ICRA (ICRA) Q4 24/25 earnings summary

Executive summary

• Group revenue grew 11.6% year-over-year to ₹498.0 crore, with PAT up 12.5% to ₹171.2 crore for FY2025; Q4 revenue rose 9.8% year-over-year and PAT increased 19.1%.

• Ratings division grew 14.4% year-over-year, research and analytics rose 8.3%, and service offerings expanded with ESG ratings and collaborations with BitSight and FTSE Russell.

• Over 600 research reports published across 60+ sectors, with new ESG ratings launched and five ESG ratings published in the first year.

• Board recommended a dividend of ₹60 per share for FY25, subject to approval, lower than the previous year's ₹100 per share (which included a special dividend).

• Legal dispute with an ex-employee was resolved through a voluntary settlement in April 2025.

Financial highlights

• FY2025 revenue: ₹498.0 crore, up 11.6% year-over-year; PAT: ₹171.2 crore, up 12.5%; Q4 FY2025 revenue: ₹136.2 crore, PAT: ₹56.0 crore.

• Earnings per share (EPS) for FY25 was ₹176.73 (basic), up from ₹157.07 in FY24.

• Dividend payout for FY25 is ₹57.91 crore, compared to ₹96.51 crore in FY24.

• Net cash generated from operating activities for FY25 was ₹20,007.36 lakhs.

• Margin expansion in ratings segment due to strong top-line and operating leverage.

Outlook and guidance

• Focus on scaling high-value solutions, deepening client relationships, and innovation.

• Non-ratings business targeted to reach parity with ratings business in 3-4 years.

• Domestic consumption and investment expected to improve in FY2026, with supportive government capex and anticipated rate cuts.

• Securitisation volumes in FY2026 estimated at ~₹2.5 trillion.

• GDP growth forecasted to dip to 6.2% in FY2026 from 6.5% in the previous year.