At a Glance
CARE Ratings Ltd delivered a Q1 FY26 revenue of ₹76 Cr (+16% YoY) and PAT ₹29 Cr, showing that even in an economy full of downgrades, they know how to upgrade their own results. The agency’s OPM at 36% is better than many companies it rates “AAA”. The dividend payout? A generous 51% because they clearly rate their shareholders high too.
Introduction
What’s common between movie critics and credit raters? Everyone loves to hate them until they predict something right. CARE Ratings, one of India’s top rating agencies, has been on a revival spree with improved margins, rising FIIs stake, and strong demand for ratings amid capital market activity. But remember, its business depends on how much corporates need debt (and how regulators react to scandals in the industry).
Business Model (WTF Do They Even Do?)
CARE earns money by assigning credit ratings to companies, banks, and PSU bonds, helping investors gauge risk. It also earns from research, risk solutions, and advisory services. Think of them as the school teacher giving grades — except here, the grade affects how much money companies can borrow.
Roast: They make money from other people’s borrowing habits. If the economy parties with debt, CARE throws confetti; if not, they just sip chai.
Financials Overview
Q1 FY26 Results
- Revenue: ₹76 Cr (+16% YoY)
- EBITDA: ₹27 Cr (OPM 36%)
- PAT: ₹29 Cr (+21% YoY)
- EPS: ₹9.72
FY25 Snapshot
- Revenue: ₹337 Cr
- PAT: ₹148 Cr
- ROE: 18.3%
- ROCE: 24.1%
Commentary: Growth is steady, margins healthy, and the dividend payout remains sweet.
