Religare Enterprises Q4 Profit Dips 16% Despite 9% Revenue Growth

Diversified financial services group Religare Enterprises Ltd (REL) reported a net profit fall for the fourth quarter ending March 31, 2025, at the same time as a key shift in its management and ownership structure. The results, reported post-market hours on Tuesday, May 20, indicate a mixed financial performance amidst the context of the Burman family's successful bid for control.

Q4 Financial Performance Overview

In the fourth quarter of fiscal 2025, Religare Enterprises had a net profit of ₹151.3 crore. This is a significant 16.4% year-on-year (YoY) drop from the ₹181 crore profit made in the same quarter of the last fiscal year.

Meanwhile, the firm witnessed growth in its operating revenue in the same quarter. Operating revenue grew by 9.3% to ₹2,028 crore, from ₹1,855.7 crore in the fourth quarter of the previous fiscal. This is indicative of growth in the top line, yet it did not find expression in enhanced profitability on a net basis for the quarter.

REL's diversified portfolio includes health insurance, securities broking, housing finance, and SME lending. In FY24, Care Health Insurance achieved a record premium collection of ₹7,022 crore, while Religare Broking reported a 29% increase in income to ₹368 crore.

The housing finance segment remained profitable, and the SME lending arm, Religare Finvest Limited, became debt-free and is poised to resume operations.

Burman Group Consolidates Control

The Q4 results announcement comes on the heels of the Burman family's successful takeover bid for Religare Enterprises. In February 2025, entities belonging to the Burman Group announced the successful closure of their open offer. This offer saw them pick up a major shareholding of 25.16% in REL.

Subsequently, the Burman family formally took over control of Religare Enterprises and were then recognized as its promoters. The Burman family's combined stake in the firm, including those purchased under the open offer and otherwise, now totals over 50%. This makes them the company's individual largest shareholders. The source explains that this change of control came following a time that has been likened to a "prolonged battle" between the removed chair Rashmi Saluja and US investor Danny Gaekwad.

Market Reaction

On the day the results came out after market hours, Religare Enterprises Ltd shares closed trading on the BSE at ₹219.00. The stock price rose modestly, closing higher by ₹1.25, or 0.57%. As of 12:20 PM, the company’s shares were trading at 227.40, with a gain of 3.70%.

In short, Religare Enterprises is during this time of revenue growth in operations along with a decline in quarterly net profit, while navigating the basic structural change of ownership in its hands now under the Burman Group's newly consolidated control.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here