Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Religare Enterprises Ltd (NSE: RELIGARE) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Manasi Bodas — Investor Relations, Adfactors PR Private Limited
Pratul Gupta — Chief Financial Officer
Unidentified Speaker
Ambrish Jindal — Chief Financial Officer, Care Health Insurance Limited
Arjun Lamba — Executive Director
Analysts:
Hitaindra Pradhan — Analyst
Chintan Mehta — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 and FY26 earnings conference call of Relegator Enterprises Limited hosted by Add Factors PR. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on it at Stone four. Please note that this conference has been recorded. I now hand the conference over to Ms.
Anisha jain from ad factors pr. Thank you. And over to you, Ms. Jain.
Manasi Bodas — Investor Relations, Adfactors PR Private Limited
Thank you Sapnali. Good day everyone and thank you for joining us today to discuss the Q4 and full year 26 business performance of Religare Enterprises and its subsidiaries. We have with us today the management of Religion Enterprises Ltd. And its subsidiary. Before we proceed with this call, I would like to mention that some of the statements made in this call may be forward looking in nature and may involve risks and uncertainties. The company undertakes no obligation to update any forward looking statements to reflect developments that occur after the statement is made.
Documents related to company’s financial performance including investor presentation have been uploaded on the stock exchanges and on the company’s website. I now hand over the call to Mr. Pratul Gupta, Chief Financial Officer at Religion Enterprises Limited over to you Pratul.
Pratul Gupta — Chief Financial Officer
Thank you Anisha. Good evening ladies and gentlemen. Welcome to our quarter four and full year FY26 earnings conference call. I am grateful to you for your participation and continued interest in Religare Enterprises and its subsidiaries. FY26 has been an important year for Religare. We moved from recovery to rebuilding with significant progress across leadership, governance, capital availability and regulatory response. During the year The Board of REL was substantially reconstituted with the appointment of Mr.
Rajendra Mohan Malla and Mr. Srikanth Somani as Independent Directors followed by onboarding of Mr. Arjun Lama, Mr. Gurumurthy Ramanathan and Mr. Suresh Manningham as the voter nominee directors post the RBI approval in July 2025. Mr. Lama has subsequently been re designated as executive director of REL from first April 2026 across all the operating subsidiaries. The respective board has been strengthened with enhanced membership from the nominee directors as well as independent directors. I now take this opportunity to invite Mr.
Arjun Lamba to give his opening remarks over to you Arjun. Thank you Pratul. Good evening everyone. As I stated earlier in our press release, we are building a foundation on which we hope to build a profitable, scalable and sustainable business and remain committed to the same. To get to this stage, we are hiring the right talent, empowering them, incentivizing them. Some of the people you will be interacting with on this call are in the room with us and many more will be joining us in the future.
As part of this process, we are also streamlining the group structure for apprenticeship efficiencies, both from a capital and shareholder perspective. Adequate capital has also been raised. The platform is now getting ready to give shape to the above vision for all four businesses and you will hear more of this going forward. I will now hand it over to Pranjan from here. Thank you Arjun. So I am joined in the room by leadership of all the operating businesses and once we get into individual businesses I will mention about them.
Let me walk you through our investor presentation. The presentation has already been shared with you and is available in the Investor Relations section on our website as well as has been uploaded on boardsys. The respective speakers shall also be referring to this presentation during discussions. I am now referring to Slide 4. While some of the audience may have seen this slide earlier, I would just like to refresh everyone’s memory on our business overview. Relegate Enterprises serves as the listed holding company CIC which states in India’s second largest standalone health insurance company called Care Health Insurance as well as financial services businesses across Relegate Broking whenever you are filled with the MSA lending platform Housing Finance which focuses on affordable housing.
Moving to Slide Next slide these are the key highlights for FY26. As mentioned earlier, we have strengthened our leadership across different businesses and I’ll cover the details in the next slide. There is a strong promoter commitment from Burma Group for Religion. The promoters have subscribed to 50% of the preferential rights issue. This commitment of rupees 750 crore during this year. I must also mention here that during the last quarter the Promoter Group also increased stake in the company through open market purchases and the current shareholding is around 30.3%.
Upon conversion of outstanding warrants, this stake is expected to rise further. During the last quarter the respective boards of Religion Enterprises Limited and Religious FinTech Limited approved demerger scheme to create two separately listed focused entities. Under the proposed demerger, REI’s lending, broking and ancillary financial services business will move to RFL while REL will become a pure play Health insurance holding company should stay in peer health insurance
Unidentified Speaker
Business
Pratul Gupta — Chief Financial Officer
Post the implementation of Demerger. RIFL will operate as an integrated financial services platform and REL shareholders shall receive one RFL sharer for every REL share type. Referring to Slide 6, this just gives a snapshot of key management changes during the year. You have already been introduced to Mr. Lamba. He represents the Promoter family and as I mentioned earlier he is now the Executive Director. The other key appointments are Mr. Ajay Kumar Shah, a founding team member of CARE with over 30 years of industry experience.
He has been appointed as MD and CEO of CARE Health Insurance in April 2026 and succeeds Mr. Anuj Gulati who built CARE as India’s second largest tender health insurer during his tenure alongside Mr. Manish Vishnu Dodeza, a member of founding team and an industry veteran, has also been appointed as Executive Director of KFI at religious fintest. Mr. Srinivasan Karthik, with nearly three decades of banking and financial services experience has been appointed as the CEO. He joins us from HCV Financial Services wherein he spent the last decade to build consumer and asset finance portfolio across several provinces.
He also played a key role in the digital transformation of the company over last few years at relegate broking, Mr. Vijay Kumar Goel joined us as Managing Director of RBL in February 2023. Vijay has spent over 14 years at Motilal Oswal managing different lines of businesses and he’s an industry veteran. At Belliger Housing Finance. Mr. Pankaj Ratty has been appointed as Chief Financial Officer and Executive Director to spearhead the growth and expansion of the franchise. Mr. Rati served as CFO of Graham Housing Finance just before joining Religare.
Now moving on to numbers, we are on slide 7. Slide 7 gives an overview of the financial performance of REL and its subsidiary for Q4 as well as FY26. In Q4, FY26, REL reported a total income of Rupees 24.73crores on a consolidated basis for the full year the total income was Rs.8493 crores and the reported PAT is at Rupees 73.16 crore. Significant subsidiary CARE reported a GWP of Rupees 3511 crores during the last quarter of the fiscal and a PBT of Rupees 274 crores. Both these numbers are on n basis for the full year.
CARE reported a GWP of 11,417 crores and a PVT of rupees 539 crores. RFL reported a profit of rupees 89 crores in quarter four on account of its improved recovery and has a cash balance including investment of over rupees 591 crores. Currently Religure Broking Limited reported an income of rupees 99 crores for quarter four and for the full year rupees 373 crores with 22 crores as PAD reported for the year. Religare Housing Finance reported a total income of around rupees 30 crores for FY26 and 8 crores for the quarter.
The business reported a loss of rupees 18.6 crores for the year. I am on slide 8 now. This is just a snapshot of our income statement. As I mentioned earlier, REI reported total income of 8493 against a total income of 7405 reported last year. The total expenses is 8407 crores for this fiscal and a PBT of 87 crores. The last year corresponding number for the PBT was 243 crores. On slide 9 we have got segmental reporting. The insurance business clocked a revenue of rupees 2,313 crore for the quarter and 7,969 crores for the entire fiscal 2026.
Financial services were at rupees 166 crores approximately for the quarter and 537 crores for the entire year. The profitability for the insurance segment is at 41 crores for the last quarter while it reported a loss of approximately 46.8 crores at TBT level for FY26 for the Financial Services segment. PBT of 127 5.5 crores was reported for the last quarter and 152.3 crores on the annual basis. The corresponding assets and liabilities are also detailed in slide 9. Now we will get into each operating business.
I will hand over to Mr. Ambreet Jindal, the CFO of Care Healthy Insurance to take us through the details of health insurance company performance. Over to you Ankit.
Ambrish Jindal — Chief Financial Officer, Care Health Insurance Limited
Thank you Pradesh. Good evening everyone. It has been a transformative year for India’s
Pratul Gupta — Chief Financial Officer
Insurance sector. The exemption of GST on individual health insurance policy materially improved affordability for customers by removing the 18% expenses which supported stronger demand across the segment. As a result the industry saw robust momentum in retail health and grew at 30% in H2 of the financial year 2627 and KL grew by 8% more than what industry grew in the same way. This financial year we achieved multiple milestones. Our top line crossed 10,000 crore mark as we delivered gross term premium of 11,417 crore against 9,200 crores in the previous year.
Our profit before tax both under N days and on N basis crossed 500 crore mark. Profit before tax under N days grew by 55% excluding the impact of mark to market on financial instruments while on n basis it grew by 38%. It continued to deliver mid teens ROE for the fourth consecutive financial year and this year our credit rating was updated to AA family from a family which helped us in raising a subject of 100 crores this year. Now highlights for the quarter are Our retail business grew 37% year on year on a full premium basis.
Its continued market share gain in retail health insurance total GWP grew by 29% again on N basis. Profit before tax for the quarter is 275 crore and on a 1 million basis it is 107 crore. Our digital transformation continues. 96% of our policies are issued digitally and over 87% of cashless claims are processed in less than one hour. Customer complaints and gradients we keep on focusing on that this area it has declined in quarter four as compared to previous year. Now let me walk you through the presentation.
I AM on slide 12. The company delivered a top line of 11,417 crore on a full premium basis reflecting 24% growth while retail health grew by 34%. UN crossed 10,000 crore milestone and stood at 10,944 crores. We have a market share of 6.7% among industry and 22% within SAHI segment. Our solvency ratio stood at 1.68. However due to mark to market losses in the equity book, Solvency was lower by 2 basis point. Excluding this impact, solvency ratio would have been 1.70 and our clean settlement ratio is 97%.
Moving on to next slide we are on slide 13. Over the past four financial year the company has delivered a strong CAGR of 30%. In the current year the growth stand at 24%. Our retail health market share continue to expand reaching 11.6% of the overall industry and 19.7% within SAHI. While N basis industry data for retail health is not available, just to give you a perspective, industry grew at 20% on one by n basis and care grew 9% higher than the industry leading to gaining market share. Organization is a multi channel organization focusing on all channels wherein agency channel contributed almost 42% of the total GWP against 40% in the previous year.
Additionally the retail mix has improved by 5% this year which takes it to 66% end basis. Moving on to the next slide here on slide 14 the investment book increased by over 2,500 crores compared to March 25th driven by strong business growth and capital infusion of 322 crores in September 25th. Investment leverage standard 4.07x portfolio mix consists largely of bonds and defense which constitute 93% of the entire book and investments are predominantly allocated to sovereign and highest rated instruments with only 6% of the portfolio deployed in double a frustrated system.
Moving on to the next slide, the company benefits from strong promoter commitment with the planned capital infusion of 600 crore of which 256 crore has already been infused in September 25. We operate as a multi channel organization with a strong focus on retail offering product across all customer segments. Our distribution network is extensive with approximately 4.11 lakh agents. During the year we added around 50,000 agents and currently we have 239 corporate agents and bank ratio. Continued focus on disciplined underwriting and efficient team management has led to an improvement of under 20 basis points in the combined ratio based in base accounting.
Now in slide 16. This slide highlights the key capabilities of company’s robust mobile app platform. There are 12.5 million app installations and currently we have 1.2 million monthly active users. 70% of active retail customers are now available under mobile app. Slide 17 it compares company’s financial performance across all three accounting methodologies 1 by n n and India. On a 1 by n basis, profit before tax stood at 18 crore compared with 200 crore in the previous year. However, these figures are directly not comparable as the previous year reflected only six months on a one by N basis, whereas currently represents a full year on a one by n basis.
On an end basis, profitability improved by 38% with profit before d flying to 539 crore from 390 crore in the previous year. Under India, profit before excluded 519 crore compared with 388 crore in the previous year. During this year, profit was impacted by a mark to market loss of 64 crore on equity investment as of 31st March. Due to geopolitical reasons at the end of March, excluding this impact, profit in foretex would have been 583 crores against 377 crore in the previous year. The combined ratio under India has improved by 120 basis points to 101.2%.
Return on equity based on pocket reporters increased to 19.9% from 17.7% in the previous year. Moving on to slide 18 number on this slide they are on 1 basis and is not comparable with previous year. Under 1 methodology our top line is lower by 1000 crore and profitability is lower by 521 crore compared with N bases combined ratio basis 1 is 106.7% against 102.8% CGSA. Again the numbers are not comparable and basis 1 line Q4 is profitable with 107 crore of profit excels. Moving on to slide 19, this slide presents a bridge between companies IGF Financial and number reported under NDS.
The impact of India’s 117 is 565 crores for the currency. As highlighted earlier, the impact of index 109 arising from the mark to market loss on Equity investment is 64 crore. As a result, profit before takes stand at 519 crores. Excluding this impact, profit would be 586 crores. Within other comprehensive income, a portion of the debt portfolio has been classified as held for sale resulting into a mark to market impact. However, since most of these securities are held in maturity and hence the mark to market effect on the other comprehensive income is only notional in nature.
Combined ratio improved by 120 basis point driven by 100 basis point reduction in the loss issue and 20 basis point improvement in the operating expense ratio. Our underwriting loss basis in days is 114 crore which has improved in this year by almost 50 crores. The next slide this slide summarizes the equity bridge between Indian GAAP and India. As highlighted in the previous slide. The key difference arise primarily from the impact of India’s 117 and the mark to market securities handing over back to and thank you Amrish for the field overview.
I now invite Mr. Vijay Kumar Goel, M.D. Broking Ltd. To give his remarks on.
Ambrish Jindal — Chief Financial Officer, Care Health Insurance Limited
Thank you Prabhu. Good evening everyone. Slide number 22 during the quarter we saw sharp rebound. Our ebit grew by 79% yoy to 12.9 crores. Our 41% growth we saw in the brokerage on the top line side 44% growth we saw in the interest income another 31% growth we saw yoy in the e Governance business. Overall our funding book the plan debit book grew by 75% YoY on the full year basis. For financial year 26 our overall top line saw marginal decline by 2% and it came down to 373 groups. We saw our profit coming down by 26% segment.
Our e governance business grew by 13% and our interest income grew by 9% during the year our E Governance business saw our business partner expansion from 52,000 to about 61,000. And we had a one time charge regarding the new labor codes. Slide number 23. This is just you all know about it. Overall industry saw about 3 million accounts getting added in the last financial year. But overall the activity ratio has been falling from 2020 to when it was 40% is now.
Unidentified Speaker
Sorry to interrupt in between. Sir, I just speaking. I want article. I’m sorry to interrupt sir. You’re not audible to us. Ladies and gentlemen, the line for the management has been disconnected. Please stay connected while we join them back. Sam. Ram. Is.
Operator
Ladies and gentlemen, thank you for patiently waiting. I have joined the management part over to you sir.
Pratul Gupta — Chief Financial Officer
Thank you. Mr. Goyal will just finish his remarks. I think we must be asked.
Ambrish Jindal — Chief Financial Officer, Care Health Insurance Limited
Sorry for this interruption. Good evening. Once again I’ll quickly repeat what I said spoke about on the slide 24 please. Previous slide. Thank you. So our total income Yoy grew by 18% from 83 crores to 98 crores. On a yearly basis Our total income grew from 382crore. Came down from 382crore rupees to 373crores. Our profit yoy was up by 79% from 7.2 crores to 12.9 crores. And for the year our profit before tax came down by 31%. From 42.9 crores to 29.6 crores. Our network saw an increase by 6% from 354 crores to 376 crores.
And our asset central custody remained flat in 26 over 25. Slide number 25. Our daily turnover in the cash segment Yoy was up by 13%. And on a yearly basis our cash turnover daily average Daily turnover came down by 20%. So last quarter we did well. But overall during the year had come down on the derivative side. We saw our growth both yoy basis by 61%. And on the yearly basis also our derivative turnover daily turnover was up by 8%. Our active clients, the NSE active clients on a yearly basis came down by about 2%.
From 2.5 lakhs to 2 lakh 45,000. But the unique traded clients on a yoy basis were down by 2%. On a yearly basis they were down by 5%. As compared to 148,000 clients who traded in 2025. Last year we saw about 140,000 clients trading on a yearly basis. Our financials. As I have already mentioned, you will see that Our revenues are 98 crore for this quarter and for the year 373 crore rupees and our profit after tax is 11 crore rupees for the last quarter and for the full year it is 23 crore rupees.
I’ll just quickly cover that now what are we trying to do in religion broking? We are now trying to repair the business. The work is already started and put it on a high growth path. There are few initiatives that we have already taken. I’ll just give you a quick brief. The first focus is to increase the traded clients. We have around one million registered clients, around two and a half lakh clients who are active clients with us and there are a lot of dormant accounts who can be reactivated. So there are processes and plans have been made to increase the activity of clients.
Second, we have already started the work on improving our technology, the core trading technology as well as the mobile and digitization including some AI related initiatives and we are adding more products on the platform and improving the client experience as well as our team experience. There will be a sharp focus on growing the non broking revenue through the interest income as well as the non broking third party distribution products like investment products and insurance products. We already do those products but we are going to run pickup significantly in the coming years and process led execution.
We already have hired a percentage joint who is a six Sigma and lean methodology expert having experience long experience in in financial services and similar organizations with an objective to improve lot of processes and automate lot of things to improve the experience and deliver consistent experience. Thank you.
Pratul Gupta — Chief Financial Officer
Thank you Vijay for this detailed overview. We will now move to Religious Finvix Ltd. We are on slide 29. It gives you an overview of. RFL is part of the financial services segment of Delhi and is categorized as a middle layer NBFC. RFL currently has a core SME book of approximately 60 odd crores along with surplus fund balance of over rupees 590 crores. This strong liquidity position has been made possible because of company’s consistent focus on collections and recovery with collection efficiency remaining stable at around 98%.
The LNPA stands at approximately 0.8% and car is at 261% well above regulatory requirements. For the full year FY26 we have delivered a PAT of rupees 139 crores on account of improved collections and recovery with quarter four PAT alone coming in at 89 crores. The NOF which is the key regulatory requirement stands at Rupees 821 crores. The tangible net worth of the company is approximately 900 crores providing ample headroom for future growth. The quarter marks continued recovery from the loan book following regulatory cleanup and asset quality remains stable reflecting closed project portfolio monitoring.
With the joining of Karthik, the CEO of rfl, the focus of the entire team is is now towards rebuilding and growing the company. The cash is available, capital is in place, people are there, Platform is now ready to do the business for the various business clients coming to slide 13 while it may seem like a slightly busy slide, the key takeaways are straightforward. All legacy issues have been conclusively resolved, there are no cumulative mismatches, balance sheet is entirely debt free, IT platforms are getting refurbished to support future business needs and RFL is now slated to emerge as a strong governance led capital strong institution that is ready to service clients Moving to Slide 31 Some of the key ratios Total income for Q4 as I said earlier 42.6 crores compared to 22 crores for the same period last year nearly double up year on year.
This growth again has been driven primarily by strong uptick in interest income which moved from 18.2 crores as of last quarter of last fiscal to 40.6 crores in the previous quarter reflecting sustained improvement in collections and recoveries. Net worth has grown steadily and is now at 900 crores. These ratios collectively reflect the financial strength of the platform and how the business has been managed during this entire turnaround phase. On slide 32 it is just a schematic of profit and loss statement we provision Operating profit stood at 17.6 crores per quarter four compared to rupees two crores in quarter four of last fiscal in substantial improvement driven by disciplined cost control along with revenue growth for the full year, total income was at 121.9 crores again 75.4 crores for the previous year.
The turnaround, as I said earlier is driven by recovery, momentum in the loan book, improved collections and resolution of all legacy provisions. These numbers collectively reflect the strength of the company to collect from NPF pool and the cash collection should now position RFL well for the next phase of I will now hand over to Mr. Pankaj Rati, Chief Financial Officer Veneer Housing Finance for his remarks. Over to you Pankaj. Thank you. Good evening everyone. I recently taken over as a CFO for the housing finance business.
My immediate focus will be strengthening the foundation of the business, putting the right building blocks and creating a scalable platform for sustainable growth. Housing finance company primarily operates in affordable housing finance segment offering home loans and loan against property with an average ticket size of about 10 to 11 lakh rupees. At the end of the quarter, the asset under management stood at 243 crores with product mix comprising of about 70% home loan and 30% loan against property.
The company continues to maintain a healthy capital adequacy ratio of about 130%. We continue to hold investment grade ratings of BBB minus from ICRA and CARE reflecting the stability and resilience of the business. Currently the company operates through a network of about 15 branches in eight states in India. Our focus remains firmly on grammar retail portfolio supported by a strong capital base which is about 186 crores. From an industry perspective, the affordable housing finance segment continues to benefit from strong structural tailwinds supported by favorable government initiatives and increasing demand for affordable housing.
In parallel, we also are undertaking a comprehensive IT transformation initiatives aimed at strengthening operational efficiency, enhancing customer experience and building a future ready organization. Moving to slide 35 the Indian retail trade growth story remains robust with affordable mortgage segment continuing to witness healthy momentum. The affordable housing finance industry has been delivering AUM growth nearly about 20% annually. Even India’s mortgage penetration stands at only about 11% of GDP compared to significantly higher levels in developed country.
The sector offers substantial long term growth opportunities. Moving to slide 36 which highlights the key operating and financial ratios of the company. For the quarter ended March 26, the company reported revenue of about 7.9 crores with the average yield on portfolio about 15%. During the quarter we witnessed improvement in asset quality both in GNPA and NNPA numbers declining to 3.5% and 2.5% respectively. The company continues to maintain a comfortable capital position well above the regulatory requirements.
Coming to slide number 37 which presents company’s quarterly financial performance, the total revenue witnessed is a marginal increase of about 7.9 crores from 7.1 crore. At the same time, operating expenses were reduced to rupees 11.5 crores from 13 crores reflecting improved cost discipline and operational efficiencies. For the quarter, the company reported a loss of 3.6 crores as compared to a loss of 5.9 crores in the previous quarter. On a full year basis, the loss is about 18.6 crores versus 12.8 crores during the previous year.
Going forward, our focus will remain on driving business with sustainable growth, improving operational efficiencies, strengthening
Ambrish Jindal — Chief Financial Officer, Care Health Insurance Limited
The asset quality numbers and progressively improving profitability. That’s all from my side handing over to Pratoor.
Pratul Gupta — Chief Financial Officer
Thank You, Pankaj. With this we end our presentation and we are now open to take the questions back to you. Anusha. Thanks Supran.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star. Then two participants, you are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Unidentified Speaker
A reminder to all. You may press star N1 to ask a question. We will take the first question from the line of Sarvesh Gupta from Maximal Capital. Please go ahead.
Hitaindra Pradhan
Hi. Thank you for the opportunity. So am I audible?
Unidentified Speaker
Yes.
Hitaindra Pradhan
Yeah. So the first question is directed towards Mr. Arjun Lamba since he is representing the promoters. So I think in the last call also there were concerns raised regarding this demerger process and the holding company discount which can be created because of this sort of a structure. So now in this last quarter we have seen promoters increasing their stake by open market purchase as well as this impending preferential allotment. So this would significantly increase their shareholding in the in Delhi there.
And hence we wanted to understand if there is any further views on how we can avoid the holding company discount because of care being subsidiary to a listed fund.
Pratul Gupta
Thanks for the question. Yes, the promoters have increased their stake in the last quarter. I think the increase has been to the tune of roughly 4%. And post conversion of the warrants, assuming everybody converts the warrants, I mean promoters should be close to about 34%. And this is a. I mean it’s a logical step and we believe that the structure that we put in place sets a path and for the current moment that’s the right structure. As and when things sort of materialize or change, we will get back to you.
But we understand your concern and we well acknowledge what the investors are saying. I’ll stop it at that. And for us, number one has been to separate the FS business from the insurance business and to provide clean structure so that the shareholders can understand the managements can be very focused in doing what they have to do. And whereas this question from yourself and other shareholders which was there on the call, we will keep this at the back of our minds and we will see what we have to do at an appropriate stage.
Hitaindra Pradhan
Okay. And if we were to go down on that part, can this be done parallel or. It has to be done sequentially once the current scheme of arrangement gets over, which will Take at least a year from now,
Pratul Gupta
We will evaluate all this. I mean we will evaluate all this and we’ll get back to you. And because these are complicated, these restructurings are complicated, as you know and they’re time consuming as well. A lot of regulations and regulatory bodies that have to approve the same. And we’ll get back to you on this.
Chintan Mehta
Okay, One more question was. Sorry, interrupting
Operator
Between surveys. I would request you to please rejoin the queue again for more questions.
Chintan Mehta
Okay,
Operator
Thank you. We will take the next question from the line of Adarsh from INAM Holdings. Please go ahead.
Ambrish Jindal
Yes, sir. So the first question is on care. We put out our numbers on ifrs. So just wanted to understand, you know, a lot of our peers obviously listed separately do indicate, especially NEVA does indicate their growth outcomes that they expect and where combines are likely to go. Hence we get a good sense of profitability. Things kind of turned a little bit for health insurance at least on the underwriting side this year, going by number of all the companies. So if you can provide some clarity
Pratul Gupta
On that and maybe after this, I’ll take one question on the structuring.
Ambrish Jindal
Thanks. Others, this is Ajay Shah from care. So on the tailwinds
Pratul Gupta
Have started with the sector. From October, October to March we saw a healthy growth of 40% in retail compared to 27% in half1. And we have no reason to believe why these tailwinds will not continue. So I’m bullish on the sector, on the profitability. See currently our combined is set 1.4. It should come down near 100 in two years down line. But more important, this combined ratio will not come because of claims or anything. This combined ratio will come because operating leverage will be better and I expect renewal cost.
Operating leverage will be the only game changer in this.
Ambrish Jindal
So sir, if you’re saying 100 and closer to 102 goes to 100, broad sense, would you think, you know, the profit of CARE goes closer to about 800, would that be a fair number? Maybe 7 to 800 crores. Because
Pratul Gupta
That you can pay out very clearly. That’s okay. But we are only balancing ourselves from the combined ratio. That’s the only measure we do.
Ambrish Jindal
Understood. Fair, sir. The second question again on this structure, while you’ve tried to clarify was that as you said, there has been a creeping acquisition and post conversion for a separately listed life insurer. Believe the promoter shareholding should be 26. In this case we would be, you know, the DABA family would still be short of it in case shares are directly issued. So what’s the journey we can expect? Because even while we came out with the structure and a large part of the value comes from care, there is still limited clarity on potential timeline on when one can see a clean care share for the shareholders.
Pratul Gupta
I think the promoters have done what we wanted to or they wanted to do. I think the warrants itself convert by the end of March next year. There is time. There is time in that and the shareholding is what it is. I mean that’s a number that is there fixed and etched in stone and we will see at an appropriate time what we have to do. I mean I cannot give you a clear cut guidance as to when, what will happen, but we’ve heard you out and we’ll see what we have to do and when we have to do. Yes, we understand that the value is in care.
We are cognizant of that. That’s why we’re separating the entities. We’re creating clear paths and we hope to create value on the other entity as well. But, well acknowledge what your question is. But I hope I have been able to answer what you. What you ask me.
Operator
Thank you. Before we take the next question, ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participants in the question queue, we request you to kindly limit your questions to two per participant. If you have a follow up question, please rejoin the queue. Again, we will take the next question from the line of Niharika Kamani from Cadgro Capital. Please go ahead.
Arjun Lamba
Yeah, hi. Couple of questions. So first is how do we plan to ramp up the NBFC division and how do we plan to deploy the excess capital therein?
Pratul Gupta
So Karthik is. Karthik is here, our new CEO who just joined us five this week. So please excuse him. I may give a few thoughts. We obviously want. I’ll just give a broad motherhood statement and then you can take it up from there. We want to kick start the nbfc. We want to be a multi product nbfc. We have this cash, it’s all unlevered. We have to get our credit rating where we want it to be. Promoters are strong. So I think with this preamble I think we should be able to start and after that it all depends on execution.
I’ll ask Karthik to fill us in a little bit. Yeah, thanks Arjun. So the aim is to create a multi line nbse launching products over a reasonable period in terms of conceptualization, preparedness in terms of technology, platform and eventual launch into the market. So I think that’s what we are going to see over the next couple of quarters from the mbs.
Arjun Lamba
Okay, and my second question is promoters of any should hold 25% in health insurance. So are promoters contemplating
Operator
Between breaking in between?
Arjun Lamba
Can you hear me now?
Operator
Yes, please proceed.
Arjun Lamba
Yeah, so as per ILDA, promoters of Velare should hold 25% in care health insurance. So are the promoters contemplating increasing their stake in Velar to meet this regulatory requirement?
Pratul Gupta
So I think it’s 26% if my. If I’m correct. But yeah, 2526. That’s the right thing. We’ve increased our stake last quarter. We’ll see as and when, at an appropriate time. We’ll see what we have to do and keep you guys informed as and when we do something. But we are well aware of these facts and figures.
Arjun Lamba
Okay. Okay, Understood. So is there any plan of bringing in strategic investor on board given Kedara Capital might want to exit or what are your thoughts on this?
Pratul Gupta
We’ve not heard that Kedara wants to exit. But that’s a question that Kedara would answer. But I do not. We’ve not heard that they want to exit. I think they are our long term partners in this investment and I think they remain committed to the cause as well.
Arjun Lamba
Understood, Understood. Thank you so much.
Operator
Thank you. We will take the next question from the line of Vikas Srivastava from RBC Financial Services. Please go ahead.
Pratul Gupta
Yes, thank you. Arjun. You know, as you would have realized, there’s only one thought on the shareholder’s mind today. What about the reverse budget of Care? And I think the previous people asked the same question. And to be honest, we haven’t got a clear answer on this. If Kedara is a long term, you know, there’s some legal issues which a previous person asked. Can we amend. Is it possible legally to amend the current demerger in case you are able for example to either get Anuj as a promoter or Kezar as a promoter.
It was good to hear that there are long term initiatives. That’s one question. And related to that, can the promoters buy more stock in this financial year? Considering that without violating the keeping acquisition takeover code, I’m assuming you can’t because you’re already going up 2% because of your preferential allotment. So there’s a big gap between the look through from 19 to 26. That’s every shareholder today has that. So I’m saying, are there any conversations with either Anuj or Kendara?
Is there a Possibility that, that they could become promoters because I don’t see the woman family getting to 26. Is there a possibility that they could join hands and
Ambrish Jindal
Become promoters? And the last question was a legal question. Can the current scheme be amended if we were able to get to that number of 26%?
Pratul Gupta
No, I’ll answer your last question first. We don’t want to amend the scheme. Whether a subsequent scheme can be done, when it can be done, we shall see at an appropriate time now whether we can increase our stake to 26%. That is speculative. Time will tell. We have taken a first step. What can happen with our other partners? That’s an open question. And we’ve not sort of decided anything on this front just now. And we take our thoughts on board and we hear again, as I said to the last participant that we acknowledge and well taken and we’ve just also onboarded ourselves.
We are streamlining everything and we are conscious of what the shareholders want and we will apply our minds and collectively and we keep interacting with you and we’ll discuss this topic in detail when we have a plan in a week.
Ambrish Jindal
Okay, thank you. My second question was on Anuj. Is he going to have any, is he going to have any role
Pratul Gupta
Now
Ambrish Jindal
That he is not resigned? Is there any conversation or any
Pratul Gupta
Discussion, you know, considering with his experience and he’s been a founder of any continuing role in CARE going forward? I’ll just answer that question before the CARE folks also answer. See Anuj’s term, his 15 year term is what is allowed as per IRDA and his term has come to an end now and Anuj remains a 5 and a half percent shareholder. We are very thankful, grateful to him. We have a great equipment and I’m sure he. And we all have the best interest of the company at heart. But that Care Anuj cannot be there for a period of two to three years, if my memory serves me correct.
And that’s per IRDA guideline.
Operator
Thank you. We will take the next question from the line of Dikshit Doshi from Whitestone Financial Advisors Private Limited. Please go ahead.
Unidentified Participant
Yeah, so some of my questions have been answered. Just couple of things. If you can broadly mention about the rally here, housing finance and the rally gate
Operator
Between district. Could you please use the handset mode?
Unidentified Participant
Yeah. Is it better now?
Operator
Yes.
Unidentified Participant
Yeah, thanks. So some of my questions have been answered. Just couple of things for the NBFC and the housing finance business, if you can broadly touch upon that for nbfc, say which kind of product we are targeting or at what Yield or name we are targeting and will it be like a branch LED model or a digital model? If you can just give some rough, you know, rough picture.
Pratul Gupta
Yeah. So Karthik here I’ll attempt at answering your question but as Arjun said these are early days for me just getting my head around the entire structure in terms of the art of the possible gear. But to come to your question basically it’d be a mix of secured and unsecured products with a reliance on with a higher mix for the secured products. In terms of what is the distribution model. I think today there are certain products which require a local presence. There will be a need for a physical infrastructure, office plans, etc.
And there are products which are basically location agnostic where entire onboarding, underwriting, servicing, etc. Can be done digitally. So it will be a combination. There are certain products which will require a physical presence. There will be branch left but there are many products which are slightly typically low ticket products which will be completely done in a centralized manner.
Ambrish Jindal
Okay. For
Pratul Gupta
The housing finance business, you know as a housing finance company we are supposed to focus on home loans because we have to meet a regulatory threshold of 60% principal business criteria. So our focus will be home loans to the extent of about 60 to 70% balance will be loan against property. These will be retail granular secured. Of course you know this is what we do and our ticket size would be about 10 to 11 lakhs right now we operate and it could obviously you know it will be below 15 lakhs or so.
In terms of our strategy it will be both in terms of digital sourcing and branch led but largely because these are tier 2, tier 3 cities play it will be through the branch network and we will have adequate in prior as we go along. These are the products which we will get from housing Crimes company.
Unidentified Participant
All right, that’s it for me.
Operator
Thank you. We will take the next question from the line of Chintan Mahta Rampiska family office. Please go ahead.
Chintan Mehta
Thanks for the opportunity. So I just wanted to tell you when we are going to start disbursement in our finest and housing finance division. Currently we are doing acquiring books or files or we have not started yet. And the target in mind in next 2, 3, 5 years kind of achieving any target of even 5000 crore or 10,000 current kind of I think so new leadership vision has been set up. So if you have anything.
Pratul Gupta
Yeah. So currently we are doing insignificant. I would say about 10 crores a month less than that. But as we go along and get the first round of capital we’ll start putting in blocks in terms of our infra and expansion both and obviously it will be supported by investment on the front line on the technology and all of that. We can’t put a number right now in terms of how much we will do in other five years, 10 years. But yes, the opportunity set is really pretty large and I’m sure you would agree to that.
But yes, we will start business gradually and slowly and increase the momentum. These observations are for housing finance I think Karthik would like to add. Yeah. For the NBSP division I think there is a period of preparation when we put the entire technology stack in place. As probably are well aware today’s business is as much controlled by technology as much as by people, process and internal systems. So there will be a period of build up in terms of preparation time and once we do that I think the scale up will be fairly rapid in terms of distribution, getting national pan India.
I think that’s how we visualize this and we’ll definitely keep you posted. I think more on a quarter by basis in terms of what the near term visibility in terms of specific product process as we move forward.
Chintan Mehta
Okay. If you can do it early, your guidance that would be great. The second question is related to Lakshmi last bank deposit case. Where we are at and what was the last economy. Whether it’s fever or not in fever, what’s happening it there
Pratul Gupta
For the LBB case. LBB case is subjugate. We are obviously going to make best efforts to recover these money because it was an FTE that was fraudulently taken away from rfl. So we have now initiated legal proceedings in the Delhi High Court and we will keep you updated but be rest assured as our judicial responsibility we will be making best effort to sort of get this money and we do believe over time we should hopefully be successful.
Chintan Mehta
Okay, yeah, thanks.
Operator
Before we take the next question, a reminder to all you may press star and one to ask a question.
Pratul Gupta
We
Operator
Will take the next question from the line of Patel from Patel Investments. Please go ahead.
Pratul Gupta
Hi. So thank you for taking the question. My questions are more in the line of valuation perspective. So the first one is that over the
Ambrish Jindal
Two to three years can you give me a strategic roadmap?
Pratul Gupta
There is a lot of people we couldn’t understand your question. Could I request you to just keep the mouth away? Yeah, keep the mouth away. And can you try again? There’s a lot of echo please.
Ambrish Jindal
Is it, is it better now?
Pratul Gupta
Yeah, yeah,
Ambrish Jindal
Yeah. So my question is more on the valuation side of the and the modeling side of the business. So over the medium term, let’s say two, three years, can you help me with a strategic roadmap for our verticals like insurance or broking? Nbfc Housing finance more so in terms of growth, aspiration and capital allocation.
Pratul Gupta
So I think we obviously raised capital at rea level to fund the growth of each of these businesses. And I’ll just break it up. Out of the 50 crore 600 is going to care. 250 is going to the housing finance company, 200 is going to the broking entity and there’s about 375 odd crores which is a general corporate purpose fund which can be allocated depends on the need of these businesses. Rfl as you know the NBSC is well capitalized with about a 900,000 crore net worth and 600 odd crores cash sitting with it.
So that obviously did not require any capital. Our intent is to scale all of these business to make them meaningful and sizable. And part of this demerger is on account of this. And as these business teams, as with Karthik and Vijay and Pankaj and all get comfortable in their positions we will update you on the business plans on a quarterly basis and I think we’ll be able to share more. But be rest assured our aspirations are to grow these businesses and that will be the endeavor of the managements of each of these businesses.
And CARE is in many cases growing very strongly. They’ve grown healthy 24% plus. I think we plan to hopefully maintain momentum and Ajay and Abish can say a little bit about that. I think they’re best suited to say that.
Chintan Mehta
Thanks Arjun. So stalemates remain with the sector and we should be able to capitalize on that.
Pratul Gupta
So my second question was moving towards CARE itself. So as you said we have delivered a strong GWP currently and we have also get share. So I just wanted to know moving forward what is the kind of sustainable growth rate that we are looking at? Probably over the next three, four years.
Ambrish Jindal
Yeah. So we are expecting a healthy growth rate but the way we measure it we should be growing better than the industry. That’s the only benchmark that we carry.
Pratul Gupta
Got if you would give a range to me that would be better.
Ambrish Jindal
The range can be
Chintan Mehta
Anything between 18 to 24.
Operator
Thank you. We will take the next question from the line of Karina God from Stark Room Capital. Please go ahead.
Arjun Lamba
Hi, good evening. My question is is the leadership and management largely in place or are you looking at hiring more Senior people and in which business?
Pratul Gupta
So that’s a simple question to answer. So most of our leadership, at least at the CXO level, CEOs and CFOs are there. I think what is required is the CEO for the HFC business. We are in the process of that and ctos will be coming in for each of these companies and then it will be BAU going from here. But that’s ongoing process and I think we are making good headway on this process as well.
Arjun Lamba
Okay, and my second question is, do you expect the individual businesses to turn around in FY27 and report profiting the same?
Pratul Gupta
So just. Our LTFC is already reporting profit. Our broking business is already reporting profit. Our HFC is the only one that is not reporting profit. I think maybe give it another 12 to 18 months. I think that would be a fair ask to scale up. And scale up will require some opex and capex. So just give us 12 to 18 months on that.
Arjun Lamba
Okay. Thank you so much.
Operator
Thank you very much, ladies and gentlemen. Vivaja with the last question. I now hand the conference over to Mr. Pratul Gupta for the closing comments. Thank you. And over to you.
Pratul Gupta
Thank you, Sapnali and Anisha. We thank our shareholders for their faith in us, our customers for choosing our products and services. Regulators for their engagement. Our employees for their dedication and hard work. I also thank the entire leadership team present here with me in the room for taking out time and responding to our investment. Thank you everyone and wish you a good evening. Thank you. Thank
Ambrish Jindal
You.
Operator
Thank you members of the management, on behalf of Delegate Enterprises Ltd. That concludes this conference. Thank you all for joining us. And you may now disconnect your line. Thank you.