Religare reports Rs 97.69 crore Q2 loss after insurance reversal

Religare Enterprises Limited reported a consolidated net loss of Rs 97.69 crore for the quarter ended September 30, 2026, compared with a Rs 45.93 crore profit a year earlier, after the insurance segment swung to a Rs 158.19 crore loss despite revenue rising to Rs 2,240.94 crore.

How did Religare's Q2 consolidated earnings change?

Religare moved from profit to loss in the September 2026 quarter, reporting a pre-tax loss of Rs 127.79 crore and a post-tax loss of Rs 97.69 crore. In the quarter ended September 30, 2025, it had reported pre-tax profit of Rs 57.45 crore and net profit of Rs 45.93 crore. A tax credit of Rs 30.10 crore reduced the loss after tax in the latest quarter.

Religare's Q2 loss also widened from Rs 46.98 crore in the preceding June 2026 quarter. For the half year ended September 30, 2026, the group recorded a net loss of Rs 144.67 crore, against net profit of Rs 54.05 crore in the corresponding six months of 2025. Total comprehensive loss was Rs 225.54 crore in Q2, compared with comprehensive income of Rs 18.93 crore a year earlier.

What caused Religare's quarterly loss?

Religare's insurance segment was the main contributor to the consolidated reversal, as its segment result changed from a Rs 31.38 crore profit in Q2 2025 to a Rs 158.19 crore loss in Q2 2026. That loss exceeded the group's Rs 127.79 crore pre-tax loss because investment and financing, broking and e-governance remained profitable at the segment-result level.

Insurance segment revenue increased to Rs 2,240.94 crore from Rs 1,967.55 crore a year earlier, a rise of Rs 273.39 crore. However, the segment loss also widened from Rs 87.27 crore in the June 2026 quarter. The filing does not provide a further operational explanation for the segment result, although it says estimates for claims incurred but not reported and claims incurred but not enough reported at Care Health Insurance Limited are certified by that subsidiary's appointed actuary.

Which Religare segments grew and remained profitable?

Religare's insurance business remained its largest reported revenue segment, producing Rs 2,240.94 crore of gross segment revenue out of total segment revenue of Rs 2,395.22 crore in Q2 2026. Broking-related revenue was Rs 83.79 crore, investment and financing revenue was Rs 55.47 crore, and e-governance revenue was Rs 15.03 crore. Insurance, investment and financing, and broking revenues were higher than in Q2 2025, while e-governance revenue increased from Rs 14.81 crore.

Investment and financing generated segment profit of Rs 36.32 crore, compared with Rs 29.39 crore a year earlier and Rs 5.21 crore in the June quarter. Broking produced Rs 0.30 crore, down from Rs 2.97 crore in Q2 2025, while e-governance generated Rs 0.68 crore after a Rs 2.06 crore loss a year earlier. The three profitable segments together generated Rs 37.29 crore, but this did not offset the insurance loss and unallocated costs of Rs 6.89 crore.

What changed in Religare's balance sheet and cash flows?

Religare's consolidated assets rose to Rs 16,267.50 crore at September 30, 2026 from Rs 14,505.55 crore at March 31, 2026. Investments increased to Rs 13,101.99 crore from Rs 11,203.48 crore, while loans rose to Rs 567.18 crore from Rs 443.96 crore. Insurance assets of Rs 13,781.99 crore were the largest of the four reported segment asset bases.

Cash and cash equivalents declined to Rs 167.80 crore at September 30 from Rs 588.07 crore at the March 2026 year-end. Religare generated Rs 595.48 crore of operating cash during the half year, compared with Rs 281.73 crore a year earlier, but used Rs 1,530.35 crore in investing activities, including purchases of investments worth Rs 5,302.01 crore. Financing activities generated Rs 514.61 crore, including Rs 297.18 crore of net proceeds from debt securities.

Total liabilities increased to Rs 12,331.70 crore from Rs 10,628.03 crore, while total equity rose to Rs 3,935.81 crore from Rs 3,877.53 crore. Provisions increased by Rs 608.56 crore to Rs 4,418.79 crore, and other non-financial liabilities rose to Rs 2,860.48 crore from Rs 2,724.33 crore during the six months ended September 30, 2026.

What did Religare's limited review and disclosures say?

Religare's board approved the consolidated results on November 12, 2026, and J C Bhalla & Co. performed a limited review. The reviewer said nothing had come to its attention suggesting that the results were not prepared in accordance with the applicable reporting framework or contained a material misstatement. It also said a limited review is substantially narrower than an audit and does not provide an audit opinion.

Religare Capital Markets Limited was not consolidated because Religare said it may not have voting control and cited long-term restrictions and restrictive covenants over major decisions. Religare has fully impaired its investment in the entity, whose last available audited net worth at March 31, 2017 was negative by Rs 619.72 crore. The filing also records a contingent liability of Rs 40.78 crore for uncalled equity share capital in that entity.

Religare received Rs 61.68 crore in the September 2026 quarter from five warrant holders for conversion of 35 lakh warrants into equity shares, which were allotted on August 6, 2026 at Rs 235 a share. It also subscribed Rs 100 crore to its Religare Broking Limited subsidiary during Q2, following a Rs 119.69 crore subscription to Care Health Insurance Limited during the June 2026 quarter. Religare remains barred from declaring dividends under a Reserve Bank of India letter issued in December 2019.

Conclusion

Religare's higher insurance revenue did not result in segment profitability in Q2 2026. The insurance segment's Rs 158.19 crore loss outweighed profits in investment and financing, broking and e-governance, moving the group from a Rs 45.93 crore profit in Q2 2025 to a Rs 97.69 crore consolidated loss. Cash and cash equivalents also declined by Rs 420.27 crore from the March 2026 year-end.

The disclosed developments to watch are further conversions under the preferential warrant issue approved in July 2025 and the restart of Religare Finvest Limited's business. Religare said the Reserve Bank of India withdrew corrective action plan restrictions on Religare Finvest on July 23, 2025, and that the subsidiary is hiring senior management and business teams to restart operations.