Religare Enterprises: Charting a New Course with Stronger Foundations and Strategic Growth

Religare Enterprises Limited (REL) has unveiled its Q2 and H1 FY26 financial performance, signaling a pivotal moment in its journey. The company, under its new promoter, the Burman Group, is clearly focused on a transformative shift, emphasizing profitable growth, prudence, and robust governance. For Q2 FY26, REL reported a consolidated total income of INR 2,082.7 crore, a notable increase from INR 1,971.0 crore in the same period last year. The profit after tax stood at INR 45.9 crore, reflecting a period of strategic consolidation and operational recalibration.

The earnings call highlighted a concerted effort to address past challenges and build a resilient financial services platform. The narrative is one of reform over rhetoric, with a clear intent to fix structural and financial weaknesses. This strategic repositioning is underpinned by a successful preferential issue of INR 1,500 crore, demonstrating strong investor confidence and providing substantial capital for future growth across all its diverse verticals.

Segmental Performance: A Closer Look

Religare's business spans several key segments: Care Health Insurance, Religare Broking, Religare Finvest (SME Loans), and Religare Housing Development Finance Corporation (RHDFCL). Each segment plays a crucial role in the company's diversified portfolio.

Care Health Insurance continues to be a dominant force, solidifying its position as India's 2nd largest Standalone Health Insurer. The segment reported a Gross Written Premium (GWP) of INR 5,104 crore for H1 FY26, marking a 19% growth. Its profitability, consistent since FY19, is driven by a strong market presence across multiple segments and an extensive network of 271 branches and over 22,000 hospitals. The company is also expanding its global footprint with Gift City operations, initiated in June 2024, and is heavily investing in in-house technology to enhance operational efficiency and customer experience.

Religare Broking Limited (RBL) is a full-service non-bank broker with a presence in over 400 cities. The segment is focused on platform innovation, upgrading its trading platform, adding algorithms, and broadening its wealth offerings. The e-governance business, a key component, has been demerged into Religare Digital Solutions Limited, a wholly-owned subsidiary, to streamline operations and enhance focus. RBL aims for industry-plus growth, fueled by additional capital and competitive financing.

Religare Finvest Limited (RFL), the SME loan business, has undergone a remarkable turnaround. The RBI lifted its Corrective Action Plan (CAP) in July 2025, and lenders removed the 'fraud tag' in the same year. RFL is now debt-free with robust financials, including a CRAR of 197.6% and a net NPA of approximately 1.0%. The management is actively finalizing a business plan to re-enter the credit ecosystem, poised for a new phase of growth after a significant hiatus.

Religare Housing Development Finance Corporation Limited (RHDFCL) focuses on affordable and mid-income housing. Despite recent challenges due to non-availability of liability lines, RHDFCL maintains a strong capital base with zero external borrowings and a CRAR of 142%. The company is pursuing an asset-light expansion model, utilizing a hub and spoke strategy, and is undertaking a comprehensive IT system transformation to upgrade its LOS, LMS, and CRM systems, targeting an exponential rise in its portfolio over the next two years.

Strategic Initiatives and Future Outlook

Religare's strategic initiatives are designed to stabilize, elevate, deepen, strengthen, nurture, and augment its businesses. Key initiatives include enhancing leadership across functions, investing in technology for digital transformation, and expanding distribution footprints. The company is evaluating various options to optimize its corporate structure and unlock shareholder value, emphasizing a long-term expansion path for sustainable growth.

Management's commentary underscored a commitment to transparency and disciplined execution. The acknowledgment of past missteps and the proactive measures taken, such as pruning underperforming policies in Care Health's group business due to market competitiveness, highlight a responsive and adaptive leadership approach. The focus on a clean balance sheet, with both RFL and the consolidated entity being debt-free, aligns with long-term strategic goals for capital readiness.

Conclusion: A Foundation for Growth

Religare Enterprises Limited is clearly at an inflection point. With a strengthened board, significant capital infusion, and a renewed strategic vision, the company is well-positioned to capitalize on the growth opportunities in India's financial services sector. The turnaround of RFL, the continued leadership of Care Health, and the strategic expansions in broking and housing finance collectively paint a picture of a company building a robust foundation for sustainable and profitable growth. The management's emphasis on governance, technology, and prudent capital allocation instills confidence in its ability to deliver enhanced value to all stakeholders in the coming years.