CARE Ratings Q1FY26 Net Profit Rises 23.9% YoY to ₹2,649.74 Lakh; Reappoints Two Independent Directors

Mumbai, August 5, 2025 – CARE Ratings Limited (NSE: CARERATING, BSE: 534804) reported a 23.9% year-on-year (YoY) rise in consolidated net profit to ₹2,649.74 lakh for the quarter ended June 30, 2025 (Q1FY26), compared to ₹2,138.29 lakh in Q1FY25. Total income rose 18.5% YoY to ₹10,760.25 lakh, supported by healthy growth across core ratings and other advisory services.

Key Financial Highlights (Consolidated)

• Revenue from operations stood at ₹9,390.5 lakh in Q1FY26, marking an 18.97% year-on-year increase, though it declined 14.37% from the previous quarter.
• Total income rose to ₹10,760.25 lakh, up 18.52% YoY, but down 13.80% sequentially.
• Profit before tax came in at ₹3,743.99 lakh, registering a 23.1% YoY rise, but down 36.4% QoQ.
• Net profit grew 23.9% year-on-year to ₹2,649.74 lakh in Q1FY26, although it declined 38.9% from Q4FY25.
• Basic earnings per share (EPS) stood at ₹8.61 for the quarter.

Segment-Wise Revenue Performance

• Ratings Segment Revenue Rises 17.4% YoY to ₹82.98 Crore in Q1FY26.
• Advisory, ESG & Global Services Clock 30.2% YoY Growth at ₹11 Crore.

Ratings remained the core contributor with 88.3% of segment revenue. The “Others” segment, which includes ESG ratings and analytics, grew over 30% YoY.

Operational Highlights

• Employee benefits expense surged 17.4% YoY to ₹5,370.04 lakh, largely due to ESOP charges of ₹67.02 lakh for Q1FY26 under ESOS 2020.
• Finance costs remained stable, while depreciation rose 21.1% YoY.
• PAT margin for Q1FY26 stood at 24.5%, up from 23.5% in Q1FY25.

Standalone Performance Snapshot

• CARE Ratings reported a standalone total income of ₹9,038.40 lakh, marking a 15.8% increase compared to ₹7,803.69 lakh in the same quarter last year.
• The company’s standalone net profit rose 21.3% year-on-year to ₹2,911.55 lakh, up from ₹2,401.16 lakh in Q1FY25.
• Standalone earnings per share (EPS) for the quarter stood at ₹9.72, compared to ₹8.04 a year ago.

The standalone business continues to deliver consistent profitability with stable growth in core operations.

Board Decisions & Corporate Actions

• Reappointment of Independent Directors:
  • Mr. G. Mahalingam and Mr. V. Chandrasekaran have been reappointed as Independent Directors for a second term of three years each, starting November 21, 2025, and December 7, 2025, respectively. These reappointments are subject to shareholder approval.
  • Mr. Mahalingam, a former SEBI Whole-Time Member and RBI executive, brings deep regulatory expertise.
  • Mr. Chandrasekaran, former Executive Director (Investments) at LIC, continues as the Chairman of the Board.
• ESOS Allotment:
  • The company allotted 25,933 equity shares under ESOS 2020 during Q1FY26.

Strategic Outlook

Managing Director & Group CEO Mehul Pandya reaffirmed the company’s focus on broadening its rating coverage and scaling ESG and global businesses. With segmental assets now exceeding ₹98,000 lakh, the company continues to maintain a strong financial position backed by cash-rich reserves and low debt levels.

REF: https://nsearchives.nseindia.com/corporate/CARERATINGS_05082025164845_CARE.pdf

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