ICRA (ICRA) Q1 26/27 earnings summary

Executive summary

• Delivered strong quarterly performance in Q1 FY2027, with consolidated revenue from operations rising to ₹16,336.60 lakhs from ₹12,448.87 lakhs in Q1 FY26, driven by growth in Ratings and sustained momentum in Risk & Analytics segments.

• Profit after tax for the quarter increased to ₹5,645.88 lakhs, compared to ₹4,275.82 lakhs in Q1 FY26.

• Ratings growth was supported by bank credit expansion, especially in Industries and NBFCs, despite lower bond issuances year-over-year.

• Risk & Analytics segment benefited from the Fintellix acquisition and steady KnowTech performance.

• Acquired remaining stakes in D2K Technologies and Fintellix, making them wholly-owned subsidiaries.

Financial highlights

• Revenue rose to INR 163.4 Cr in Q1 FY2027 from INR 124.5 Cr in Q1 FY2026, a 31.2% year-over-year increase.

• Total income for Q1 FY27 was ₹19,099.32 lakhs, up from ₹14,885.06 lakhs in Q1 FY26.

• Profit after tax increased to INR 44.6 Cr in Q1 FY2027 from INR 29.0 Cr in Q1 FY2026, up 53.8% year-over-year.

• EBITDA margin improved, with profit before tax at ₹7,611.54 lakhs versus ₹5,836.81 lakhs in Q1 FY26.

• Earnings per share (basic) for the quarter stood at ₹58.36, up from ₹44.11 in Q1 FY26.

Outlook and guidance

• Real GDP growth for FY2027 is estimated at 6.7%, down from 7.7% in FY2026, with downside risks from weak monsoon and geopolitical tensions.

• CPI inflation expected to rise to 5.0% in FY2027 from 2.1% in FY2026; WPI inflation projected at 8.0%.

• Fiscal deficit/GDP ratio forecasted at 4.5% for FY2027, 20 bps above target.

• Current account deficit expected to widen to -0.9% of GDP in FY2027.

• Management expects continued growth momentum, leveraging synergies from new subsidiaries.