Religare’s loss widens as costs outpace revenue growth
Revenue rose 15.33% YoY, but higher expenses, interest and depreciation pushed operating margin to -3.88% and net profit into a Rs 97.69 cr loss.
Filed 12 Nov 2026, 19:22 IST · after market close · Religare Enterprises Ltd (RELIGARE)
Key takeaways
- Religare’s consolidated net loss widened to Rs 97.69 cr as operating margin fell 6.83 percentage points YoY to -3.88%.
- Revenue grew +15.33% YoY, but expenses rose faster at +23.45% and interest cost increased +115.98%.
- The loss widened sequentially from Rs 46.98 cr to Rs 97.69 cr as expenses grew +2.94% against revenue growth of +1.16%.
Price around the results
Revenue growth did not cover the cost base
Religare reported a consolidated net loss of Rs 97.69 cr in Q2FY27, compared with a net profit of Rs 45.93 cr a year earlier. Revenue grew +15.33% YoY, but expenses grew faster at +23.45%, turning operating profit of Rs 60.87 cr into an operating loss of Rs 92.45 cr. Sequentially, revenue rose only +1.16% while expenses increased +2.94%, widening the net loss from Rs 46.98 cr.
Interest and depreciation added to the pressure
Operating margin declined 6.83 percentage points YoY and 1.80 percentage points sequentially to -3.88%, as costs outpaced revenue. Interest expense rose +115.98% YoY and +40.44% QoQ, while depreciation increased +91.93% YoY and +31.64% QoQ. Other income did not offset the loss; its share of pre-tax profit was -7.08% because pre-tax profit was negative.
Margin is now well below the peer median
Operating margin deteriorated from 2.95% in Q2FY26 to -2.08% in Q1FY27 and -3.88% in Q2FY27, marking deterioration across the reported quarters. Among 118 Financial Services peers that have reported, the sector median operating margin was 51.61%; Religare’s margin was 55.49 percentage points below that median and ranked seventh from the bottom. The lower tax rate versus the previous quarter provided some relief, with the tax rate falling 15.22 percentage points to 23.55%.
Presentation flags mixed activity trends
The presentation said cash volumes normalised in line with industry-wide exchange activity, while derivatives activity moderated sequentially even as year-on-year growth continued. It also said Religare Broking’s assets under custody rebounded following the Q4 dip and that client participation stabilised with a gradual rebound in FY27. These comments provide context for the quarter’s modest sequential revenue growth of +1.16%.
Results were filed after market close
The consolidated results were filed after market close on 12 November 2026. The stock’s immediate market reaction was therefore not yet available in this report.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,381 cr | ₹2,353 cr | +1.16% | +15.33% |
| Other income | ₹9 cr | ₹5 cr | +79.92% | -51.03% |
| Expenses | ₹2,473 cr | ₹2,402 cr | +2.94% | +23.45% |
| Operating profit | ₹-92 cr | ₹-49 cr | -88.48% | — |
| Operating margin (%) | -3.88% | -2.08% | — | — |
| Interest | ₹21 cr | ₹15 cr | +40.44% | +115.98% |
| Depreciation | ₹23 cr | ₹18 cr | +31.64% | +91.93% |
| Profit before tax | ₹-128 cr | ₹-77 cr | -66.55% | — |
| Tax | ₹-30 cr | ₹-30 cr | -1.18% | — |
| Net profit | ₹-98 cr | ₹-47 cr | -107.94% | — |
| EPS (₹) | ₹-1.45 | ₹-0.78 | -85.90% | — |
Operating margin of -3.88% compares with a Financial Services sector median of 51.61% across 118 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Religare Broking's assets under custody rebounded strongly following the Q4 dip.
- Client participation stabilised with a gradual rebound in FY27.
Competition
- Care is the second-largest standalone health insurer.
- Care has a 24% share of the standalone health insurance segment.
Problems & risks
- Cash volumes normalised in line with industry-wide exchange activity during Q2 FY27.
- Derivatives activity moderated sequentially, although year-on-year growth continued.
What to watch
- Whether operating margin improves from -3.88% in Q2FY27.
- Whether expense growth slows from +23.45% YoY relative to revenue growth of +15.33%.
- Whether interest-cost growth moderates from +115.98% YoY.