CARE Ratings' Q1 FY 2025-26 Quarterly Results

Result Summary

• CARE Ratings Ltd reported a 7.1% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 18.5%.
• Its expenses for the quarter were up by 9.2% QoQ and 16.3% YoY.
• The net profit increased 7.9% QoQ and increased 23.9% YoY.
• The earnings per share (EPS) of CARE Ratings Ltd stood at 8.6 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

CARE Ratings Ltd is a prominent credit rating agency in India, providing a range of services including ratings for bank loans, debt instruments, and other forms of credit risk assessment. The company's primary offerings are aimed at aiding investors and financial institutions in making informed decisions by evaluating the creditworthiness of various entities. CARE Ratings operates in the financial services industry, where it plays a critical role in the efficient functioning of capital markets by providing reliable and independent credit ratings. Recent major developments and specific strategic initiatives undertaken by the company are not available within the scope of the provided data.

Revenue

During Q1FY26, CARE Ratings Ltd reported a total income of ₹107.60 crores. This reflects a quarter-over-quarter (QoQ) increase of 7.1% from ₹100.44 crores in Q4FY25 and a year-over-year (YoY) growth of 18.5% from ₹90.79 crores in Q1FY25. The consistent growth in total income over these periods indicates an upward trend in revenue generation for the company. The increase in revenue can be attributed to the company's ability to enhance its service offerings and possibly expand its client base, although specific details on the drivers of revenue growth are not provided.

Profitability

Profitability metrics for CARE Ratings Ltd in Q1FY26 show a Profit Before Tax (PBT) of ₹37.44 crores. This marks a 3.5% QoQ increase from ₹36.19 crores in Q4FY25 and a 23.0% YoY rise from ₹30.43 crores in Q1FY25. The Profit After Tax (PAT) for the same period stands at ₹26.50 crores, up by 7.9% QoQ from ₹24.55 crores and 23.9% YoY from ₹21.38 crores. These figures indicate robust profitability growth. Despite an increase in total expenses by 9.2% QoQ and 16.3% YoY, the company maintained strong profitability, which could suggest effective cost management or scaling efficiencies not detailed in the data provided.

Operating Metrics

CARE Ratings Ltd reported an Earnings Per Share (EPS) of ₹8.60 in Q1FY26, representing a 7.5% QoQ increase from ₹8.00 in Q4FY25 and a substantial 24.6% YoY growth from ₹6.90 in Q1FY25. The company's tax expense decreased by 6.0% QoQ to ₹10.94 crores from ₹11.64 crores, while displaying a 21.0% YoY increase from ₹9.04 crores. These changes in tax expenses, amid rising profitability metrics, indicate a dynamic tax strategy or changes in tax obligations that are not specifically detailed. The financial data does not include information on other operational metrics such as debt levels, liquidity ratios, or specific business segment performances.