1. At a Glance
Religare’s story reads like an Indian Netflix thriller—fraud, collapse, regulatory battles, and then… redemption arc. With ₹7,354 Cr in FY25 revenue, a ₹1,500 Cr fresh infusion via warrants, and a health insurance arm that dominates group revenue, Religare 2.0 is here.
- CMP: ₹269
- Market Cap: ₹8,894 Cr
- FY25 PAT: ₹183 Cr
- ROE: 5.15%
- P/E: 71x
- Promoters (finally): 25.67%
2. Introduction with Hook
If your past involved regulatory probes, jailed ex-promoters, and balance sheet bleeding, most people would write you off. But not Religare. It’s the financial services cockroach—impossible to kill, and now… suddenly attractive?
In FY25:
- Health insurance (Care Health) drove ~75% revenue
- Net profit back at ₹183 Cr
- Promoters return with a ₹1,500 Cr preferential allotment
- ROE still low, but hey, at least it’s positive!
3. Business Model (WTF Do They Even Do?)
Religare is a financial services holding company with 3 key arms:
- Health Insurance (Care Health) – 74.5% of revenues
- Individual & group health, maternity, top-up, critical illness
- One of India’s fastest-growing standalone health insurers
- Lending – 15%
- SME finance via Religare Finvest
- Affordable housing via RHDFCL
- Retail Broking (Religare Broking Ltd) – 8.5%
- Equity, commodity, PMS, investment banking, depository
11+ lakh clients served across 1,275+ locations in 400+ cities. Basically: a scaled-up NBFC + Insurance + Broking play… with a spicy backstory.
4. Financials Overview
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | EPS (₹) | OPM % |
|---|---|---|---|---|---|
| FY22 | 3,227 | -364 | -1,539 | -48.43 | -11% |
| FY23 | 4,679 | 483 | 3,169* | 95.24 | 10% |
| FY24 | 6,266 | 368 | 347 | 7.06 | 6% |
| FY25 | 7,354 | 300 | 183 | 3.79 | 4% |
*Includes one-time gains (FY23 had massive other income: ₹3,473 Cr)
Trend: Revenue’s growing but margins are still shaky. Insurance eats capital for breakfast.
5. Valuation
- P/E: 71x
- Book Value: ₹76 → CMP/Book = 3.54x
- SOTP method (Sum-of-the-parts):
- Care Health = ₹6,000–₹7,000 Cr
- Lending + Broking = ₹2,500–₹3,000 Cr
- Holdco Discount: ~20%
EduInvesting FV Range: ₹190 – ₹240
Current price of ₹269 bakes in optimism and upcoming dilution (preferential warrants @ ₹235).
6. What’s Cooking – News, Triggers, Drama
Hot stuff:
- EGM Aug 8, 2025: ₹1,500 Cr capital raise via warrants
- Promoter group contributes 50% = big skin in the game
- ₹9.5 lakh ESOPs granted @ ₹270
- FIIs slowly trickling back
Recent Drama:
- Net profit fell 47% in FY25 vs FY24
- FY24 also saw negative OPM in Q3
- Promoter holding was 0% until FY24
Now that corporate governance is finally behaving, investors might get closure.
7. Balance Sheet
| Particulars | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 331 |
| Reserves | 2,185 |
| Borrowings | 233 |
| Other Liabilities | 8,480 |
| Total Liabilities | 11,229 |
| Investments | 8,700 |
| Fixed Assets | 151 |
| Other Assets | 2,376 |
Key Points:
- Borrowings down from ₹14,000 Cr (FY14) to ₹233 Cr
- Investments ballooned = mostly into Care Health
- Asset-light model now; no more NBFC drag
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Flow |
|---|---|---|---|---|
| FY23 | 1,506 | -939 | -2,079 | -1,512 |
| FY24 | 1,500 | -1,348 | -156 | -4 |
| FY25 | 1,572 | -1,185 | -285 | +102 |
Strong operating cash flow, low capex. But future dilution (₹1,500 Cr coming in FY26) will be a test of returns on capital.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 7.70% |
| ROE | 5.15% |
| OPM | 4% |
| P/E | 71 |
| Book Value | ₹76 |
| D/E | 0.07 |
Verdict: Low capital stress. But profitability still underwhelms. ROE needs a protein shake.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT | EPS |
|---|---|---|---|---|
| FY22 | 3,227 | -364 | -1,539 | -48 |
| FY23 | 4,679 | 483 | 3,169* | 95 |
| FY24 | 6,266 | 368 | 347 | 7.06 |
| FY25 | 7,354 | 300 | 183 | 3.79 |
*FY23 inflated due to one-off other income. FY24-FY25 represent normalized profit trajectory.
11. Peer Comparison
| Company | M.Cap (Cr) | P/E | ROE | OPM |
|---|---|---|---|---|
| Jio Financial | 2,01,303 | 125 | 1.23% | 74% |
| Chola Financial | 39,735 | 18 | 19.10% | 57% |
| Aditya Birla Cap | 69,009 | 20 | 11.55% | 35% |
| Religare | 8,894 | 71 | 5.15% | 4% |
Religare is the smallest fish in a big pond. But it has one advantage—health insurance moat via Care Health.
12. Miscellaneous – Shareholding, Promoters
| Category | FY24 | FY25 |
|---|---|---|
| Promoters | 0% | 25.67% |
| FIIs | 8.05% | 8.25% |
| DIIs | 13.14% | 11.76% |
| Public | 78.82% | 54.32% |
Promoters are back—with a bang and ₹750 Cr cash infusion. Public holding dropped = dilution incoming. But aligned incentives = good sign.
13. EduInvesting Verdict™
Religare Enterprises is an insurance-heavy comeback story—reformed, recapitalized, and finally getting its house in order. But the ghost of past governance still haunts the valuation.
What works:
- Capital-light now
- Insurance business scaling well
- Cleaned-up debt
- Fresh ₹1,500 Cr funding = expansion fuel
What doesn’t:
- Still low ROE, high P/E
- No dividend
- Retail dilution risk
EduVerdict™:
Religare’s real test begins now—with fresh capital, the execution needs to be clinical. If Care Health IPOs in 2 years, today’s investor could win big. If not… well, at least it’s not run by the Ranbaxy brothers anymore.
Metadata
– Written by EduInvesting Research | 19 July 2025
– Tags: Religare Enterprises, Care Health, Turnaround Stocks, Financial Services, Health Insurance, Preferential Allotment, Fintech India
