CARE Ratings recently announced strong Q2 results, which led to a significant increase in its stock price. The company's consolidated profit after tax rose by 31% YoY to Rs 46.88 crore, while revenue from operations increased by 22% YoY to Rs 117.37 crore. The company's EBITDA also showed impressive growth, climbing 33% YoY to Rs 55.72 crore, resulting in an EBITDA margin of 47%.

The growth in CARE Ratings was driven by both the core ratings business and the expansion of non-rating verticals. The management highlighted positive momentum in initial ratings for capital market instruments, securitization, and bank debt, indicating a focus on quality-led growth. However, lending to non-banking financial companies and personal loans experienced a slowdown due to increased risk-weighting norms in these sectors, despite an overall healthy growth in bank credit offtake.

Overall, CARE Ratings' strong Q2 results and growth in various business segments demonstrate its ability to adapt and thrive in the market. The company's focus on quality-led growth and diversification into non-rating verticals positions it well for future success.