CARE Ratings hit 20% upper circuit, scales to new 52-week high on healthy Q2 results

The company posted 31 percent year-on-year (YoY) growth in consolidated profit after tax at Rs 46.88 crore

Shares of CARE Ratings soared 20 percent to hit the upper circuit and a 52-week high of Rs 1,409 on October 24, following the release of robust September quarter results. The company posted 31 percent year-on-year (YoY) growth in consolidated profit after tax (PAT) at Rs 46.88 crore, with revenue from operations rising 22 percent YoY to Rs 117.37 crore.

Operationally, CARE Ratings delivered impressive numbers, with EBITDA climbing 33 percent YoY to Rs 55.72 crore and an EBITDA margin of 47 percent, reflecting efficient management and solid performance across its business segments. The company attributed its growth to both its core ratings business and newer non-rating verticals, showcasing a well-rounded expansion strategy.

In its earnings call, the management emphasised momentum in initial ratings for capital market instruments, securitization, and bank debt, reflecting its focus on quality-led growth. Despite healthy 15 percent YoY growth in overall bank credit offtake as of August FY25, the company noted some slowdown in lending to NBFCs (down to 11.9 percent growth from 21.3 percent last year) and personal loans (16.9 percent versus 18.3 percent), driven by higher risk-weighting norms in these segments.

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Adding to investor optimism, CARE Ratings’ Board of Directors declared an interim dividend of Rs 7 per share for Q2FY25, further boosting market sentiment.

The company also announced its ambitious global expansion plans, positioning itself as the first Indian rating agency to enter the sovereign and global scale ratings market.

Through the launch of CareEdge Global IFSC Ltd, CARE will now provide ratings for 39 countries, expanding its footprint across key international markets. Its subsidiaries, CareEdge Africa and CareEdge Nepal, reported solid business growth, while CareEdge ESG issued its first rating to promote sustainability initiatives. Additionally, CareEdge Analytics and CareEdge Advisory reported improved performance, contributing to the company’s diversified growth strategy.

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