CARE Ratings (CARERATING) Q2 25/26 earnings summary

Executive summary

• Achieved strong year-over-year growth in both operating income and revenue for Q2 and H1 FY26, with consolidated revenue from operations up 16% YoY in Q2 and 14% YoY in H1.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved, showing strong profitability and revenue growth year-over-year.

• Interim dividend of Rs. 8 per equity share declared for FY 2025-26, with record date set for November 19, 2025.

• Appointment of Dr. Bimal Patel as Additional Non-Executive Independent Director for a three-year term.

• Partial stake sale in CareEdge Global IFSC Limited to SBI and NSEIX, reducing holding to 80.2%.

Financial highlights

• Q2 FY26 consolidated revenue from operations reached Rs. 136.37 Crs, up 16% YoY; H1 FY26 at Rs. 230.28 Crs, up 14% YoY.

• Net profit for Q2 FY26 stood at Rs. 5,720.99 lakhs, compared to Rs. 4,687.83 lakhs in Q2 FY25.

• Basic EPS for Q2 FY26 was Rs. 18.90, up from Rs. 15.41 in Q2 FY25.

• For the half year ended September 30, 2025, consolidated net profit was Rs. 8,370.73 lakhs, up from Rs. 6,826.12 lakhs year-over-year.

• Standalone net profit for H1 FY26 was Rs. 8,494.83 lakhs, up from Rs. 7,364.67 lakhs in H1 FY25.

Outlook and guidance

• Corporate bond issuances moderated in Q2FY26 due to higher yields and global uncertainty, but H1 FY26 saw a 3.7% YoY increase.

• Commercial paper issuances grew robustly, up 17.7% YoY in Q2FY26 and 18.5% YoY in H1FY26.

• Interim dividend declared, reflecting confidence in ongoing cash flows and profitability.

• Stake sale in subsidiary expected to complete within six months, with proceeds of Rs. 5.94 crore.

• GST collections, E-way bill generation, and PMI indices indicate sustained economic momentum.