Religare Enterprises Limited posts Rs 145 crore H1 loss

Religare Enterprises Limited (REL) reported a Rs 144.67 crore consolidated net loss in H1 FY27, versus a Rs 54.05 crore profit in H1 FY26, as a Rs 245.45 crore pre-tax loss in insurance outweighed Rs 50.56 crore of pre-tax profit from financial services. Consolidated expenses increased faster than income during the six months.

Why did REL report a loss in H1 FY27?

REL reported a loss because its consolidated pre-tax result moved to a Rs 204.51 crore deficit in H1 FY27 from a Rs 63.18 crore profit in H1 FY26. A Rs 59.84 crore tax credit reduced the net loss to Rs 144.67 crore, whereas H1 FY26 included a Rs 9.13 crore tax expense and ended with Rs 54.05 crore of profit after tax.

Total income rose to Rs 4,716.52 crore in H1 FY27 from Rs 3,965.16 crore in H1 FY26, an increase of Rs 751.36 crore. Total expenses increased by Rs 1,019.06 crore to Rs 4,921.04 crore, exceeding income by Rs 204.52 crore and reversing the prior-year pre-tax profit.

The quarterly result also remained negative in Q2 FY27. REL recorded a Rs 97.69 crore net loss, compared with a Rs 45.93 crore net profit in Q2 FY26, while pre-tax performance shifted to a Rs 127.79 crore loss from a Rs 57.45 crore profit; Q2 expenses of Rs 2,517.54 crore exceeded income of Rs 2,389.75 crore.

Which segment caused REL's consolidated reversal?

REL's insurance segment was the principal source of the consolidated reversal, reporting a Rs 245.45 crore pre-tax loss in H1 FY27, against Rs 50.56 crore of pre-tax profit from financial services. The insurance loss was Rs 194.89 crore larger than financial-services profit, while the unallocated segment recorded a further Rs 9.63 crore loss, resulting in a Rs 204.52 crore total segment loss.

Insurance generated Rs 4,439.02 crore of H1 FY27 revenue before inter-segment revenue adjustments, compared with Rs 287.41 crore for financial services. The presentation therefore shows that the larger revenue segment reported a loss on its pre-tax segment-performance measure, while the smaller financial-services segment remained profitable.

The same pattern appeared in Q2 FY27. Insurance reported a Rs 158.19 crore segment loss, financial services generated Rs 37.29 crore of segment profit, and unallocated operations recorded a Rs 6.89 crore loss, resulting in a Rs 127.79 crore consolidated segment loss.

What changed in REL's income and cost lines?

REL's H1 FY27 income increase was led by net insurance-premium income, which rose by Rs 613.03 crore to Rs 3,989.76 crore from Rs 3,376.73 crore. Interest income increased by Rs 123.77 crore to Rs 537.96 crore, while income from broking operations and e-governance services rose by Rs 12.89 crore to Rs 121.29 crore.

The increase in expenses included a Rs 663.23 crore rise in other expenses to Rs 3,370.96 crore and a Rs 192.17 crore increase in fee and commission expenses to Rs 853.58 crore. Employee-benefit expenses rose by Rs 112.32 crore to Rs 662.06 crore, while depreciation, amortization and impairment increased by Rs 16.31 crore to Rs 41 crore.

Some reported lines moved differently. Impairment and loss allowances on financial instruments were reported as Rs 42.67 crore in H1 FY27, compared with Rs 62.48 crore in H1 FY26, both shown as negative expenses in the statement. Finance costs rose to Rs 36.09 crore from Rs 17.09 crore, while net gain on fair-value changes increased to Rs 12.49 crore from Rs 9.45 crore.

How did REL's underlying businesses perform in H1 FY27?

REL's executive summary reported Rs 6,897 crore of gross written premium for Care Health Insurance, up 35% year on year, with a combined insurance service ratio of 100.5%, an improvement of 70 basis points. It also reported Rs 392 crore of profit before tax for Care Health Insurance on an Indian Accounting Standard 117, or Ind AS 117, basis, while segment reporting showed a Rs 245.45 crore insurance pre-tax loss; the presentation does not reconcile these measures.

Financial-services operating indicators increased in the presentation. Religare Broking reported Rs 197 crore of H1 FY27 total income, up 7% year on year, and Rs 10 crore of profit after tax, up 34%; Religare SME Loans reported Rs 963 crore of net worth, up 19%, and Rs 65 crore of profit after tax, up 31%.

Religare Home Loans reported Rs 243 crore of assets under management, or AUM, described as stable, and a capital-to-risk weighted assets ratio, or CRAR, of 117%. REL reported consolidated net worth attributable to owners of about Rs 3,000 crore, while insurance held Rs 13,781.99 crore of assets and Rs 11,278.51 crore of liabilities, compared with financial-services assets of Rs 2,456.14 crore and liabilities of Rs 948.94 crore.

Conclusion

REL's H1 FY27 result shows that a Rs 751.36 crore increase in consolidated income did not offset a Rs 1,019.06 crore increase in expenses, changing a Rs 54.05 crore profit a year earlier into a Rs 144.67 crore loss. Segment data identifies insurance as the principal source of the pre-tax deficit, despite the Rs 50.56 crore contribution from financial services.

The next reported periods should clarify whether the Rs 158.19 crore Q2 FY27 insurance segment loss changes and how the presentation's Rs 392 crore Care Health Insurance pre-tax figure relates to the Rs 245.45 crore consolidated insurance segment loss. Management also disclosed that Religare Broking raised Rs 100 crore through a rights issue in August 2026 from Rs 200 crore earmarked by REL, leaving the use of the remaining Rs 100 crore to watch.