Religare Enterprises Sees FY26 Profit Return Amid Mixed Performance

Religare Enterprises Ltd. has reported a consolidated net profit of ₹73.16 crore for the fiscal year ended March 31, 2026. This marks a return to profitability for the group, supported by a notable 14.70% increase in consolidated revenue, which reached ₹8,493.84 crore.

Key to this turnaround is the Reserve Bank of India's (RBI) decision to withdraw the Corrective Action Plan (CAP) from its subsidiary, Religare Finvest Limited (RFL), effective July 23, 2025. This action lifts significant operational restrictions previously placed on RFL, enabling the subsidiary to resume normal business operations and lending activities.

Despite the consolidated gains, the group's standalone operations continue to face severe challenges. For FY26, standalone total income plunged 60.69% to ₹16.44 crore, resulting in a net loss of ₹33.80 crore. This stark divergence highlights the dual nature of the company's recovery, with group-level profitability contrasted against substantial weakness at the parent entity level.

In the fourth quarter of FY26, consolidated revenue grew by 20.66% to ₹2,473.30 crore, contributing to a quarterly net profit of ₹95.65 crore. Standalone quarterly income dropped sharply by 39.88% to ₹3.36 crore, with a net loss of ₹12.36 crore.

Religare Enterprises, a diversified financial services group, has been navigating a complex operating environment. RFL had been under the RBI's CAP since January 2023 due to governance and financial concerns. While the CAP removal is a positive step, a long-standing dividend ban, stemming from a 2019 RBI directive, continues to impact shareholder returns. The company also faces ongoing tax litigations, including demands totaling ₹108.53 crore for the 2017-18 tax period and ₹303.41 crore for RFL. Additionally, its subsidiary Care Health Insurance Limited (CHIL) was penalized ₹1 crore by the IRDAI for ESOP-related matters.

Looking ahead, investors will closely monitor RFL's operational performance and business growth post the CAP withdrawal. The group's ability to implement turnaround strategies for its standalone business to stem losses and improve income will be crucial. Updates on the dividend restriction timeline or resolutions to ongoing tax disputes will also be key.

Compared to peers like IIFL Finance and Edelweiss Financial Services, which also manage diversified portfolios, Religare's RFL is now emerging from a broader CAP. IIFL Finance has faced past regulatory issues, while Edelweiss has undergone restructuring. Religare's key differentiator is the removal of RFL's CAP, a positive shift in its operating environment.