CARE Ratings (CARERATING) Q4 25/26 earnings summary

Executive summary

• Achieved broad-based growth in FY26, with consolidated revenue from operations rising 18% YoY to ₹473.07 Cr and PAT reaching an all-time high of ₹173.69 Cr, up 24% YoY, with a PAT margin of 33%.

• Ratings segment contributed 89% of consolidated revenue, growing 17% YoY to ₹423.05 Cr, while the non-ratings segment grew 19% YoY to over ₹50 Cr.

• Board recommended a final dividend of ₹14 per share, bringing the total FY26 dividend to ₹22 per share, subject to shareholder approval.

• Significant investments in AI and technology, with 60% of staff using enterprise AI tools and multiple AI-powered platforms launched.

• Audited standalone and consolidated financial results for FY26 were approved with unmodified opinions; 55,000 stock options were granted to employees.

Financial highlights

• Standalone revenue from operations for FY26 was ₹387.72 Cr, up 15% YoY, with standalone operating profit at ₹187.39 Cr and a margin of 48%.

• Consolidated operating profit (EBITDA) for FY26 was ₹197.39 Cr, up 27% YoY, with a margin of 42%.

• Standalone PAT for FY26 was ₹174.39 Cr, up 18% YoY, with a margin of 39%.

• EPS for FY26 stood at ₹57.06 (consolidated) and ₹58.13 (standalone).

• Total consolidated assets as of March 31, 2026, stood at ₹1,10,473.70 lakhs.

Outlook and guidance

• FY27 GDP growth projected to moderate to 6.7% due to global oil prices and potential El Niño impact; macro outlook is mixed with global headwinds.

• Union Budget 2026-27 expected to support sustained growth with fiscal discipline.

• Demand for independent credit risk opinions expected to grow amid uncertainty.

• Focus remains on scaling both ratings and non-ratings businesses, with confidence in accelerating non-ratings growth after achieving profitability.

• Management will monitor the impact of new labour codes and adjust compensation structures as needed.