CareEdge Ratings: The Story of a Bold Transformation (2020–2025)

There’s a saying in markets: the darkest hour comes before the dawn. And no better example of that exists than the extraordinary turnaround of CareEdge Ratings.

Between 2018–2019, the company, then known as Care Ratings, was riding high with a stock price of ₹1700, dominating India’s credit rating landscape. But by early 2019, it found itself in deep trouble — battered by the fallout of the IL&FS default, allegations of rating lapses, and a governance crisis that saw its then MD/CEO removed.

Within months, its stock tanked from ₹1700 to ₹250.

And yet — five years later, in May 2025, the same stock trades at an all-time high of ₹1640. A complete transformation story in corporate India.

Let’s trace this incredible journey.

2018–2019: IL&FS, A Crisis That Shook the Industry

The collapse of IL&FS in 2018 wasn’t just a credit event — it was an industry-defining crisis. As one of the leading raters of IL&FS group entities, Care Ratings faced intense scrutiny over its assessment practices.

The company got embroiled in regulatory probes, anonymous whistleblower complaints, and market backlash. Its credibility was dented, investor confidence evaporated, and key clients moved to rivals.

Revenues dropped, employee morale took a hit, and amidst the governance chaos, its stock price crashed by over 85% from ₹1700 to ₹250.

The management acknowledged mistakes, faced uncomfortable shareholder questions, and took corrective steps — including forensic audits, revamping rating models, and restructuring leadership.

2020: A Year of Crisis and Cautious Optimism

The fiscal year 2020 was tough. The NBFC turmoil, economic slowdown, and COVID-19 disruptions hit the credit rating industry hard. Care Ratings’ total debt rated plummeted from ₹19.9 lakh crores to ₹12.73 lakh crores. Revenues and profits declined sharply.

In April 2020, Ajay Mahajan took charge as MD & CEO and immediately acknowledged the challenges — sluggish GDP growth, declining bond market activity, and intense price competition in the sector.

He laid out three clear priorities:

1.      Strengthen the core rating processes and technology

2.      Diversify into new product areas like securitization and stressed asset ratings

3.      Build up the non-ratings businesses to contribute meaningfully in the future

A transformation roadmap was quietly put into motion.

2021: Stabilization and Laying Foundations

By FY21, CareEdge had stabilized its operating model. The company focused heavily on rebranding initiatives and cultural transformation, bringing in senior management talent and digitizing operations.

The new focus was on ‘initial ratings’ — fresh mandates, rather than relying only on renewals. Despite industry headwinds, CareEdge managed to improve market traction.

Even in pandemic-hit FY21, the groundwork was laid for future diversification — with investments in analytics, advisory, and ESG ratings subsidiaries, and an organizational restructuring to sharpen focus.

2022: The Big Rebrand — Welcome CareEdge

FY22 marked a symbolic and strategic shift. The company rebranded itself as CareEdge Ratings — a modern, forward-thinking brand identity to reflect its evolving business model.

The firm broadened its knowledge dissemination activities: publishing 150+ sector reports, hosting webinars, and launching podcasts.

Financially, initial ratings continued to grow well, though renewals remained competitive. The company expanded its ESG offering via its CART subsidiary and sharpened its focus on technology as a business enabler.

2023: Business Diversification Kicks In

By FY23, CareEdge was firing on multiple cylinders. Revenue from operations grew by 13%, and net profit rose 23%.

Key moves included:

  • Debt rated grew 78% YoY, with strong traction in bank loan ratings
  • Launch of SIRIUS, a tech-enabled ESG data and analytics platform
  • Expansion in Africa and Nepal subsidiaries
  • Greater push in Advisory, Analytics, and Risk Solutions businesses

This was the year CareEdge fully embraced its diversification strategy, transitioning from a pure-play rating agency to a multi-vertical financial services company.

2024: Going Global and Betting on ESG

FY24 was a landmark year. CareEdge secured SEBI approval for its ESG Ratings subsidiary, formalized its strategy for sovereign and global ratings via a newly incorporated IFSC-GIFT City entity, and signed a strategic MoU in Africa.

At home, the business mix began shifting — from a 94:6 Ratings:Non-Ratings ratio in FY23 to 90:10 in FY24. The non-rating verticals (Advisory, Analytics, ESG) clocked over 65%+ topline growth, a testament to the early seeds sown in 2020-21.

The company also actively explored AI for credit analytics and compliance management, marking its pivot towards a tech-driven enterprise.

2025: Hitting Record Highs and a 5-Bagger Stock

Come May 2025, CareEdge Ratings was on a different league.

  • Stock price skyrocketed from ₹300 in September 2020 to ₹1640, delivering a 5.5x return
  • FY25 saw record standalone income of ₹336.7 crore (+19% YoY) and consolidated revenue of ₹402 crore (+21% YoY)
  • Global sovereign and debt ratings business rated 39 countries and $3 billion+ in debt within 2 quarters
  • CareEdge ESG completed its first 6 ESG ratings post-SEBI approval
  • Analytics and fintech platform EdgeAvira.AI gained rapid adoption among banks and NBFCs

A decade into its Africa venture, CareEdge also secured regulatory approval for sovereign ratings in South Africa, a huge milestone for its global expansion strategy.

Technical Breakout: From Downtrend to Momentum Play

From a technical analysis perspective, CareEdge gave classic bottoming signals:

  • Crossed 50 WMA (weekly moving average) — a momentum shift indicator
  • Faced resistance at ₹780–₹650 zone (major supply area + 200 WMA level ₹790)
  • Pulled back to retest the ₹406 demand zone
  • Delivered a golden crossover breakout: 50 WMA crossing 200 WMA — a hallmark of long-term trend reversal

Once this breakout cleared the critical ₹783 resistance in 2023, momentum exploded. The stock surged from ₹406 to ₹1230 by 2024.


From Caution to Confidence: A Textbook Transformation

What makes CareEdge’s journey so remarkable is not just the numbers — it’s the strategic clarity and disciplined execution.

A business that was battered by market conditions in 2020 has, in five years, become an agile, tech-savvy, diversified financial services leader with an expanding global footprint.

Key lessons from CareEdge’s transformation:

  • Diversification is survival and growth insurance in volatile industries
  • Invest in technology and talent early, even in bad years
  • Thought leadership and market visibility matter as much as financials
  • Stay consistent with strategy — transformations take years, not quarters

 

As of 2025, CareEdge isn’t just a rating agency — it’s a diversified fintech-powered, knowledge-driven financial solutions group.

And this story isn’t over yet.



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