RELIGARE - Religare Enterp.

📊 NSE: RELIGARE 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 11:48

💰 Financial Performance

Revenue Growth by Segment

Care Health Insurance GWP grew 18.6% to INR 5,104 Cr in H1 FY26; Religare Broking revenue declined 18.9% to INR 89.6 Cr in Q2 FY26; Religare Housing revenue declined 12.1% to INR 7.41 Cr in Q2 FY26; Consolidated Total Income grew 5.67% to INR 2,082.7 Cr in Q2 FY26.

Geographic Revenue Split

Religare Broking revenue split: West (30%), North (29%), South (24%), and East (17%). E-Governance revenue split: East (34%), North (32%), West (17%), and South (17%).

Profitability Margins

Consolidated PAT margin for Q2 FY26 was 2.2% (INR 45.9 Cr PAT on INR 2,082.7 Cr income). Care Health PBT (N basis) grew 113% to INR 177 Cr in H1 FY26. Religare Broking PBT margin fell to 3.68% in Q2 FY26 from 16.2% YoY.

EBITDA Margin

Consolidated PBT margin was 2.76% in Q2 FY26, down from 3.42% in Q2 FY25, primarily due to higher 'Other Expenses' which rose 16.1% to INR 1,403 Cr.

Capital Expenditure

Concluded a preferential issue of INR 1,500 Cr in Sept 2025; infused INR 322 Cr into Care Health Insurance in Sept 2025 to support business growth and maintain a solvency ratio of 1.89.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company's cost of borrowing is noted as high, and it recently transitioned to a debt-free status for its RFL subsidiary.

⚙️ Operational Drivers

Raw Materials

Not applicable for financial services; primary cost drivers are Insurance Claims (68.1% ratio) and Finance Costs (INR 9.8 Cr in Q2 FY26).

Import Sources

Not applicable for financial services.

Key Suppliers

Not applicable for financial services.

Capacity Expansion

Care Health Investment Book grew by INR 900 Cr to INR 9,500 Cr as of Sept 2025; Religare Broking AUC stands at INR 43,000 Cr.

Raw Material Costs

Claims Ratio for Care Health normalized at 68.1% in H1 FY26 compared to 65.1% YoY; Finance costs decreased 24% to INR 9.8 Cr in Q2 FY26.

Manufacturing Efficiency

Not applicable; however, collection efficiency for RFL is maintained at 98% in the standard book.

Logistics & Distribution

Distribution costs (Fee and Commission) for the consolidated entity were INR 367.2 Cr in Q2 FY26, representing 17.6% of total income.

📈 Strategic Growth

Expected Growth Rate

18.60%

Growth Strategy

Achieving growth through a technology refresh to increase digital acquisition, re-entering the MSME lending market via RFL post-RBI CAP removal, and utilizing the INR 1,500 Cr capital infusion to scale operations across all financial service verticals.

Products & Services

health insurance policies, MSME loans, housing loans, demat accounts, e-governance services (bus/train/flight booking)

Brand Portfolio

Religare, Care Health Insurance

New Products/Services

Expanding wealth offerings in broking and increasing revenue share from E-Governance services through a network of agents.

Market Expansion

Re-entering the credit ecosystem post-RBI CAP removal in July 2025 to expand MSME credit reach.

Market Share & Ranking

Care Health holds a 9.9% market share in the overall health insurance space and 19.2% among Standalone Health Insurers (SAHI).

Strategic Alliances

Burman Group designated as promoters post-open offer; preferential issue included participation from marquee investors (INR 750 Cr).

🌍 External Factors

Industry Trends

Health insurance is outpacing general industry growth, with Care Health's GWP growing 18.6% YoY; India's demat penetration remains low at ~7-10% compared to 65% in the US, providing a long-term growth runway.

Competitive Landscape

Intense competition in the group insurance segment from General Insurance (GI) and SAHI players; broking segment faces competition from discount brokers.

Competitive Moat

Multi-channel distribution network where the Agency segment contributes 40% of insurance business; strong retail focus (62% of insurance book) provides granular revenue and reduces corporate client dependency.

Macro Economic Sensitivity

Demand for health insurance and broking services is highly sensitive to India's financial literacy rates and demat penetration (currently ~7-10%).

Consumer Behavior

Shift toward digital acquisition and app-based trading; increasing demand for retail health insurance post-COVID.

Geopolitical Risks

Minimal direct impact due to domestic focus, though global market volatility affects AUC and broking volumes.

⚖️ Regulatory & Governance

Industry Regulations

IRDAI accounting change to 1/N basis for long-term policies; RBI Corrective Action Plan (CAP) on RFL (removed July 2025); Expense of Management (EOM) regulations (compliant at 32.2%).

Taxation Policy Impact

Consolidated tax expense was INR 11.5 Cr in Q2 FY26; RHDFCL tax expense was INR 0.7 Cr.

Legal Contingencies

Delhi High Court order removed the 'fraud' tag on Religare Finvest Limited (RFL), facilitating its re-entry into the credit market.

⚠️ Risk Analysis

Key Uncertainties

Regulatory accounting changes (1/N) impacting reported profitability by INR 154 Cr in H1 FY26; competitive pricing pressure in group insurance segments.