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CARE Ratings Ltd
NSE: CARERATING Financial Services Cap Markets 🔎 Screen
₹11 Cr
Market Cap
0.01
P/B
24.6%
ROCE
18.0%
ROE
0.03
D/E
31.8%
Fin. Margin
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📈 Price History
Ratio Health
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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.

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Strong beat: standalone PAT up 19% YoY with EBITDA margin expanding to 54%, driven by operating leverage and non-ratings growth, despite a soft corporate bond market. quarter Investor Presentation One-Pager Mar 2026
Revenue (Standalone Q4)
₹107.58 Cr
+18% YoY
EBITDA Margin (Standalone Q4)
54%
+330bps YoY implied
PAT (Standalone Q4)
₹53.39 Cr
+19% YoY
Key Metric
Non-ratings revenue ₹50.01 Cr (FY26)
11% of consolidated, +19% YoY
What Went Right
  • Standalone EBITDA margin hit 48% for FY26 (up from 46% in FY25), reflecting strong operating leverage.
  • Non-ratings segment grew 19% YoY to ₹50.01 Cr, diversifying revenue beyond core ratings.
  • Consolidated PAT grew 24% YoY for FY26, with margin of 33% vs 30% last year.
  • AI adoption reached 60% of staff, improving turnaround times and analytical efficiency.
What to Watch
  • Corporate bond issuances declined 11.3% YoY in Q4 FY26, indicating weak primary market activity.
  • Macro headwinds intensified: real GDP growth forecast cut to 6.7% from 7.2% due to higher oil prices and geopolitical uncertainty.
  • IIP growth moderated to a five-month low in March 2026, and core sector output contracted for the first time in 19 months.
  • Commercial paper issuances fell 0.6% YoY in Q4, though full-year was up 7.2%.
Investor Lens
CARE Ratings delivered a strong quarter with record margins, but the weakness in corporate bond issuance (down 11.3% Q4 YoY) and slowing GDP forecast (6.7% for FY27 vs earlier 7.2%) are risks. The company’s ability to grow profit despite a soft market suggests pricing power and cost discipline, but sustainability depends on a rebound in debt capital markets. Non-ratings contribution (11% of revenue) is improving but still small. Key watch items: corporate bond market recovery, oil price trajectory, and expansion of PaRRVA regulatory initiative. Thesis remains intact due to margin resilience, but valuation may already reflect the quality.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: Revenue up 19%, PAT up 23%, OPM at 46%
Revenue
Revenue for Q4 Mar 2026 stood at ₹131.0 Cr, marking a 19.1% YoY increase from ₹110.0 Cr in Mar 2025. Sequentially, revenue grew 17.0% from ₹112.0 Cr in Dec 2025, indicating strong business momentum.
Profitability
Net Profit rose 23.3% YoY to ₹53.0 Cr from ₹43.0 Cr in Mar 2025, and jumped 43.2% QoQ from ₹37.0 Cr in Dec 2025. EPS improved to ₹17.58 from ₹14.24 a year ago, driven by higher operating leverage.
Margins
Operating Profit Margin expanded sharply to 46.0% in Q4 from 43.0% in the same quarter last year and 36.0% in the previous quarter. This improvement reflects better cost control and revenue scale benefits.
Cash Flow
Cash flow details are not available for this quarter. Typically, the company's CFO is strong given its asset-light model and high profitability.
Balance Sheet
The balance sheet remains robust with total assets of ₹1,105 Cr and reserves of ₹902 Cr. Borrowings are low at ₹26 Cr, resulting in a Debt-to-Equity ratio of just 0.03, indicating negligible leverage.
Key Risks
1) The stock trades at a PE of 30.2x, which may compress if earnings growth moderates. 2) Revenue is sensitive to credit rating volumes in a slowing economy. 3) Any adverse regulatory changes in the rating industry could impact margins.
Outlook
Continued margin expansion and low debt provide a strong base for future growth. However, revenue growth may moderate if capital market activity slows or corporate bond issuance decelerates.
Generated by AI · Mar 2026 results · Not investment advice
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