CARE Ratings (CARERATING) Q4 25/26 earnings summary

Executive summary

• Achieved broad-based growth in FY26, with consolidated revenue rising 18% YoY to ₹473.07 Cr and strong improvements in profitability and margins across ratings, non-ratings, and international businesses.

• Indian economy grew 7.6% in FY26, supporting business momentum despite global headwinds and energy price pressures.

• Board recommended a final dividend of INR 14 per share, totaling INR 22 for the year, subject to shareholder approval.

• Subsidiaries turned profitable, with CareEdge Analytics and Advisory achieving breakeven and international units expanding.

• Audited standalone and consolidated financial results for FY26 were approved, with unmodified audit opinions issued.

Financial highlights

• Standalone revenue from operations for FY26 was ₹387.72 Cr, up 15% YoY; standalone PAT was ₹174.39 Cr, up 18% YoY; standalone operating margin was 48%.

• Consolidated revenue was ₹473.07 Cr, up 18% YoY; consolidated operating profit was ₹197.39 Cr, up 27% YoY; consolidated PAT was ₹173.69 Cr, up 24% YoY; consolidated operating margin was 42%.

• Ratings segment revenue was ₹423.05 Cr, up 17% YoY; non-ratings segment revenue was ₹50.01 Cr, up 19% YoY.

• 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 at 6.7%, revised down from 7.2% due to global oil prices and El Niño risks.

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

• Focus on scaling non-ratings and international businesses, leveraging technology and AI for efficiency.

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

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