CARE Ratings Limited has received cautionary letters from both BSE Limited and National Stock Exchange of India Limited regarding an inadvertent error in its credit rating disclosure process. The company disclosed this development under Regulation 30 of the SEBI Listing Regulations on February 18, 2026.

Regulatory Communication Details

The stock exchanges issued cautionary letters to CARE Ratings on February 17, 2026, highlighting a specific disclosure error. The company had inadvertently reported an incorrect ISIN (International Securities Identification Number) of one of its clients while making credit rating disclosures on the System Driven Disclosure platform.

Nature of the Violation

The regulatory communication specifically addressed the company's inadvertent reporting of incorrect ISIN details for one of its clients during credit rating disclosure submissions. This error occurred on the System Driven Disclosure platform, which is used by listed companies and rating agencies for mandatory regulatory disclosures.

The stock exchanges characterized this as a procedural oversight rather than a deliberate violation, issuing letters advising the company to exercise due caution in future disclosure processes.

Impact Assessment

CARE Ratings has explicitly stated that this regulatory communication will have no material impact on its business operations. The company provided a comprehensive impact assessment in its disclosure:

Regulatory Compliance Framework

This disclosure was made pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI Listing Regulations. The company has fulfilled its obligation to inform stakeholders about regulatory communications received from stock exchanges.

The cautionary letters represent a standard regulatory practice where exchanges guide listed entities on proper disclosure procedures without imposing penalties for inadvertent errors. CARE Ratings has acknowledged the communication and committed to enhanced diligence in future ISIN reporting processes.

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:

For the nine months ended December 31, 2025, the performance metrics showed consistent growth:

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:

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.