ICRA - ICRA

📊 NSE: ICRA 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 7:52

💰 Financial Performance

Revenue Growth by Segment

Ratings revenue grew by 13.6% in H1 FY2026 to INR 158.4 Cr, while Research and Analytics revenue increased by 1.8% to INR 103.6 Cr. Consolidated revenue from operations grew by 8.4% to INR 261.1 Cr for the first half of the financial year.

Geographic Revenue Split

Fintellix, a key subsidiary, has a global presence with subsidiaries in the US and South Africa. Total Fintellix turnover is INR 91 Cr, including US client billings that were previously not consolidated but will be transitioned to a separate US entity post-acquisition.

Profitability Margins

Consolidated PAT increased by 24.4% to INR 90.8 Cr in H1 FY2026, representing a PAT margin of approximately 34.8%. Profitability is driven by growth leverage and process reengineering.

EBITDA Margin

Fintellix operates at a 20% EBITDA margin. ICRA's overall margins improved YoY in H1 FY2026 due to leverage of growth in the Ratings segment, which saw results grow from INR 39.7 Cr to INR 52.5 Cr (32.2% growth).

⚙️ Operational Drivers

Raw Materials

Not applicable (Service Industry). Employee costs and technology investments are the primary operational drivers.

Import Sources

Not applicable.

Key Suppliers

Not applicable.

Capacity Expansion

Not applicable for service-based rating and analytics operations.

Raw Material Costs

Not applicable. Employee costs and other expenses were noted to be rising during the period.

Manufacturing Efficiency

Not applicable.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

8.40%

Growth Strategy

Growth is targeted through the acquisition of Fintellix for INR 253.25 Cr to lead in risk analytics, focusing on high-growth segments like Infrastructure and BFSI, and transitioning product models from upfront licenses to stable annuity-based subscription models.

Products & Services

Credit ratings, research reports, regulatory reporting solutions, credit risk solutions, supervisory platforms, data analytics solutions, and security valuation services.

Brand Portfolio

ICRA, ICRA Analytics, Fintellix, D2K.

New Products/Services

Newly launched Risk Management solutions and expanded security valuation offerings beyond AMCs.

Market Expansion

Expanding international business into the US and South Africa through Fintellix and targeting the global BFSI segment for risk analytics.

🌍 External Factors

Industry Trends

Shift in the risk-tech industry from upfront licensing to subscription-based models to ensure stable annuity revenues.

Competitive Landscape

Operates in a professional investment information and credit rating market with a focus on the BFSI and Infrastructure sectors.

Competitive Moat

Durable moat built on domain expertise in credit ratings combined with Fintellix's product innovation in regulatory reporting and risk analytics.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles; bond issuances declined in Q2 FY2026 due to rising yields and anticipated future rate cuts leading borrowers to shift to bank funding.

Consumer Behavior

Large borrowers are shifting from bond markets to bank funding in anticipation of future rate cuts.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by SEBI (Prohibition of Insider Trading) Regulations and the Companies Act, 2013. Fintellix products specifically address regulatory reporting and supervisory requirements for banks and NBFCs.