Ace investor Ashish Dhawan has nearly doubled his stake in Religare Enterprises (REL)—one of the most talked-about financial turnaround plays in India—despite the company posting a steep decline in profitability during the third quarter of FY25. Dhawan’s calculated bet reflects deep conviction in REL’s long-term prospects, under the new leadership of the Burman family, which has recently taken the reins as promoters after a contested INR 2,116 crore open offer.
Ashish Dhawan’s Accumulation
Ashish Dhawan, a private equity veteran and founder of Central Square Foundation, now holds 13.5 million shares, which is a 4.1% stake in Religare Enterprises worth approximately INR 280.5 crore as of May 2025. This is a big increase from his 2.3% holding in December 2024 quarter—an increase of 1.8 percentage points or almost double his earlier stake.
Executed quietly through market purchases, this move signals a high-conviction investment thesis: that the Religare Enterprises under Burman leadership is poised for a successful turnaround, and that the current valuation—despite short-term setbacks—offers a compelling risk-reward profile.
Burman Family Now in Control
The Burman family, promoters of FMCG giant Dabur India, officially assumed control of Religare Enterprises on 20 February 2025. Through their privately held entities—M.B. Finmart, Puran Associates, VIC Enterprises, and Milky Investment & Trading Co.—they now collectively hold 25.16% of REL’s equity.
While the open offer received a tepid response (with only 0.07% of shares tendered), their pre-existing stake and recent market purchases cemented their position as REL’s new promoters, following regulatory clearance from the Reserve Bank of India.
“We are focused on stability, governance and sustainable growth,” said a Burman Group spokesperson to Reuters. The followed months of boardroom drama which culminated in the ouster of former Executive Chairperson Rashmi Saluja and a high profile legal battle involving allegations of insider trading and corporate misgovernance.
Q3FY25 Results: A Weak Quarter Amid Strategic Restructuring
Despite the new leadership, Religare Enterprises latest numbers are not encouraging. In Q3FY25 earnings, Religare Enterprises reported a 192.4% QoQ declined in net profit, down to INR 63.28 crore from INR 68.49 crore in Q2FY25. YoY it’s even worse at 288.4%, down from INR 33.58 crore in Q3FY24.
Key Financial Highlights:
- Revenue: INR 1,670.24 crore in Q3FY25
- -15.3% QoQ, but +8.7% YoY
- Expenses: INR 1,753.99 crore
- -8.3% QoQ, +17.2% YoY
- Profit Before Tax: INR –78.90 crore
- Compared to INR 67.44 crore in Q2FY25 and INR 40.73 crore in Q3FY24
- Earnings Per Share (EPS): INR –1.30
- Down from INR 1.50 (Q2FY25) and INR 0.60 (Q3FY24)
The decline is due to year over year increase in expenses and slowdown in income in some business lines during a quarter which saw leadership change and market uncertainty.
Nevertheless, the 8.7% YoY increase in revenue suggests that the company’s topline is on a recovery path, albeit disrupted temporarily by restructuring and internal transitions.
Why Ashish Dhawan Is Doubling Down
What makes Ashish Dhawan’s stake increase noteworthy is the contrarian timing. Most investors would hesitate to deepen exposure after a company reports a quarterly loss. Yet, Dhawan—who has a reputation for identifying value amid chaos—appears to be taking the long view.
His investment may be banking on:
- The operational and governance overhaul being executed by the Burman family
- A potential re-rating of the stock as confidence is restored among regulators and institutional investors
- The strength of Religare’s core businesses in lending, insurance, and wealth management, once stabilized
- The stock trading at an attractive valuation relative to its normalized earnings potential
What Lies Ahead
The coming quarters will be critical in determining whether the Burmans can translate their strategic control into operational success. Investors will be watching for:
- Improved profitability metrics
- Transparent and independent board appointments
- Rationalization of costs and shedding of non-core assets
- Clarity on long-term business vision
Religare Enterprises is emerging from a period of reputational crisis and legal entanglements, and now enters an era of intense scrutiny and heightened expectations.
Conclusion: Calculated Conviction Amid Chaos
Ashish Dhawan’s near-doubling of his stake in Religare Enterprises sends a powerful signal to the market: he sees value where others see volatility. His move, combined with the Burmans’ formal induction as promoters, positions REL as one of the most closely watched turnaround stories in India’s financial services landscape.