ICRA (ICRA) Q1 25/26 earnings summary

Executive summary

• Revenue grew 8.4% year-over-year in Q1 FY2026, reaching INR 124.5 Cr (₹12,448.87 lakhs), with profit after tax up 19.2% to INR 42.8 Cr (₹4,275.82 lakhs).

• Bond issuances hit a quarterly high, supported by rate cuts and a shift from bank credit; commercial paper volumes and securitisation activity were robust.

• The Board approved the acquisition of 100% shareholding in Fintellix India Private Limited for approximately ₹225 crore, subject to conditions.

• Research & Analytics segment saw strong growth in risk management and market data, though overall performance was moderated by the discontinuation of an ESG project.

• Internal restructuring led to revised segment reporting, grouping consulting, knowledge, and market data services into Research & Analytics.

Financial highlights

• Segment results increased to INR 50.3 Cr in Q1 FY2026 from INR 49.8 Cr in Q1 FY2025.

• Cash management performance outpaced industry averages, with a 92.44% increase in key metrics.

• Basic and diluted EPS for the quarter were ₹44.11 and ₹44.05, respectively, up from ₹36.92 and ₹36.90 last year.

• Total comprehensive income for the quarter was ₹4,237.70 lakhs.

• Consolidated financial performance reported at $58,779,558.

Outlook and guidance

• GDP growth for FY2026 is forecast at 6.2%, with nominal growth at 8.5%.

• A 25 bps repo rate cut is expected in August 2025, taking the rate to 5.25%.

• Fiscal deficit projected at 4.4% of GDP, with current account balance at -0.6% of GDP.

• Domestic consumption and investment are set to improve, aided by robust rural demand and government capex growth of 14.2% YoY.

• The acquisition of Fintellix is expected to enhance the Group’s capabilities, pending completion of agreed conditions.