# 1. Financial Performance ## A. Key Figures * **Consolidated Total Income:** **₹2,473 Cr** Q4 · **₹8,493 Cr** FY26 * **Consolidated PAT:** **₹73.16 Cr** FY26 * **Ind AS PBT:** **₹519 Cr** FY26 (+34%) · **₹583 Cr** FY26 Ex-MTM * **Insurance GWP:** **+29%** YoY * **Combined Ratio (Ind AS):** **101.4%** (-120 bps) * **Return on Equity (PBT-based):** **19.9%** (+220 bps) * **Solvency Ratio:** **1.68** ## B. Revenue & Income * **Robust Retail Momentum:** Top-line growth was anchored by strong double-digit expansion in the retail business and significant Gross Written Premium (GWP) gains. * **Accounting Transitions:** Profitability metrics were heavily influenced by the shift to **Ind AS 117** and mark-to-market (MTM) volatility on equity investments, which masked underlying operational strength. * **Subsidiary Contributions:** Religare Broking and Religare Finvest (RFL) delivered steady income, with RFL specifically benefiting from a sharp rise in interest income and recovery momentum in the NPA pool. ## C. Profitability & Margins * **Operational Efficiency:** Despite a rise in total annual expenses, the firm achieved a 55% growth in Ind AS PBT (excluding MTM impacts) and maintained a mid-teens ROE for the fourth consecutive year. * **Underwriting Discipline:** Improved claims management and cost controls led to a contraction in the combined ratio and a substantial increase in pre-provision operating profit for the final quarter. * **Segmented Earnings:** The Financial Services segment remained a high-margin contributor to PBT, while the Insurance segment reported an annual loss at the PBT level despite high quarterly revenues. ## D. Balance Sheet & Solvency * **Strengthened Credit Profile:** Ratings upgrades to the **AA family** enabled the successful raising of **₹100 Cr** in subordinated debt, lowering the cost of capital. * **Asset Quality & Liquidity:** The investment book reached a milestone of **₹10,944 Cr**, characterized by high-quality sovereign and AAA-rated instruments (93% of portfolio). * **RFL Turnaround:** Religare Finvest has emerged with a debt-free balance sheet, stable collection efficiency at **98%**, and a massive CRAR of **261%**, signaling the resolution of legacy issues. * **Capital Adequacy:** The group maintains a tangible net worth of approximately **₹900 Cr**, providing a comfortable buffer over regulatory requirements, with RFL holding **₹600 Cr** in cash surplus. --- # 2. Strategic Initiatives & Restructuring ## A. Key Figures * **Capital Infusion (Promoter):** **₹600 Cr** Total planned · **₹256 Cr** Completed Sept 2025 * **Growth Capital Raised (REL):** **₹1,500 Cr** Total * **Capital Allocation:** **₹600 Cr** Care Health · **₹250 Cr** Housing Finance · **₹200 Cr** Broking · **₹375 Cr** General Corporate * **Share Swap Ratio:** **1:1** (1 RFL share for every 1 REL share held) ## B. Demerger Scheme & Group Structure * **Pure-Play Transformation:** Proposed scheme will bifurcate the group into two listed entities: REL (Health Insurance holding) and RFL (Lending, Broking, and Ancillary Services) to eliminate management overlap. * **Value Unlocking:** The restructuring aims to address the holding company discount and provide a clean framework for shareholder clarity, though management notes further simplification may be complex and time-consuming. * **Governance & Continuity:** Management confirmed no current plans to amend the existing scheme despite shareholder inquiries regarding promoter classifications or reverse mergers. ## C. Operational Transformation * **Strategic Pivot:** REL has transitioned from a "recovery" phase to a "rebuilding" phase in FY26, prioritizing governance, leadership, and regulatory compliance. * **Broking Modernization:** Initiatives include AI-driven technology upgrades, reactivating a **1 million** client base, and diversifying into non-broking revenue streams via third-party distribution. * **Efficiency Drive:** Implementation of Six Sigma and Lean methodologies alongside a comprehensive IT transformation to automate processes and improve execution consistency. * **NBFC Readiness:** Religare Finvest is in a "preparation phase," building a full technology stack to support a rapid national scale-up once infrastructure is finalized. ## D. Capital Allocation & Future Strategy * **Growth Funding:** Significant capital has been raised and deployed across verticals to ensure business units are adequately capitalized for the rebuilding phase. * **Lending Strategy:** Management is currently evaluating the optimal mix of branch-led versus digital models for Housing Finance and Finvest, focusing on target yields and NIMs. --- # 3. Segment & Product Performance ## A. Key Figures * **Care Health GWP:** **₹3,511 Cr** Q4 · **₹11,417 Cr** FY26 (+24%) * **Care Health PBT:** **₹274 Cr** Q4 · **₹539 Cr** FY26 * **Broking (RBL) Income:** **₹99 Cr** Q4 · **₹373 Cr** FY26 (-2% FY) * **E-governance Revenue:** **+31%** Q4 YoY · **+13%** FY26 * **Housing Finance Income:** **₹8 Cr** Q4 · **₹30 Cr** FY26 ## B. Health Insurance Metrics * **Market Outperformance:** Care Health significantly exceeded industry growth rates, particularly in the retail segment during H2, securing a **22%** share of the Standalone Health Insurance (SAHI) market. * **Operational Efficiency:** Margins improved by 120 bps, underpinned by a reduction in the loss ratio and better operating expense management. * **Underwriting Progress:** Ind AS underwriting losses narrowed by nearly **₹50 Cr** year-over-year, reflecting a disciplined shift toward profitability. ## C. Broking & E-governance * **Quarterly Rebound:** Broking saw a sharp Q4 recovery driven by robust growth in brokerage top-line and interest income, alongside a **75%** expansion in the client debit funding book. * **Fiscal Headwinds:** Annual profitability was weighed down by a one-time charge related to **new labor codes**, resulting in a double-digit decline in full-year PBT. * **Network Expansion:** The e-governance vertical scaled its business partner network to approximately **61,000**, supporting steady revenue growth. ## D. Lending & Housing * **Recovery-Led Profits:** Religare Finvest (RFL) returned to Q4 profitability through improved recoveries, maintaining a substantial liquidity cushion of over **₹590 Cr**. * **Housing Strategic Pivot:** The housing division is transitioning to a retail-focused model in Tier 2/3 cities, targeting an average ticket size of **₹10L–₹11L** to meet regulatory thresholds. * **Growth Catalysts:** Management anticipates a ramp-up from current minimal disbursement levels (under **₹10 Cr** monthly) following upcoming capital infusions and technology upgrades. * **Future NBFC Roadmap:** Plans are underway to evolve into a multiline NBFC by launching new products and prioritizing secured lending to build a scalable, high-credit-rated portfolio. ## E. Product Mix * **Portfolio Composition:** The housing finance book is strategically weighted toward home loans (**70%**) over Loans Against Property (**30%**) to ensure a granular, secured asset base. --- # 4. Distribution & Customer Metrics ## A. Key Figures * **Channel Contribution:** **42%** Agency GWP · **66%** Retail Mix * **Digital Adoption:** **96%** Digital Policy Issuance · **87%** Cashless Claims <1hr * **Network Scale:** **4.11 Lakh** Agents (+50,000 YoY) · **239** Corp/Banca Partners * **App Engagement:** **12.5 Mn** Installs · **1.2 Mn** Monthly Active Users · **70%** of active retail customers on mobile * **Trading Volumes:** **+13%** Q4 Cash ADTO (-20% FY) · **+61%** Derivatives YoY * **Active Clients:** **2.45 Lakh** NSE Active (-2%) · **1.40 Lakh** Unique Traded (-5%) ## B. Channel & Digital Strategy * **Diversified Distribution:** Revenue mix is heavily weighted toward retail and agency channels, supported by a vast agent network and extensive corporate partnerships. * **Hybrid Lending Model:** Future growth in lending will leverage a **hybrid approach**, utilizing physical branches for high-touch products and centralized digital underwriting for low-ticket assets. * **Operational Efficiency:** High digital penetration in policy issuance and rapid claims processing have directly contributed to improved customer satisfaction and lower grievance rates. ## C. Client Activity & Market Trends * **Segment Divergence:** Trading activity shows a significant shift toward derivatives despite volatility and a full-year contraction in cash segment turnover. * **Client Retention:** While overall active and unique traded client counts saw a marginal single-digit decline, daily turnover on a yearly basis remains positive at **8%**. --- # 5. Leadership & Governance ## A. Key Figures * **Promoter Stake:** **30.3%** Current holding · **~34%** Projected post-warrant conversion * **Capital Commitment:** **₹750 Cr** Subscribed by Burman Group to preferential rights issue * **Promoter Incremental Buy:** **~4%** Stake increase in the last quarter ## B. Board Reconstitution & Executive Appointments * **Strategic Board Overhaul:** Significant reconstitution completed with the appointment of two Independent Directors and three Promoter Nominee Directors to strengthen governance across operating subsidiaries. * **C-Suite Transition:** Major leadership changes include new MD/CEOs at **Care Health Insurance** and **Religare Broking**, alongside the appointment of a veteran CEO at **Religare Finvest** to spearhead its transition into a multiproduct NBFC. * **Promoter Integration:** Mr. Arjun Lamba redesignated as Executive Director of REL effective **April 1, 2026**, formalizing the promoter family’s direct involvement in organizational leadership. * **Regulatory Compliance:** Outgoing Care Health CEO Anuj Gulati resigned following the completion of the maximum **15-year** tenure permitted under IRDA guidelines; he retains a **5.5%** equity stake. * **Ongoing Recruitment:** While CXO levels are largely stabilized, the group is actively recruiting a CEO for the **Housing Finance** division and CTOs for each subsidiary. ## C. Ownership Structure * **Promoter Commitment:** The Burman Group (Dabur family) has solidified its position through creeping acquisitions and a **50%** subscription to the preferential issue, with warrants set to convert by **March 2027**. * **Institutional Stability:** Management reaffirmed that **Kedaara Capital** remains a long-term partner with no current indications of a planned exit. * **Governance Outlook:** While the promoter stake is rising, specific timelines for the final shareholding structure or the potential "clean" listing of Care Health shares remain unestablished. --- # 6. Risks & Regulatory Factors ## A. Key Figures * **Asset Quality:** **3.5%** GNPA (Improved) · **2.5%** NNPA (Improved) * **Industry Growth:** **30%** Retail Health H2 FY26 (Post-GST exemption) ## B. Compliance & IRDA * **Regulatory Tailwinds:** Retail health insurance witnessed robust industry expansion following the removal of the **18% GST** on individual policies, significantly improving affordability. * **Promoter Stake Deadlock:** Management is navigating the **26%** IRDA ownership threshold for Care Health; however, reaching this requires an additional **7% stake**, potentially conflicting with SEBI’s creeping acquisition limits. * **Leadership Transition:** Regulatory mandates necessitate a **2 to 3 year** cooling-off period for Anuj Gulati before he can resume a role at Care Health Insurance. * **Reporting Standards:** The company is closely monitoring underwriting profitability metrics amidst the transition to IFRS reporting frameworks. ## C. Legal & Market Risks * **Litigation Overhang:** The Lakshmi Vilas Bank (LVB) deposit case remains sub-judice in the Delhi High Court as the company seeks to recover funds from a fraudulent fixed deposit. * **Market Participation:** While the industry added **0.3 crore** new accounts last year, overall market activity ratios have softened compared to historical peaks. ## D. Corporate Structure & Governance * **Holding Company Discount:** Management acknowledged investor friction regarding the subsidiary structure of Care Health; while maintaining the current setup, promoters have signaled confidence via open market purchases. * **Asset Quality Momentum:** The credit profile strengthened during the quarter, characterized by a sequential reduction in both gross and net non-performing assets. --- # 7. Guidance & Outlook ## A. Key Figures * **Care Health Growth Target:** **18%** – **24%** sustainable rate over next 3-4 years * **Combined Ratio:** **101.4%** current ## B. Growth Targets * **Market Outperformance:** Care Health Insurance aims to consistently exceed industry average growth rates over the medium term. * **Strategic Scaling:** Long-term expansion is anchored by robust double-digit growth targets and a focus on market share gains. ## C. Profitability Timeline * **Efficiency Gains:** Management expects the combined ratio to reach the breakeven threshold within **two years**, driven by operating leverage and renewal efficiencies rather than claims adjustments. * **Subsidiary Performance:** While NBFC and broking arms remain profitable, the HFC business is slated for turnaround in **12 to 18 months** following planned opex and capex scaling. ## D. Future Roadmap * **Product Visibility:** The company will shift toward a quarterly cadence for updates regarding specific new product launches and near-term operational visibility.