n bases; (2) RFL’s ability to deploy its ₹592 Cr cash surplus into new lending; and (3) progress on the demerger and capital infusion timelines.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue jumps 21% YoY but net profit falls 36%, margins squeeze.
Revenue
Revenue grew 20.8% YoY and 20% QoQ to ₹2,467 Cr, indicating strong business momentum. However, this growth did not translate into higher profits.
Profitability
Net profit declined 36.4% YoY to ₹96 Cr, with EPS falling from ₹2.98 to ₹2.47. Despite a sharp QoQ improvement of 224.7%, the year-on-year comparison reflects margin pressure.
Margins
Operating profit margin dropped to 6% from 12% YoY, highlighting cost pressures or competitive intensity. Sequential decline of 5 ppt from Dec 2025 suggests further deterioration.
Cash Flow
No cash flow data provided in the quarterly summary.
Balance Sheet
Borrowings at ₹319 Cr with a low D/E of 0.11, and reserves strong at ₹2,575 Cr. Total assets stand at ₹12,505 Cr, indicating a stable financial position.
Key Risks
Sharp margin compression (OPM halved YoY) and high PE of 73.1 despite weak earnings. Dependence on only ₹6 Cr of other income for overall profits is also a concern.
Outlook
Continued revenue growth is positive, but margin recovery is critical for sustainable profitability. The sequential profit jump offers hope, but YoY decline signals caution.
Generated by AI · Mar 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
(a) Investment and Financing Activities
50
EBIT 4
65
EBIT 117
(b) Broking Related Activities
81
EBIT 4
86
EBIT 10
(c) E-Governance
15
EBIT 1
(d) Insurance
2,314
EBIT 41
(e) Unallocated
1
EBIT -42
E-Governance
12
EBIT 0
Insurance
1,932
EBIT -111
Total 2,075 2,481

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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