Date: October 29, 2026

Financial Performance Overview

CARE Ratings Limited reported financial results for Q2 and H1 FY27 ended September 30, 2026. The company demonstrated strong performance across both ratings and non-ratings businesses.

Consolidated Performance

  • Consolidated operating income increased by 20% year-on-year for H1 FY27
  • Revenue segmental contribution showed Ratings Business at Rs. 15.62 Crs and Non-Ratings Business contributing to total consolidated revenue of Rs. 148.51 Crs

Standalone Performance

  • Standalone operating income increased by 17% year-on-year for H1 FY27
  • Ratings business reported robust growth of 20% during H1 FY27
  • Non-ratings business reported growth of 18% during H1 FY27
  • Profitability and profit margins remained healthy with sustained growth at both standalone and consolidated levels

Dividend Declaration

The Board of Directors declared an interim dividend of Rs. 10 per share (each having a face value of Rs. 10 per share) for the second quarter of FY27.

Macroeconomic Context and Fundraising Environment

Economic Background

  • Indian economy logged GDP growth of 7.8% in Q1 FY27, supported by strong investment growth which accelerated to 12% from 10.5% in previous quarter
  • Full-year FY27 GDP growth projected at 7.3%
  • Economic momentum remained encouraging as seen in IIP growth, GST collections, and auto sales

Fundraising Activity

  • Corporate bond issuances rose 1.7% (y-o-y) to Rs 5.8 trillion in H1 FY27
  • Corporate bond issuances saw sharp uptick in Q2 after four consecutive quarters of contraction
  • Rebound likely reflected firms front-loading borrowings to lock in lower interest rates ahead of expected rate-hike cycle
  • Commercial paper issuances increased sharply by 24.1% (y-o-y) to Rs 11.1 trillion in H1 FY27
  • Bank credit grew by 19.1% (y-o-y) as of end-August 2026 compared to 10.3% growth in same period a year ago
  • Credit growth to large industries (67% share in total industrial credit) showed strong improvement rising by 14.9%, up from 2.4% growth last year
  • Credit growth to services remained upbeat rising by 24.3%, compared to 10.3% growth a year ago

High Frequency Indicators

  • Industrial output rose by 6.8% during April-August period, higher than 4.1% growth in same period last year
  • GST collections continued record encouraging performance despite rate rationalization

Business Segment Updates

CareEdge Analytics

The analytics business expanded its AI capabilities across multiple areas:

  • AI Implementation Road map
  • AI Implementation Risk Assessments
  • AI Engineering
  • AI Strategy and Transformation
  • Valuation Services (MLD, Unlisted Bonds)
  • Credit Risk Model & Score Cards
  • ICAAP & Stress Testing
  • Expected Credit Loss (ECL) Model Building and Validation

Product and Platform Development

The company developed several AI-powered products and platforms:

  • Products: AI Inside/AI by the Side, Augmented Intelligence, CredEdge (AI-powered credit infrastructure), IntelEdge (AI-powered intelligent credit monitoring), Kalypto (AI-driven risk analytics platform)
  • Solutions: Gen-AI Native Solutions, Intelligent Co-Pilots, AI-first product engineering, Reusable LLM services & shared AI stack, Multi-agent orchestration for workflows
  • Platforms: Agentic AI, Autonomous Intelligence, End-to-end AI Platform - EdgeAvira.AI, ReInvitEdge - Data Bench marking index for REITs and InvITs

CareEdge Advisory

The advisory business offers multiple services across practices:

Advisory & Consultancy Practices

  • Market Study & Business Strategy
  • Company Research & credit assessment
  • Transaction Advisory
  • Commercial Due Diligence
  • Credit Risk Model & Advisory
  • Financial Appraisal & Feasibility Study
  • Techno-economic Viability Study
  • Investment Risk Advisory
  • New market/product viability & Strategy

Sustainability Practice

  • ESG Strategy and Integration
  • SPOs/Impact Study on Green/Social Bond/Deposits/Loans
  • BRSR/ESG/GRI Reporting
  • Climate Change & Decarbonisation Strategy
  • ESG Due Diligence (ADB, IFC, SFDR)
  • Water/Waste/Energy Audits
  • Carbon Credits

Research Services

  • Customized Sectoral Research
  • Market study & Business Strategy
  • Industry Risk Scores
  • Research for Global Fund Houses

Grading Services

  • AIF Grading
  • MFI / COCA Grading
  • NGO/ LPG Grading
  • Corporate Governance Grading

Strategic Initiatives and Outreach

Global Operations

  • CareEdge Global Ratings marked second anniversary of operations at GIFT City
  • Event graced by Shri K. Rajaraman, Chairperson, IFSCA
  • Released publication \"A Case for Reforms: Building Sovereign Resilience in an Evolving\"
  • International subsidiary entities include CARE Ratings (Africa) Private Ltd in Mauritius, CARE Ratings South Africa (Pty) Ltd, and CARE Ratings Nepal Ltd

Stake Acquisition

  • Definitive SPA and SHA signed with State Bank of India and NSE IFSC Ltd for acquiring 9.90% stake each in CareEdge Global IFSC Ltd

Outreach Activities Q2 FY27

  • Hosted flagship event 'Conversations' in Mumbai on August 31 with theme \"Infrastructure Landscape: Vision for Viksit Bharat\"
  • Shri Gautam Adani, Chairman, Adani Group, graced event as Chief Guest
  • Featured panel discussions on energy transition and next-generation transport infrastructure
  • Report Launch: CareEdge Global & ORF report: \"Unlocking SME Financing for BRICS Economies\" at BRICS presidency
  • CareEdge Charcha events: Macro & Credit - Hyderabad; Auto – Delhi; Infra - Ahmedabad
  • Knowledge Partnerships – Assocham MF Summit

Management Commentary

Mehul Pandya, Managing Director & Group CEO of CareEdge, commented:

  • \"The resilience shown by the Indian economy amidst the global headwinds is noteworthy and reflects that the journey towards Viksit Bharat remains on track\"
  • \"At CareEdge, we have sustained the momentum of the preceding quarters to report an all round good performance covering all companies within the Group\"
  • \"We remain resolutely on course in our commitment towards Quality led Growth across the Group\"

Company Background

CareEdge is a knowledge-based analytical group offering services in Credit Ratings, Analytics, Consulting and Sustainability. Established in 1993, the parent company CARE Ratings Ltd (CareEdge Ratings) is second-largest rating agency. The wholly-owned subsidiaries of CareEdge Ratings are (I) CARE Analytics & Advisory Private Ltd (II) CARE ESG Ratings Ltd, and (III) CareEdge Global IFSC Ltd.