CARE Ratings Limited (CARERATING)

Financial Services · Capital Markets · NSE · Updated 15 July 2026

₹1,656.3 ↓ 10.01% (1Y)

🎯 Key Takeaways

CARE Ratings Limited is in a mature, cash-generative phase within the credit rating and financial services sector, characterized by stable profitability and consistent shareholder returns. Despite a challenging market environment reflected in its -10% one-year return, the company continues to demonstrate operational resilience with healthy margins and recurring revenue streams.
Revenue declined 17.9% QoQ to ₹96 in Q3FY25.
⚠️ Margin compression in core rating operations, with OPM declining sharply from 47.5% to 31.6% over recent quarters, poses a profitability risk not full

Market Cap

₹5,410

P/E Ratio

45.3

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

CARE Ratings Limited is in a mature, cash-generative phase within the credit rating and financial services sector, characterized by stable profitability and consistent shareholder returns. Despite a challenging market environment reflected in its -10% one-year return, the company continues to demonstrate operational resilience with healthy margins and recurring revenue streams. Management is focused on governance continuity, leadership succession, and incremental capital efficiency improvements rather than aggressive growth initiatives.

📰 What's Happening

In the most recent quarter, CARE Ratings approved its FY2025-26 audited financials at the 33rd AGM on July 3, 2026, declaring a final dividend of Rs 14 per share — up from previous periods — signaling confidence in cash flow stability. The board also re-appointed B S R & Co. LLP as statutory auditor for five years, ensuring continuity in financial oversight. Additionally, Sanjay Agarwal was appointed Chief Risk Officer effective August 1, 2026, reinforcing governance depth. Earlier, the board allotted 11,250 shares under the 2020 ESOP scheme, slightly diluting equity but supporting employee retention. These actions underscore a focus on governance, compliance, and incremental operational discipline.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	78	66	96	79	90	79	117	96
Operating Profit	38	29	53	37	39	34	68	42
OPM %	35.3%	26.8%	43.5%	29.7%	32.2%	27.6%	47.5%	31.6%
Net Profit	20	18	36	24	25	21	47	28
EPS	₹6.60	₹6.00	₹11.83	₹7.88	₹8.07	₹6.94	₹15.42	₹9.30

The company's quarterly performance shows a clear trend of margin compression and earnings volatility, with operating profit margin declining from a peak of 47.5% in Q2FY25 to 31.6% in Q3FY25, despite relatively stable revenue around ₹90–117 crores. Net profit and EPS have also dipped sequentially, with Q3FY25 NP at ₹28 crores and EPS at ₹9.3, down from ₹47 crores and ₹15.42 in the prior quarter. This softening in profitability appears to be influenced by higher operating expenses or pricing pressures not fully offset by revenue growth, which management has not explicitly attributed to specific cost initiatives in the filings.

🔮 Management Outlook & What's Next

Management has not provided forward-looking financial guidance in the reviewed filings, but the reappointment of the auditor and leadership appointments suggest confidence in long-term governance and operational continuity. The declaration of a higher final dividend reflects a commitment to shareholder returns, though sustainability depends on margin recovery. No strategic expansion or revenue diversification plans were disclosed in the recent announcements, indicating a conservative, defensive posture focused on core rating operations and regulatory compliance.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Capital Markets

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
SBI-ETF Nifty 50	2.06 L Cr	—	—	—	—
BSE Limited	1.63 L Cr	174.4	—	—	—
ICICI Prudential Asset Management Company Limited	1.58 L Cr	—	—	—	—
Billionbrains Garage Ventures Limited	1.18 L Cr	—	—	—	—
HDFC Asset Management Company Limited	1.16 L Cr	49.0	—	—	—
Multi Commodity Exchange of India Limited	86,468	—	—	—	—
Nippon Life India Asset Management Limited	70,250	52.2	—	—	—
UTI Nifty 50 ETF	68,813	—	—	—	—
Nippon India ETF Nifty 50 BeES	62,392	—	—	—	—
NIPPON INDIA ETF GOLD BEES	58,044	—	—	—	—

🔗 Peer Stock Analyses

SETFNIF50 BSE ICICIAMC GROWW HDFCAMC

⚠️ Risk Factors

1. Margin compression in core rating operations, with OPM declining sharply from 47.5% to 31.6% over recent quarters, poses a profitability risk not fully explained by management. 2. Revenue stagnation and volatility, with sequential declines in Q3FY25 and Q1FY25, could limit growth visibility in a competitive financial services landscape. 3. High P/E of 45.3 relative to sector peers may reflect market expectations not aligned with current earnings trends, creating valuation sensitivity.

📋 Recent Filings

🧠 Analyst's Read

CARE Ratings remains a fundamentally stable player in the credit rating space, but near-term earnings pressure and margin decline warrant close monitoring. Investors should watch for signs of cost optimization or revenue stabilization in upcoming quarters, as well as any strategic shifts in service offerings or pricing power.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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