CARE Ratings Limited: Navigating a Mixed Market with Robust Growth in Q3 & 9M FY26

CARE Ratings Limited, a prominent player in India's credit rating landscape, has announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The company demonstrated a healthy performance, marked by significant growth in revenue and profitability, even as the domestic debt market experienced a mixed state. These results underscore CARE Ratings' commitment to quality-led growth and operational efficiency.

For the nine-month period (9M FY26), CARE Ratings reported a consolidated revenue from operations of Rs. 342.40 crores, a robust 17% increase year-on-year. The consolidated EBITDA stood at Rs. 136.64 crores, growing by an impressive 27% with a strong margin of 40%. Profit After Tax (PAT) for the nine months reached Rs. 120.25 crores, up 24% year-on-year, reflecting a PAT margin of 32%. The Earnings Per Share (EPS) for 9M FY26 was Rs. 39.46. For the third quarter (Q3 FY26) alone, consolidated revenue from operations grew by 16% to Rs. 112.12 crores, with EBITDA at Rs. 40.34 crores (up 33%) and PAT at Rs. 36.54 crores (up 29%).

Financial Highlights: Consolidated Performance

Segmental Contribution and Economic Tailwinds

The growth in consolidated revenue was significantly supported by both the Ratings and Non-Ratings segments. For 9M FY26, the Ratings Segment contributed Rs. 305.69 crores, growing by 17% year-on-year and accounting for 89% of the total consolidated revenue. The Non-Ratings Segment, comprising analytics, consulting, and sustainability services, recorded Rs. 36.71 crores, showing a strong 21% growth and contributing 11% to the consolidated revenue. This diversified contribution highlights the success of CARE Ratings' strategy to expand beyond its core rating business.

The broader Indian economy provided a favorable backdrop. Real GDP growth is estimated at 7.4% for 9MFY26, driven by factors such as income tax cuts, GST rationalization, continued momentum in services exports, and easing inflationary pressures. The recently announced India-US trade deal is projected to add approximately 20 basis points to GDP growth, with the overall projection for FY27 at 7.2%. This robust economic environment, coupled with improving credit demand and healthy capital market activity, bodes well for the company's future prospects.

Management's Perspective and Future Outlook

Mehul Pandya, Managing Director & Group CEO of CareEdge, commented on the results, acknowledging the mixed state of the domestic debt market but emphasizing CARE Ratings' healthy performance. He highlighted the growth in standalone revenue, driven by stable rating volumes and broad-based growth across segments. Mr. Pandya also noted the significant contribution from non-ratings businesses to consolidated revenue and the robust standalone EBITDA margin of 46% for 9M FY26, attributed to disciplined cost management and operational efficiencies.

Looking ahead, management remains cautiously optimistic, anticipating continued support from improving credit demand and healthy capital market activity. The company also reaffirmed its commitment to governance, analytical rigor, and stakeholder trust. While fund-raising activity moderated in Q3 FY26, with commercial paper and corporate bond issuances being lower year-on-year, cumulative issuances for April-December showed encouraging growth for commercial papers. Bank credit offtake also increased by 14.5% as of December 2025, accelerating from the previous year, with industrial credit growth rising to 13.3% and services credit growth at 15.3%.

CARE Ratings Limited's Q3 and 9M FY26 results reflect a company that is not only capitalizing on India's strong economic momentum but also strategically diversifying its revenue streams and maintaining stringent cost controls. The focus on quality-led growth and a cautiously optimistic outlook positions CARE Ratings to continue its trajectory of sustained performance in the evolving financial landscape.