CareEdge, the parent brand of CARE Ratings Limited, is a prominent knowledge-based analytical group established in 1993. The core entity, CARE Ratings Ltd., is India's second-largest credit rating agency, licensed by the Securities and Exchange Board of India (SEBI) and accredited by the Reserve Bank of India (RBI). Over nearly three decades, it has built a credible track record of rating a diverse range of companies across various sectors. The group's vision is to be a global research and analytics company that enables risk mitigation and superior decision-making for its clients. Its mission is to provide best-in-class tools, analyses, and insights to facilitate informed decisions.

The company has strategically expanded beyond its core ratings business through several wholly-owned subsidiaries. CARE Analytics and Advisory Private Ltd. offers a suite of services in risk analytics, advisory, and consulting. CARE ESG Ratings Ltd. has established itself as a market leader in India for ESG ratings. To tap into global markets, the group operates CareEdge Global IFSC Ltd. from India's GIFT City, the first credit rating agency registered with the International Financial Services Centres Authority (IFSCA).

CareEdge also maintains a significant international presence through its subsidiaries, including CARE Ratings (Africa) Private Limited in Mauritius, which also has a wholly-owned subsidiary in South Africa, and CARE Ratings Nepal Ltd., which holds a dominant market share in its region. This diversified structure allows CareEdge to offer an integrated suite of services covering credit ratings, analytics, consulting, and sustainability, positioning it as a comprehensive analytical solutions provider for both domestic and international clients.

Official Website: www.careedge.in

• Consolidated Performance (Q3 FY26):

• Revenue from Operations: Grew by 16% year-over-year (YoY) to Rs. 112.12 crores.

• EBITDA: Increased significantly by 33% YoY to Rs. 40.34 crores.

• Profit After Tax (PAT): Rose by 29% YoY to Rs. 36.54 crores.

• Earnings Per Share (EPS): Stood at Rs. 11.96.

• Consolidated Performance (9M FY26):

• Revenue from Operations: Grew by 17% YoY to Rs. 342.40 crores.

• EBITDA: Increased by 27% YoY to Rs. 136.64 crores.

• Profit After Tax (PAT): Rose by 24% YoY to Rs. 120.25 crores.

• Earnings Per Share (EPS): Stood at Rs. 39.46.

• Standalone Performance (Q3 FY26):

• Revenue from Operations: Grew by 15% YoY to Rs. 90.24 crores.

• EBITDA: Increased by 23% YoY to Rs. 37.23 crores.

• Profit After Tax (PAT): Rose by 22% YoY to Rs. 36.06 crores.

• Earnings Per Share (EPS): Stood at Rs. 12.01.

• Standalone Performance (9M FY26):

• Revenue from Operations: Grew by 14% YoY to Rs. 280.15 crores.

• EBITDA: Increased by 18% YoY to Rs. 129.50 crores.

• Profit After Tax (PAT): Rose by 17% YoY to Rs. 121.01 crores.

• Earnings Per Share (EPS): Stood at Rs. 40.35.

• Segmental Contribution (9M FY26):

• The Ratings Segment contributed 89% of consolidated revenue, amounting to Rs. 305.69 crores, a growth of 17% YoY.

• The Non-Ratings Segment contributed 11% of consolidated revenue, amounting to Rs. 36.71 crores, growing at a faster pace of 21% YoY.

The company demonstrated robust, double-digit growth across both standalone and consolidated operations, with profitability metrics like EBITDA and PAT growing faster than revenue, indicating strong operational leverage.

• Diversified Service Portfolio: Beyond its core credit ratings business, CareEdge has built a comprehensive suite of services through its subsidiaries, including bespoke consulting, risk advisory, ESG strategy, feasibility studies, valuation services, and digital banking solutions.

• ESG Market Leadership: Through CARE ESG Ratings Ltd., the company has become a market leader in India's issuer-pay ESG rating segment, holding a 52% market share for Category 1 ESG Rating Providers (ERP).

• Strategic International Presence: The company has established a meaningful footprint in international markets with subsidiaries in Nepal (where it holds the highest market share), Mauritius, and South Africa, allowing it to serve a broader client base.

• Pioneering GIFT City Operations: CareEdge Global IFSC Ltd. is the first credit rating agency registered with the IFSCA at GIFT City, positioning it uniquely to provide global scale ratings for international debt instruments from a strategic financial hub.

• Integrated Knowledge Group: The company positions itself not just as a rating agency but as a "knowledge-based analytical group," leveraging its deep expertise to offer integrated research, analytics, and advisory services that support complex decision-making.

CareEdge's uniqueness lies in its successful diversification into high-growth non-rating segments, its leadership in the nascent ESG market, and its strategic international presence, including a first-mover advantage in India's GIFT City.

• Macroeconomic Environment: The Indian economy has shown resilience despite global geopolitical challenges, with real GDP growth estimated at 7.4% for FY26. This growth is supported by domestic factors like tax cuts, easing inflation, and momentum in services exports.

• Fundraising Activity: The domestic debt market was mixed in Q3 FY26, with corporate bond issuances declining by 11% YoY and commercial paper issuances falling by 6% YoY. However, for the nine-month period (9M FY26), commercial paper issuances grew by a healthy 10.3%, while corporate bonds were only marginally lower by 0.7%.

• Bank Credit Offtake: Bank credit growth has been strong, accelerating to 14.5% as of December 2025 from 11.2% in the prior year. Industrial credit growth rose to 13.3%, and credit to the services sector grew by 15.3%, indicating robust credit demand.

• Future Economic Outlook: The outlook is cautiously optimistic. Growth momentum may moderate slightly in the second half of FY26 due to statistical base effects. However, recent trade deals, such as the India-US trade agreement, are expected to provide a positive impulse, potentially adding 20 basis points to GDP growth and taking the FY27 projection to 7.2%.

The operating environment is supported by strong domestic economic fundamentals and accelerating bank credit growth, though capital market fundraising activity shows some signs of moderation.

• Broad-Based Revenue Growth: Consolidated revenue grew 17% in 9M FY26, driven by strong performance in both the ratings and non-ratings businesses. The Managing Director attributes this to stable rating volumes and broad-based growth across segments.

• Accelerated Growth in Non-Ratings Business: The non-ratings segment is a key growth driver, expanding at 21% YoY in 9M FY26. This outpaces the already strong 17% growth in the core ratings business, highlighting the success of the company's diversification strategy.

• Profitability Outpacing Revenue: For 9M FY26, consolidated EBITDA grew by 27% and PAT grew by 24%, both significantly higher than the 17% revenue growth. This demonstrates strong operating efficiency and an ability to scale the business profitably.

• Commitment to Quality-Led Growth: The management has explicitly stated its commitment to a strategy of "Quality led Growth," focusing on analytical rigor and governance to drive sustainable performance.

The company's growth is robust and well-rounded, fueled by strong performance in its core ratings business and accelerated expansion in its diversified non-ratings segments, all while improving profitability.

• Improving Credit Demand: The acceleration in bank credit offtake and the management's outlook for improving credit demand and healthy capital market activity create a favorable environment for the core ratings business.

• Global Ratings Expansion: The CareEdge Global subsidiary operating from GIFT City is well-positioned to capitalize on opportunities in rating global debt instruments, having already rated over USD 6 billion in debt across various sectors.

• ESG and Sustainability Focus: As a market leader in ESG ratings in India, CareEdge is strategically positioned to benefit from the increasing global and domestic demand for sustainability-linked financial products and reporting. This includes providing services like third-party reviews for green and social bonds.

• Expansion of Analytics and Advisory: The high growth rate of the non-ratings segment indicates a significant opportunity to further expand its portfolio of advisory, analytics, and consulting services to a wider range of clients.

Key opportunities lie in leveraging the strong domestic credit cycle, expanding global rating services from GIFT City, and capitalizing on the structural shift towards ESG and sustainability.

• Focus on Governance and Analytical Rigor: The company plans to maintain its focus on governance, analytical rigor, and stakeholder trust as core pillars of its strategy.

• Driving Quality-Led Growth: The stated strategy is to pursue "Quality led Growth," indicating a plan to prioritize the quality and credibility of its services to build long-term value rather than focusing solely on volume.

• Continued Product Innovation: The recent launch of new platforms like PaRRVA (Past Risk and Return Verification Agency) and ReInvitEdge (for Infrastructure Investment Trusts) signals an ongoing commitment to developing new products and solutions to meet evolving market needs.

The company's future plans are centered on strengthening its core value proposition through analytical rigor and governance while pursuing disciplined growth and product innovation.

• Consolidated Margins:

• For Q3 FY26, the EBITDA margin was 36% and the PAT margin was 29%.

• For 9M FY26, the EBITDA margin stood at a strong 40%, with a PAT margin of 32%.

• Standalone Margins:

• For Q3 FY26, the EBITDA margin was 41% and the PAT margin was 35%.

• For 9M FY26, the company reported a robust EBITDA margin of 46% and a PAT margin of 38%.

• Driver of Margin Strength: The management attributes the strong standalone EBITDA margin of 46% for the nine-month period to disciplined cost management and enhanced operational efficiencies.

The company maintains very healthy and robust margins, particularly at the standalone level, driven by disciplined cost controls and operational efficiency.

• Global Geopolitical Tensions: The company acknowledges that the global landscape remains challenging due to ongoing geopolitical tensions, which can impact market sentiment and economic activity.

• Debt Market Volatility: The management noted that the domestic debt market was in a "mixed state" during Q3 FY26. Volatility in capital markets can directly affect the volume of debt issuances, which is a key driver for the ratings business.

• Quarterly Performance Fluctuations: The Managing Director explicitly advises that the company's performance should be evaluated on an annual basis rather than quarter-on-quarter, suggesting that the business is susceptible to quarterly volatility.

• Potential Economic Moderation: The outlook includes an estimation that India's GDP growth momentum could see some moderation in the second half of FY26, which could potentially temper credit demand and business volumes.

Key risks stem from external macroeconomic factors like geopolitical tensions and debt market volatility, as well as the inherent cyclicality that can cause fluctuations in quarterly performance.

• New Product Launches: The company has recently launched two new platforms:

• PaRRVA (Past Risk and Return Verification Agency): A new verification service offered by CareEdge Ratings.

• ReInvitEdge: A platform from CareEdge Analytics designed for Infrastructure Investment Trusts (InvITs).

• High-Profile Industry Engagement: CareEdge has actively engaged in thought leadership by hosting several key events:

• 'The Dialogue': An event on ratings and economic resilience featuring India's Minister of Commerce & Industry as the Chief Guest.

• 'Conversations': A discussion on powering India's growth with the Chief Economic Advisor to the Government of India.

• 'Charcha': Roundtable discussions focused on specialized topics like the Securitisation Market and the Municipal Bond Market.

The company is actively innovating with new product launches and enhancing its brand and influence through high-level engagement with policymakers and industry stakeholders.