Shares of Religare Enterprises Ltd (RELIGARE) declined 5.21% to ₹231.28 on the National Stock Exchange as of February 16, 2026 close, with early trading on February 17 showing minor fluctuations around ₹230-₹232. The stock has fluctuated within a 52-week range of ₹202.52 to ₹295.00, currently trading approximately 22% below its annual high. Recent price movements reflect investor reactions to the company’s latest quarterly results and board approval of a demerger scheme.
Company Description
Religare Enterprises Ltd is an Indian diversified financial services holding company. It operates through key subsidiaries providing health insurance (Care Health Insurance), retail and institutional broking, and lending solutions, including MSME-focused financing via Religare Finvest. Its primary end markets are Indian retail consumers and small-to-medium enterprises requiring specialized insurance and lending products.
Current Stock Price
Approximately ₹231 (as of February 17, 2026 early trading)
Market Capitalization
Approximately ₹7,700 crore
Valuation
Religare trades at a trailing price-to-earnings multiple significantly elevated due to recent consolidated losses, reflecting pressures in the insurance segment and anticipation of value creation through strategic restructuring.
Third Quarter and Year-to-Date Financial Summary
Religare Enterprises reported its results for Q3 2026 and nine-month period ended December 31, 2025, with revenue growth in insurance offset by higher claims and expenses leading to widened losses.
- Revenue Growth: Consolidated total income for the third quarter rose 23.8% year-over-year to ₹2,068 crore, primarily driven by growth in health insurance premiums.
- Net Loss: Consolidated net loss for the quarter was ₹76.5 crore, compared to a net loss of ₹63.2 crore in the prior year period. Year-to-date net loss totaled ₹22.5 crore, versus a profit of ₹32 crore in the corresponding prior period.
- Segment Performance: The health insurance subsidiary (Care Health) continued to drive revenue, with gross written premiums increasing, though it reported a pre-tax loss amid elevated claims. Broking and other operations faced margin pressures from costs and market conditions.
- Capital Position: The parent holding company maintains a debt-free status at the standalone level, with focus on legacy resolutions and subsidiary support.
Management Discussion and Strategic Priorities
Management highlighted steady progress in core businesses and structural enhancements:
- Care Health Performance: The health insurance arm remains a key growth driver, with emphasis on retail distribution, digital expansion, and improving operational metrics such as combined ratio.
- Corporate Structure: The Board approved a scheme of arrangement for demerger, separating the financial services business. This aims to unlock value through focused management and potential separate listings, with shareholders receiving RFL shares on a 1:1 basis. The move follows the Burman family’s acquisition of control in February 2025 and requires regulatory approvals.
- Financial Services Expansion: Post-demerger, the financial services entity targets growth in MSME lending with strong asset quality and capital buffers.
Macro Pressures and Company-Specific Challenges
Religare continues to navigate domestic market dynamics and internal strategic shifts.
- Regulatory and Governance Environment: Post the Burman family’s stake acquisition and control in 2025, focus has shifted to restructuring and value unlocking, with ongoing oversight from SEBI and RBI on approvals for the demerger.
- Macro Environment: Rising interest rates have influenced lending costs, while equity market volatility impacts broking volumes.
- Domestic Focus: Operations remain entirely India-centric, with negligible exposure to international geopolitical or tariff risks.
Religare Enterprises Ltd (RELIGARE) SWOT Analysis
Strengths
- Strong Insurance Franchise: Care Health Insurance is a leading standalone private health insurer with growing premiums and improving metrics.
- Parent-Level Financial Health: Debt-free status at the holding level and resolved legacy issues support balance sheet resilience.
- Brand Recognition: Established presence in retail broking and financial services across India.
Weaknesses
- Profitability Pressures: Consolidated losses driven by insurance claims and operational costs.
- Segment Dependencies: Holding company relies on subsidiary performance for value.
- Restructuring Execution: Demerger process involves regulatory timelines and complexities.
Opportunities
- Health Insurance Growth: Low penetration in India offers long-term expansion potential for Care Health.
- Financial Services Recovery: MSME lending growth supported by government initiatives and post-demerger focus.
- Value Unlocking: Demerger and potential separate listings to realize enterprise value in distinct businesses.
Threats
- Regulatory Approvals: Delays or conditions from SEBI, RBI, or NCLT in the demerger process.
- Claims Volatility: Higher-than-expected insurance claims impacting profitability.
- Market Competition: Intensifying rivalry from fintechs, banks, and insurers in core segments.