CARE Ratings Q1 FY27 Results (NSE: CARERATING)
Signal: Steady quarter
The read
The core ratings franchise sustained 18.9% YoY revenue growth and EBITDA margin improved to 44.3%, marking the fourth consecutive quarter of YoY margin expansion; however, consolidated PAT growth of 24.5% was partly supported by other income of ₹1,479.94 lakh, equal to 32.9% of PBT, and the Others segment has not yet reached profitability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹111.68 Cr | 18.9% | -14.5% |
| EBIT | ₹45.57 Cr | 19.8% | |
| Net profit | ₹32.99 Cr | 24.5% | |
| EPS | ₹10.73 | 24.6% | |
| EBIT margin | 44.3% |
P&L walk
Consolidated revenue of ₹11,167.95 lakh rose 18.9% YoY but fell 14.5% QoQ, while EBITDA margin was 44.3%; employee-cost intensity improved YoY, though other expenses rose 43.2% YoY and the Others segment remained loss-making.
Segments
Ratings and related services remained the clear driver with revenue of ₹9,871.37 lakh and segment result of ₹4,512.16 lakh, up 18.9% and 19.8% YoY respectively, while Others moved from a ₹146.20 lakh loss to a smaller ₹14.36 lakh loss despite revenue growth of 22.8%.
Key positives
- Consolidated revenue rose 18.9% YoY to ₹11,167.95 lakh, with Ratings and related services revenue also growing 18.9% to ₹9,871.37 lakh.
- EBITDA margin reached 44.3%, up 17bps YoY, while employee benefits expense grew 10.2% YoY versus 18.9% revenue growth, supporting margin resilience.
- Consolidated PAT increased 24.5% YoY to ₹3,299.26 lakh and EPS increased 24.6% to ₹10.73, with EPS tracking PAT.
- Ratings and related services segment result grew 19.8% YoY to ₹4,512.16 lakh, demonstrating that the core business—not only other income—drove the earnings increase.
Key concerns
- Other expenses increased 43.2% YoY to ₹1,785.17 lakh, materially faster than revenue and offsetting some of the benefit from slower employee-cost growth.
- The Others segment remained loss-making at ₹14.36 lakh despite revenue growth of 22.8% YoY, limiting the earnings contribution from subsidiaries and adjacent services.
- Standalone PAT of ₹3,388.36 lakh exceeded consolidated PAT of ₹3,299.26 lakh, showing that subsidiary losses and ₹73.37 lakh of non-controlling interest reduced group earnings.
Earnings quality: includes non-operating other income
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