New Delhi, February 3, 2025 – Religare Enterprises Ltd. (NSE: RELIGARE, BSE: 532915) announced its financial results for the quarter and nine months ended December 31, 2024. The company reported a consolidated net profit of ₹3,202.55 lakhs for Q3 FY25, a decline from ₹16,645.43 lakhs in Q2 FY25.
Key Financial Highlights (₹ in Lakhs)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 |
|---|---|---|---|---|---|
| Revenue from Operations | 5,32,583.44 | 4,37,909.66 | 6,23,478.61 | 16,64,429.9 | 19,51,856.5 |
| Total Revenue | 5,35,564.75 | 4,42,478.37 | 6,29,925.87 | 17,02,407.0 | 19,70,974.9 |
| Total Expenses | 5,33,445.88 | 4,21,350.53 | 6,08,191.83 | 17,49,144.8 | 19,03,539.5 |
| Net Profit | 3,202.55 | 16,645.43 | 34,741.17 | 7,412.42 | 40,183.22 |
- Revenue from operations for Q3 FY25 stood at ₹5,32,583.44 lakhs, marking a decline from ₹6,23,478.61 lakhs in Q3 FY24.
- Total expenses for the quarter were ₹5,33,445.88 lakhs, reflecting an increase in operational costs.
- Earnings per share (EPS) stood at ₹0.79 (basic & diluted) for Q3 FY25, compared to ₹3.31 in Q3 FY24.
Segment Performance
| Segment | Revenue (₹ Lakhs) |
|---|---|
| Investment & Financing | 8,921.85 |
| Insurance | 4,96,695.69 |
| Broking & Advisory | 25,852.36 |
| E-Governance | 3,965.96 |
- Insurance segment remains the largest revenue contributor, generating ₹4,96,695.69 lakhs in Q3 FY25.
- Broking & Advisory services saw a moderate increase, contributing ₹25,852.36 lakhs.
- Investment and financing activities remained subdued due to market conditions.
Corporate Developments & Regulatory Updates
1. Open Offer by Burman Group
- The Burman Group has initiated an open offer to acquire 26% stake in Religare Enterprises.
- The regulatory approvals, including the Competition Commission of India (CCI) clearance, are progressing.
- The tendering period is scheduled from January 27, 2025, to February 7, 2025.
2. Corrective Action Plan (CAP) on Religare Finvest Limited (RFL)
- RBI has not yet lifted the CAP restrictions on RFL.
- The company remains optimistic about obtaining regulatory clearance.
3. Enforcement Directorate (ED) Investigation
- The ED and Mumbai police are investigating allegations related to the ESOP transactions of Care Health Insurance Limited (CHIL).
- Religare has stated that there is no financial impact at present.
Management Commentary
Dr. Rashmi Saluja, Executive Chairperson, commented: "Despite a challenging macroeconomic environment, we continue to make strategic progress in key segments. The insurance business remains our growth driver, and we are optimistic about regulatory approvals for RFL, which will unlock new opportunities for expansion."Outlook
- Religare aims to expand its insurance vertical while stabilizing its broking and lending operations.
- Regulatory clarity on the open offer and lifting of RBI restrictions on RFL will be key for investor sentiment.
- The company plans to continue cost optimization and capital efficiency to improve margins.
Conclusion
Religare Enterprises reported lower profitability due to increased operational expenses, but its long-term outlook remains stable with ongoing regulatory developments and business growth in core segments.Stock Impact:
Investors will be keenly watching regulatory updates, especially concerning the RBI’s CAP on RFL and the Burman Group’s open offer.