ICDSLTD - ICDS
Financial Performance
Revenue Growth by Segment
Revenue from operations grew 71.28% YoY in FY25 to INR 390.18 lakhs. For H1 FY26, the Financial Services (Recovery) segment grew 1650% to INR 28.01 lakhs from INR 1.60 lakhs YoY. Rent on premises declined slightly by 0.56% to INR 101.11 lakhs from INR 101.68 lakhs. The 'Others' segment (insurance marketing) declined 23.9% to INR 0.92 lakhs from INR 1.21 lakhs.
Geographic Revenue Split
Primarily concentrated in Karnataka, India, with the registered office and operations based in Manipal and Udupi. Specific regional % splits are not disclosed.
Profitability Margins
Net Profit Margin for FY25 was 20.89% (INR 81.51 lakhs profit on INR 390.18 lakhs revenue). For H1 FY26, the PBT margin stood at 103.2% (INR 134.30 lakhs PBT on INR 130.04 lakhs revenue) due to significant contributions from other income and fair value gains.
EBITDA Margin
EBITDA margin for FY25 was approximately 85.06% (INR 331.92 lakhs EBITDA on INR 390.18 lakhs revenue), reflecting the low-cost nature of rental and recovery-based income.
Capital Expenditure
Not explicitly disclosed in the provided documents; however, the company focuses on investment properties rather than heavy industrial manufacturing.
Credit Rating & Borrowing
Borrowings are minimal, standing at INR 8.76 lakhs as of September 30, 2025, down 66.6% from INR 26.27 lakhs in March 2025. Interest expenses for H1 FY26 were INR 0.28 lakhs.
Operational Drivers
Raw Materials
Not applicable as the company operates in financial services, rentals, and trading.
Import Sources
Not applicable.
Key Suppliers
Not applicable.
Capacity Expansion
Not applicable for the current business model of recovery and rentals.
Raw Material Costs
Not applicable; however, unallocable expenditure (operating costs) for H1 FY26 was INR 25.54 lakhs, representing 19.6% of revenue.
Manufacturing Efficiency
Not applicable.
Logistics & Distribution
Not applicable.
Strategic Growth
Expected Growth Rate
Not disclosed
Growth Strategy
The company is focusing on fee-based activities, maximizing rentals from investment properties, and aggressive recovery of old dues that were previously written off. It also leverages its foray into marketing life and general insurance products to diversify income.
Products & Services
Rental of investment properties, recovery of written-off loans and advances, trading of shares and securities, and marketing of life and general insurance policies.
Brand Portfolio
ICDS Limited.
New Products/Services
Marketing of insurance products of life and general insurance companies, which contributed INR 0.92 lakhs in H1 FY26.
Market Expansion
Not disclosed.
Market Share & Ranking
Not disclosed.
Strategic Alliances
Partnerships with life and general insurance companies for product marketing.
External Factors
Industry Trends
The industry is seeing a shift toward asset monetization and fee-based financial services. ICDS is positioning itself by pivoting from traditional lending to recovering legacy debts (INR 179.65 lakhs in FY25) and managing investment properties.
Competitive Landscape
Competes with other NBFCs in recovery and local real estate players in the rental market.
Competitive Moat
The moat is built on a portfolio of owned investment properties providing steady cash flow (INR 2.03 Cr in FY25) and a specialized legal framework for recovering old dues, which are high-margin as the principal was already written off.
Macro Economic Sensitivity
Sensitive to interest rate changes and real estate market cycles in Karnataka, which affect rental yields and recovery valuations.
Consumer Behavior
Shift toward insurance as a preferred financial product, supporting the company's insurance marketing segment.
Geopolitical Risks
Low, as operations are concentrated in the Indian domestic market.
Regulatory & Governance
Industry Regulations
Subject to the Code on Social Security 2020, which may impact provident fund and gratuity contributions once the effective date and rules are notified.
Environmental Compliance
Not disclosed.
Taxation Policy Impact
The company has opted for the Direct Tax Vivad Se Vishwas (DTVSV) Scheme 2024 to resolve a long-standing dispute for Assessment Year 1998-99 regarding book profits under Section 115JA.
Legal Contingencies
Pending dispute regarding an advance of INR 280.56 lakhs paid to stockbroker Hiten P. Dalal in 1991-92 for securities purchase. The company has also not recognized deferred tax assets on provision for doubtful debts as a matter of prudence.
Risk Analysis
Key Uncertainties
The primary uncertainty is the timing and amount of recovery from old dues, which can be volatile (INR 179.65 lakhs in FY25 vs INR 28.01 lakhs in H1 FY26).
Geographic Concentration Risk
High concentration in Karnataka, specifically the Udupi/Manipal region, making it vulnerable to local economic downturns.
Third Party Dependencies
Dependent on insurance companies for marketing commissions and the legal system for debt recovery.
Technology Obsolescence Risk
Low risk given the nature of rental and recovery businesses, though digital transformation in insurance marketing is necessary.
Credit & Counterparty Risk
Credit risk is managed through the provision for doubtful debts; the company has chosen not to recognize deferred tax assets on these provisions as a conservative measure.