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CARE Ratings Ltd
NSE: CARERATING BSE: 534804 INE752H01013 Financial Services Cap Markets 🔎 Screen
₹4,994 Cr
Market Cap
5.54
P/B
26.3%
ROCE
19.7%
ROE
0.03
D/E
40.8%
Fin. Margin
-9.4%
% from 52W High
57
α RS
🔍 CARERATING is showing a high-conviction setup because it matches 7 of 37 tracked screener presets, it's within 9.4% of its 52-week high, and consistent_margins preset's Backtest win rate is 55% over 90 days. Net: Broad signal stack, not a recommendation. ? Conviction 52W High Backtest
Sources
Conviction 7/37 · 9.4% from 52W high · Backtest win rate 55%
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📈 Price History
Ratio Health
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By Category
Shareholding
About

CARE Ratings is a leading credit rating agency of India. The Company provides various credit ratings that helps corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own riskreturn expectations.(Source : 202003-01 Annual Report Page No:134)

✓ Strengths 2
  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 43.8%
! Concerns

No concerns data yet.

Key Ratios Snapshot
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📈 Growth Pattern
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3-Statement Financial Model
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Strong quarter: consolidated revenue grew 18.9% YoY to ₹111.68 Cr and PAT rose 24.6% to ₹32.99 Cr, but the sharp 29.3% YoY fall in corporate bond issuances remains a structural watch item. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹111.68 Cr (consolidated); ₹88.15 Cr (standalone)
+18.9% YoY consolidated; +16.5% YoY standalone
EBITDA Margin
31.0% (consolidated); 36.5% (standalone)
Consolidated EBITDA ₹34.63 Cr, +24.9% YoY; standalone ₹32.09 Cr, +18.2% YoY
PAT
₹32.99 Cr (consolidated); ₹33.88 Cr (standalone)
+24.6% YoY consolidated; +16.3% YoY standalone; consolidated margin 26.1%, standalone 32.7%
Ratings Business Revenue
₹98.71 Cr
+19.1% YoY; non-ratings ₹12.97 Cr, +17.9% YoY
What Went Right
  • Consolidated operating income grew 18.9% YoY to ₹111.68 Cr, with ratings up 19.1% to ₹98.71 Cr.
  • Consolidated PAT grew 24.6% YoY to ₹32.99 Cr; PAT margin held at 26.1%.
  • Consolidated EBITDA grew 24.9% YoY to ₹34.63 Cr; EBITDA margin was 31.0%, up from ~29.5% implied a year ago.
  • Non-ratings revenue rose 17.9% YoY to ₹12.97 Cr, showing continued diversification.
What to Watch
  • Corporate bond issuances fell 29.3% YoY to ₹2.5 trillion in Q1 FY27, a key input for rating fees; large borrowers are shifting to bank credit as bank credit growth jumped to 18.6% YoY.
  • Standalone PAT of ₹33.88 Cr was higher than consolidated PAT of ₹32.99 Cr, indicating subsidiaries/minority interests dilute group profit despite reported subsidiary improvement.
  • Management explicitly cautions to evaluate performance on an annual basis, not QoQ/sequential — a signal that one quarter's growth may not be run-rate.
  • Global uncertainties (West Asia crisis) and El Niño/monsoon risks remain, with management projecting only 6.7% India GDP growth for FY27.
Investor Lens
The thesis is intact for now: 19% ratings revenue growth and 24.6% PAT growth show the core rating franchise is capturing volume despite weaker bond issuance. What changed is the funding mix: with corporate bond issuance down 29.3% YoY and bank credit to large industry up 16.6%, fee momentum may become more dependent on bank-led credit assessments and non-ratings businesses. The consolidated PAT being lower than standalone is a warning flag that subsidiary profitability and minority interests are not yet contributing at group level. Watch next quarter for bond issuance recovery, subsidiary P&L contribution, and whether EBITDA margin can stay above 31% if revenue mix shifts. Also monitor management's annual-performance caveat — do not extrapolate Q1 as a run rate.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue up 19% YoY at ₹112 Cr; PAT up 27% YoY
Revenue
Revenue for Jun 2026 quarter was ₹112 Cr, up 19.1% YoY from ₹94 Cr. Sequentially, revenue declined 14.5% from ₹131 Cr in Mar 2026, reflecting typically softer first-quarter rating activity.
Profitability
Net profit rose 26.9% YoY to ₹33 Cr, with EPS at ₹10.73 versus ₹8.61 a year ago. PBT stood at ₹45 Cr and tax rate was 27%. Profitability growth outpaced revenue growth on an annual basis.
Margins
Operating profit margin improved to 31% from 30% YoY, aided by operating leverage. However, OPM fell sharply from 46% in Mar 2026, indicating seasonality and higher costs in the June quarter.
Balance Sheet
Balance sheet remains conservative with a debt-to-equity ratio of just 0.03. Return on equity is healthy at 19.7%, supported by a high-margin, low-capital model.
Key Risks
Sharp QoQ decline in revenue and margins indicates concentration in rating fee cycles. Regulatory changes or a slowdown in bond issuances could hurt volumes. Competition in unrated/ESG segments may pressure fees.
Outlook
Strong YoY growth suggests sustained demand for rating services, but QoQ volatility points to lumpy revenue recognition. Continued expansion beyond traditional ratings could support medium-term growth.
Generated by AI · Jun 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
Others
13
EBIT -1
13
EBIT 1
Ratings and related services
100
EBIT 49
118
EBIT 70
Total 113 131

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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Investment Risk:
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Information Sources:
The analysis and opinions expressed herein are based on publicly available information, including but not limited to company filings with the BSE/NSE, annual reports, management commentary, investor presentations, data from the Reserve Bank of India (RBI), SEBI, industry publications, and other reliable financial data sources. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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