CARE Ratings Ltd — Q4 FY26
CARE Ratings delivered a strong FY26 with consolidated revenue of ₹473.07 crore (+18% YoY) and PAT of ₹173.69 crore (+24% YoY), driven by broad-based growth across domestic rati...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
42%Questions answered6Evaded / deflected12Questions auditedMixedNumbers vs filing
Partial answer
High priority
What drove the strong revenue growth across the board?
Asked by Balachi Subraman, Capital
Management gave qualitative drivers but did not provide the requested quantitative flavor on revenue split.
no quantitative split between initial and surveillance revenue
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Question
some bit of color on what has driven the waiting revenue growth across the board... Is it a rising contribution from surveillance income and how bank loan rating and bond market rating contributed?
Rei (likely CFO or senior management)
the bond market was a bit slower this year in FY26... the bank loan rating market was buoyant with 16.1% growth in bank credit... both the surveillance as well as the initial rating revenue continue to add to our growth.
Answered
Medium priority
Has the dynamic changed where bond market yields are better than bank loan?
Asked by Balachi Subraman, Capital
Management confirmed the dynamic has not changed and bond yields remain higher.
Read the exchange
Question
usually when bond market surges rating agencies do better because of premium pricing... has this dynamic changed in recent times?
Rei
your observation is right... yields in the bond market as far as rating fees are concerned are better than in the bank loan market and they continue to be in that same trajectory.
Evasive
High priority
Has there been any weakness in rating activity due to geopolitical issues?
Asked by Balachi Subraman, Capital
Management acknowledged the question but gave no specific data or outlook, only general commentary.
no concrete answerdeferred to future observation
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Question
has there been any on the ground weakness as far as rating activity is concerned... any significant change in sentiment for the worse?
Mehul (likely MD or senior management)
This is still an evolving impact... nobody actually has any prognosis on how long the conflict could be continuing... it's too premature.
Declined
High priority
What is the growth in initial rating fees vs surveillance fees in FY26?
Asked by Rajiv Mata, Yes Security
Management explicitly declined to provide the requested breakdown.
refused to provide split
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Question
can we get to know what is the growth purely in the initial fee in FY26 because... if there is any moderation it will reflect firstly in the initial rating fee growth.
Rei
we won't be able to comment on what proportion is initial and what proportion is surveillance... it's very difficult to bifurcate as initial or surveillance.
Answered
High priority
What is the market share in initial ratings and number of rated corporates?
Asked by Rajiv Mata, Yes Security
Management provided specific numbers on market share and portfolio size.
Read the exchange
Question
you generally speak about the market share in the initial rating market... can you share the number of rated corporate how that has grown?
Rei
we have about 5,200 plus rated entities in our portfolio... we continue to hold about a 24-25% market share in the incremental business both by count and volume of debt rated.
Declined
Medium priority
Can you bifurcate domestic rating revenue by banks, NBFCs, large and mid corporates?
Asked by Priyanka, Val Capital
Management explicitly declined to provide the requested segment-wise revenue split.
refused to provide segment breakdown
Read the exchange
Question
if you can bifurcate this domestic ratings revenue for care between banks, NBFCs, large corporates and mid corporates revenue contribution and growth.
Rei
we will not be able to give those bifurcations. It's the aggregate level of rating revenue which is there in the public domain.
Answered
High priority
Will the mid-corporate strategy help grow India ratings faster than industry?
Asked by Priyanka, Val Capital
Management affirmed the strategy and reiterated their goal to outpace industry growth.
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Question
given that we had a strategy to gain market share in mid corporates... should that be enough to have a fair judgment around growing India ratings faster than the industry?
Mehul
we have been going at a pace which is faster than the overall rating industry growth... our stated position remains that we'll continue to outpace the overall industry growth.
Partial answer
Medium priority
Why has non-rating revenue growth decelerated and timeline to reach 20% of total?
Asked by Priyanka, Val Capital
Management explained growth rates but did not provide a timeline for reaching the 20% target.
no timeline given for 20% target
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Question
this segment revenue contribution has remained around 10%... what has been the reason for deceleration and what are your thoughts around scaling this back to 20%?
Mehul
non-ratings segments has grown by 19% faster than the group average... the reason the percentage share has not moved dramatically is because the rating business itself has grown very strongly at 17%.
Evasive
High priority
Why is dividend payout flat and no buyback despite cash accumulation?
Asked by Priyanka, Val Capital
Management did not directly address the flat payout or buyback, instead discussed M&A pipeline.
no commitment on buybackdeferred to inorganic opportunities
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Question
why would we have not even announced a buyback or kept the dividend payout as flat as last year?
Mehul
we have been consistently a dividend paying company and this year we have increased it also... we are actively evaluating inorganic opportunities... when the right opportunity presents itself we shall act decisively.
Answered
Medium priority
What is the growth prospect for overseas rating businesses?
Asked by Deepak Ajira, IG India
Management provided specific updates on each overseas business and growth trajectory.
Read the exchange
Question
on the overseas rating whether it is Africa, Nepal, what is growth prospect there?
Rei and Sori
Care Ratings Nepal is market leader... K Ratings Africa we got license to expand into South Africa and two other geographies... Carage Global IFSC rated about 8.5 billion dollars worth of debt.
Evasive
Medium priority
How do you see outlook for ratings business and share of BLR revenue?
Asked by Vun, Bandon Life
Management declined to provide the requested revenue split and gave only generic optimism.
refused to disclose BLR shareno specific outlook numbers
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Question
how do you see outlook for ratings business over near to medium-term and how has the share of BLR revenue changed over last two to three years?
Rei
we do not disclose our share between capital markets and banking ratings... we remain optimistic on the growth of the credit rating industry.
Evasive
Medium priority
Where is CARE in pricing compared to peers in bank and bond ratings?
Asked by Rahul Gandari, Unifi Capital
Management did not provide any pricing comparison, instead spoke about continuous improvement.
no comparative pricing datareframed to general improvement
Read the exchange
Question
within the credit rating segment where is care in terms of pricing compared to other players both in bank ratings and bond separately?
Mehul
we are not aware about the competitors pricing all across... you just have to be at it in terms of constant improvements... the results are showing for that.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Non-rating revenue grew 19% faster than group average | 19% | 18% | Matches filing |
| Rating business grew 17% | 17% | 18% | Matches filing |
| Carriage Analytics revenue crossed 50 cr | ₹50 cr | ₹131 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.