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Religare Enterprises Ltd (RELIGAREEN)

NSE/BSE · Financial Services · Diversified Financials

Revenue and Profitability Trend

Religare Enterprises has undergone a dramatic financial transformation over the past decade. After deep losses in FY2018-FY2022 driven by legacy lending exposures and corporate restructuring, the company returned to profitability in FY2023 with a one-time boost from exceptional other income. FY2024 and FY2025 show the underlying business stabilizing, with revenue growing to ₹7,385 Cr but operating margins remaining thin at 5%.

Revenue has nearly tripled from ₹2,675 Cr in FY2018 to ₹7,385 Cr in FY2025. However, operating income has been volatile, swinging between losses and modest profits. FY2025 operating income of ₹356 Cr on ₹7,385 Cr of revenue translates to a slim 5% operating margin, reflecting the capital-intensive nature of Religare's financial services businesses and the ongoing costs of its turnaround.

The current P/E of 72.8x reflects the market pricing in a recovery trajectory, though FY2025 EPS of ₹3.79 represents a significant decline from the FY2023 spike (₹95.24 EPS, which included large exceptional gains). The company pays no dividend. ROCE at 8.4% and ROE at 5.2% remain modest for a financial services firm, indicating the turnaround is still in early stages.

Quarterly Revenue Trajectory

Quarterly revenue has trended upward from ₹1,165 Cr in Q3 FY2023 to roughly ₹2,000 Cr per quarter in FY2026, though sequential volatility remains. Q3 FY2025 and Q1 FY2026 both saw sequential dips. The most recent quarter (Q3 FY2026, Dec 2025) posted revenue of ₹2,056 Cr but an operating loss of ₹95 Cr, underscoring continued margin pressure.

ROCE Trend

ROCE has recovered from deeply negative territory (FY2018-FY2019) to a positive 8% in FY2025. The FY2023 peak of 16% was inflated by one-time gains. The current 8% ROCE remains below the cost of equity for most financial services firms, suggesting Religare is not yet earning adequate returns on deployed capital.

About This Report

This research was independently produced by AI models analyzing the same underlying data. Each model read the company's annual reports, earnings transcripts, financial statements, and external research – then formed its own conclusions.

Sections

Business – How the business works, competitive positioning, key metrics

Numbers – Financials, valuation, cash generation, peer comparison

People – Management, governance, compensation, alignment

Story – Narrative evolution, credibility, risk history

Verdict – Catalysts, buy/hold/sell decision, scenarios