CARE Ratings Limited, India's second-largest credit rating agency, has reported a robust performance for the first quarter, with a significant increase in profit and revenue. The company also announced the reappointment of two independent directors, reinforcing its corporate governance structure.

Strong Financial Performance

For the quarter ended June 30, CARE Ratings reported a consolidated net profit of ₹2,649.74 lakhs, marking a substantial 24% year-on-year growth from ₹2,138.29 lakhs in the same quarter last year. This impressive growth in profitability underscores the company's strong market position and operational efficiency.

The company's consolidated revenue from operations also saw a notable increase, rising to ₹9,390.50 lakhs from ₹7,892.00 lakhs in the previous year's corresponding quarter, representing a 19% growth. This growth in revenue indicates a healthy demand for CARE Ratings' services and its ability to capitalize on market opportunities.

On a standalone basis, CARE Ratings performed equally well, with a net profit of ₹2,911.55 lakhs, up from ₹2,401.16 lakhs in the same quarter last year.

Segment-wise Performance

The company's financial results reveal a strong performance across its business segments:

The ratings business, which forms the core of CARE Ratings' operations, demonstrated solid growth. Meanwhile, the 'Others' segment, which includes non-ratings businesses, showed an impressive 30% year-on-year growth, indicating successful diversification efforts.

Corporate Governance and Leadership

In a move to strengthen its board, CARE Ratings announced the reappointment of two independent directors:

1. Mr. G. Mahalingam: Reappointed for a three-year term effective November 21.
2. Mr. V. Chandrasekaran: Reappointed for a three-year term effective December 7.

Both reappointments are subject to shareholder approval, reflecting the company's commitment to maintaining strong corporate governance practices.

Employee Stock Options and Share Capital

During the quarter, CARE Ratings granted 7,500 stock options to employees under its Employee Stock Option Scheme (ESOS) 2020. Additionally, the company allotted 25,933 equity shares pursuant to the exercise of employee stock options, slightly increasing its paid-up share capital.

Management Commentary

Mehul Pandya, Managing Director & Group CEO of CareEdge, commented on the results: "The quarter commenced on a positive note despite the challenging global macroeconomic environment. Our performance has been primarily driven by a healthy uptick in ratings business across the segments. Our non-ratings businesses continued their momentum of providing a good contribution in the consolidated performance."

The company remains focused on deepening its core capabilities, expanding geographic reach, and sharpening its competitive edge to continue making a positive impact across all markets it serves.

With its strong financial performance, strategic reappointments, and continued focus on growth and diversification, CARE Ratings appears well-positioned to maintain its market leadership in the credit rating industry while exploring new avenues for expansion.

CARE Ratings Limited , India's second-largest credit rating agency, has reported a strong financial performance for the first quarter, with significant growth in both revenue and profitability. The company also announced key board reappointments, signaling continuity in its leadership.

Financial Highlights

For the quarter ended June 30, CARE Ratings reported:

• Consolidated net profit of ₹2,649.74 lakhs, a 24% increase from ₹2,138.29 lakhs in the same quarter last year.
• Consolidated revenue from operations rose to ₹9,390.50 lakhs, up 19% from ₹7,892.00 lakhs year-on-year.
• Earnings per share (EPS) improved to ₹8.61, compared to ₹6.94 in the previous year's quarter.

On a standalone basis, the company's performance was equally impressive:

• Net profit increased to ₹2,911.55 lakhs, up 21% from ₹2,401.16 lakhs in the previous year's quarter.
• Revenue from operations grew by 16% to ₹7,563.93 lakhs.
• Standalone EPS stood at ₹9.72, up from ₹8.04 in the same period last year.

Segment Performance

The ratings business, which forms the core of CARE Ratings' operations, showed robust growth:

• Revenue from the ratings and related services segment increased by 18% year-on-year to ₹8,297.75 lakhs.
• The non-ratings business segment also performed well, with revenue growing by 30% to ₹1,099.34 lakhs.

Management Commentary

Mehul Pandya, Managing Director & Group CEO of CareEdge, commented on the results: "FY26 commenced on a positive note despite the challenging global macroeconomic environment. Our performance has been primarily driven by a healthy uptick in ratings business across the segments. Our non-ratings businesses continued their momentum of providing a good contribution to the consolidated performance."

Board Reappointments

In a move to ensure leadership continuity, the Board of Directors approved the reappointment of two Independent Directors:

1. Mr. G. Mahalingam: Reappointed for a three-year term effective November 21, 2025.
2. Mr. V. Chandrasekaran: Reappointed for a three-year term effective December 7, 2025.

Both reappointments are subject to shareholder approval.

Other Developments

• The company granted 7,500 stock options to eligible employees under its Employee Stock Option Scheme (ESOS) 2020.
• CARE Ratings allotted 25,933 equity shares pursuant to the exercise of employee stock options.

Market Outlook

CARE Ratings noted that while the Indian economy has shown resilience, there are mixed trends in high-frequency indicators. The company expects the domestic economy to hold up relatively well, albeit with some moderation. Positive factors include easing inflation, potential RBI rate cuts, and favorable monsoon prospects. However, global economic uncertainties pose challenges for private capital expenditure revival.

The strong Q1 performance and strategic leadership decisions position CARE Ratings well for continued growth in the evolving economic landscape. Investors and stakeholders will likely watch closely how the company navigates the balance between domestic resilience and global headwinds in the coming quarters.