CARE Ratings Ltd (CARERATING)

Financial Services · Credit Rating Agencies · NSE · Updated 2 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹1,706.3 ↑ 9.99% (1Y)

🎯 Key Takeaways

CARE Ratings Ltd operates as a leading Indian credit rating agency with a dominant market position in structured finance and corporate ratings. The company exhibits characteristics of a mature, cash-generative business with strong returns on equity and capital, supported by a low-debt profile and consistent profitability.
Revenue declined 14.5% QoQ to ₹112 in Q1FY27.
⚠️ Revenue and profitability trends show sequential decline, raising concerns about growth sustainability despite stable margins.

Market Cap

₹5,129

P/E Ratio

28.8

P/B Ratio

5.50

ROE

19.3%

ROCE

26.3%

Debt/Equity

0.00

Div Yield

1.29%

Promoter

0.0%

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📖 The Story

CARE Ratings Ltd operates as a leading Indian credit rating agency with a dominant market position in structured finance and corporate ratings. The company exhibits characteristics of a mature, cash-generative business with strong returns on equity and capital, supported by a low-debt profile and consistent profitability. Its financial metrics reflect stable cash flows and high operational efficiency, though growth has shown signs of moderation in recent quarters. Management continues to focus on governance, talent strengthening, and investor engagement as part of its long-term strategy.

📰 What's Happening

In July 2026, CARE Ratings successfully conducted its 33rd Annual General Meeting, where shareholders approved the audited financials for FY2025-26, declared a final dividend of Rs 14 per share, and reappointed B S R & Co. LLP as auditors for a five-year term until 2031. The company also announced the appointment of Sanjay Agarwal as Chief Risk Officer effective August 1, 2026, leveraging his 16 years with the firm to enhance risk governance. Additionally, it scheduled its first Analyst/Institutional Investor Meet for September 10, 2026, with Artisan Partners, signaling ongoing efforts to engage with stakeholders and communicate strategic direction.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	136	112	131	112
Operating Profit	65	37	57	31
OPM %	47.6%	32.7%	43.6%	27.6%
Net Profit	57	37	53	33
EPS	₹18.90	₹11.96	₹17.58	₹10.73

The company's quarterly performance indicates a moderation in growth and profitability. Revenue declined from ₹136 crore in September 2025 to ₹112 crore in June 2026, while operating profit margins fell from a peak of 47.6% to 27.6% over the same period. Net profit and EPS also decreased sequentially, dropping from ₹57 crore and ₹18.90 in September 2025 to ₹33 crore and ₹10.73 in June 2026. This trend suggests a slowdown in activity or potential seasonality, though margins remain structurally healthy at 27.6% in the latest quarter. The decline in operational performance appears to be a key factor behind the reduced profitability despite stable revenue levels.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance on revenue or profitability in the available filings. However, the appointment of a new Chief Risk Officer and the organization of investor meetings indicate a focus on governance, risk oversight, and transparent communication with stakeholders. The reappointment of auditors and approval of financials at the AGM underscore confidence in the accuracy and sustainability of current financial reporting practices. While no strategic targets were disclosed, the emphasis on institutional engagement suggests an intent to maintain visibility and credibility with key investor groups.

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

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2025	Mar 2026	Mar 2026
Equity Capital	30	30	30	30
Reserves	724	776	832	902
Borrowings	21	24	25	0
Total Liabilities	894	958	1,037	1,105
Fixed Assets	100	102	104	128
Investments	44	134	175	87
Total Assets	894	958	1,037	1,105

The balance sheet remains exceptionally strong, with equity and reserves growing steadily from ₹832 crore to ₹902 crore between March 2025 and March 2026, while borrowings remained minimal at ₹25 crore. Total assets increased to ₹1,105 crore, reflecting asset base expansion without significant leverage. The absence of debt and consistent growth in equity suggest a conservative capital structure and an internal financing model, allowing the company to fund operations and potentially support future investments or shareholder returns without external pressure.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2026
Operating	+148
Investing	-94
Financing	-59
Net Cash Flow	-6

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	0.0%	0.0%	0.0%	0.0%
FII	23.6%	23.0%	23.3%	23.4%
DII	31.6%	31.3%	31.4%	31.6%
Public	24.8%	25.3%	24.9%	24.8%
# Shareholders	56,931	59,139	58,978	58,466

Institutional investor holding has remained relatively stable, with FII ownership slightly declining from 23.61% in Q2FY26 to 23.41% in Q1FY27, while DII increased marginally from 31.39% to 31.58% over the same period. Public holding has also shown minor fluctuations but remains around 24-25%. The number of shareholders has gradually increased, indicating broadening retail participation. There is no evidence of promoter activity or significant stake sales, and the stable institutional presence suggests confidence in the company's governance and long-term positioning.

⚖️ Peer Comparison — Credit Rating Agencies

Company	MCap (₹ Cr)	P/E	ROCE	ROE
CRISIL	35,357	40.0	39.6%	29.1%
CARERATING	5,129	28.8	26.3%	19.3%
ICRA	4,833	24.7	23.0%	16.6%

🔗 Peer Stock Analyses

CRISIL ICRA

⚠️ Risk Factors

1. Revenue and profitability trends show sequential decline, raising concerns about growth sustainability despite stable margins. 2. The company operates in a regulated financial services environment, making it susceptible to changes in regulatory policy or rating market dynamics. 3. High reliance on structured finance and corporate ratings exposes it to cyclical downturns in credit demand. 4. Despite strong returns, the valuation (P/E of 29.2) may reflect market expectations of limited growth, increasing pressure to demonstrate renewed momentum.

📋 Recent Filings

🧠 Analyst's Read

CARE Ratings maintains a resilient business model with strong governance and financial discipline, but recent operational softness warrants monitoring. Investors should watch for signs of revenue stabilization and management's ability to reinvigorate growth in the next phase of its lifecycle.

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 2026-09-02.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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