Religare Enterprises Ltd Q1 FY26 – PAT Down 43% QoQ, P/E 70x, ₹1,500 Cr Warrants Issued, and Singh Brothers’ Ghost Still Haunting

1. At a Glance

Religare Enterprises is the corporate version of a family WhatsApp group: messy, scandal-prone, full of exits and comebacks. From Singh brothers’ ₹2,500 Cr fraud saga to RBI bans, to Delhi High Court quashing the “fraud” tag on its lending arm this year — Religare is a drama series that refuses to end. Health insurance (Care Health) keeps it alive, broking adds spice, lending crawls back, and new promoters are busy issuing ₹1,500 Cr worth of warrants. At CMP ₹250, trading at 70x earnings, it’s priced like a growth star but behaves like a recovering patient on a drip.

2. Introduction

Religare began in 1984, went full throttle into financial services, and for years ran under the Singh brothers’ shadow (yes, the same Fortis guys now starring in fraud cases). After 2017’s ₹2,500 Cr misappropriation bombshell, RBI practically handcuffed Religare Finvest, barring it from new lending. Promoters vanished, equity was diluted, debt was slashed, and survival looked uncertain.

Fast forward to FY25:

• Health insurance is the big daddy, contributing 74.5% of revenues.
• Lending is crawling back under supervision.
• Broking is alive but not heroic.
• New promoters are cleaning house, issuing warrants, fighting in courts, and trying to rebuild credibility.

Religare’s current state is like a soap opera hero’s redemption arc: still guilty, but now with trimmed beard and spectacles, asking audience for sympathy. Investors must decide whether this is the “season finale” or just another mid-season filler episode.

3. Business Model – WTF Do They Even Do?

Religare is not one business; it’s three kids under one roof:

1. Health Insurance (Care Health) – flagship, contributes 74.5% revenue. Offers retail health, maternity, travel, and group plans. Basically, the only part of the family with steady income.
2. Lending – SME and affordable housing via Religare Finvest & RHDFCL. Once a growth engine, then derailed by fraud cases. Now a comeback attempt with cleaned-up books.
3. Broking – Retail and institutional broking through Religare Broking Ltd. Small contributor (~8.5% revenue), more like the side hustle that pays internet bills.

Investments are massive: ₹3,189 Cr locked mostly in group cos and government securities. Over 90% assets are in long-term investments, making Religare less like a financial supermarket and more like a trust fund with too many cousins drawing pocket money.

👉 Question: If one arm (health insurance) is pulling the cart, and others are rehab patients, should Religare still trade at 70x P/E?

4. Financials Overview

Annualised EPS (Q1 FY26 × 4) = ₹1.24 → At CMP ₹250 → P/E ~201x (reported TTM P/E = 70x).

Commentary: Profits collapsed both YoY and QoQ. Revenue grew YoY but fell sequentially. Basically, Q1 FY26 was a