CARE Ratings LimitedQ2 FY27 Results & Financial Update
CARE Ratings Limited: Q2 FY27 consolidated results and company financials – revenue ₹164.13 Cr, PAT ₹72.37 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore CARE Ratings Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
CARE Ratings Limited registered consolidated operating income of Rs. 164.13 crore for the second quarter ended September 30, 2026, marking a 20% year-on-year increase as stated in company disclosures. Total consolidated income reached Rs. 179.56 crore, underpinned by broad-based demand across domestic and international rating operations.
The ratings business continued to anchor top-line expansion, generating consolidated revenue of Rs. 148.51 crore during the quarter, up 21% year-on-year. Non-ratings operations contributed Rs. 15.62 crore, registering an 18% increase over the same period last year.
Profitability expansion was supported by operating leverage and stable cost structures across analytical operations. Earnings per share (EPS) for the consolidated entity reached Rs. 23.88 for the quarter, compared to Rs. 10.70 in the preceding quarter.
Reflecting strong cash generation and confidence in core operations, the Board of Directors declared an interim dividend of Rs. 10 per equity share, having a face value of Rs. 10 each, for the second quarter of FY27.
01 · Business model
What does CARE Ratings do?
CARE Ratings Limited (operating as CareEdge) is India's second-largest credit rating agency, established in 1993 and licensed by SEBI with accreditation from RBI. The company provides independent credit ratings, risk analytics, sustainability evaluations, and specialized financial research services across diverse sectors.
The group structure comprises key domestic and international subsidiaries spanning credit ratings, advisory, ESG evaluations, and global scale ratings. Ratings entities include CareEdge Global IFSC Limited at GIFT City, CARE Ratings (Africa) Private Limited in Mauritius, CARE Ratings South Africa (Pty) Ltd, and CARE Ratings Nepal Limited.
Non-rating verticals include CARE Analytics and Advisory Private Limited and CARE ESG Ratings Limited, alongside specialized SEBI-licensed initiatives such as the Past Risk and Return Verification Agency (PaRRVA). The revenue model is driven primarily by issuer-pays credit rating fees, advisory mandates, analytical tools, and specialized sustainability assessments.
The company serves a broad customer base of corporations, financial institutions, sovereigns, and microfinance entities, leveraging both domestic debt capital markets and emerging international financial gateways.
02 · Historical context
What shaped the business before this quarter
Established in 1993, CARE Ratings has grown to become India's second-largest credit rating agency with accredited status from both SEBI and RBI.
CareEdge Global IFSC Limited was established at GIFT City, subsequently expanding sovereign credit assessments to cover 45 sovereigns globally over recent years.
The group previously expanded internationally by establishing operating subsidiaries in Mauritius, South Africa, and Nepal to cover regional debt markets.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹164.13 Cr | ₹111.68 Cr |
| Total income | ₹179.56 Cr | ₹126.48 Cr |
| Profit before tax | ₹95.60 Cr | ₹44.97 Cr |
| Profit after tax | ₹72.37 Cr | ₹32.99 Cr |
| EPS | ₹23.88 | ₹10.70 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 44.1% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to 58.2% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Total income exceeded operating revenue by ₹15.43 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Consolidated ratings revenue reached Rs. 148.51 crore in Q2 FY27, marking a 21% year-on-year increase driven by an uptick in corporate bond issuances and bank credit off-take.
Non-ratings business generated Rs. 15.62 crore during the quarter, representing an 18% year-on-year growth supported by advisory, analytics, and ESG service lines.
A sharp uptick in corporate bond issuances during Q2—following four consecutive quarters of contraction as firms front-loaded borrowings—supported rating mandates.
What drove margins
Consolidated EBITDA reached Rs. 84.61 crore with an EBITDA margin of 52%, benefiting from scalable analytical delivery and disciplined overhead management.
05 · Demand, customers & order book
Where demand is coming from
CareEdge Global maintained ratings coverage across 45 sovereigns, ranking fourth globally by country coverage, alongside 100-plus companies rated by its African subsidiary.
CARE ESG Ratings Limited retained a 60% market share among issuer-pays ESG Rating Providers in India, covering 20 sectors.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
The ratings business accounted for the vast majority of consolidated revenue at Rs. 148.51 crore, growing 21% year-on-year.
Non-ratings operations contributed Rs. 15.62 crore, registering a 15% to 18% year-on-year expansion across analytical and sustainability mandates.
Geography and market mix
CareEdge Global IFSC at GIFT City marked its second anniversary, having rated 45 sovereigns globally with over USD 30 billion of debt across multiple sectors.
Regional subsidiaries in Nepal, Mauritius, and South Africa maintained active market coverage across respective financial landscapes.
07 · Strategy & new businesses
How the company is trying to change its growth mix
Definitive Share Purchase Agreements (SPA) and Shareholders' Agreements (SHA) were signed with State Bank of India and NSE IFSC Ltd for acquiring a 9.90% stake each in CareEdge Global IFSC Limited.
The group continued embedding artificial intelligence across operations through specialized platforms including CredEdge, IntelEdge, Kalypto, and EdgeAvira.AI.
08 · Reported developments
What changed operationally
The company hosted its flagship 'Conversations' event in Mumbai on August 31 with Shri Gautam Adani as Chief Guest, and launched a joint research report with ORF at the BRICS presidency event.
09 · Pressure points & risks
What is not going smoothly
Management noted ongoing risks from the West Asia crisis, energy price volatility, weather-related agricultural uncertainties, and rising domestic inflationary pressures.
10 · Management guidance & targets
What management is targeting from here
Management projects full-year FY27 Indian GDP growth to be at 7.3%, factoring better-than-expected first-quarter performance.
11 · Beyond the numbers
What changed beyond the numbers
Reported update
GIFT City Anniversary
CareEdge Global Ratings marked the second anniversary of its operations at GIFT City with an event graced by Shri K. Rajaraman, Chairperson, IFSCA, releasing a publication titled 'A Case for Reforms: Building Sovereign Resilience in an Evolving World'.
12 · Previous-quarter changes
What changed since the previous quarter
Consolidated operating revenue increased from Rs. 111.68 crore in Q1 FY27 to Rs. 164.13 crore in Q2 FY27.
13 · Key Q&A
The quarter, answered directly
What does CARE Ratings do?
CARE Ratings Limited (operating as CareEdge) is India's second-largest credit rating agency, established in 1993 and licensed by SEBI with accreditation from RBI. The company provides independent credit ratings, risk analytics, sustainability evaluations, and specialized financial research services across diverse sectors.
What is the clearest takeaway from Q2 FY27?
CARE Ratings Limited registered consolidated operating income of Rs. 164.13 crore for the second quarter ended September 30, 2026, marking a 20% year-on-year increase as stated in company disclosures. Total consolidated income reached Rs. 179.56 crore, underpinned by broad-based demand across domestic and international rating operations.
What drove revenue or demand?
Consolidated ratings revenue reached Rs. 148.51 crore in Q2 FY27, marking a 21% year-on-year increase driven by an uptick in corporate bond issuances and bank credit off-take.
What mattered most for margins or profitability?
Consolidated EBITDA reached Rs. 84.61 crore with an EBITDA margin of 52%, benefiting from scalable analytical delivery and disciplined overhead management.
What changed operationally beyond the headline numbers?
Definitive Share Purchase Agreements (SPA) and Shareholders' Agreements (SHA) were signed with State Bank of India and NSE IFSC Ltd for acquiring a 9.90% stake each in CareEdge Global IFSC Limited.
What is management guiding or targeting from here?
Management projects full-year FY27 Indian GDP growth to be at 7.3%, factoring better-than-expected first-quarter performance.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Interest Rate and Credit Offtake Trends: Monitor the trajectory of domestic corporate bond issuances and bank credit growth following the RBI repo rate adjustment to 5.50% in October 2026.
- 02
Gifting City Subsidiary Restructuring: Track the completion of stake acquisitions by State Bank of India and NSE IFSC Ltd in CareEdge Global IFSC Limited.
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