CARE Ratings' operating margin jumps 20.54 percentage points QoQ
Revenue grew 46.96% while expenses rose 3.21%, but other income still contributed 16.14% of pre-tax profit.
Filed 29 Oct 2026, 20:06 IST · after market close · CARE Ratings Ltd (CARERATING)
Key takeaways
- CARE Ratings' consolidated operating margin rose 20.54 percentage points sequentially to 51.55%.
- Revenue grew 46.96% QoQ while expenses increased only 3.21%, driving operating profit up 144.33%.
- Other income contributed 16.14% of pre-tax profit, while the tax rate fell 2.34 percentage points to 24.30%.
Price around the results
Revenue surge drives sharp operating rebound
CARE Ratings reported consolidated revenue growth of 46.96% QoQ, lifting operating profit 144.33%. Expenses rose only 3.21%, so operating margin expanded from 31.01% in Q1FY27 to 51.55% in Q2FY27. Net profit increased 119.37% sequentially to Rs 72.37 cr.
Lower tax rate and other income supported profit
The tax rate declined 2.34 percentage points to 24.30%, providing an additional lift to net profit. Other income was 16.14% of pre-tax profit, so the quarter's earnings included a material non-operating contribution. Interest expense fell 3.33% QoQ, while depreciation was unchanged.
Margin remains below the reported peer median
Among 58 Financial Services peers that had reported, CARE Ratings' 51.55% operating margin was 7.98 percentage points below the sector median of 59.53%. The margin nevertheless marked a sharp sequential recovery from Q1FY27, rather than a continuation of the prior quarter's weaker level.
Results filed after market close
The consolidated results were filed after market close on 29 October 2026. The stock's immediate market reaction is therefore not yet available to assess against its post-results history.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹164 cr | ₹112 cr | +46.96% |
| Other income | ₹15 cr | ₹15 cr | +4.26% |
| Expenses | ₹80 cr | ₹77 cr | +3.21% |
| Operating profit | ₹85 cr | ₹35 cr | +144.33% |
| Operating margin (%) | 51.55% | 31.01% | — |
| Interest | ₹1 cr | ₹1 cr | -3.33% |
| Depreciation | ₹4 cr | ₹4 cr | +0.00% |
| Profit before tax | ₹96 cr | ₹45 cr | +112.59% |
| Tax | ₹23 cr | ₹12 cr | +93.91% |
| Net profit | ₹72 cr | ₹33 cr | +119.37% |
| EPS (₹) | ₹23.88 | ₹10.73 | +122.55% |
Operating margin of 51.55% compares with a Financial Services sector median of 59.53% across 58 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 51.55% next quarter.
- Whether revenue growth remains ahead of the 3.21% QoQ expense growth recorded this quarter.
- Whether other income remains near its 16.14% share of pre-tax profit.