RHFL - Reliance Home

📊 NSE: RHFL 🏢 Finance - Housing 📅 Last Updated: 12/14/2025 11:47

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income declined by 99.84% from INR 391.37 Cr in FY23 to INR 0.62 Cr in FY24 following the transfer of the lending business. Segmental revenue is currently Nil as the housing finance operations were discontinued and the license was surrendered in January 2024.

Geographic Revenue Split

100% of revenue was historically generated within India. As of March 31, 2023, the company reported no separate reportable segments under Ind AS 108 as all activities were domestic and are now largely ceased.

Profitability Margins

Net Profit Margin shifted from a net loss of INR 5,440 Cr in FY22 to a net profit of INR 5,418.58 Cr in FY23, primarily due to exceptional items related to debt resolution and the transfer of liabilities. However, FY24 reported a loss of INR 3.55 Cr as operating income vanished.

EBITDA Margin

Operating Profit Margin (OPM) was -2,220% in FY22 and improved to 258% in FY23 due to the accounting of the business transfer and debt resolution. Core profitability is no longer applicable as the loan book was reduced to Nil from INR 12,352 Cr YoY.

Capital Expenditure

Not disclosed for future periods as the Board has approved voluntary liquidation. Historical fixed assets were reduced from INR 48 Cr in FY22 to Nil in FY23 following the slump sale to RCFL for INR 180 Cr.

Credit Rating & Borrowing

The company carries a 'CARE D' (Default) rating. Borrowing costs are no longer a primary metric as the outstanding loan book was Nil as of March 31, 2023, compared to INR 12,352 Cr in the previous year.

⚙️ Operational Drivers

Raw Materials

Cost of Borrowings (Interest Expense) represents the primary 'raw material' cost, which was INR 1,185 Cr in FY22 (approx. 404% of revenue) before the business transfer eliminated the debt and loan book.

Import Sources

Not applicable as the company was a domestic financial services provider sourcing capital from Indian banks (Bank of Baroda led the ICA) and NCD holders.

Key Suppliers

Primary capital providers included Bank of Baroda (lead lender under the Inter-Creditor Agreement) and various NCD holders and institutional investors.

Capacity Expansion

Current capacity is Nil. The company's Assets Under Management (AUM) dropped from INR 11,857 Cr in FY22 to Nil in FY23. There are no plans for expansion as the company is undergoing voluntary liquidation.

Raw Material Costs

Interest expenses were INR 1,185 Cr in FY22. Following the resolution plan, the company transferred its business to RCFL, effectively removing the cost of funds from its standalone operations.

Manufacturing Efficiency

Not applicable. Financial efficiency was measured by Return on Net Worth, which was -73.39% in FY23 compared to -0.99% in FY22, reflecting the eroded capital base of INR -73.83 Cr.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

The company is not pursuing growth; instead, it is executing a voluntary liquidation strategy. The business was transferred to Reliance Commercial Finance Ltd (RCFL), a subsidiary of Authum Investment & Infrastructure Ltd, for a total consideration of INR 180 Cr to resolve creditor dues.

Products & Services

Historically provided Home Loans, Affordable Housing Loans, Loans Against Property (LAP), and Construction Finance.

Brand Portfolio

Reliance Home Finance.

New Products/Services

No new products are planned; the company has discontinued all housing finance operations.

Market Expansion

None. The company has exited the market and transferred its operational infrastructure to the Authum Group.

Market Share & Ranking

The company has exited the housing finance industry and no longer holds market share.

Strategic Alliances

The company entered into an Inter-Creditor Agreement (ICA) with lenders led by Bank of Baroda, which resulted in Authum Investment & Infrastructure Ltd being selected as the successful bidder.

🌍 External Factors

Industry Trends

The Housing Finance sector is shifting toward digitalization and robust asset quality monitoring. RHFL failed to navigate the liquidity crunch of 2018-2019, leading to its displacement by stronger capitalized players.

Competitive Landscape

The company is no longer a competitor in the HFC space, which is currently dominated by players like HDFC, LIC Housing Finance, and emerging fintech-led HFCs.

Competitive Moat

The company has no remaining moat. Its primary advantages (brand and license) have been neutralized by the surrender of its RBI license and the insolvency of its promoter, Reliance Capital.

Macro Economic Sensitivity

Highly sensitive to liquidity in the NBFC sector. The IL&FS crisis caused a severe liquidity mismatch that led to the company's inability to refinance debt, resulting in a 100% loss of its active loan portfolio.

Consumer Behavior

Shift toward digital lending platforms was noted in concalls, but the company could not capitalize on this due to financial stress.

Geopolitical Risks

Minimal direct impact as operations were 100% domestic, though global financial tightening influenced local liquidity conditions.

⚖️ Regulatory & Governance

Industry Regulations

The company surrendered its Housing Finance Company license to the RBI/NHB on January 25, 2024, following the completion of the business transfer to Authum Group.

Environmental Compliance

Not applicable as a financial service provider, though ESG risks were integrated into the Risk Management Policy framework.

Taxation Policy Impact

The company reported a tax expense of 37.92% in FY23 on its exceptional gains, amounting to a significant portion of its INR 9,619.77 Cr PBT.

Legal Contingencies

The promoter, Reliance Capital Limited (holding 47.91%), is currently under Corporate Insolvency Resolution Process (CIRP). The company itself is seeking voluntary liquidation, which is subject to requisite permissions and sanctions.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the successful completion of the voluntary liquidation process and the final settlement of any residual legal claims against the entity.