ICRA Limited has reaffirmed the credit rating for Religare Housing Development Finance Corporation Limited (RHDFCL), a step-down subsidiary of Religare Enterprises Limited (REL). The rating action pertains to long-term/short-term bank lines with a rated amount of ₹400.00 crore. The assigned rating is [ICRA]BBB- (Stable) for long-term and [ICRA]A3 for short-term instruments.

Rating Rationale and Key Drivers

Credit Strengths:

  • RHDFCL maintains an adequate capitalisation profile with a net worth of ₹186 crore and managed gearing of 0.3 times as of March 31, 2026.
  • The classification of the Burman Group (promoter family of Dabur India Limited) as promoters of REL has improved the group's credit profile. Their shareholding increased to 30.56% as of June 04, 2026, from 25.2% post the open offer conclusion in February 2025.
  • REL has proposed a capital raise of ₹1,500 crore through preferential warrants, with approximately ₹250 crore earmarked for RHDFCL.
  • The boards of REL and RHDFCL have been strengthened with the induction of five directors, including promoter representatives, with three common directors on RHDFCL's board.
  • REL has extended liquidity support to RHDFCL over the past few years, including an inter-corporate deposit (ICD) of ₹11.5 crore as of March 31, 2026.

Credit Challenges:

  • RHDFCL's scale of operations remains modest with limited business activity in recent years. Disbursements were ₹39 crore in FY2026 and ₹17 crore in FY2025.
  • Assets Under Management (AUM) moderated to ₹243 crore as of March 31, 2026, from ₹250 crore as of March 31, 2025, and ₹282 crore as of March 31, 2024.
  • The company reported a net loss of ₹18.4 crore in FY2026 (compared to ₹12.7 crore loss in FY2025) and Return on Managed Assets (RoMA) of -6.7% in FY2026 (-4.2% in FY2025).
  • Operating expenses remained elevated at 16.8% in FY2026 (15.3% in FY2025) despite healthy Net Interest Margins (NIM) of 10.0% in FY2026 (9.6% in FY2025).

Corporate Restructuring

REL has proposed a demerger of its financial services business into Religare Finvest Limited (RFL), which has been approved by the respective boards. Post-demerger, RFL will house the broking and lending businesses, including RHDFCL, while REL will retain the insurance business.

Liquidity Position

As of March 31, 2026, RHDFCL's liquidity profile is supported by:

  • Unencumbered cash and liquid investments of ₹7.41 crore
  • Scheduled inflows of ₹11.3 crore during the next twelve months
  • ICD support from REL of ₹11.5 crore

The company remains dependent on support from REL for business growth, and expanding its lender base is crucial going forward.

Financial Highlights (FY2026 vs FY2025)

| Metric | FY2025 | FY2026 |

| Total Income | ₹32.3 crore | ₹30.3 crore |

| PAT | ₹-12.7 crore | ₹-18.4 crore |

| Total Managed Assets | ₹284.8 crore | ₹267.8 crore |

| Return on Managed Assets | -4.2% | -6.7% |

| Reported Gearing | 0.0 | 0.1 |

| Managed Gearing | 0.3 | 0.3 |

| Gross Stage 3 % | 3.6% | 3.5% |

| CRAR% | 140.1% | 129.7% |

Rating History

The rating has been stable since April 25, 2025, when it was upgraded from [ICRA]BB (Stable)/[ICRA]A4 to the current [ICRA]BBB- (Stable)/[ICRA]A3.