RBL Q2 profit falls despite higher income in FY27 results

Religare Broking Limited (RBL) reported H1 FY27 total income of Rs 197.1 crore, up 7% year on year, while Q2 FY27 profit after tax fell to Rs 2.2 crore from Rs 2.6 crore; an August 2026 Rs 100 crore parent-funded rights issue took Q2 net worth to Rs 487.9 crore.

Why did RBL’s Q2 FY27 profit decline?

RBL’s Q2 FY27 profit after tax declined even though total income increased year on year. Total income rose to Rs 97.5 crore from Rs 89.6 crore in Q2 FY26, but profit before tax fell to Rs 3 crore from Rs 3.3 crore and profit after tax declined to Rs 2.2 crore from Rs 2.6 crore. The presentation describes the profitability decline as occurring in a tough business environment.

The result also moderated from Q1 FY27. Total income decreased by Rs 2 crore from Rs 99.5 crore in Q1 FY27, while profit before tax fell by Rs 7 crore from Rs 10 crore and profit after tax declined by Rs 5.3 crore from Rs 7.5 crore. Finance costs were Rs 10.4 crore in Q2 FY27, compared with Rs 9.2 crore in Q1 FY27 and Rs 7.6 crore a year earlier.

Fees and commission expenses increased to Rs 24.6 crore in Q2 FY27 from Rs 16.5 crore in Q2 FY26, while employee costs rose to Rs 34.1 crore from Rs 30.3 crore. Other costs including depreciation declined to Rs 25.4 crore from Rs 31.8 crore over the year-earlier quarter, but this reduction did not prevent the decline in quarterly profit before tax.

How did RBL perform in H1 FY27?

RBL increased both income and profit over H1 FY26 despite the weaker Q2 result. H1 FY27 total income rose 7% to Rs 197.1 crore from Rs 183.7 crore, profit before tax increased 29% to Rs 13 crore from Rs 10.1 crore, and profit after tax rose to Rs 9.7 crore from Rs 7.5 crore.

Brokerage and interest income provided most of the half-year increase. Brokerage revenue grew to Rs 92 crore in H1 FY27 from Rs 81.2 crore in H1 FY26, while interest income increased to Rs 62.2 crore from Rs 51.2 crore. E-governance income also rose to Rs 18.8 crore from Rs 17.4 crore.

Other operational revenue moved in the opposite direction, declining to Rs 24.1 crore in H1 FY27 from Rs 33.9 crore a year earlier. On costs, finance costs rose to Rs 19.6 crore from Rs 13.4 crore, fees and commission expenses rose to Rs 48.2 crore from Rs 34.6 crore, and employee costs reached Rs 66.4 crore from Rs 61 crore. Other costs including depreciation fell to Rs 49.9 crore from Rs 64.5 crore.

How did the Rs 100 crore rights issue affect RBL’s capital?

RBL raised Rs 100 crore through a rights issue from its parent company in August 2026, out of Rs 200 crore earmarked by the parent. Net worth increased to Rs 487.9 crore in Q2 FY27 from Rs 384.4 crore in Q1 FY27 and Rs 363.5 crore in Q2 FY26, with the presentation linking the rise to the capital infusion.

Reported return on equity, or ROE, was 2.5% in Q2 FY27, compared with 7.9% in Q1 FY27 and 3.2% in Q2 FY26. The quarterly fall in ROE coincided with the reduction in profit after tax to Rs 2.2 crore and the increase in net worth to Rs 487.9 crore.

RBL also reported a CRISIL Ratings upgrade on its bank facilities. The long-term rating was raised to CRISIL BBB+/Stable from CRISIL BBB/Stable, while the short-term rating was upgraded to CRISIL A2+ from CRISIL A3+. These capital and rating disclosures apply alongside financial figures presented on a combined basis with RBL’s subsidiaries.

What changed in RBL’s business activity and revenue mix?

RBL’s cash and derivatives trading activity declined sequentially in Q2 FY27, while both measures remained above their Q2 FY26 levels. Average daily turnover in cash was Rs 320 crore, down from Rs 375 crore in Q1 FY27 but above Rs 274 crore a year earlier. Average daily derivatives turnover was Rs 10,760 crore, versus Rs 11,247 crore in Q1 FY27 and Rs 9,623 crore in Q2 FY26.

Assets under custody, or AUC, increased to Rs 56,576 crore in Q2 FY27 from Rs 47,946 crore in Q1 FY27 and Rs 42,413 crore in Q2 FY26. Unique traded clients rose to 76.5 thousand from 73.6 thousand sequentially, but remained below the 94.5 thousand recorded in Q2 FY26. RBL separately stated that it served about 2.3 lakh active customers.

Brokerage accounted for 46% of Q2 FY27 revenue, interest for 33% and other income for 21%. In Q1 FY27, brokerage was 47%, interest was 30% and other income was 23%. The change means interest represented a larger share of revenue in Q2 FY27 even as quarterly total income declined to Rs 97.5 crore from Rs 99.5 crore.

What is RBL planning after the Q2 FY27 result?

RBL plans to increase traded clients by improving client contact, adding products and seeking higher client activity and retention. Its operating network includes 51 branches, more than 1,100 business partners and about 66,000 e-governance franchises, alongside a presence in more than 400 cities.

RBL also plans to upgrade its trading platform and mobile application and invest in artificial intelligence for client experience and engagement. Its stated non-broking revenue plan includes growing the margin trading facility, or MTF, book to increase interest income and expanding third-party product, or TPP, distribution through new partners and products.

The presentation additionally sets out process re-engineering and automation intended to make workflows faster, error-free and scalable. The reported income statement covers RBL and subsidiaries Religare Commodities Ltd. and Religare Digital Solutions Ltd.; prior-year figures were reinstated following a National Company Law Tribunal order dated June 13, 2025, relating to the e-governance business transfer effective August 19, 2025.

Conclusion

RBL’s H1 FY27 outcome combined higher income and profit with a weaker second quarter. Brokerage and interest income lifted half-year total income to Rs 197.1 crore and profit after tax to Rs 9.7 crore, but higher finance, commission and employee costs coincided with Q2 profit after tax falling to Rs 2.2 crore. The Rs 100 crore rights issue separately expanded net worth to Rs 487.9 crore.

Next, investors can watch whether RBL’s MTF expansion, TPP distribution, platform upgrades and client-retention initiatives lift traded-client activity, brokerage and interest income. The presentation identifies Rs 200 crore as parent funding earmarked for RBL but reports only Rs 100 crore raised in August 2026, leaving the timing and use of the remaining earmarked amount undisclosed.