CARE Ratings Limited Reports Strong Q3 FY26 Results with 15% Revenue Growth
CARE Ratings Limited reported strong Q3 FY26 results with standalone revenue growing 15% YoY to Rs. 90.24 crores and consolidated revenue up 16% to Rs. 112.12 crores. For 9M FY26, standalone revenue reached Rs. 280.15 crores (14% growth) while consolidated revenue stood at Rs. 342.40 crores (17% growth). The ratings segment contributed 89% of revenue with Rs. 305.69 crores, growing 17% YoY, while maintaining healthy EBITDA margins of 46% for standalone operations.
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CARE Ratings Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, demonstrating strong operational performance across both standalone and consolidated metrics. The company's results reflect sustained growth momentum despite mixed conditions in the domestic debt market.
Financial Performance Overview
The company delivered impressive growth across key financial metrics for Q3 FY26:
| Metric | Standalone Q3 FY26 | YoY Growth | Consolidated Q3 FY26 | YoY Growth |
|---|---|---|---|---|
| Revenue from Operations | Rs. 90.24 Crs | 15% | Rs. 112.12 Crs | 16% |
| EBITDA | Rs. 37.23 Crs | 23% | Rs. 40.34 Crs | 33% |
| EBITDA Margin | 41% | - | 36% | - |
| PAT | Rs. 36.06 Crs | 22% | Rs. 36.54 Crs | 29% |
| PAT Margin | 35% | - | 29% | - |
| EPS | Rs. 12.01 | - | Rs. 11.96 | - |
For the nine months ended December 31, 2025, the performance metrics showed consistent growth:
| Metric | Standalone 9M FY26 | YoY Growth | Consolidated 9M FY26 | YoY Growth |
|---|---|---|---|---|
| Revenue from Operations | Rs. 280.15 Crs | 14% | Rs. 342.40 Crs | 17% |
| EBITDA | Rs. 129.50 Crs | 18% | Rs. 136.64 Crs | 27% |
| EBITDA Margin | 46% | - | 40% | - |
| PAT | Rs. 121.01 Crs | 17% | Rs. 120.25 Crs | 24% |
| PAT Margin | 38% | - | 32% | - |
| EPS | Rs. 40.35 | - | Rs. 39.46 | - |
Segment-wise Revenue Analysis
The company's revenue composition for 9M FY26 demonstrates the dominance of its core ratings business while showing growth across segments:
| Segment | Revenue (Rs. Crores) | YoY Growth | Contribution |
|---|---|---|---|
| Ratings Segment | 305.69 | 17% | 89% |
| Non-Ratings Segment | 36.71 | 21% | 11% |
The ratings segment continues to be the primary revenue driver, contributing 89% of total consolidated revenue with strong 17% year-on-year growth. The non-ratings segment, while smaller in absolute terms, showed robust 21% growth, indicating successful diversification efforts.
Management Commentary
Mehul Pandya, Managing Director & Group CEO of CareEdge, highlighted the company's performance despite mixed market conditions. He emphasized that standalone revenue from operations grew by 15% year-on-year in Q3 FY26, driven by stable rating volumes and broad-based growth across segments. The management noted that consolidated revenue growth of 16% in Q3 FY26 and 17% in 9M FY26 was supported by continued contribution from non-ratings businesses.
The company reported a robust standalone EBITDA margin of 46% for 9M FY26, reflecting disciplined cost management and operational efficiencies. Management expressed cautious optimism about the outlook, supported by improving credit demand, healthy capital market activity, and continued focus on governance and analytical rigor.
Market Context
The results come against a backdrop of mixed debt market conditions. Corporate bond issuances were lower by 11% year-on-year in Q3 FY26, while commercial paper issuances moderated by 6% during the quarter. However, cumulative commercial paper issuances for 9M FY26 remained healthy with 10.3% year-on-year growth. Bank credit offtake accelerated to 14.5% as of December 2025, up from 11.2% growth in the corresponding period of the previous year, indicating improving credit demand in the economy.
Historical Stock Returns for CARE Ratings
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.30% | -1.06% | -1.39% | -4.28% | +27.86% | +236.73% |
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