CARE Ratings Limited reported a consolidated net profit of ₹3,299.26 lakh for the quarter ended June 30, 2026, up 24.89% from ₹2,649.74 lakh in the same period last year. The Mumbai-based credit rating agency saw consolidated revenue from operations rise 18.93% to ₹11,167.95 lakh, driven by an 18.97% increase in its core 'Ratings and related services' segment. This growth underscores sustained demand for credit assessment services despite broader economic headwinds.

The Board of Directors, chaired by Managing Director & Group CEO Mehul Pandya, approved the unaudited standalone and consolidated financial results at a meeting held on August 7, 2026. The results were reviewed by B S R & Co. LLP, the statutory auditors of the company, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The figures for the quarter ended March 31, 2026, represent balancing figures between audited full-year data and previously published year-to-date results.

Financial Performance Highlights

Consolidated total income reached ₹12,647.89 lakh, compared to ₹10,760.25 lakh in Q1FY26. Other income contributed ₹1,479.94 lakh, rising from ₹1,369.75 lakh in the prior year quarter. On the expense side, employee benefits expense increased to ₹5,919.52 lakh from ₹5,370.04 lakh, reflecting continued investment in human capital. Total expenses stood at ₹8,150.71 lakh, up from ₹7,016.26 lakh in the same period last year.

Standalone net profit rose 16.39% to ₹3,388.36 lakh from ₹2,911.55 lakh in Q1FY26. Standalone revenue from operations grew 16.54% to ₹8,815.14 lakh. Basic earnings per share (EPS) stood at ₹10.73 on a consolidated basis and ₹11.27 on a standalone basis, compared to ₹8.61 and ₹9.72 respectively in the prior year quarter.

Segment and Operational Details

The 'Ratings and related services' segment generated ₹9,871.37 lakh in revenue, up from ₹8,297.75 lakh in Q1FY26. Segment profit before finance costs and tax for this core business was ₹4,512.16 lakh, compared to ₹3,766.71 lakh in the previous year. The 'Others' segment contributed ₹1,350.51 lakh to revenue but incurred a segment loss of ₹14.36 lakh, contrasting with a loss of ₹146.20 lakh in the same period last year, indicating improved operational efficiency in non-core activities.

Total comprehensive income for the quarter was ₹3,288.97 lakh, attributable to owners of the parent company at ₹3,211.22 lakh. Paid-up equity share capital increased marginally to ₹3,006.04 lakh from ₹2,995.81 lakh, following the allotment of 13,400 equity shares pursuant to the exercise of employee stock options during the quarter. Share-based payment expenses recognized under Ind AS 102 amounted to ₹57.37 lakh in consolidated results and ₹43.85 lakh in standalone results.

What the Numbers Show

The divergence between revenue growth (18.93%) and profit growth (24.89%) suggests improved operating leverage in the first quarter of FY27. While employee benefits — typically the largest cost component for rating agencies — rose by 10.23%, they grew at a slower pace than top-line revenue. This indicates that CARE Ratings is generating more revenue per unit of labor cost, likely due to higher ticket sizes or increased efficiency in its ratings workflow. Additionally, the reduction in the loss from the 'Others' segment signals that diversification efforts are stabilizing, contributing positively to overall profitability without dragging down margins.

[CARE Ratings Limited](care ratings) held its 33rd Annual General Meeting (AGM) on July 3, 2026, through video conferencing, where shareholders approved the re-appointment of B S R & Co. LLP as Statutory Auditors for a term of five years. The appointment is effective from the conclusion of this 33rd AGM until the conclusion of the 38th AGM to be held in the year 2031. The meeting also confirmed a total dividend of ₹22 per share for the financial year 2025-26, reinforcing the company's commitment to shareholder returns.

The proceedings, chaired by Mr. V. Chandrasekaran, Non-Executive Chairman and Independent Director, validated the audited standalone and consolidated financial statements for the year ended March 31, 2026. The meeting complied with regulations from the Ministry of Corporate Affairs (MCA) and Securities and Exchange Board of India (SEBI). The company engaged National Securities Depository Limited (NSDL) to facilitate remote e-voting and appointed Mr. Mitesh Dhabliwala of M/s Parikh & Associates as the Scrutinizer.

Key Resolutions Passed

The AGM transacted several items of ordinary business, including the adoption of financial reports and the appointment of key personnel.

Auditor Profile

B S R & Co. LLP, a member entity of B S R & Affiliates registered with the Institute of Chartered Accountants of India (ICAI Firm Registration No.: 101248W/W-100022), was originally constituted as a partnership firm on March 27, 1990, and converted into a Limited Liability Partnership on October 14, 2013. The firm employs over 4000 staff and 170+ Partners across 14 locations, auditing listed companies in sectors including financial services, technology, and infrastructure.