Net Profit Rises 26.6% to ₹71.8 Crore, Revenue Grows 20.6% YoY
The company is operating under the CareEdge brand and is an Indian credit rating agency providing credit ratings, research, risk analytics, advisory and ESG-related services. The company serves corporates, banks, financial institutions and other market participants, helping them assess creditworthiness and financial risks.
The Nifty 50 traded at 23,005.55, up by 0.29%, while the Sensex gained to 74,356.57, up by 0.28% on Friday. The shares of CARE Ratings are currently trading at Rs. 1,638.30, up by 1.12%. The company has a market capitalisation of Rs. 4,941.75 crore. The stock’s 52 week high is Rs. 1,838.00 and its 52 week low is Rs. 1,392.70. In the past 6 months, the stock has delivered a return of -1.88%.
What’s the News?
CARE Ratings Limited announced its Q2 FY27 financial results for the quarter ended September 30, 2026. The company reported growth across its revenue, EBITDA and net profit, supported by an improvement in its credit rating and analytical services business. The company also reported an improvement in operating profitability, with EBITDA margins expanding compared with the corresponding quarter last year.
Q2 FY27 Financial Performance
Looking at the quarterly results of CARE Ratings Limited, the consolidated revenue from operations increased by 20.4% to Rs. 164.13 crore in Q2 FY27, compared with Rs. 136.37 crore in Q2 FY26. On a quarter-on-quarter (QoQ) basis, revenue increased by 47% from Rs. 111.68 crore in Q1 FY27.
The company’s consolidated net profit attributable to shareholders increased by 26.8% to Rs. 71.85 crore in Q2 FY27, compared with Rs. 56.67 crore in the corresponding quarter last year. On a sequential basis, net profit increased by 122.7% compared with Rs. 32.26 crore in Q1 FY27.
Meanwhile, the company’s basic earnings per share (EPS) increased to Rs. 23.88 in Q2 FY27, compared with Rs. 18.90 in Q2 FY26 and Rs. 10.73 in Q1 FY27.
EBITDA and Margins Show Improvement
CARE Ratings reported consolidated EBITDA of Rs. 84.5 crore in Q2 FY27, registering an increase of 24.1% compared with Rs. 68.1 crore in Q2 FY26. EBITDA margin improved to 51.5%, compared with 50.1% in the year-ago quarter, representing an expansion of approximately 140 basis points. The improvement in operating margins, along with higher revenue, indicates better profitability during the quarter.
Ratings Business Drives Revenue Growth
CARE Ratings’ core ratings business continued to contribute significantly to its consolidated revenue. The ratings business generated revenue of approximately Rs. 148.51 crore in Q2 FY27, registering growth of around 21% year-on-year.
Meanwhile, its non-ratings business contributed approximately Rs. 15.62 crore, recording growth of around 18% compared with the corresponding quarter last year. The performance reflects contributions from its broader analytical, advisory and ESG-related service offerings.
What Lies Ahead for CARE Ratings?
Going forward, CARE Ratings is expected to focus on expanding its credit rating operations, strengthening its research and analytics offerings and increasing its presence in international markets. Growth in corporate bond issuances, bank credit demand and infrastructure financing could create additional opportunities for credit rating services.
The company is also expanding its international presence through its CareEdge Global operations at GIFT City. Its broader service portfolio across ratings, analytics, advisory and ESG assessments could provide additional opportunities to diversify revenue streams.
Investors should monitor the growth in corporate bond issuances, bank credit demand and new rating mandates, as these factors influence demand for the company’s core services. The contribution from non-ratings businesses and the ability to sustain operating margins will also remain important indicators of future performance.
Investor Perspective
CARE Ratings delivered healthy growth in Q2 FY27, with revenue increasing 20.4% and net profit attributable to shareholders rising 26.8% year-on-year. The improvement in EBITDA margins further indicates stronger operating profitability during the quarter.
Going forward, investors will monitor the sustainability of revenue growth, expansion in analytical services and demand for credit ratings. The company’s ability to maintain high operating margins while expanding its business will remain important for its future earnings performance.
